ethical issues and challenges

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Ethical Issues and Challenges Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

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Identification of ethical issues and their challenges in corporate environments

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Page 1: Ethical Issues and Challenges

Ethical Issues and Challenges

Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,

PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

Page 2: Ethical Issues and Challenges

Stakeholders of Corporate Environment

• Shareholders• Employees• Customers• Suppliers• Creditors• Governmental Agencies• Community• Special interest Groups

Page 3: Ethical Issues and Challenges

Ethical Issues 1• Developing ethical culture• Eliminating conflict of interest• Enhancing cross-cultural ethics• Boosting fraud prevention• Aligning risk management to Corporate

Governance• Equitable action to every shareholder• Fostering acceptable values in inter-

organisational relationships

Page 4: Ethical Issues and Challenges

Ethical Issues 2• Unbiased relationship with employees• Appropriate disposition to acquisition and use

of intellectual property• Observance of acceptable standards in finance• Adherence to genuineness of proposition in

sales, marketing and representation• Application of technology for improving

human race• Effective use of acceptable production and

assurance technique

Page 5: Ethical Issues and Challenges

Ethical Issues 3

• Promoting gender equality at work• Participating in community development• Accepting full responsibilities for its action• Prohibition of bribery

Page 6: Ethical Issues and Challenges

Causes of Unethical Practices• Greed• No Time• No Experience• Breakdown of control• Deficient Education• Circle of Influence• Poor organisational culture• Absence of Requisite Risk Management• Gamble• Lack of Integrity

Page 7: Ethical Issues and Challenges

Ethical issues in a society recline on the levers of values, beliefs and idiosyncrasies of people who act or stand perceived as role influencers or action models therein.

Page 8: Ethical Issues and Challenges

Rest’s Model of Ethical Action

Page 9: Ethical Issues and Challenges

Approaches for Handling Ethical Predicament

• Utilitarianism• Communal Acceptation• Religiosity • Religiophilosophy • Personal Virtue• Deontology• Integrated Corporate Ethical Framework

Page 10: Ethical Issues and Challenges

Utilitarianism

This is an ethical doctrine based on value of usefulness to all concerned thereby yielding the highest level of happiness. Thus its not focused on the desire of few people in a society.

Page 11: Ethical Issues and Challenges

Communal Acceptation

This approach hinges on the finality of action by a community for a particular purpose, albeit the fundamental goal could be the happiness of a person or few people who used positions as great power influencers to induce followers or protégé in the direction of self aggrandizement or minority satisfaction.

Page 12: Ethical Issues and Challenges

Religiosity

The application of doctrines enshrined in a particular religion as the only permissible framework for ascertainment of right & wrong.

Page 13: Ethical Issues and Challenges

Religiophilosophy

This highlights admixture of doctrines of an imbibed religion and the basic beliefs in addition to principles of a group of people with the aim of obtaining a framework that conciliates both sides of the coin.

Page 14: Ethical Issues and Challenges

Personal Virtue

The practice of evolving individual character to a point of effectiveness by reinforcing one’s values with the culture of a community, firm, group or association.

Page 15: Ethical Issues and Challenges

Deontology

The generic method of assessing the level of morality which a particular action or activity represents in order to categorise it as right, wrong, permissible or mandatory.

Page 16: Ethical Issues and Challenges

Integrated Corporate Ethical Framework

This involves the development of an inclusive framework that serves as a hallmark of value excellence for an organisation or association by mixing well-assessed values and principles of immediate operating communities, professional bodies and global institutional benchmarks.

Page 17: Ethical Issues and Challenges

Source: Shirley Egan

Common Rationalizations Used to Justify Unethical Conducts

o If it’s necessary, it’s ethicalo If it’s legal and permissible, it’s proper.o I was just doing it for youo I’m just fighting fire with fireo It doesn’t hurt anyoneo It can’t be wrongo It is not for myselfo It is a fair compensation for I losto It does not affect my judgment

Page 18: Ethical Issues and Challenges

Types of White Collar Crime 1

• Bank Fraud• Blackmail• Bribery• Cellular Phone Fraud• Computer Fraud• Counterfeiting• Credit Card Fraud• Embezzlement• Environmental Schemes• Extortion• Forgery• Weights and Measures

Page 19: Ethical Issues and Challenges

Types of White Collar Crime 2• Health Care Fraud• Insider Trading• Insurance Fraud• Investment Schemes• Kickback• Larceny/Theft• Money Laundering• Racketeering• Securities Fraud• Tax Evasion• Telemarketing Fraud• Welfare Fraud

Source: National Check Fraud Center

Page 20: Ethical Issues and Challenges

“Computer fraud can be defined as the use of a computer to gain unauthorized access to information or perform activities with the explicit goal of gaining material goods at the expense of others through criminal means.”

- ComputerFraud.com

Page 21: Ethical Issues and Challenges

“An act involving misuse of computer or data therein, so as to illegitimately take over fund, material or property or valuable thing, or to bring about loss."

- Elijah Ezendu, Computer Fraud

Page 22: Ethical Issues and Challenges

“Computer crime involves the use of a computer resource for the purpose of illicitly gaining goods or resources, or causing harm to another entity. For example fraud, theft, child pornography, virus, and unauthorized access. Whereas computer fraud is a subset of computer crime involving the use of electronic resources to present fraudulent or misrepresented information as a means of deception. For example online auction fraud, identity theft, and phishing.”

- Kunz & Wilson, Computer Crime & Computer Fraud

Page 23: Ethical Issues and Challenges

Types of Computer Fraud

1. Computer Manipulation2. Computer Forgery3. Desktop Counterfeiting

Page 24: Ethical Issues and Challenges

Computer Manipulation

1. Input Manipulation2. Programme Manipulation3. Output Manipulation

Page 25: Ethical Issues and Challenges

Computer Forgery

This is illegal alteration of documents in a computer in order to cause misrepresentation thereby defrauding an entity.

Page 26: Ethical Issues and Challenges

Desktop Counterfeiting

This deals with designing and developing counterfeits or modified forms of documents, cheques and certificates by means of desktop publishing skills.

Page 27: Ethical Issues and Challenges

“Internet fraud is a form of fraud which uses any component of the Internet to accomplish the intended fraudulent activity.”

- National White Collar Crime Center, USA

Page 28: Ethical Issues and Challenges

“The term ‘Internet fraud’ refers generally to any type of fraud scheme that uses one or more components of the Internet - such as chat rooms, e-mail, message boards, or Web sites - to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to other connected with the scheme.”

Source: US Department of Justice

Page 29: Ethical Issues and Challenges

“Internet auction fraud was by far the most reported offense, comprising 44.9% of referred complaints. Non-delivered merchandise and/or payment accounted for 19.0% of complaints. Check fraud made up 4.9% of complaints. Credit/debit card fraud, computer fraud, confidence fraud, and financial institutions fraud round out the top seven categories of complaints referred to law enforcement during the year.”

Source: Internet Crime Complaints Center

Page 30: Ethical Issues and Challenges

Tools Used for Internet Fraud

• Email• Chat rooms• Websites• Message Boards• Portals• Web Application

Page 31: Ethical Issues and Challenges

Types of Internet Fraud 1

• Credit/Debit Card Fraud• Business Deceit• Recruitment Deceit• Freight Forwarding Scam• Counterfeit Cheque Scam• Advance Fee Fraud• Non-Delivery of Goods/Service Fraud

Page 32: Ethical Issues and Challenges

The successful integration of fitting ethical framework into organisations and the society at large shall provide the right platform for building effective action against challenges of unethical practices.

Page 33: Ethical Issues and Challenges

Exercise

An organisation intends to boost its corporate governance through effective ethical practices. State appropriate recommendations.

Page 34: Ethical Issues and Challenges

Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE) and Hon. President, Worldwide Independent Inventors Association. He functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting, Nigeria; Chairman (Certification & Training), Lead Assessor & Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Director, Fortuna, Gambia; Director, The Greens; Director of Programmes & Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria. He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nig) and Jones International University (USA). He also works as Adjunct & Visiting Professor of Universities and holds Interim Management Assignments on Boards of Companies.

Page 35: Ethical Issues and Challenges

Thank You