Advantages of Ethical Behaviours and Decision-Making Flashcards
Why is it beneficial to have an ethics based culture?
- Greater client trust
- Reduce requirement for monitoring activity -> save money
- Increases the value of monitoring findings.
- Regulators can reduce prescriptive elements within the rulebook.
What should senior managers do in relation to ethical standards?
They should embed it into business practices so that it is recognised by employees and business partners. They should balance business objectives with ethical requirements.
What is Corporate Social Responsibility (CSR)?
Corporate self regulation integrated into business model of a company.
What is ESG?
Environmental, social and governance criteria used by socially responsible firms/investors to screen potential investments.
What is the ‘triple bottom line’?
People, planet, and profit
What is the OECD guidance in relation to ethics for companies called?
Guidelines for Multinational Enterprises
What are the Guidelines for Multinational Enterprises?
Voluntary standards for responsible business conduct for employment, industrial relations, human rights, environment, information disclosure, anti-bribery, consumer interest, science and technology, competition, and taxation.
What are the values in the IOSCO Model Code of Ethics?
- Integrity + Truthfulness
- Promise Keeping
- Loyalty - disclose conflicts of interest
- Fairness to the customer
- Doing no harm to the customer and profession
- Maintain confidentiality
Who in a firm is responsible for setting an ethics policy and framework - Board, management or both?
The management is responsible.
What are the 4 reports published by the OECD in relation to CSR?
- Strategies Response to the Financial and Economic Crisis.
- Guidelines for Multinational Enterprises
- Principles of Corporate Governance
- Convention on Combating Bribery
