Description
Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending and recommending concepts of right and wrong conduct.
Ethical Issues and Challenges
Stakeholders of Corporate Environment
• • • • • • • • Shareholders Employees Customers Suppliers Creditors Governmental Agencies Community Special interest Groups
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 interorganisational relationships
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
Ethical Issues 3
• • • • Promoting gender equality at work Participating in community development Accepting full responsibilities for its action Prohibition of bribery
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
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.
Rest’s Model of Ethical Action
Behaviour
Intention
Judgment
Awareness
Approaches for Handling Ethical Predicament
• • • • • • • Utilitarianism Communal Acceptation Religiosity Religiophilosophy Personal Virtue Deontology Integrated Corporate Ethical Framework
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.
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.
Religiosity
The application of doctrines enshrined in a particular religion as the only permissible framework for ascertainment of right & wrong.
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.
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.
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.
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.
Common Rationalizations Used to Justify Unethical Conducts
o o o o o o o o o If it’s necessary, it’s ethical If it’s legal and permissible, it’s proper. I was just doing it for you I’m just fighting fire with fire It doesn’t hurt anyone It can’t be wrong It is not for myself It is a fair compensation for I lost It does not affect my judgment
Source: Shirley Egan
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
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
“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
“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
“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
Types of Computer Fraud
1. Computer Manipulation 2. Computer Forgery 3. Desktop Counterfeiting
Computer Manipulation
1. Input Manipulation 2. Programme Manipulation 3. Output Manipulation
Computer Forgery
This is illegal alteration of documents in a computer in order to cause misrepresentation thereby defrauding an entity.
Desktop Counterfeiting
This deals with designing and developing counterfeits or modified forms of documents, cheques and certificates by means of desktop publishing skills.
“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
“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
“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
Tools Used for Internet Fraud
• • • • • • Email Chat rooms Websites Message Boards Portals Web Application
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
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.
doc_135558875.ppt
Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending and recommending concepts of right and wrong conduct.
Ethical Issues and Challenges
Stakeholders of Corporate Environment
• • • • • • • • Shareholders Employees Customers Suppliers Creditors Governmental Agencies Community Special interest Groups
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 interorganisational relationships
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
Ethical Issues 3
• • • • Promoting gender equality at work Participating in community development Accepting full responsibilities for its action Prohibition of bribery
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
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.
Rest’s Model of Ethical Action
Behaviour
Intention
Judgment
Awareness
Approaches for Handling Ethical Predicament
• • • • • • • Utilitarianism Communal Acceptation Religiosity Religiophilosophy Personal Virtue Deontology Integrated Corporate Ethical Framework
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.
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.
Religiosity
The application of doctrines enshrined in a particular religion as the only permissible framework for ascertainment of right & wrong.
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.
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.
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.
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.
Common Rationalizations Used to Justify Unethical Conducts
o o o o o o o o o If it’s necessary, it’s ethical If it’s legal and permissible, it’s proper. I was just doing it for you I’m just fighting fire with fire It doesn’t hurt anyone It can’t be wrong It is not for myself It is a fair compensation for I lost It does not affect my judgment
Source: Shirley Egan
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
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
“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
“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
“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
Types of Computer Fraud
1. Computer Manipulation 2. Computer Forgery 3. Desktop Counterfeiting
Computer Manipulation
1. Input Manipulation 2. Programme Manipulation 3. Output Manipulation
Computer Forgery
This is illegal alteration of documents in a computer in order to cause misrepresentation thereby defrauding an entity.
Desktop Counterfeiting
This deals with designing and developing counterfeits or modified forms of documents, cheques and certificates by means of desktop publishing skills.
“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
“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
“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
Tools Used for Internet Fraud
• • • • • • Email Chat rooms Websites Message Boards Portals Web Application
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
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.
doc_135558875.ppt