Ethical Issues and Challenges
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This document discusses ethical issues and challenges in corporate environments. It outlines the key stakeholders of corporations, including shareholders, employees, customers, suppliers, creditors, governmental agencies, communities, and special interest groups. It then discusses several common ethical issues corporations face, such as developing an ethical culture, eliminating conflicts of interest, enhancing cross-cultural ethics, and promoting gender equality. It also examines causes of unethical practices, like greed, lack of experience, and poor organizational culture. Finally, it provides an overview of approaches to handling ethical dilemmas, including utilitarianism, communal acceptance, religiosity, and deontology.
Ethical Issues and Challenges
- 1. Ethical Issues and Challenges Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
- 2. Stakeholders of Corporate Environment • Shareholders • Employees • Customers • Suppliers • Creditors • Governmental Agencies • Community • Special interest Groups
- 3. Ethical Issues 1 • Developing ethical culture • Eliminating conflict of interest • Enhancing cross-cultural ethics • Boosting fraud prevention • Aligning risk management to Corporate Governance • Equitable action to every shareholder • Fostering acceptable values in inter- organisational relationships
- 4. Ethical Issues 2 • Unbiased relationship with employees • Appropriate disposition to acquisition and use of intellectual property • Observance of acceptable standards in finance • Adherence to genuineness of proposition in sales, marketing and representation • Application of technology for improving human race • Effective use of acceptable production and assurance technique
- 5. Ethical Issues 3 • Promoting gender equality at work • Participating in community development • Accepting full responsibilities for its action • Prohibition of bribery
- 6. Causes of Unethical Practices • Greed • No Time • No Experience • Breakdown of control • Deficient Education • Circle of Influence • Poor organisational culture • Absence of Requisite Risk Management • Gamble • Lack of Integrity
- 7. Ethical issues in a society recline on the levers of values, beliefs and idiosyncrasies of people who act or stand perceived as role influencers or action models therein.
- 8. Rest’s Model of Ethical Action
- 9. Approaches for Handling Ethical Predicament • Utilitarianism • Communal Acceptation • Religiosity • Religiophilosophy • Personal Virtue • Deontology • Integrated Corporate Ethical Framework
- 10. Utilitarianism This is an ethical doctrine based on value of usefulness to all concerned thereby yielding the highest level of happiness. Thus its not focused on the desire of few people in a society.
- 11. Communal Acceptation This approach hinges on the finality of action by a community for a particular purpose, albeit the fundamental goal could be the happiness of a person or few people who used positions as great power influencers to induce followers or protégé in the direction of self aggrandizement or minority satisfaction.
- 12. Religiosity The application of doctrines enshrined in a particular religion as the only permissible framework for ascertainment of right & wrong.
- 13. Religiophilosophy This highlights admixture of doctrines of an imbibed religion and the basic beliefs in addition to principles of a group of people with the aim of obtaining a framework that conciliates both sides of the coin.
- 14. Personal Virtue The practice of evolving individual character to a point of effectiveness by reinforcing one’s values with the culture of a community, firm, group or association.
- 15. Deontology The generic method of assessing the level of morality which a particular action or activity represents in order to categorise it as right, wrong, permissible or mandatory.
- 16. Integrated Corporate Ethical Framework This involves the development of an inclusive framework that serves as a hallmark of value excellence for an organisation or association by mixing well-assessed values and principles of immediate operating communities, professional bodies and global institutional benchmarks.
- 17. Source: Shirley Egan Common Rationalizations Used to Justify Unethical Conducts o If it’s necessary, it’s ethical o If it’s legal and permissible, it’s proper. o I was just doing it for you o I’m just fighting fire with fire o It doesn’t hurt anyone o It can’t be wrong o It is not for myself o It is a fair compensation for I lost o It does not affect my judgment
- 18. Types of White Collar Crime 1 • Bank Fraud • Blackmail • Bribery • Cellular Phone Fraud • Computer Fraud • Counterfeiting • Credit Card Fraud • Embezzlement • Environmental Schemes • Extortion • Forgery • Weights and Measures
- 19. Types of White Collar Crime 2 • Health Care Fraud • Insider Trading • Insurance Fraud • Investment Schemes • Kickback • Larceny/Theft • Money Laundering • Racketeering • Securities Fraud • Tax Evasion • Telemarketing Fraud • Welfare Fraud Source: National Check Fraud Center
- 20. “Computer fraud can be defined as the use of a computer to gain unauthorized access to information or perform activities with the explicit goal of gaining material goods at the expense of others through criminal means.” - ComputerFraud.com
- 21. “An act involving misuse of computer or data therein, so as to illegitimately take over fund, material or property or valuable thing, or to bring about loss." - Elijah Ezendu, Computer Fraud
- 22. “Computer crime involves the use of a computer resource for the purpose of illicitly gaining goods or resources, or causing harm to another entity. For example fraud, theft, child pornography, virus, and unauthorized access. Whereas computer fraud is a subset of computer crime involving the use of electronic resources to present fraudulent or misrepresented information as a means of deception. For example online auction fraud, identity theft, and phishing.” - Kunz & Wilson, Computer Crime & Computer Fraud
- 23. Types of Computer Fraud 1. Computer Manipulation 2. Computer Forgery 3. Desktop Counterfeiting
- 24. Computer Manipulation 1. Input Manipulation 2. Programme Manipulation 3. Output Manipulation
- 25. Computer Forgery This is illegal alteration of documents in a computer in order to cause misrepresentation thereby defrauding an entity.
- 26. Desktop Counterfeiting This deals with designing and developing counterfeits or modified forms of documents, cheques and certificates by means of desktop publishing skills.
- 27. “Internet fraud is a form of fraud which uses any component of the Internet to accomplish the intended fraudulent activity.” - National White Collar Crime Center, USA
- 28. “The term ‘Internet fraud’ refers generally to any type of fraud scheme that uses one or more components of the Internet - such as chat rooms, e-mail, message boards, or Web sites - to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme.” Source: US Department of Justice
- 29. “Internet auction fraud was by far the most reported offense, comprising 44.9% of referred complaints. Non-delivered merchandise and/or payment accounted for 19.0% of complaints. Check fraud made up 4.9% of complaints. Credit/debit card fraud, computer fraud, confidence fraud, and financial institutions fraud round out the top seven categories of complaints referred to law enforcement during the year.” Source: Internet Crime Complaints Center
- 30. Tools Used for Internet Fraud • Email • Chat rooms • Websites • Message Boards • Portals • Web Application
- 31. Types of Internet Fraud 1 • Credit/Debit Card Fraud • Business Deceit • Recruitment Deceit • Freight Forwarding Scam • Counterfeit Cheque Scam • Advance Fee Fraud • Non-Delivery of Goods/Service Fraud
- 32. The successful integration of fitting ethical framework into organisations and the society at large shall provide the right platform for building effective action against challenges of unethical practices.
- 33. Exercise An organisation intends to boost its corporate governance through effective ethical practices. State appropriate recommendations.
- 34. Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in Interim Management, Strategy, Competitive Intelligence, Transformation, Restructuring, Turnaround Management, Business Development, Marketing, Project & Cost Management, Leadership, HR, CSR, e- Business & Software Architecture. He had functioned as Founder, Initiative for Sustainable Business Equity; Chairman of Board, Charisma Broadcast Film Academy; Group Chief Operating Officer, Idova Group; CEO, Rubiini (UAE); Special Advisor, RTEAN; Director, MMNA Investments; Chair, Int’l Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant/ Partner, JK Michaels; Turnaround Project Director, Consolidated Business Holdings Limited; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Chief Advisor/ Partner, D & E; Vice Chairman of Board, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Country Manager (Nigeria) & Adjunct Faculty (MBA Programme), Regent Business School, South Africa; Adjunct Faculty (MBA Programme), Ladoke Akintola University of Technology; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellow of Professional Institutes in North America, UK & Nigeria. He is Innovator of Corporate Investment Structure Based on Financials and Intangibles, for valuation highlighting intangible contributions of host communities and ecological environment: A model celebrated globally as remedy for unmitigated depreciation of ecological capital and developmental deprivation of host communities. He had served as Examiner to Professional Institutes and Universities. He had been a member of Guild of Soundtrack Producers of Nigeria. He's an author and extensively featured speaker.
- 35. Thank You