Topic 11 - Ethical principles and professional behaviour Flashcards
(31 cards)
Give the definition of values
Fundamental beliefs that guide or motivate actions, help to judge what is important
What are the different types of values
- Personal
- Cultural
- Religious
- Business
Give the definition of morals
Set of beliefs about standards of good and bad behaviour
What are the different types of morals
- Individual
- Societal
- Business
Give the definition of ethics
Ethics and morals are very similar;
Morals are the beliefs, ethics are morals turned into actions
What is the main objective of a business
To make profit!
What is greenwashing
When a company pretends to produce positive environmental outcomes through its products, activities and policies, when this is not the case
What is the regulatory sandbox
Something the regulator introduced as a way for firms to try new ideas without fear of sanctions
When talking about ethical theories, what are the 3 broad categories
- Normative (or prescriptive)
- Meta-ethics
- Applied ethics
What is normative ethics
- Looks at crtieria for differentiating right and wrong
- Split into 3 main sub-theories:
- Consequentialist
- Deontological
- Virtue (artistotelian)
Key features of consequentialist ethics
- Morally good action results in good outcome
- ‘ends justify the means’
Key features of deontological ethics
- Based on adherence to rules rather than right or wrong outcomes
- ‘means are more important than the end’
- one set of ethical rules in society which should always be followed
Key features of virtue (aristotelian) ethics
- Looks at moral character rather than type of action or outcome
- Action would be a good action if takne out by a good person
What is the definition of applied ethics
Ethics in business
Applied ethics considers the treatment of moral issues, practices and policies in personal and business situations, taking into account the wider context to identify the correct course of action from a practical perspective.
What are the 4 main drivers for the increasing importance of ethical business practices
- Stakeholders/shareholders - expect higher ethical standards to make the busines more attractive and competitive
- Information transparency
- Consumer demand for ethical procedures - can complain much more easily nowadays and just expects more
- Regulation
Benefits of an ethical approach
- Customers put ethical behaviour high on their list, so keeps firm competitive and attractive if long-term solution is in place
- Trust produces loyalty
- Chance for new customers to financial services
- Recruitment and staff retention - 42% of UK employees want to work for ethical employers
- Investment
- Regulation - more likely to be in the ‘good books’
What are the common characteristics of ethical behaviour in the business
BIG CIRCLE DIAGRAM IN THE BOOK
- Transparency
- Communication
- Excellence .
- Equality
- Respect
- Trustworthiness
- Responsibility/accountability
- Integrity
- Professionalism
- Compassion/empathy
- Compliance
- Loyalty
- Social and environmental consciousness
Who is the IBE
- Institute of Business Ethics
What 2 sets of rules/principles have the FCA made that have helped towards the implication of ethical business behaviours
- Principles for business
- Individual conduct rules
What is meant by whistle blowing
- Providing information about someone’s wrongdoings
- FCA launched a facility where this is possible and employee stays protected
What do many institutions publish, giving a commitment to stakeholders to act with integrity and fairness
Statement of ethical principles
What is an example of a stakeholder
- In a corporation, a stakeholder is a member of “groups without whose support the organization would cease to exist”
- Shareholders
- Employees
- Suppliers
- The community
- The environment
What is the definition of ‘professionalism’
Describes the qualities, skills, competence and behaviours an individual demonstrates (or should demonstrate) when carrying out their role
What is meant by the phrase ‘competence is not static’
Once deemed competent, that is not all that has to be done, you have to remain competent and keep up to date
