Chapter 9 - Ethics

Question 1

What is ethics

Answer 1

A concern for the well being of people and of society. It is one considered to be “morally right”.

Question 2

What are the fundamental principles of personal ethic?

Answer 2

• Respect
• Honesty and Fairness
• Compliance with the law
• Acting non-malisciously
• Inspiring trust

Question 3

What are the fundamental principles of employement ethic?

Answer 3

• Objectivity and Impartiality
• Acting prudently and Diligently
• Ensuring confidentiality
• Avoiding conflicts of interest
• Complying with professional standards

Question 4

Law v. Ethics

Answer 4

While ethics may have been incorporated into law, ethics is not the law.

Question 5

International Business Ethics

Answer 5

Laws vary from country to country, and while not ethical, there is nothing stopping a company from outsourcing operations

Question 6

UNGC - United Nation Global Compact

Answer 6

International initiative where businesses from 170 countries agreed to adopt a set of ethical business standards.

Is comprised of 10 principles found on page 345.

Question 7

What is extra-territorality?

Answer 7

When a canadian company breaches canadian law, outside of Canada.

Extra-territorality asserts a right to prosecute in Canada for actions taken by Canadians outside of canada. Exeption to Sovreignty.

Question 8

How do you resolve ethical issues?

Answer 8

There is no”right” or “correct” way to do things in ethics. There is no structure to resolve ethical decisions.

Thus, a company should ensure an internal process by which questions/concerns may be addressed.

Question 9

Professional Standards and Corporate Code of Conducts.

Answer 9

Professional Stds and Codes of condust are examples of ethical agreemens that business persons voluntaily undertake to abide by.

Question 10

Professional Standards or Practice

Answer 10

Established set of ethical rules and behaviour by which someone who wishes to be recognized as in good standing in their field follows. These pomote fair and ethical business practices and protect a profesional reputation. They may include;

• Objectivity - a professional should not be biased of influenced by the opinion of his client or employer
• Compliance with the law
• Innapropriate Conduct
• Confidentiality - do not use confidential information for personal gain
• Duty of care - Acting with reasonably with prudence and diligance in their fiduciary duty
• Confluct of interesr
• Corporate Codes of Conduct
• Gifts - only under a specific dollar amount
• Whistle Blowing

Question 11

Responsible Investing

Answer 11

Ethical appriach to evaluating a business entreprise. Looking at long term approach to evaluating investements, looking at

• Laour practices
• Ethical Approach
• Social Impact

Question 12

Coorporate Governance

Answer 12

Looks at how companies are managed and setting up ethical procedures to monitor and geulate conflict of interests among shareholders.

• BOD will appoint an independent director that act in the best interest of the company

A cooporation must act with trasnparency to be ethical.