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Ethics

I think, the purpose of a business is not just to make money, companies should be ethical.

Ethicsmoral rules or principles of behaviour that should guide members of a profession or organization and make them deal honestly and fairly with each other and with their customers.

A code of good practice – is a written document laying down ethical ways of working for the personnel of a company.

Mission statement – a short written statement made by an organization, intended to communicate its aims to customers, employees, shareholders etc

unethical activities:Avoiding paying tax , Claiming extra expenses,Using work facilities for private purposes (for example, personal phone calls), Accepting praise for someone else's ideas or work, Selling a defective product (for example, a second-hand car), Using your influence to get jobs for relatives (nepotism), Ringing in sick when you are not ill, Taking extended lunch breaks, Giving good references to people you want to get rid of , Employing people illegally

In my opinion, offering and accepting a bribe are worse.

The cleanest countries this year were Denmark, Finland and Sweden, which moved New Zealand from the top position. Britain came relatively low, in 14th position.

The most corrupt countries this year are regarded as Nigeria, followed by Bolivia, Colombia and Russia.

Third World corruption.

A large share of corruption is the product of multinational corporations, headquartered in leading industrialized countries, using massive bribery and kickbacks to buy contracts in the developing world and the countries in transition. The Third World, in other words, would be less corrupt if developed states stopped offering bribes.

Why should companies be ethical or what are the advantages of a company in behaving ethically?

Mm, I think the whole issue of ethics is a very complex one.

Companies are made up of people. Multinationals are made up of many different nationalities. I think that companies are part of society and as such they should reflect society's standards. Companies, especially multinational ones, do have responsibilities in the world and should try to be a positive influence and I think if a company is not ethical, then it will not survive as a company.

Should a company have a code of ethics?

I think from my point of view it's useful on two counts. Firstly, it makes a commitment to certain good behaviour and so it's a way of communicating the importance of good behaviour to all of it's employees and partners. Secondly, if a company has a code of ethics and spends time communicating it, it does actually contribute to it's ethical behaviour. If you express these things in writing, especially, then you can be held accountable for them. This tends to mean that you are much more likely to act on them as well. I think following up that code is difficult. People tend to have different ethical standards, and defining the term "ethics' can I think be a problem. But I think generally to express what your ethics arc is a positive thing to do.

What kinds of moral dilemmas do large companies face? Can you think of any examples?

I think if you were to look at any company's ethical code you would usually find in it a section about offering bribes and this can be an area where I think people can get themselves into hot water. Facilitation payments are part of doing business in many countries, and bribes are something which most companies are not going to want to get involved in. But when does a facilitation payment become a bribe? And that is a question that can be quite difficult to answer.

Can you think of an example where a facilitation payment is clearly a facilitation payment and not a bribe?

I think that there are many examples. When you are paying consultants to make introductions to new business contacts, obviously the reason you choose these consultants is because they are well placed to give that kind of advice in a particular country. And you're paying for that introduction.

Can you give an example of a facilitation which is closer to a bribe?

I would say size is important. Sometimes facilitation payments

are out of proportion to the kind of business that you are

expecting to win. I think there are many instances. Also, you

have to be careful with issues such as nepotism.

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