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Regulation and Ethics, CSR, Leadership and Vision. Ian “ Ren ” Rennie. Hong Kong’s perfect market. Business ethics. In business, ethics can be defined as: the ability and willingness to reflect on values in the course of the organisation's decision-making process
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Regulation and Ethics, CSR, Leadership and Vision Ian “Ren” Rennie
Business ethics • In business, ethics can be defined as: • the ability and willingness to reflect on values in the course of the organisation's decision-making process • to determine how values and decisions affect the various stakeholder groups • to establish how managers can use these precepts in day-to-day company operations.
Ethics codes • The Golden Rule: Act in a way you would want others to act toward you • The utilitarian principle: Act in a way that results in the greatest good for the greatest number • Kant's categorical imperative: Act in such a way that the action taken under the circumstances could be a universal law, or rule, of behaviour • The professional ethic: Take actions that would be viewed as proper by a disinterested panel of professional peers • The TV test: Always ask, "Would I feel comfortable explaining to a national TV audience why I took this action?" • The legal test: Ask whether the proposed action or decision is legal. Established laws are generally considered minimum standards for ethics • The four-way test: • Is the decision truthful? • Is it fair to all concerned? • Will it build goodwill and better friendships? • Will it be beneficial to all concerned?
Milton Freidman • “... making business managers simultaneously responsible to business owners for reaching profit objectives and to society for enhancing societal welfare represents a conflict of interest ...”
Top trends • Only six percent of respondents perceive the top 100 companies as good corporate citizens • Only seventeen percent of respondents definitely trust what companies promise in their advertising and marketing • Only nineteen percent of respondents trust what companies say in official reports • Fifty four percent of respondents definitely agree that Microsoft is a responsibly-run company earning it the top spot for governance • The Walt Disney Company wins citizenship with fifty percent of respondents definitely agreeing that The Walt Disney Company is a good corporate citizen • Google takes first place in workplace with fifty percent of respondents definitely agreeing that Google is an appealing place to work and that it treats its employees well. Source: 2012 Global CSR RepTrak™ 100
Forbes – CSR Trends • Going Global • The Triumph (or Tyranny) of Transparency • Employee Engagement • Political Pitfalls • Collaboratition • Sustainability • Occupy From the Inside • Social Media Rules • Human Rights • Earth at 7,000,000,000 and Growing. Source : Forbes : The Top 10 Trends in CSR for 2012
The Rule Making game • Involves influencing the writing of society's rules by legislative or regulatory bodies ... • ... so that loopholes, exclusions, and ambiguous language ... • ... provide future opportunities to "work around" or circumvent the rules' intent for private gain • The Rule-Making Game is an influence game.
The Rule-Following game • Involves the actual exploitation of these gaming opportunities • This game involves following the letter of the law but not necessarily its intent or spirit ... • ... as well as violating grey areas of the law in ways that are not easily understood or recognised as violations • The Rule-Following Game is thus a compliance game.
Lawful but Corrupt • inconsistent management style by institutional leaders ... • coupled with perverse incentives ... • breakdowns in internal controls ... • ineffective board oversight ... • and an absence of transparency-can quickly neutralise regulation [and] grease the wheels of ethical drift ...”.
