Ethics and Ethical Compliance

Presented By:

M Ravish Malgi

What is Ethics?

Ethics: A group of moral principles or set of values that define us to the right choice.

• The term compliance describes the ability to act according to an order, set of rules or request.

• Compliance is something that the government requires you to do.

What is Compliance?

The terms “Ethics” and “Compliance” are often used synonymously.Which is completely wrong.

The Confusion

• Ethics and compliance are different sides of the same coin.

• Compliance is following the law, while ethics is doing what is right regardless of what the law says.

The Smaller Level

The Bigger Level

The Bigger Level of Ethical Compliance

• The world of business is like a race. All competitors are at an equal footing.

• But some companies try to bend the rules to win the race by unfair means.

The annual cost of corruption worldwide is estimated at 5% of the world’s GDP, representing $600 Billion.

Inflated contracts Commissions Bribes Gifts Perks

Companies try to beat competition by giving:

How to tackle Ethics + Compliance issues effectively at the Bigger Level

• Foreign Corrupt Practices Act, 1970 – Implemented by U.S.A. to tackle issue of corruption.

• Organisation for Economic Co-operation and Development (OECD) – Initiatives taken by 34 member countries to tackle issues of corruption & stimulate economic growth.

• Prevention of Corruption Act, 1988 – Act of Indian parliament to combat corruption at government and corporate level.

The Smaller Level of Ethical Compliance

• Organizations that support ethics initiatives show more productivity & employee retention than organizations that consider ethics merely an issue of compliance.

Common Ethics Issues in a Workplace

Working Inefficiently Anger Issues Abusive Behavior Harassment Discrimination Stealing Disloyalty

How to tackle Ethics + Compliance issues effectively at the Smaller Level

Code of Ethics – • Written policies and procedures• Strict compliance with regulatory bodies.

Ethics & Compliance Department - • Monitoring and auditing• Investigating and reporting• Response and prevention• Enforcement and discipline

Integrity Program – • Education and training programs

Importance of Ethics and Ethical Compliance

• Enhance reputation and company image.

• High employee commitment due to which business performance, revenue and profit increases.

• Strong relationships with stakeholders & customer satisfaction.

• Compliance activities focus on preventing corruption.