International Business Ethics
ZHAW IBusE
ZHAW IBusE
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Cartes-fiches
Was heisst CMS?
Compliance-Management-System
What is the CMS System?
The Compliance Management System areall organisational and proceduralmeasures of a company, based on definedtargets and principles, to ensure managers, employeesand certain third parties to work in line with the laws. The Compliance Management Systems aims to minimize the assessed main legal risks by avoiding breaches of certain laws.
Name the three Compliance contents/procedures (Targets&Culture)
- Prevention (most effective way to ensure compliance)
- Detection (needed to act as a business partner)
- Reaction (necessary to reveal violations and to foster good behavior)
Name for each of the 3 contents/procedures of compliance and an example.
Prevention
-> Regulations and procedures, Trainings, Coaching, Incentivation
Detections
-> Risk analysis, whistleblower system, compliance audits, investigations
Reaction
-> Non-Compliance Investigations, sanctions, improvements on the compliance system
What is the CMS Management Cycle?
1) Orientation (analyse and asses)
2) Planning (develop a compliance strategy)
3) Implementation (develop a compliance organisation)
4) Review (check effectiveness)
What is the definition of "soft law" according to OECD?
Co-operation based on instruments that are not legally binding, or whose binding force
is somewhat "weaker" than that of traditional law, such as codes of conduct, guidelines,
roadmaps, peer reviews
What is the Reason for Voluntary Rules?
- Gap of global governance
- Shift of power (national-local governments to large MNE)
- Increasing pressure on MNE to respond to societal needs and expectations
- MNE develop alternative approaches to creating greater acceptability of their business model around the world
- MNE’s responses to changing socio-political landscape: voluntary codes of conduct
What are the different kind of rules and do they belong to "Legal Compliance" or "Corporate Responsibility Compliance"?
- Formal, compulsory rules / Legal Compliance / e.g. Constitution, statutes, ordinances (e.g. emission levels)
- Formal, voluntary rules / Corporate Responsibility Compliance / e.g. Voluntary standards (e.g. ISO 14’001), codes of conduct
- Informal, voluntary rules / Corporate Responsibility Compliance / e.g. Social rules, rules of behavior, "good behavior"
--> Compulsory Rules are enforced through the public prosecutor (law enforcement) and the other two's through stakeholders
How can Voluntary Codes be used by companies?
- To obtain information and inspiration
- To obtain guidance for implemention
- To obtain recognition for compliance with minimum requirements (e.g. CR Standards)
- To obtain recognition for leadership on the market
Name the three stages (actors) involved in voluntary codes.
1. Development
2. Application
3. Evaluation
4. Communication
What are the categories of voluntary codes related to corporate responsibility?
- Corporate Codes (Code of Conduct / Code of Suppliers)
- Initiatives with Model Codes (general or sectoral)
- Standards of Certification & Labelling
- Investment Standards
What does ESG stand for and what does it refere to?
Enviromental, Social and Governance
It refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk)
What are examples of ESG issues?
Enviromental Issues
- climate change, air and water pollution, waste management, energy efficiency
Social Issues
- customer satisfaction, data protection & privacy, gender & diversity, human right, labor standards
Governance Issues
- bribery & corruption, lobbying, whistleblower schemes, board composition
What does the Corporate Responsibility Cpmpliance cover?
Corporate Responsibility covers rules about topics of public interest (social, environmental, governance)
