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CORPORATE ETHICS
CODES
GSM5131: BUSINESS LAW & ETHICS
Group 3:
PBS1411482
PBS1411502
INTRODUCTION
Clark Consulting
Had a code of ethics for years but never really
apply it
The CEO later revised, redistributed to all
employees
A senior consultant was dismissed because not
compelling with Companys Code of Ethics
rule no.1 : clients come first
INTRODUCTION
What is ethics?
Common definition rules in distinguishing between
right or wrong
norms of conduct that distinguish
between acceptable or
unacceptable conduct
David B. Resnik
ISSUES
Corporate Scandals
Corporate scandals happen because of the unethical behavior of people
acting within or on behalf company
Understanding on the code of ethics doesnt stop people from conducting
any wrongdoing action
Due to the scandals, more acts and regulation has been imposed such as:
1. Sarbanes-Oxley 2002
2. New listing standards by NYSE
3. Transparent compliance to PLC in Malaysia (RMK9)
YEAR
ENRON
WORLDCOM
ARTHUR ANDERSEN
HEALTHSOUTH
TYCO LTD
AMERICAN INSURANCE
GROUP
LEHMAN BROTHERS
ROYAL BANK OF SCOTLAND
GROUP
SAYTAM
1MDB
2001
2001
2002
2003
2005
2005
2008
2008
2009
2015
o Documentation of COE
o Guidelines for employees
o Detailed and specific
Tech
Backup
Sanctions
Sections
Companies
Trying To
Strengthen
Their Ethic
Codes
Top
Manageme
nt
Signature,
Consent And
Agreement
Requirement
Training
Statement to be visible
Employees needs to
read and sign the
Communication
and Assimilation: Goals
Role
Erecting a Robust
and Self Sustaining
Ethics
Infrastructure:1. assuring employee
compliance
2. staff training
3. evaluations
of
compliance systems
4. appropriate funding
and staffing
5. effective protections
to Whistleblower
6. establish
independent
"hot
lines" or "help lines"
What more
can a
company do
to make sure
its code of
ethics is
followed?
Integrity Continuity
Management
Synthesizing
Ethical Conduct
into Corporate
Systems:1. Provide a
written pledge
i.e: Credo or values
2. Consistent
guidance
3. simple and nonconvoluted
systems to
measure the
effectiveness of
ethics initiative
4. Reward &
punishment
Improving
Leadership Behavior
to
Boost
Up
Employee
Commitment:1) Inspire
and
Motivate Others
2) Driving for Results
3) Strategic
Perspective
4) Collaboration
5) Walk the Talk
6) Trust
7) Develops
and
Supports Others
8) Building
Relationships
9) Courage
What more
can a
company do
to make sure
its code of
ethics is
followed?
CONCLUSION
END