Professional Documents
Culture Documents
Barry Ackers
University of South Africa
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Presentation Structure
Introduction
King III
Accountability
Corporate Social Responsibility
CSR Assurance
Ethical Dilemmas
Ethics & Morality
Ethical Theories
Ethical dissonance
Empirical research
Conclusion
Board of Directors
Agency Problem
Fiduciary responsibility to ensure all significant risks are identified,
accepted or mitigated against
Three lines of defence & assurance (through Audit Committee) from:
Management
Internal assurance providers
External assurance providers
Controlled by external members
Broader stakeholder accountability
What is CSR?
Triple bottom line
Business ethics
Environmental responsibility
Corporate giving
Sustainable development
Corporate sustainability
Corporate governance
Corporate citizenship
Corporate accountability
Corporate philanthropy
Community relations
Community affairs
Community development
Corporate ethics
Stewardship
Responsible business
Global citizenship
Impacts
Human Rights Technology Legislation Economic
Environmentalists
Regulators
Unions
Employees
Media
Competitors
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Safety
Environmental
Profitability
+-
++
Lots of horsepower,
no fuel
--
-+
Social Benefit
Direction of
minimum
responsibility
SOCIAL/METRO
CORPORATION
Whole Man
Direction of
maximum
responsibility
Theoretical Frameworks
Shareholder primacy
Stakeholder theory
Instrumentalism
Legitimacy
Internal audit
An independent, objective assurance and consulting activity designed to add
value and improve an organizations operations. It helps an organization
accomplish its objectives by bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk management, control, and
governance processes.
Ethical Dilemmas
Steven Covey Train journey
Bowen McCoy The Sadhu
Nike Bangladesh
Ok Tedi BHP
Groucho Marx
Ethics
The study of ethics involves the disciplined enquiry into the basis of morality
and law
Ethics provides the basis of for choosing between right & wrong; good & bad;
acceptable & unacceptable actions
Economic CSR ethicality is based on compliance with the law
Moral CSR how society and the environment are treated
Situational ethics and relativity
Characteristics of ethics includes:
Honesty
Fairness
Prudence
Respect for and service to others
Keeping promises
Being truthful
Developing business relationships based on trust and integrity
Ethics of CSR
Leadership ethics
Ethical dissonance
Hard choices are often not between good
and bad but between good and good
or bad and bad
Good people will do bad things, when
facing threats to their livelihood
Individuals may hold particular beliefs, but
may act in ways that are inconsistent with
their personal values
Even the most morally upright individuals
could display dishonest tendencies under
certain circumstances
70% of 6 000 managers and executives had
experienced pressure to conform and
compromise their personal values
56%
2010/1
4% 4% 2%2%
62%
2007/8
5%
30%
5% 2%2%
78%
0%
10%
20%
30%
40%
24%
6%
50%
60%
70%
2%
80%
17%
90%
100%
60
50
50
40
40
29%
30
26%
21%
18
20
12%
11%
11%
9%
10
2011/2
2010/1
2007/8
UK
Japan
Australia
Germany
Percentage
USA
79%
3%
18%
84%
3%
13%
90%
90%
5%
5%
90%
5%
5%
92%
10%
20%
Agree
30%
40%
50%
Neutral
3%
8%
95%
0%
7%
5%
60%
70%
80%
Disagree
90%
100%
Internal audit
49%
Certification bodies
Specialist CSR
assurance
consultancies
8%
10%
33%
44%
56%
0%
10%
20%
30%
Agree
15%
43%
85%
18%
23%
26%
40%
50%
Neutral
60%
5%
70%
18%
80%
Disagree
90%
100%
90%
74%
18%
8%
74%
18%
8%
13%
82%
15%
70%
0%
Agree
10%
85%
20%
40%
Neutral
60%
Disagree
80%
5%
5%
15%
100%
3%
Other
5%
55
No legal/regularity requirement to
do so
8%
8%
10%
10%
10%
13%
Too expensive
15%
23%
Not applicable
51%
10
15
20
25
79%
30
69%
25
56%
20
54%
54%
49%
46%
44%
38%
41%
38%
15
10
13%
44%
20%
51%
51%
34%
7%
26%
74%
5%
18%
77%
77%
10%
26%
69%
8%
31%
67%
15%
41%
59%
36%
8%
23%
20%
82%
3%
13%
5%
87%
13%
87%
13%
Agree
89%
0%
Neutral
20%
40%
8% 3%
60%
Disagree
80%
100%
67%
33%
78%
6%
89%
11%
38%
62%
25%
75%
44%
56%
67%
33%
80%
0%
10%
20%
30%
40%
Yes
6%
20%
50%
Uncertain
60%
70%
No
80%
90%
100%
Conclusion
Thank you!
Any Questions?
Barry Ackers
E-mail : ackerb@unisa.ac.za
Cell
: +27 12 429 8993
http://reference.sabinet.co.za/webx/access/electronic_journals/busman/busman_v46_n1_a2.pdf