INTERNATIONAL CONSORTIUM ON GOVERNMENTAL FINANCIAL MANAGEMENT

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INTERNATIONAL CONSORTIUM ON GOVERNMENTAL
FINANCIAL MANAGEMENT
Program of Good Governance and Business Ethics in
Panama

• Presented by
• TEMISTOCLES ROSAS R.
• Partner Director
• Consulting Plus
• 74 Street, San Francisco, Golf Plaza Building Nº
  8
• P.O Box 0830-00611, Panama, Rep. of Panama
• email temirosas_at_conplus.net

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Agenda

• Introduction
• Program of Good Governance and Business Ethics
• - Participation of Panama in Ethics Programs
  
• - Importance of Ethics for Businesses
• - What is an Ethic Program?
• - Basic Principles of Corporate Ethics
• - Steps to follow in the Panamanian Ethics
  Pact for Businesses.

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Program of Good Governance and Business Ethics
It is an initiative sponsored by the U.S.
Department of Commerce to promote in private
sector, the use of business ethics principles and
to provide knowledge (know how), tools and
leadership to fight corruption. The program
began with developments of ethics programs for
the former Russian Federation and countries of
Eastern Europe. In Latin America, programs
began for Panama, Paraguay and Nicaragua. Most
recently, Guatemala, Honduras and El Salvador
have joined the program. In Panama, the Ethics
Pact for Businesses was signed on October 21st,
2003.
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Current Situation in Panama

• U.N. GLOBAL COMPACT
• The U.N. Global Compact has not been designed
  as an instrument of regulation. It is not a code
  of conduct nor a legal instrument.
• It should not be seen as a substitute for the
  regulatory statues that either countries and
  businesses have the interest to establish. This
  is only a simple and open exercise with the aim
  of identifying, spread and promote good practices
  based on universal principles promoted by the
  United Nations.

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Current Situation in Panama

• U.N. Global Compact contains
• Human rights principles, labor standards,
  environment, anticorruption principles.
• Promotion of Social Responsibility in Businesses.
• Currently, it is discussing the norm ISO 26000
  relation to Corporate Social Responsibility.

• Business practices rooted in universal values
  can bring social and economic gains Ban Ki Moon,
  U.N. General Secretary

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Current situation in Panama

• Ethics Pact for Businesses
• Establishes guidelines for Corporate Governance
  and Accountability
• Business Ethics principles
• Implements Codes of Conduct
• Promotes Corporate Social Responsibility

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Current situation in Panama

• Ethics Pact for Businesses
• Signed by main business leaders and associations
• Signed by government officials
• Signed by non government organizations such as
  the Catholic Church, Universities and Civic Clubs

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What is Ethics?

• It is a philosophical reflection on morality,
  know as the rules that govern human
  relationships, or the acts taken under such
  rules.
• It is the code of conduct or the system of
  principles that guides our existence and we apply
  it when we act.
• It begins where the Law ends.

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What is Ethics?

• In businesses, it is known as
• To treat others well.
• To do things righteven if nobody is watching.
• To do things rightbecause the goal is right.
• Respect my profession, my name and my family.

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How is Ethics in Panama?
Dont worry fellows, even if things are not
going right, we have the necessary resources
required to bribe the authorities
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What is an Ethics Program?
It is an effective tool in order to establish
standards and procedures that reflect companys
values what ALL of the employees and companys
owners think, say and do. The ethics program
goes beyond the observance of laws and summarizes
the behavior of the employees in situations when
there is no legal reference.
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Benefits obtained by implementing an Ethics
Program
Reduces risks and costs Improves reputation
and profits Improves performance,
productivity and competitive position Improves
the access to capital, credit and foreign
investments. Increases earnings, with long
term sustained growth
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The Four Main Foundations of an Ethics Program
1. Codes of Conduct 2. Training and
Communication 3. Ethics offices and alternating
channels of information 4. Monitoring, audits
and evaluations
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Basic Principles of Corporate Ethics

• Norms of Corporate Government and Accountability.
• To have a mechanism of consulting, monitoring and
  audit on ethics.
• To maintain and communicate reports on infraction
  and infringement of laws and established norms.
• To maintain a reliable system of accounting and
  with good internal controls
• To avoid fraudulent behavior
• To clarify what is a conflict of interest, the
  offering and acceptance of permitted presents and
  the improper and inadequate payments.
• Management and protection of the information

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Basic Principles of Corporate Ethics
Relationships with employees To promote team
work and equitable and just treatment. To avoid
discrimination and harassment. To maintain
adequate standards of health and safety.
Personal and Professional Relationships Relatio
nships with other companies and with the
consumer.
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Basic Principles of Corporate Ethics
Relationship with the local and global community
and to act with social responsibility. Relations
hip with government authorities Prevention of
bribery and extortion Economic contributions
and political activities
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• Whenever a doubt emerges, in relation to the
  right or to the ethics of my position or the
  action towards other people, solve it on your
  account.

• It is good to show my faith on the goodness of my
  vocation, enforcing it until a good reputation
  for the high quality of my services is obtained.

• Look for success and demand for a just profit or
  remuneration that you rightfully deserve, but
  refuse all profits and rewards that could result
  in a loss or reduction of your dignity, as an
  effect of benefiting of any unfair advantage or
  any dubious personal action.

• Have always in mind your citizenships
  obligations towards your Nation, your Country and
  your community always profess your constant
  loyalty in your thought, speech and action,
  dedicate generously your time, work and
  resources.

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Lets Change this Dilemma!
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What are some of the things left for us to do?

• To enforce the basic principles of Corporate
  Ethics.
• To establish a permanent and inclusive dialogue.
• To train on Corporate Ethics.
• To establish programs of Corporate Ethics.
• To form an alliance between the public sector,
  the civil society (community) and the private
  sector.
• To install an ethical business behavior in a
  sustainable and lasting way.