Title: Kelvin Wong
1- Kelvin Wong
- Deputy Managing Director
- COSCO Pacific Limited
- Email kelvinwong_at_coscopac.com.hk
2Ethical dilemma of business world
- Is big business bad business? Newsweek
- American capitalism takes a beating. The
Economist - System failure Corporate America has lost its
way. Fortune - Can trust be rebuilt? Businessweek
3Pressing need for ethical leadership
- Never before in the 33 years of the World
Economic Forums history has the situation in the
world been so fragile, as complex and as
dangerous as this year. We feel that we are
living in a new world within new rules and new
dangers but certainly also with new
opportunitiesToday we need a new, an enlarged
concept of business leadership! - Klaus Schwab, President, World Economic Forum,
2003 - It is time to reaffirm the basic principles and
rules that make capitalism work truthful books
and honest people, and well-enforced laws against
fraud and corruption. All investment is an act
of faith, and faith is earned by integrity. In
the long run, there is no capitalism without
conscience there is no wealth without
character. - President George W. Bush, 2002
4What is the aim of ethics?
- What makes life worth living is fulfillment
- To live a life which can be characterized by
fulfillment is the aim of ethics and morality
5What is Business Ethics?
- Business ethics is the application of general
ethical ideas to business behavior. - Unethical behavior at work include-
- Unsafe working conditions (56)
- Deceptive sales practices (56)
- Mishandling proprietary or confidential
information (50) - Violations of privacy rights (38)
- Creative accounting
Source 2000 Organizational Integrity Survey A
Summary, Integrity Management Services, KPMG LLP
6Business Ethics Across Organizational Functions
- Accounting Ethics
- Financial Ethics
- Marketing Ethics
- IT Ethics
- Production
- Purchase and supply
7Why Ethical Problems occur in business?
810 Principlesof highly ethical business leaders
- Treat all employees as unique, valuable
individuals - Support each employees freedom, growth, and
development - Communicate to employees by name with respect
- Model and encourage a balanced life of good work
and rest - Honor and respect employee families
- Protect employees life, safety, and health
- Create a working environment free of sexual
harassment - Be fair and just in financial matters
- Communicate honestly and truthfully
- Cultivate a positive attitude toward others and
their accomplishments
99 Good Reasonsto run a business in an ethical
manner
- Its Right
- Personal Pride
- Employee Performance
- Customer Loyalty
- Supplier/Partner Trust
- Investor Confidence
- Public Acceptance
- Regulatory Freedom
- Litigation/Indictment Avoidance
Source Institute for Business, Technology, and
Ethics 2004
108 Traitsof a healthy organizational culture
- Openness and humility from top to bottom of the
organization - An environment of accountability and personal
responsibility - Freedom for risk-taking within appropriate limits
- A fierce commitment to do it right
- A willingness to tolerate and learn from mistakes
- Unquestioned integrity and consistency
- A pursuit of collaboration, integration, and
holistic thinking - Courage and persistence in the face of difficulty
117 Habitsof highly effective ethical leaders
- strong personal character
- passion to do right things
- proactive behavior
- stakeholder interests in mind
- recognition of their value as role models
- awareness that their decision making should be
transparent - holistic view of the firms ethical culture
127 Principlesof running business with profit
- Harness innovation for public good
- Put people at the centre
- Spread economic opportunity
- Engage in new alliances
- Be performance-driven in everything
- Practice superior governance
- Pursue purpose beyond profit
13Code of ConductThe Hong Kong Institute of
Directors
- Becoming Conduct
- Honesty
- Legality
- Diligence
- Accountability
- Integrity
- Justice
- Leadership in Enterprise
- Participation
- Excellence in Contribution
- Continuing Professional Development
- Discipline
14Strong linkage betweenethical behavior and
corporate performance
- Empirical evidences strong support the linkage
between a management commitment to strong
controls that emphasize ethical and socially
responsible behavior on one hand and favorable
corporate financial performance on the other
hand. - Investors in firms that fostered an ethical work
environment realized an annual shareholder rate
of return that was about 45 higher than firms
that ignored ethics.
Source Curtis Verschoor, A Study of the Link
between a Corporations Financial Performance and
Its Commitment to Ethics, Journal of Business
Ethics 17 (1998), pp. 1509-16
15QuestionsSelf reflection
- How a good person should live?
- How society/organization should be structured in
order to make such lives possible? - Moral training is as important as moral theory
- Understanding of what is good and noble is not
enough without motivation, which knowledge alone
cannot provide
From Classroom to Boardroom He who learns, but
does not think, is lost, From Boardroom to
Courtroom He who thinks but does not learn, is
in grave danger. Analects, Confucius
16Learn from the great leadersWhat are their value
statements?
- Kites rise highest against the wind not with
it. Sir Winston Churchill - The probability that we may fail in the struggle
ought not to deter us from the support of a cause
we believe to be just. Abraham Lincoln - I believe that unarmed truth and unconditional
love will have the final word in reality. That
is why right, temporarily defeated, is stronger
than evil triumphant. Martin Luther King Jr. - A leader is a dealer in hope. Napoleon
17Thank You!