Russian Presidential Academy of National Economy and Public Administration

Department of Economic and Social Sciences

Corporate ethics its impotence

with the example of practical implementation

Written by Ivan Lapshin, 3d year student

Date:15\05\2013

Moscow 2013

Contents

1. Introduction

1. The corporate (business) ethics

1.1 The idea of corporate ethics

1.2 Areas of application of corporate ethics

1.3 Principles of corporate ethics

1.4 Entities supervising corporate ethics

2. The importance of corporate ethics

2.1 The importance of ethics for company

2.2 The importance of ethics for customers, stakeholders

3. Corporate ethics in Russia

3.1 Business ethics in Russia

3.2. Implementation of International Corporate Ethics

3.3 Corporate ethic of Gazprom

2. Conclusion

Bibliography

Introduction

The main reason why humanity has survived for so long is due to certain rules, values, mores and ethics, which all of us abide by. Just imagine, what would happen if suddenly we were left without any sense of morality or values. In such a scenario, no doubt, chaos will prevail everywhere. Thus, ethics and values are the very foundations on which this society is standing.

Ethics concern an individual's moral judgments about right and wrong. Decisions taken within an organization may be made by individuals or groups, but whoever makes them will be influenced by the culture of the company. The decision to behave ethically is a moral one; employees must decide what they think is the right course of action. This may involve rejecting the route that would lead to the biggest short-term profit.

An ability to act effectively in situations which involve ethical aspects is becoming one of the standards of corporate governance and a key element of business tasks solution and possible risks reduction. In the increasingly conscience-focused marketplaces of the 21st century, the demand for more ethical business processes and actions is increasing. Simultaneously, pressure is applied on industry to improve business ethics through new public initiatives and laws. Businesses can often attain short-term gains by acting in an unethical fashion; however, such behaviors tend to undermine the economy over time.

The main purpose of this work is to define the corporate ethics itself, determine its significance and spheres of application. This work is really very topical because more and more companies nowadays organize their internal structure by enforcing code of business ethics. Ethical behavior and corporate social responsibility can bring significant benefits to a business.

Businesses in general are working on the basis of an ethics that settles different interests. The standards and values within companies can be characterized as mutual respect. In this respect it is in everyone's interest, and is considering people as an end in themselves, not as a means, reciprocity and fairness. This ethics is passed down and filtered to a group of stakeholders who have an interest in the company. These parties usually are: personnel, customers, suppliers, subcontractors, shareholders, society and those who speak on behalf of the environment and future generations. Many ethicists say there's always a right thing to do based on moral principle, and others believe the right thing to do depends on the situation, ultimately it's up to the individual on what they do and on what they believe to be the right thing is. Sometimes the right thing is not necessarily the best thing to do. Executable ethical standards are essential to reduce risk of breaches when conventional measures of control prove inefficient. A system of corporate ethics to ensure that these standards are abided by is no less important than the standards themselves.

Chapter 1. The corporate (business) ethics