Governance chap 3 to 6 - Lecture notes 3-6 PDF

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Chapter 3 - SEC CODE OF CORPORATE GOVERNANCE FOR PUBLICLY - LISTED COMPANIES 1 The Board's Governance Responsibilities 2 Disclosure and Transparency 3 Internal Control System and Risk Management Framework 4 Cultivating A Synergic Relationship with Shareholders 5 Duties to StakeholdersThe Board's Gov...

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Chapt er3-SECCODEOFCORPORATEGOVERNANCEFORPUBLI CL Y-LI STEDCOMPANI ES1 TheBoar d' sGov er nanc eRes pons i bi l i t i es 2Di scl os ur eandTr anspar enc y 3I nt er nal Cont r ol Sy st em andRi s kManagementFr amewor k 4Cul t i v at i ngASy ner gi cRel at i ons hi pwi t hShar ehol der s 5Dut i est oSt ak ehol der s TheBoar d' sGov er nanc eRes pons i bi l i t i es 1Es t abl i shi ngCompet entBoar d 2Es t abl i shi ngCl earRol esandRes ponsi bi l i t i esoft heBoar d 3Es t abl i shi ngBoar dCommi t t ees 4Fost er i ngCommi t ment 5Rei nf or ci ngBoar dI ndependenc e 6As ses si ngBoar dPer f or manc e 7St r engt heni ngBoar dEt hi csDi scl osur eandTr anspar enc y 8Enhanc i ngCompanyDi scl os ur ePol i c i esandPr ocedur es 9St r engt heni ngTheExt er nalAudi t or ' sI ndependenc eandI mpr ovi ngAudi tQual i t y 10I ncr eas i ngFoc usOnNonFi nanc i alandSust ai nabi l i t yRepor t i ng 11Pr omot i ngACompr ehensi v eandCos t effic i entAcces st oRel ev antI nf or mat i on I nt er nal Cont r olSy s t em andRi skManagementFr amewor k12St r engt heni ngTheI nt er nal Cont r ol Sy st em andEnt er pr i seRi skManagementFr amewor kppCul t i v at i ngASyner gi cRel at i ons hi pWi t h Shar ehol der s13Pr omot i ngShar ehol derRi ght sDut i esToSt ak ehol der s14Res pect i ngRi ght sof St ak ehol der sandEffect i v eRedr es sf orVi ol at i onofSt ak ehol der sRi ght s15Encour agi ngEmpl oy ees Par t i ci pat i on16Enc our agi ngSust ai nabi l i t yandSoc i alRespons i bi l i t y BUSI NESSETHI CSChapt er5I nt r oduct i ont oEt hi csChar ac t er i st i csandVal uesAssoc i at edwi t h Et hi calBehav i or 1I nt egr i t y 2Honest y 3Tr us t wor t hi nessandPr omi seKeepi ng 4Loy al t y( Fi del i t y)andConfident i al i t y 5Fai r nes sandOpennes s6Car i ngf orOt her s 7Respec tf orOt her s 8Respons i bl eCi t i z ens hi p 9Pur s ui tofEx cel l ence 10Account abi l i t y Whyi sEt hi cal Behav i orNeces sar y?Et hi calbehavi ori sneces sar yf oras oci et yt of unct i oni nan or der l ymanner .I tcanbear guedt hatet hi csi st hegl uet hathol dsasoci et yt oget her .Busi nes s dec i s i onsi nfl uenceempl oy ees ,cus t omer s ,s uppl i er sandcompet i t or s ,whi l ecompanyoper at i ons affec tcommuni t i es ,gov er nmentandt heenv i r onment . Chapt er5I nt r oduct i ont oEt hi csEt hi csc anbedefi nebr oadl yasasetofmor al pr i nci pl esorv al ues t hatgov er nt heact i onsanddec i s i onsofani ndi v i dualorgr oup.Whi l eper sonal et hi csv ar yf r om i ndi vi dualt oi ndi v i dualatanypoi nti nt i me,mos tpeopl ewi t hi nasoc i et yar eabl et oagr eeaboutwhat i scons i der edet hi calandunet hi calbehavi or .I nf act ,as oci et ypass esl aws Char ac t er i st i csandv al uesass oci at edwi t het hi calbehav i or1I nt egr i t y2Hones t y3Tr ust wor t hi ness andPr omi seKeepi ng4Loy al t y( Fi del i t y)andConfi dent i al i t y5Fai r nes sandOpennes s6Car i ngf or Ot her s7Res pectf orOt her s8Res pons i bl eCi t i z ens hi p9Pur sui tofEx cel l enc e10Acc ount abi l i t y ScopeandI mpac tofBus i nes sEt hi cs 1Ec onomi cI mpact 2Soc i alI mpact

3Env i r onment alI mpac t 4I mpactonBus i nes sManager s Et hi calChal l engesI nToday ' sWor l d " Humani t yi sex per i enci ngat ur ni ngpoi nti ni t shi s t or yascanbes eenf r om t headv ancesoccur r i ngi n t hesc i encesandt echnol ogy .Wear ei nageofknowl edgeandi nf or mat i onandt hatt hi shasl edt onew andof t enanony mousk i ndsofpower .Wehav et odayaneconomyofex cl usi onandi nequal i t y ."" I na s y s t em t hati dol i z esi ncr eas edpr ofi t ,ev er yt hi ngt hatst andsi ni t swayi spushedasi de.Behi ndt hi s at t i t udel ur ksar ej ect i onofet hi cs .Et hi cshascomet obevi ewedwi t hder i si onasbei ngcount er pr oduc t i v e.Et hi csi sf el tt obeat hr eatbec ausei tcondemnst hemani pul at i onanddebas ementoft he per s onandt hatet hi csl eadst oacal lf oracommi t t edr es pons e,whi c hi sout s i deoft hecat egor i esof t hemar k et pl ace."PopeBenedi ctXVI ' sEncy c l i calCar i t asi nVer i t at e" Humani t yhasami ssi onandt he meanst ot r ans f or mt hewor l di nj us t i ceandl ov ei nhumanr el at i ons ,ev eni nt hes oci al andeconomi c fi el d.Mar k eteconomi csmus tbeunder pi nnedbycommi t ment st opar t i cul armor algoodsandac er t ai n v er s i onoft hehumanper soni fi ti st oser v er at hert hanunder mi nehumani t y' scommongood.The ec onomyneedset hi csi nor dert of unct i oncor r ec t l y-notanet hi cswhi chi speopl eor i ent ed." Chapt er6.Bus i nes sEt hi csBasi cConceptofBusi nes sEt hi csBusi nesset hi csr ef er st os t andar dsof mor alconduc t ,behavi orandj udgementi nbusi nes s .I ti nv ol v esmaki ngt hemor al andr i ghtdec i si ons whi l eengagi ngi nsuc hbusi nessact i v i t i esasmanuf act ur i ngandsel l i ngapr oduc tandpr ov i di nga s er vi c et oc ust omer s .Busi nesset hi csi sanar eaofcor por at er es pons i bi l i t ywher ebus i nessar el egal l y boundands oci al l yobl i gat edt oconductbus i nes si nanet hi calmanner .Busi nesset hi csi sbas edon t heper sonal v al uesands t andar dsofeac hper s onengagedi nbus i nes sMai npur pos eThemai n pur pos eofbus i nes set hi csi st ohel pbus i nes sandwoul dbebusi nesst odet er mi newhatbusi ness pr ac t i cesar er i ghtandwhatar ewr ong.Hopef ul l y ,t heyar egoi ngt ouset hi sknowl edget ogui det hem i nmak i ngt her i ghtbus i nes sdec i si ons .Spec i alPur pos eTher ear eot herpur poseswhi char ecor ol l ar y t ot hemai npur pose.Thes epur posesi ncl udet hef ol l owi ng:1Tomak ebusi nes smenr eal i z et hatt hey cannotempl oydoubl es t andar dst ot heact i onsofot herpeopl eandt ot hei rownact i ons .2Tos how bus i nes sment hatc ommonpr act i ceswhi cht heyhav et houghtt ober i ghtbecaus et heyseeot her bus i nes smendoi ngi t ,ar er eal l ywr ong.3Toser v easas t andar dori deal uponwhi chbus i nes s conduc tshoul dbebased CodeofGoodGov er nancef ort hePr of ess i oni nt hePhi l i ppi nes( E.O.No.220, J une23,2003)Thi s Codei sadopt edbyt hePr of es si onal Regul at i onCommi ss i on( PRC)Speci ficPr i nci pl eofPr of es si onal Conduc t1Ser vi cef orOt her s2I nt egr i t yandObj ect i vi t y3Pr of ess i onalCompet ence4Sol i dar i t yand Teamwor k5Soci alandCi vi cRes ponsi bi l i t y6Gl obal Compet i t i v enes s7Equal i t yofAl lPr of essi ons Pr of es si onalEt hi csi ncl udeamongot her s1I nt egr i t y ,i mpar t i al i t y ,obj ec t i vi t y2Pr of ess i onal compet ence3Confident i al i t y4Pr of essi onal behav i or5Av oi danc eofpot ent i alorappar entc onfli ctof i nt er es tBus i nes sEt hi csi ncl udeamongot her s1Fai rcompet i t i on2Gl obalaswel lasdomes t i cj us t i c e 3Soc i alr es pons i bi l i t y4Concer nf orenv i r onment Whydopeopl eactunet hi cal l y ?Ther ear et wopr i mar yr eas onswhypeopl eactunet hi cal l y:1The per s on' set hi calst andar dsar edi ffer entf r om t hos eofs oci et yasawhol e,or2t heper s onchoos est o actsel fishl y .Cat egor i esofEt hi calPr i nc i pl esPr i nci pl esofPer s onalEt hi csi nc l udeamongot her s1 Basi cj us t i ce,f ai r nes s2Respec tf ort her i ght sofot her s3Conc er nf ort her i ght sofot her s4Conc er n f ort hewel l bei ngonwel f ar eofot her s5Benev ol ence,t r ust wor t hi ness ,hones t y6Compl i ancewi t ht he l aw...