GSK recognizes that commercial pressures and complex regulatory environments can present employees with difficult ethical situations. GSK provides guidance and support for them backed by rigorous auditing and action if misconduct is identified. The company’s code of conduct promotes honest and ethical conduct by setting out the standards to be followed by GSK’s employees in their everyday work for the company. The code is communicated both within and outside the company. A separate publication, ‘‘The Employee guide to Business conduct’’, helps employees to understand the meaning of code in practice and its acceptable and unacceptable behavior. Managers are required to set an example and ensure that all their staff receives guidance, training and supervision on ethical behavior and legal compliance relevant to their jobs. Senior managers formally certify their adherence to the code and other GSK policies and standards. GSK has audit systems to help identify and deal with cases of non-compliance. Those who violate company standards are subject to disciplinary action including dismissal in serious cases. Serious violations and remedial actions are reported to the audit committee of the board. Doing the right thing can, at times appear to sacrifice some immediate advantage. However, GSK’s commitment to integrity and high standards of business ethics benefit their customers, communities, shareholders, employees and the business. In the light of above, answer the following questions: (a) In what ways should the managers of GSK set an example on ethical behavior relevant to their jobs? (b)What role can be played by the Board in corporate governance to bring ethical behavior among employees?
GSK recognizes that commercial pressures and complex regulatory environments can present employees with difficult ethical situations. GSK provides guidance and support for them backed by rigorous auditing and action if misconduct is identified. The company’s code of conduct promotes honest and ethical conduct by setting out the standards to be followed by GSK’s employees in their everyday work for the company. The code is communicated both within and outside the company.
A separate publication, ‘‘The Employee guide to Business conduct’’, helps employees to understand the meaning of code in practice and its acceptable and unacceptable behavior. Managers are required to set an example and ensure that all their staff receives guidance, training and supervision on ethical behavior and legal compliance relevant to their jobs. Senior managers formally certify their adherence to the code and other GSK policies and standards. GSK has audit systems to help identify and deal with cases of non-compliance. Those who violate company standards are subject to disciplinary action including dismissal in serious cases. Serious violations and remedial actions are reported to the audit committee of the board.
Doing the right thing can, at times appear to sacrifice some immediate advantage. However, GSK’s commitment to integrity and high standards of
In the light of above, answer the following questions:
(a) In what ways should the managers of GSK set an example on ethical behavior relevant to their jobs?
(b)What role can be played by the Board in corporate governance to bring ethical behavior among employees?
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