INTRODUCTION

INTRODUCTION AND DEFINITION OF BUSINESS ETHICS AND CORPORATE GOVERNANCE

What Is Business ?

:an economic activity.

:a transaction where an offer is made  by a seller and the offer is accepted by a buyer  for a consideration with the hidden agenda of a gain or profit . 

What Is Ethics?

: The discipline dealing with what is good and bad.

:  A theory, system, or set of moral principles or values.

:  Ethics is beyond law. Ethics starts when the law stops.

:  The institute of global ethics defines ethics as : ‘Obedience To The Unenforceable.’

Business Ethics is about

:THE STUDY OF  BUSINESS SITUATIONS, ACTIVITIES, AND DECISIONS WHERE ISSUES OF RIGHT AND WRONG ARE ADDRESSED.

What Is Corporate Governance ?

: THE PROCESSES AND STRUCTURE BY WHICH BUSINESS AND AFFAIRS OF CORPORATE SECTOR IS DIRECTED AND MANAGED.

Objectives Of Corporate Governance

# TO BUILD UP AN ELEMENT OF TRUST AND CONFIDENCE.

# ENHANCE STAKEHOLDERS’ VALUE.

# ENHANCE CORPORATE PERFORMANCE AND ACCOUNTABILITY.

Why Ethics Is Important In Business?

*  Provide excellent service & retain customers.

*  Develop and maintain strong employee relations.

     - Suffer less turnover

*  To increase the lifetime of an organization.

*  To gain the goodwill of the community.

*  Produce safe and effective products.

*  Enjoy better employee morale.

Benefits Of Ethical Business :-

1.  Maintains a moral cause in turbulent times.

2.  Cultivates strong teamwork and productivity.

3.  Supports employee growth and meaning.

4.  Helps to ensure that policies are legal.

5.  Helps to avoid criminal acts of “omission” and can lower fines.

6.  Helps to manage values associated with quality management and strategic planning. 

7.  Promotes a strong public image.

8.  Improves trust in relationships.

9.  Legitimizes managerial actions.

10. Strengthens the coherence and balance of the organisation’s culture.

11. Cultivates a greater sensitivity towards the impact of the enterprise's values and messages.

12.  Every significant management decision has an ethical value dimension.

13. There exists a clear vision and picture of integrity throughout the 

        organisation.