It is the responsibility of leadership to decide what culture is ethically acceptable and what is not. Good culture is promoted by shared ethical values. Ethical leadership recognizes the behavior which is inconsistent with the desired organization cultural values. The management of ethical behavior in corporate culture is also a practice of ethical leadership. A company’s leadership is also involved training to handle the unethical dilemmas.
Thus, successful executives must be concerned with both their character and their reputation. Abraham Lincoln described character as the tree and reputation as the shadow. Your character is what you really are; your reputation is what people think of you. Thus, your reputation is purely a function of perceptions (i.e., do people think your intentions and actions are honorable and ethical) while your character is determined and defined by your actions (i.e., whether your actions are honorable and ethical). Studies on business ethics have examined meaningful work as a moral issue concerning the management of others and ourselves, exploring whether there are definable characteristics of meaningful work to which we have moral rights, and whether there are moral duties to ourselves and others to fulfill those rights.
Adequate disclosure in accounting practices mandates that all readers of a financial statement have access to relevant data that would be believed essential to understanding a company's financial position. Adequate disclosure requires that key facts are included within the financial statement to help investors and creditors adequately assess the financial situation of a particular company. Example Details of contingent liabilities, contingent assets, legal proceedings, etc. are relevant to the decision making of users and hence need to be disclosed. Details of property, plant and equipment cannot be presented on the face of the balance sheet, but a detailed schedule outlining movement in cost and accumulated depreciation should be presented in the
As stated in Principle 1, The Board of Directors directs the Group’s risk assessment, strategic planning, succession planning and financial and operational management to ensure that obligations to shareholders and other stakeholders are understood and met. The board of directors has a collective responsibility for the management of the group to make sure the group is on the way to approach to their objectives while the non-Executive Directors are responsible for bringing independent judgment and scrutiny to decisions taken by the Board of Directors and providing objective challenges to management. Besides, the board of directors also function as formalising and adopting a set of Code of Ethics through the Code of Conduct as Recommendation 1.3 as stated in the Malaysian Code on Corporate Governance 2012 to make sure its compliance, establishing an appropriate set of corporate disclosure policies and procedures and ensuring a whistleblowing mechanism is in place. The Board of Directors recognizes the importance of independence and objectivity in its decision making process. The Directors are professionals of high calibre and integrity and possess in-depth knowledge and experience of the business to enable them to discharge their duties effectively.
CHAPTER 3: ANALYSIS Effect of Ethical Investment on Organizational Performance Source: “Does Ethical Investment Pay?” by Ethical Investment Research Service The above figure gives a rough model the variables which affects the shareholders price and how each of this variable will be impacted in case of ethical behaviour, policies or reflections involved in it. The model indicates the major links between the company, shareholders, employees, customers and government and the impact of ethics on a company’s cash flow in terms of costs, sales, and the cost of capital. The World Business Council for Sustainable Development6 stated “we are convinced that investment managers stand a good chance of improving their portfolio performance and reducing
The concept of corporate culture is commonly defined as a set of values that characterize a company. The purpose of this written piece is to examine the influence that corporate culture has on personal ethics and whether or not, this type of influence is appropriate. The essay will also discuss the best possible steps to solving problems in an organisation. It has been said that a strong knowledge of the corporate stance on ethical values can lead to the creation of a strong ethical culture (Stanwick and Stanwick, 2009, p. 15). There exist many cases in which we can see that corporate culture has had a negative effect on personal ethics.
The managers need to change their role and transform themselves into moral leaders to fulfil social responsibility towards the society. Carroll (2000) also suggested that the corporations have four business responsibilities towards the society. These four business responsibilities are economic, legal, ethical and philanthropic (Carroll, 2000). The ethical business practices
Character is an essential ingredient in ethical leadership. It is also important in mangers and CEO’s. According to Uhl-Bien, Schermerhorn and Osborn (2014), “the ethical leadership theory describes that leaders should be role models of appropriate behavior” (p.321). As a leader whether you are a CEO or a manger, you should have certain characteristics whether it is honesty and respectfulness. Managers and CEO’s should have a positive character because they influence others.
Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which stats that a firm can never exist In a vacuum (Khalidah et.
Leadership and ethics Name Professor Course Date Some of the ethical issues that management may need to address include corporate social responsibility. This refers to the operation of a business or organization in a manner that takes into consideration the environmental and social aspects created by enterprise. It implies the commitment to create policies that include responsible practices in the undertakings of the entity. Corporate social responsibility policies serve as self-regulatory measures for the organization in monitoring and ensuring that it complies with ethical standards, regulations and societal norms. This practice takes responsibility of the organizations actions to facilitate a positive impact of the organizations