Business ethics lecture 2

Corporate Governance Fiduciaries:  Persons placed in positions of trust who use due care and loyalty in acting on behalf of the best interest of the organization..  Duty of Diligence:

Business Ethics

Corporate Governance

 Fiduciaries:

 Persons placed in positions of trust who use due care and loyalty in acting on behalf of the best interest of the organization

 Duty of Diligence:

 A duty of care to make informed and

prudent decions

 Duty of loyalty;

 All decisions should be in the interests of the corporation and its stakeholders

 Conflict of Interest:

 When a person in a powerful authority uses the position to obtain personal gain usually at the expense of the

organization.

 BoD and Officers’ compensation !

To remove the opportunity for

employees to make unethical

decions; developed formal systems

of accountability, oversight, and

control are knwn as corporate

governance.

 Accountability:

 How closely workplace decisions are aligned with a firm’s stated strategic direction

 Alco compliance with ethical and legal

considerations

 Oversight:

 A system of checks and balances that limits employees’ and managers’ opportunities to deviate from policies and strategies and

that prevent unethical and illegal activities

 Process of auditing and improving organizational decisions and actions.