Analysis of Ethical Values in Ethical Companies

“The Institute of Directors in New Zealand connects, equips and inspires its more than 8,000 members, to add value across New Zealand business and society. Through thought leadership, our extensive network, professional governance courses, events and resources. The Institute of Directors in New Zealand began over 40 years ago as a division of the Institute of Directors in the UK.

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To be the world class professional body at the heart of New Zealand’s governance network.

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To inspire and equip people in governance to add value across New Zealand business and society.”

Code of conduct

There are some code of conducts :-

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1. “Integrity means the honest recognition of duties to the company, its shareholders and other stakeholders by honestly observing high standards of ethical behaviour and abiding by all laws and regulations”

For instance:- In restaurant , if the floor is wet it is the responsibility of the restaurant staff members to put the wet sign over there. If there is any hazard is there everybody should have the responsibility to follow the health procedure. In the business when everybody follow the rule and regulation in a unity

2. “Enterprise means guiding the company towards achievement of its mission or purpose through strategic direction, monitoring and organisational alignment.”

For example:- to achieve our business goals we must have to put our own efforts to achieve it . And give the guidance to the staff regarding to the mission of the company and focus on it .

[ advertise the business of new deals and promote it. We must have monitoring what’s happening surrounding around us. We must keep an eye on our competitors, like if I have a restaurant in the city and front of my restaurant there is one restaurant so for that I must have eye on them that if they are giving a wine free with meal then I should also do something to attract the customers.

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Supposed I have my restaurant and one customer said he don’t like the one dish and said that in the feedback form , then I taste that dish and I agree with him and I work on that and keep some changes in it .

3. “Fairness means the protection of shareholder rights generally, and specifically against fraud, insider dealing, conflicts of interest and the disadvantaging of minority shareholders by the majority”

For example, In the restaurant or in any business , like one person doing a lot of task in 30 minutes and on the other hand somebody only performing few task , in the business we must divide the work load equally , everybody must help each other, we should never lie and we shouldn’t be racist at work place .

4. “Accountability means, through independent oversight, making management answerable, and as directors being answerable to shareholders for the performance of the company.”

Case in point , one is shareholder in the company , who invest their money in the business, with this that person have full right to know about the profits or what is happening in the company , for that we must have to record of all transition and we must keep the copy of all in voices. We must make loss & profit statement end of every month.

5. “Efficiency means adopting and advocating practices which produce desired outcomes at reasonable cost “

For example, if we are run our own business first of all we have to get the things in a budget so if we plan our budget we always get profit and with this we are able to buy the products for our business and we can check with our supplies so then we can make good deals.

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“High ethical standards Leadership The proper discharge of directors’ duties requires ethical standards, over and above purely legal requirements. By displaying and encouraging high ethical standards, directors positively influence the culture, behaviour and reputation of their companies

Code of Conduct Directors should encourage the adoption of a Code of Conduct as a foundation for ethical behaviour within the company. Directors and management should set an example in their adherence to the values set out in the Code.

Conflicts of Interest Directors should avoid conflicts of interest so far as possible. Where a conflict or potential conflict arises, at a minimum they must disclose it and adhere scrupulously to the procedures provided by law and by the constitution of the company for recording and dealing with conflicts and ensuring the company obtains fair value. Directors who are conflicted regarding a particular issue should absent themselves from discussion and decision-making relating to that issue. A director who has a continuing conflict of interest of a material nature, that cannot be satisfactorily resolved after consultation with the chairman and audit committee, should consider resignation as a director; in particular where the material continuing conflict of interest prejudices his or her ability to contribute to the affairs of the board to the same extent as the other directors.”

COMPANY

KPMG

“At KPMG, we are focused on fuelling the prosperity of New Zealand – for the benefit of all New Zealanders. It’s why we’re passionate about helping New Zealand’s businesses succeed, the public sector to achieve more, and our communities to grow.

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This is more than a goal – it’s our reason for being.

We’re proud to be the only ‘big 4’ partnership that’s New Zealand-owned – while also giving our clients access to the impressive depth of resources within KPMG’s global network. Worldwide, KPMG operates in 155 countries; employing 174,000 people in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.”

Code of conduct

• ” By our leadership and management teams, to help them ensure that the decisions they make, the role models they represent, and the expectations they have of their colleagues take into account both their responsibilities and the firms’ Values
• By new and prospective employees as a guide to the firm they have or are considering joining
• By our clients, suppliers, and contacts, as they seek to understand the nature of the organization with which they are dealing
• Most importantly, by all our people, to recognize what is expected of them and the responsibilities resting on each of them to make sure we all adhere to the Values, for the benefit of each other, the KPMG member firms, our member firms’ clients, and the wider communities in which we operate. The KPMG Global Code of Conduct (Code) is a publicly available document that may be accessed through the KPMG Web site at www.kpmg.com/codeofconduct that identifies the Values that everyone at KPMG1 lives by:

KPMG Values – The KPMG Values are at the centre of all that we stand for. They are the guiding principles of ethical behaviour which KPMG member firms adopt and require our people to adhere to.

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KPMG Commitments – To enable KPMG to live up to these values, we make a number of important commitments to our people, to our network of member firms, to our member firms’ clients, and to our communities. These are set out in the second part of the Code. These commitments are the same across all member firms and demonstrate a consistent emphasis on ethical behaviour wherever KPMG does business.

Our people’s responsibilities – In order to meet these commitments, we expect our people to acknowledge that they all have important responsibilities in their day-to-day activities. These individual responsibilities form the third part of the Code, which incorporates an ethics checklist. The Code also includes a section on where to get help when difficult situations arise”

KPMG’s VALUES

“KPMG’s Values lie at the heart of the way we do things and define our culture and our commitment to the highest principles of personal and professional conduct.

We lead by example-at all levels acting in a way that exemplifies what we expect of each other and our member firms’ clients.

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We work together-bringing out the best in each other and creating strong and successful working relationships.

We respect the individual-respecting people for who they are and for their knowledge, skills, and experience as individuals and team members.

We seek the facts and provide insight-challenging assumptions, pursuing facts, and strengthening our reputation as trusted and objective business advisers.

We are open and honest in our communication-sharing information, insight, and advice frequently and constructively and managing tough situations with courage and candour.

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We are committed to our communities-acting as responsible corporate citizens and broadening our skills, experience, and perspectives through work in our communities.

Above all, we act with integrity-constantly striving to uphold the highest professional standards, provide sound advice, and rigorously maintain our independence.”

Similarities of code of conduct

1. Institute of directors Integrity means the honest recognition of duties to the company, its shareholders and other stakeholders by honestly observing high standards of ethical behaviour and abiding by all laws and regulations

Fairness means the protection of shareholder rights generally, and specifically against fraud, insider dealing, conflicts of interest and the disadvantaging of minority shareholders by the majority

2. KPMG By our leadership and management teams, to help them ensure that the decisions they make, the role models they represent, and the expectations they have of their colleagues take into account both their responsibilities and the firms’ Values

Similarities they both are using similar code of conduct in KPMG and Institute of directors these both institute follow the same code of conduct that is integrity and fairness that everybody must help each other and be honesty.

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Institute of directors Enterprise means guiding the company towards achievement of its mission or purpose through strategic direction, monitoring and organisational alignment

KPMG By our clients, suppliers, and contacts, as they seek to understand the nature of the organization with which they are dealing

Similarities these both follow the same strategy to achieve their goals of business like promoting, dealing with clients and make good relation with suppliers.

Institute of directors Fairness means the protection of shareholder rights generally, and specifically against fraud, insider dealing, conflicts of interest and the disadvantaging of minority shareholders by the majority

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KPMG By new and prospective employees as a guide to the firm they have or are considering joining and the expectations they have of their colleagues take into account both their responsibilities and the firms’ Values.

Similarities they both using similar code of conduct like they work in teamwork with equally responsibilities and guide their junior and help them and have proper statements of loss & profit and maintain their budget.

SECOND COMPANY

“Marsh is a global leader in insurance broking and risk management. We help clients quantify and manage risk – and help them unlock new opportunities for growth.”

OUR MISSION

“Marsh & McLennan Companies is a professional services firm, committed to assisting our clients in the protection and enhancement of value through advice and solutions in risk, strategy and human capital.

OUR VISION

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We will be widely recognized as one of the world’s elite business enterprises – the preeminent provider of professional services. We will provide our clients with the most valuable ideas, services and solutions. We will provide our colleagues with opportunities to grow, contribute and thrive. We will achieve sustained growth in earnings. We will achieve significant and sustained growth in shareholder value.”

OUR VALUES

“CLIENTS: We will deliver exceptional value to clients on a global basis by meeting or exceeding our clients’ requirements and by innovating to meet emerging client needs in a manner that promotes shareholder value over time

INTEGRITY: We will conduct business consistent with the highest ethical and professional standards and we will not tolerate behaviour that deviates from those standards. We will act with integrity, honesty, courage and mutual respect.

COLLEAGUES: We will make Marsh & McLennan Companies a great place to work for outstanding people by treating all of our colleagues as valued partners, in the spirit of collaboration, engagement and inclusion. We will empower people, hold them accountable for results, and reward them based on their performance as individuals, as teams and as part of our Company.

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EXECUTION: We will focus our efforts and consistently deliver on our commitments to clients, shareholders and colleagues. We will ensure alignment around goals, cost discipline and P&L accountability.”

SIMILARITIES OF CODE OF CONDUCT

Institute of directors with Marsh and McLennan

1. Institute of directors : (Fairness)

Marsh and McLennan: (CLIENTS)

Similarities they follow the same code of conduct like they divide their work load equally. They care about the needs of their clients or students and help the shareholder to grow up their business.

2. Institute of directors (Integrity)

Marsh and McLennan (INTEGRITY)

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Similarities they both do their task with honesty and mutual respect and they do not follow the racist at work.

CONCULSION code of conduct is important in business because it promote moral, ethical decision making , act as person , enhances the reputation of an organization to promote positive correlation and negative legal efforts to stop and help to resolve ethics dilemmas as a reference work and discrimination. A code of ethics values that an organization or group members should keep highlights. With code of code we learn how to grow up our business with honesty and with equally responsibilities and how to maintain the budget of the business and how to get profit and do the task in teamwork unity and on the top of it that to record of all transaction in every company and must keep the copy of all in voices

References    

CODE OD CONDUCT OF KPMG . (2017). HAMILTON: https://assets.kpmg.com/content/dam/kpmg/pdf/2012/10/code-of-conduct-2012v2.pdf.

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CODE OF CONDUCT. (2017). HAMILTON: https://www.iod.org.nz/Portals/0/Publications/Founding%20Docs/Code%20of%20Practice.pdf.

code of conduct of marsh company. (2017). hamilton: http://www.mmc.com/content/dam/mmc-web/Files/greatergood/TGG2_English%20British_2013_2.pdf.

high ethical standards and code of conduct. (2017). hamilton: https://www.iod.org.nz/Portals/0/Publications/Founding%20Docs/Code%20of%20Practice.pdf.

INTRODUCTION. (2017). HAMILTON: /www.iod.org.nz/About-us.

kpmg introduction. (2017). hamiltion: https://home.kpmg.com/nz/overview.htmlen/home/about/.

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KPMG values. (2017). hamilton: https://assets.kpmg.com/content/dam/kpmg/pdf/2012/10/code-of-conduct-2012v2.pdf.

march company intoroduction. (2017). hamilton: https://www.marsh.com/nz/about-marsh/about-us.html.

mission and vission of marsh company. (2017). hamiltion: http://www.mmc.com/content/dam/mmc-web/Files/greatergood/TGG2_English%20British_2013_2.pdf.

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