Corporate Governance and Illicit Conduct. Ethics and Business Conduct

Transcription

1 PART II

2 Corporate Governance and Illicit Conduct

3 Developing standards Define ethics Set out rights and responsibilities for: Organisation Directors Management Employees

4 Developing standards Set out rights and responsibilities for: Customers Contractors and other representatives Suppliers, consultants Other stakeholders (Government, Regulators, Funders)

5 Developing standards Set out policy and procedures relating to business courtesies and gifts Define business courtesies and gifts Define conflicts of interest Develop policy and procedures for management of conflicts of interest

6 Developing standards Define expectation of relationships amongst colleagues Define expectation of relationships with suppliers Provide for health, safety and environmental protection policy and standards of adherence Record how customer, supplier and other resources will be used and safeguarded

7 Developing standards Provide for monitoring of adherence to ethics standards Provide for reporting channels for resolving ethical dilemmas and whistle blowing Provide for independent audit of adherence to ethics standards by independent outside survey or review

8 Developing standards Record guidelines for, and practical examples and relating to prevalent ethical dilemmas Acceptance of business courtesies and gifts Management of conflicts of interest

9 What is Ethics?

10 Ethics Standards of conduct which indicate how a person should behave based on moral duties and qualities developed from the principles of what is right and wrong

11 Managing ethical dilemmas in the workplace

12 Managing ethical dilemmas in the workplace Business courtesies and gifts A business courtesy is a gift or favour from a person or an organisation regardless of whether a business relationship exists between ones organisation and the giver for which fair market value is not paid by the recipient

13 Examples of a business courtesy May be tangible (financial value) or an intangible benefit Meals, drinks, promotional items Hospitality, recreation, entertainment Discounts and use of the giver s time, materials or equipment

14 Guidelines for offering and acceptance of business courtesies The business courtesy must not violate any law or regulation, the culture or the known policy of the recipient The business courtesy is customary and consistent with the reasonable and ethical business practices of the market place in which it is offered

15 Guidelines for offering and acceptance of business courtesies The business courtesy must not gain for the giver any right or privilege that might otherwise not be due and enjoyed Management approval, at an appropriate level, is obtained for gifts of a specified substantial nature and value

16 Guidelines for offering and acceptance of business courtesies The business courtesy must be fully accounted for and recorded Any offer of a business courtesy in violation of the guidelines must be investigated and corrective action taken

17 Managing ethical dilemmas in the workplace Conflict of interests A conflict of interests exists when an employee or other party has a personal interest that could be seen to have the potential to interfere with personal objectivity in performing ones duties or exercising ones judgement

18 Examples of situations which create the appearance of a conflict of interests, include: Having financial involvement with a representative of a supplier, customer or competitor with whom the Organisation s employee regularly comes into contact while performing the Organisation's business

19 Examples of situations which create the appearance of a conflict of interests, include: Accepting personal discounts (on products, services or other items) from a representative, a supplier or customer on terms not available to all employees

20 Examples of situations which create the appearance of a conflict of interests, include: Participating in any activity that might lead to the disclosure of the Organisation's proprietary information or proprietary information owned by others who have entrusted it to the Organisation

21 Examples of situations which create the appearance of a conflicts of interests, include: Dealing directly, in the course of normal responsibilities, with or through a personal spouse or family member (as generally regarded by common law and within diverse cultures) who is a supplier or customer or is employed by one.

22 Guidelines for managing conflict of interests Approval is required before doing any of the following: Holding an active or passive business or investment interest (either directly or indirectly) in any supplier or customer Acting as an officer, director, partner, consultant, representative, agent, adviser or employee of a (potential) supplier, customer of the organisation

23 Guidelines for managing conflict of interests Approval is required before doing any of the following: Being involved in any capacity in the conduct of any business that is involved in technical areas that are similar to those of ones employer Being involved in any capacity in the conduct of any business whose customers include ones employer, its customers or its suppliers

24 Guidelines for reporting ethical dilemmas: Raise issues to ones manager In cases of fear of manager involvement go higher Alternatively, report to an Ethics Line if available Manager takes matter to an ethics oversight structure for guidance

25 Guidelines for resolving ethical dilemmas: Preliminary enquiry Counselling Detailed investigation if misconduct or commercial offence Corrective action, e.g. contract termination

26 Guidelines for resolving ethical dilemmas: Disciplinary action Civil remedies e.g. recovery of losses Criminal prosecution Any other Alternative Dispute Resolution remedy

27 Guidelines for resolving ethical dilemmas: Communicate outcomes within confines of the law To impart lessons learned To show that organisation is serious about ethics