The Russian Presidential Academy of National Economy and Public Administration

Department of Economic and Social Sciences

Maintain corporate ethics to choose between success and failure

Written by Ivan Lapshin, third-year student

Date:15\05\2013

Moscow 2013

Contents

1. Introduction……………………...…………………………………….3

2. Maintain corporate ethics to choose between success and failure

1. Concept…………………………………………………………………..4

2. Background ……………………………………………………………...5

3. Corporate ethics management……………………………………………6

4. Wrong practices………………………………………………………….7

5. Ethical issues in ………………………………………………………….12

• finance

• human resource management

• sales and marketing

6. Control by ethics officers………………………………………………...15

7. Business ethics in Russia by the example of Gazprom ………………….17

3. Conclusion …………………………………………...………………..23

4. Bibliography…………………………………..……….………………24

5. Appendix…………………..…………….……………………………..25

1. 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 civilization is standing.

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 21 st 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. .

Players on the business ethics field 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 what they do and what they believe to be the right thing. 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. The main purpose of this work is to define 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.