The Effective Board: Composition and Structure

GOVERNANCE AND ETHICS

BAF:II

What are ethics

• Moral principles that govern a person's behavior or the conducting of an activity.
• Ethics or moral philosophy is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct.
• The field of ethics, along with aesthetics, concerns matters of value, and thus comprises the branch of philosophy called axiology

Discussion point

• What factors (positive and negative) have led to Boards globally taking a greater interest in ethics?

What positive and negative factors have led boards to take a greater interest in ethics?

• A wider shareholder franchise
• Socially responsible investment
• Globalisation
• Political initiatives
• Corporate misgovernance: abuse of positions by managers, corporate scandals
• The development of the Internet
• Recruitment
• Anti-Corruption Tool

Code Of Ethics for a Company

1.CODE OF ETHICS refer to set of rules ,standards and values.

2.It is a written document and provides for ethical practices in an organization or profession

3.It addresses issues such as interactions between employees and the public

4.It covers areas which are beyond compliance with the Law such as the happiness, wellbeing and health and safety of employees and the public.

6.It is discretionally/Voluntary-the company can decide whether it wants to follow a certain Corporate ethics code or not

6.It is discretionally/Voluntary-the company can decide whether it wants to follow a certain Corporate ethics code or not

7.It contains both technical aspects of business and Moral values.

COMPONENTS OF CODE OF CONDUCT

1.Company/Organizational Values

Company Value are the principles and standard of behaviour that a company is build upon. the value written there in may include intergrity,constructive critics, honesty etc