Ethics Flashcards
What is law?
Sets minimum standards
Adopted by government
Enforced by courts
what is ethics?
Personal ideas, beliefs and values
Subjective, moral views differ from person to person
Not enforceable by the court
whats UNGC
UNGC is a convention that encourages businesses operating in developing countries to adopt socially responsible policies and to apply ethical standards of operation that exceed the legal requirements of the host countries in which the companies are operating
what does UNGC promote?
UNGC promotes replacing the historical approach of maximizing short-term profits with policies that promote long-term value: long-term value includes reducing pollution to protect the environment for future generations and includes educating and improving the social and economic conditions of the local workforce
what are the 4 categories of principles covered by the UNGC?
Human rights, labour, environment and anti-corruption
what are the principles related to labour covered by the UNGC?
Labour
Principle 3: businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining (unionize)
Principle 4: the elimination of all forms of forced and compulsory labour
Principle 5: the effective abolition of child labour
Principle 6: the elimination of discrimination in respect of employment and occupation
what are the principles related to the environment covered by the UNGC?
Environment
Principle 7: businesses should support a precautionary approach to environment challenges
Principle 8: undertake initiatives to promote greater environmental responsibility
Principle 9: encourage the development and diffusion of environmentally friendly technologies
what are the principles related to human rights covered by the UNGC?
Human Rights
Principle 1: businesses should support and respect the protection of internationally proclaimed human rights
Principle 2: make sure that they are not complicit in human rights abuses
what is the principle related to anti-corruption covered by the UNGC?
Anti-Corruption
Principle 10: businesses should work against corruption in all its forms, including extortion and bribery
what does Extra-territoriality means?
Extra-territoriality: as a general rule, Canadian laws only apply to actions taken within the territorial boundaries of Canada. If a Canadian law is adopted with extra-territorial effect, this law will apply to actions taken by Canadians outside of Canada
allows the law to be applicable outside of Canada.
whats an example of extra-territoriality law?
Corruption of Foreign Public Officials Act (Canadian law) – Canadian companies can be charged, tried and convicted in a Canadian court for bribing or attempting to bride Foreign Public Officials, even if under the laws of the foreign country, where the officials are from, bribing public officials is not illegal
how can we solve an ethical problem?
one must try to balance the interests of all stakeholders
try to promote a win-win situation. (Win-win refers to the fact that every stakeholder should be given the opportunity to be heard and to express their views on the issue)
whats the corporate code of conduct?
Employee rules and guidelines: clearly explains what behaviour on the part of employees is acceptable, and what behaviour is inacceptable
Whats Professional Standards
Practices, skills, ethics, and/or qualifications set forth by a professional body representing the respective profession or discipline.
- Deals with the principles of objectivity, compliance with the law, inappropriate conduct, confidentiality, duty of care (fiduciary duty), conflict of interest
Responsible investing replaces ______ as a success measurement with the creation of ________ value
Replaces short-term profit as a success measurement with the creation of long-term value
FYI: long-term value includes reducing pollution to protect the environment for future generations and includes educating and improving the social and economic conditions of the local workforce
