Business Ethics

Dr Attracta Lagan Dr Howard Whitton

2011ANNU

AL

CONFERENCE

Business Ethics in the 21st Century

Dr Attracta Lagan Professional Ethics - aspirational or embedded? Challenging current mind-sets around ethics management Current best practice ethics management in Australia

Dr Howard Whitton Why is RBA in trouble? UNCAC on whistleblowing Australian Government legislates for ethics

Q&A Session

©Managing Values 2011

Characteristics of professional status

•Services a public good beyond good of a client e.g.Legal professional services public good of justiceMedical professional services public good of healthCompanies Secretaries professional services public good of governance because of expert knowledgeInsurance professional services the public good of security

•Serves others – organisations requires specialist skill and knowledge•In using unique skills is trusted by society to transcend self interest & observe duty of care

©Managing Values 2011

4

Agree or DisagreeWe know the range of ethical challenges our people face

We recognise it takes courage to be ethical

We accept that ethical people will behave unethically

at work

Most employees in my organisation experience it as a fair place to work

My organisation begins from a premise that any organisation can only be as ethical as its members

Finger on the ethical pulse?

Business Ethics vs. Individual Morality

Morality refers to how individuals make

judgments about right & wrong

Business Ethics focused on institutional integrity; how organisational systems support & encourage

individuals to move beyond self interest to consider

impacts on others & behave with due care

Managing ethics

requires skill set

©Managing Values 2011

BEST PRACTICEBusiness Ethical engagement vs. Fraud & Corruption Plans

Beginning Perspective• The occurrence of fraud and corruption in an organisation is often a clear sign of an

unethical culture• Endeavour Energy’s designed its ethics program to complement its Fraud &

Corruption Control Plan (FCCP) to combat an unethical culture, and consequently reduce instances of fraud and corruption

• Their ethics framework builds on fraud control principles from:– Australian Standard AS8001-2008 Fraud and corruption control– NSW Audit Office Better Practice Guide: Fraud Control – (‘Integrated fraud

control Attributes’)– NSW Audit Office Fraud Health Check

• Its distinguishing feature is its long term commitment (5 years) and its cascading model which insists managers roll out the program and facilitate bi-annual dialogue with their reports using the resources provided

AS 8001-2008 Fraud and corruption control

• NSW Audit Office Fraud Health Check– Our organisation conducts regular training in fraud control”

Fraud control principles / tools