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Manager ethics

Slovak University of Technology Faculty of Material Science and Technology in Trnava. Manager ethics. Responsible Management and the Responsible Business Enterprise. Principal benefits coming to an enterprise that implements a business ethics program :. Enhanced reputation and goodwill

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Manager ethics

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  1. Slovak University of Technology Faculty of Material Science and Technology in Trnava Manager ethics Responsible Management and the Responsible Business Enterprise

  2. Principal benefitscoming to an enterprise that implements abusiness ethics program: • Enhanced reputation and goodwill • Reduced risks • Reduced costs • Protection from unethical employees and agents

  3. Enhanced performance, productivity, and competitiveposition • Expanded access to capital, credit, and foreigninvestment • Increased profits and sustained long-term growth • Increased international respect

  4. ENHANCED REPUTATION AND GOODWILL • A business ethics program contributes to the enterprise’s reputation forintegrity. • By giving adequate guidance to employees and agents, it ensuresthat they know what is responsible business conduct. • By helping form reasonableexpectations among its stakeholders, it minimizes disputes withcustomers and other stakeholders and increases stakeholder satisfaction.

  5. REDUCED RISKS • Being exposed to criminal prosecution for bribing a government contractingofficer • Being debarred from government contracting or a strategic partnershipfor an inappropriate gift or gratuity • Having to recall products for failure to follow quality standards andprocedures

  6. REDUCED RISKS • Having to clean up spills of toxic waste • Dealing with employee claims of sexual harassment • Dealing with lost employee time for health and safety problems • Being placed on a blacklist of international, national, or local organizations

  7. REDUCED COSTS • The cost of bribery, kickbacks, and other forms of illegal or corrupt conductis not only the amount paid. The full cost includes management effortto allocate time to work with officials, to maintain a second set of books, andto deal with the threat of extortion and blackmail. • The real cost is the risk toreputation and pride in the enterprise and the reduced prospects for participatingin a market economy.

  8. PROTECTION FROM UNETHICAL EMPLOYEES AND AGENTS • A business ethics program is designed to establish standards and proceduresto prevent and detect violations of the trust put in employees. • Amongthese standards and procedures are processes to protect enterprise assets. • These specific processes may include establishing standards and procedures,monitoring and auditing systems, and reporting mechanisms.

  9. ENHANCED PERFORMANCE,PRODUCTIVITY ANDCOMPETITIVE POSITION • Product quality may improve and transaction costs, such as contracting,may decline. For example, many large, complex enterprises (LCEs), most ofwhich have business ethics programs, are developing preferred supplier liststo reduce the number of suppliers that they deal with.

  10. EXPANDED ACCESS TO CAPITAL, CREDIT AND FOREIGN INVESTMENT • When entering new markets, foreign investors seek reliable partners whodemonstrate integrity and operate on a transparent basis. • A business ethicsprogram reflecting global norms and values provides a common languagebetween an enterprise and foreign investors. • It creates opportunity to buildpartnerships that are based on respect, shared values, and mutual trust.

  11. INCREASED PROFITS AND SUSTAINED LONG-TERM GROWTH • The discipline of responsible business conduct does not deliver instantresults. • However, a business ethics program-including infrastructure andprocesses for continuous monitoring of compliance with law and ethics-should help an enterprise be more reliable and stable over time.

  12. INCREASED INTERNATIONAL RESPECT • Adhering to the discipline of responsible business conduct can help enterprisesgain access to international markets.

  13. SPECIAL OPPORTUNITIES FORSMALL TO MEDIUM-SIZED ENTERPRISES • Small to medium-sized enterprises (SMEs) have an additional incentive toadopt the discipline of responsible business conduct: to create a wider commercialnetwork. • Where owners and managers embrace the global languageof responsible business through a business ethics program, a network ofbusiness enterprises and supportive NGOs based on shared values is possible. • Such a network allows the individual SME to develop some of the synergiesand economies of scale that only larger enterprises can afford.

  14. TRUST AND SOCIAL CAPITAL

  15. CORPORATESOCIALRESPONSIBILITY • A new business strategy in which companies conductbusinessresponsibly by contributing to the economic health and sustainabledevelopment of the communities in which they operate,offer employees healthy, safe, and rewarding work conditions,offer quality, safe products, and service ... are accountableto stakeholders ... and provide a fair return to shareholderswhilst fulfilling the above principles

  16. Thank you for your attentions!

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