The Effective Board: Composition and Structure

Ethical leadership involves the following across the organization

• Ethical leadership involves the following across the organization
• Team work
• Integrity
• Innovation
• Professionalism
• Service

Ethics Key to Corporate Success

When does a Business Problem Involve Ethics?

Issues of Ethical Misconduct

• Stakeholder

1.Employees

2.Customers

3.Suppliers

4.Community

5.Shareowners

• Issues
• ………………………
• …………………………
• ………………………….
• ……………………….
• …………………………..

Other examples: Issues of Ethical Misconduct

• Employees: Unfair dismissal, failure to reward after reaching agreed to targets
• Customers: Selling expired or defective products
• Suppliers: Late payment
• Community: Pollution, environmental degradation
• Shareowners: Abuse of assets, falsifying financial statements

Most Common Types of Ethical Misconduct Reported

• Abusive or intimidating behavior towards employees
• Provision of low-quality goods and services
• Using competitor’s inside information
• Environmental violations
• Alteration of documents
• Lying to stakeholders and/or employees
• Safety violations
• Sexual harassment

Developing a Code of Ethics

• Identify a champion, allocate responsibilities
• Consult widely to identify and articulate company values
• Draft a code and try it out
• Get it signed off at board level
• Publish to staff, post on website
• Provide training, support
• Review regularly