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HOMESustainability ManagementETHICAL MANAGEMENTETHICAL MANAGEMENT BACKGROUND

ETHICAL MANAGEMENT BACKGROUND

The Emerging of Ethics Round

  • International organizations’ move to standardize ethical environment and conditions of economic activities in respective countries.
  • Anti-Bribery Convention(OECD), Agreement on Government Procurement(WTO), Corruption Perceptions Index (Transparency International).
  • Implementation of the International Code of Conduct for Public Officials(UN).
  • Unethical Economic activities such as bribery are expected to be strongly sanctioned in the international society.

Elevation of Social Expectancy

  • The level of expectancy on corporations rose after 1997 Asian financial crisis and people strongly demand the management going against social norms.
  • Even legitimate management activities, when collided with public mood, have been the subject of public denunciation.

“Corporate Ethics” is the new topic in the market as well as keyword for management

  • Corporations introduce ethical management and proclaim code of ethics.
  • As incumbent government builds transparent market economy system and expresses the firm will to eradicate corruption, transparent ethical management is becoming the new topic and keyword for management at every level of society.

Government and ethics-related organizations’ effort to introduce corporate ethics system

  • Government and ethics-related organizations supports the introduction of ethical management system of domestic corporations while striving to settle ethical corporate culture.
  • Development of Materiality Test Model for public enterprises by The Institute for Industrial Policy Studies(IPS), Corruption Prevention Act Implementation, Enactment of Compliance Program by Fair Trade Commission, Commendation by Ethics management Social organizations such as Federation of Korean Industries.

Corporate Ethics and Business Profit

  • In the 21st century transparent and fair business activities are needed in which corporations with high-level transparency make high-level profit and corporations with high-level ethics and profit can grow to be first-rate ones.