Ethics Impacts on Reputation, Profits and Share Value

Honest profit rests easy on the conscience. Also contributes to corporate reputation and share value. Ethical performance enhance employee morale, community relations, client satisfaction, inhibit the incidence of costly litigation and negative publicity.

Ethics is importance not only in contributing to the financial performance but also for indirect enhancement of operating efficiency and profitability. It occurs through enhanced employees and client satisfaction.

Ethics Reduce Compliance Costs at the From and Industry Level

There are significant cost savings inherent in the shift from after-the-fact control systems to preventing (before malfeasance systems)

Preventative controls -> inherent risk of loss high (cash and negotiable securities)

Monitoring or Detective controls -> risk is low (prepaid expenses) Has high benet-to-cost ratio.

INDIVIDUAL RESPONSIBILITY

Safeguard a corporation's ethical standards requires a team effort and an ethics-reinforcing culture.

Stakeholder theory posits that the corporation has responsibilities to numerous parties that have a "stake" in the enterprise. (Oppose to traditional approach shareholders)

Ethical responsibility is aligning the interests of those stakeholders (include employees and their families and etc) to the greatest degree possible.

Stakeholders:

- the individual (family, self and profession)

- the firm (co-workers; team; employer)

- the business (clients and prospects; retail and corporate investment community and suppliers)

- the public (host communities, regulators, bus media, environment and society)

Responsibilities to Self

One responsibility is to welfare of self and family. Financial needs, loyalties to friends, obligations to family will affect the individual's decision.

Enlightened self-interest can include potential benefits such as salary, career-based training, measure of employment security and chance for self-improvement.

Responsibilities to Co-workers

Second most important responsibility is the one for co-workers. "Treat others as you want to be treated. Ensure that co-workers are able to carry out work at a professional level. Rep wants to rely upon a responsible co-worker.

Responsibilities to the Profession

Responsibility to one's profession via registration and accreditation and membership with regulatory bodies and industry associations.

Responsibilities and accountabilities to the profession:

- act with knowledge that self-regulation is a privilege.

- teach and be taught.

- enter into associations or relationships only if you can maintain your professional integrity.

- use a professional designation in a dignified and judicious manner.

- do not engage in any professional conduct that involves dishonesty, fraud, deceit, or misrepresentation.

- do not commit any act that reflects adversely on your honesty, trustworthiness, or

- professional competence.

- whistle blow when the facts relating to wrongdoing are compelling

Дата добавления: 2015-10-29