Australian Business Ethics and Code of Conduct: A Detailed Report

This report provides an overview of ethics and codes of conduct, focusing on their application within the Australian business context. It begins by defining ethics and codes of conduct, exploring the scope and concepts of business ethics, and outlining key ethical principles. The report then delves into the specifics of the Australian Code of Conduct, examining its implications for businesses operating in Australia. Two case studies are presented to illustrate unethical business practices, with a comparative analysis of the bribery acts involved. The report concludes with judgments and recommendations based on the case analyses, emphasizing the importance of adhering to ethical standards in business operations. Desklib provides a platform for students to access this and other solved assignments.

Ethics and code of conduct1
Ethics and codes of conduct
Name:
Department:
School:
Date:

Ethics and code of conduct 2
Executive summary
This paper is about ethics and codes of conduct in the society that we are living. It is about
business ethics that influence the way we carry out our day to day operations. The paper
analyses the scope of business ethics and the different concepts that are applied to it. It
narrows down to explain what is stated in the Australian code of conduct. It goes ahead to
explain the ethics in Australian business society that affects different individuals in Australia.
The paper also gives two case study examples where companies were involved in different
corruption and bribery scandals. These acts were against the Australian code of conduct. After
citing the examples it concludes by analyzing and comparing the bribery acts in which the
companies were involved.

Ethics and code of conduct 3
Table of contents
Introduction.................................................................................................................................. 4
1.0 Ethics and codes of conduct...............................................................................................4
1.1 Scope of business ethics....................................................................................................5
1.2 Concepts of business ethics...............................................................................................6
1.3 Ethical principles in business ethics...................................................................................6
2.0 The Australian Code of Conduct............................................................................................7
2.1 Business ethics in Australia..............................................................................................10
2.3 Case example 1 of unethical business practice................................................................10
2.4 Case example 2 of unethical business practice................................................................11
3.0 Case analysis, judgments and recommendations................................................................13
Conclusion................................................................................................................................. 14
References................................................................................................................................ 15

Ethics and code of conduct 4
Introduction
1.0 Ethics and codes of conduct.
Ethical code of conduct is a set of rules that contain different principles and standards to be
followed by individuals and organizations when carrying out their operations. These codes are
different depending on the stated discipline and licensing bodies. Every organization should
have a code of conduct that it uses in its operations (Rothaermel 2015). It should clearly clarify
the organization’s mission, vision and objectives and link them to ethical standards of carrying
them out. It can also be a valuable source of reference on matters of decision making and
solving conflicts in the organization. A code has quite a number of purposes in the external
environment to which it is serving (Chan Fung & Yau 2010). This includes: compliance with the
legislation, marketing of a company’s products and services and risk mitigation by reducing risks
associated with various misconducts. A company’s code of ethics and professional conduct
should include the following items: the work environment, conflicts of interest, should protect the
assets of the company, discuss on anti-bribery and corruption issues, discuss on attendance
and punctuality, it should talk about the causes of action on employees who go absent without
notice, should address on how to handle general harassment and sexuality at the work place,
talk about the dress code and use of phones at work (Brooks & Dunn 2011). Substance use and
the use of tobacco products should also not be left behind. When writing a code of ethics and
conduct, the company should review its mission statement and core values, talk to all the
stakeholders, review past ethical issues, and take note on where the company has failed and
then create a draft copy for input and discussion (Stanwick & Stanwick 2013). This will act as a
guide in the day to day operations at the organization with members abiding by what the code of
conduct is recommending as a right to be done while avoiding the wrongs.
1.1 Scope of business ethics.
Business ethics is the code of conduct that is used in a given business environment. It entails
the policies and practices applied on different issues that arise on issues such as governance,
bribery, corporate social responsibilities and case of discrimination amongst other issues. These
ethics are formulated by discussions from different individuals, rules from different organization
and the legal system (Griseri & Seppala 2010). Ethics generally touches corners that the

Ethics and code of conduct 5
government’s system has not reached. It displays whether a person’s judgment was right or
wrong. Different decisions and actions from different groups of people are influenced the culture
of the group or organization (Carroll & Buchholtz 2014). Ethics is important in a business set up
because when the customers are treated with the right values they will always be attracted back
to the company hence boosting sales for the company. It also increases a company’s
productivity because there is a low employee turnover since every employee feels he is part of
the organization (Erwin 2011). The company is also admired by many people who wish to work
their hence attracting a large pool of applicants during recruitment where they end up selecting
the most skilled and talented individuals to work for the company. High end investors are also
attracted who invest their shares in the company hence increasing its productivity and protect it
from takeovers. Unethical behaviors in a business may widely contribute to its fall because
stakeholders will tend to pull back their engagement and this will result to losses instead of
gains.
1.2 Concepts of business ethics
There are several concepts that are applied in business ethics. The following are some of them:
Businesses as ‘Corporate’ citizens which believe that a person uses the values he has acquired
from his childhood i.e. family, religious set up, friends among others to acquire values which he
uses to tell whether something is right or wrong. The second concept is that of ‘Good Business
Ethics’ which involves a business is having a good code of conduct which is appreciated by all
the customers so as to keep them above the profit motive. An ethical business conduct helps in
maintaining order in a business set up because employees are scared of breaking the laws of
the job (Crane & Matten 2016). The business also has a responsibility to respect the rights of
other individuals. This cuts down on costs used in civil laws against the company. A good code
of conduct also helps the company to portray a good image to the people around. Another
concept in business ethics is ‘Immoral’ Business Practices whereby some companies have
been forced to face the law for violating their own ethical consideration. This may occur when
they are found in unethical practices that they think should boost their profits. Organizations
should be responsible for their actions and face the law when necessary. The Concept of
‘Rights’ which states that individuals have the right to choose on what works best for them. It
also prohibits other people from interfering with the rights of others. The last concept is the
concept of justice that requests managers to ensure that they share equally the benefits and
problems they pose to the society that surrounds their business location.

Ethics and code of conduct 6
1.3 Ethical principles in business ethics
Ethical principles include the following: honesty, integrity, law abiding, loyalty, fairness, concern
and respect for others, keeping and fulfilling promises and being trust worth (Fassin, Van
Rossem &Buelens 2011). These principles serve as a daily guide in our operations and
practices. They help individuals in judging their actions and behaviors if they are justifiable by
the society. With these principles, employees are able to make upright decisions hence
increasing productivity and boosts their morale to work. With this, the entire organization
benefits as a whole.
2.0 The Australian Code of Conduct
The Australian ethical code of conduct provides guidance to employers and employees to follow
the Australian ethics when carrying on with their day to day operations. It was formed by a
board of directors and should be used by all managers, directors, contractors and all
employees. It asks individuals to ask themselves if the activity they are to perform is justified by
the Australian Ethical Charter.
Specific standards of conduct
1. We must be aware of conflicts.
This happens at times when personal interests differ with those of the clients we are
serving or the ethics in Australia. The customer’s preferences come in first. All
companies are advised to familiarize themselves with the policies in the Australian
ethical conflicts management. If the conflict is between personal interests and the ethical
conduct we should remove or manage the conflict to prevent us from damaging the
ethics of conduct. Conflicts must be presented to the risk and compliance manager who
should come up with appropriate moves to manage the conflicts. The conflict must then
be recorded on a book for relevance referrals.
2. We must not participate in insider dealings.
All forms of trade that one carries out must be in line with the ethical operations as
stated in the Ethical share trading policy.
3. We must not make unauthorized gains of payments.
We are not allowed to receive services or discounts or rather to make payments in order
for certain deals to be accomplished. The offering of bribes is not accepted under any

Ethics and code of conduct 7
circumstance. This deal is prohibited and one may face the law for committing the
offence.
4. Australian Ethical Assets are critical to our business competitiveness and success.
The Australian ethical assets are given to help in conducting the company’s business
and not for personal use or for the interests against the ethical standards. They must be
used according to the terms specified in the Australian Ethical IT policies.
5. We have an obligation to of care and diligence.
The duty of care and diligence should be practiced in all duties. Our decisions should be
made basing on reliable information and should not be meant to insult and hurt other
people in the workplace.
6. We must align our behaviors to the Australian ethical values.
Ethical values which include integrity, honesty, respect and professionalism should be
maintained by everyone at the work place starting from the management to all the
employees.
7. We must protect confidential and personal information in the course of performance of
our duties.
Confidential information should be kept private and no such information is allowed to
leak without the consent of the owner. It should also not be given to any other person
without being granted special permission to do so. Companies should comply to the
policies in the Australian ethical privacy policy before handling sensitive information.
8. We must ensure everyone has an equal opportunity
Everyone in an organization is entitled to be treated equally. Any forms of discrimination,
harassment and bullying are highly discouraged and prohibited. Serious charges will be
taken for performing such acts to people.
9. We must compete fairly.
Any form of competition in business should treat the people that are participating very
fairly. Providing misleading information to stakeholders is a breach of the ethics of
conduct.
10. We must take into account environment, health and safety impacts before making a
business decision.
Before setting up a business, it is important to consider the environmental and social
effects that the business will pose to the surrounding community. This is to avoid any
forms of injuries and pollution that may result to hazardous acts on the environment as a
result of business operations. The company should instill appropriate measures to

Ethics and code of conduct 8
handle these negative side effects. It should also learn to comply with the set regulations
by the responsible authorities.
11. We must not make unauthorized public statements.
Public statements should not just be made by anyone not unless he has been asked to
do so by the company’s officials. Individuals must be careful with the statements and
comments that they do make in public.
12. We must not make unauthorized political donations.
Political donations are prohibited not unless permission is granted from a known board
to do so.
13. We must be familiar with the policies and procedures in relation to the work we do.
Each individual should be able to understand his roles and responsibilities perfectly well.
Everyone should understand the regulations of the ethical standards in Australia.
14. We have responsibility to shareholders and the community.
Shareholders values should be delivered through efficient practices in regards to the
Australian Ethical, implementation of right managerial processes, compliance with the
set laws and standards of operations. Business decisions should be considerate to the
local and wider community as a whole.
Any form of a breach to this code of conduct should be reported and the suitable rule of
law undertaken to punish the law breakers. Everyone should adhere to the code to avoid
breaches which are subject to disciplinary courses of action including termination of
given contracts.
2.1 Business ethics in Australia
As the economy takes a positive growth in Australia, ethical issues in business are falling apart.
This is a report from the Business Insider magazine published on May 2017. As days goes by
corporate business put their focus in massaging their financial reports to get their deals done
without even concentrating on the ethical issues involved in doing so. According to a fraud
survey conducted by the EY Asia- Pacific in 2017 quite a good number of employees from big
companies confirmed that inflation and increased competition have led to a growing rate in
corruption and bribery activities in the companies they work. Almost a third of Australian
individuals seconded this survey by saying that many companies are going against the ethical
conduct because they have pressure to be ahead of their competitors in business. Many

Ethics and code of conduct 9
companies fake their financial performance reports to display attractive information to their
stakeholders. They also use bribes to win contracts from different tenders. ‘What’s most
concerning for Australian business is the overwhelming belief that achieving economic targets
trumps the need for ethical behavior.’ This is according to EY’s Oceania managing partner Rob
Locke.
The survey also revealed that a good percentage of people say that displaying the wrong
information of a company’s performance to achieve the set financial targets is completely a right
idea. They do think that changing the financial reports to portray a better outlook of the results is
an acceptable idea. The senior managers have a bigger role to play in setting compliances and
ensuring that the company is abiding by them. Business leaders need to accept the fact that
ethical conduct is an a must need for a business in order for it to be successful despite many
people believing that companies do not mind promoting employees with questionable ethical
behaviors. The survey was conducted between November 2016 and February 2017 to 1,698
employees who work for global corporations in different countries.
2.3 Case example 1 of unethical business practice
A certain company which was accused of bribing foreign representatives in Nauru received a
$2.5 million contract from the Australian government to construct housing for the displaced
people on the island. A director of Radiance International Pty Ltd based in Sydney by the
name Mozammil Gulamabbas Bhojani was also charged by Australian Federal Police with a
conspiracy to bribe a foreign public representative. His company is specialized in dealing with
rock phosphate. He gave Nauruan representatives more than $100,000 so that in return they
favor him on phosphate shipments for his company. Reliable sources reveal that Radiance
International Ltd received the $2.5 million from the Australian Government Home Affairs
department to construct a housing for refugees in Nauru. The scheduled date for the
construction was between December 2016 and July 2018 and it was termed as the “refugee
accommodation-Budapest Hotel, Nauru.” Radiance International’s company website indicates
that the company has provided accommodation to an expanding number of foreign workers and
displaced people seeking temporary accommodation in Nauru. A spokesman from the Home
Affairs Department in Australia confirmed that it has lease arrangements on matters of
accommodation in Nauru with Radiance International Company. This matter is still before the
courts as they are yet to make judgments.

Ethics and code of conduct 10
Mr Bhojani was also arrested by a Brisbane based Australian Federal Police team for
attempting to make alleged payments to obtain business advantage. Bank records and
telephone conversations were used as evidences for this case. The AFP took hold on a large
number of documents and other records in a series of attacks made to the company. They also
went ahead to search for Mr. Bhojani’s home where they executed a search warrant on a state
owned Phosphate Corporation whose office is based in Brisbane. The AFP Commander
reported that the suspected payments were in regard to acquire a business advantage in Nauru.
The payment enabled the company to get phosphate at lower costs and be able to transfer it to
different places. The company supplies the phosphate all around the world for use in the
manufacturing of fertilizers and other industrial products. The company’s website commented
that there was an increasing demand for phosphate by different clients all over the world. It is
evident here that an Australian company is involved in exploitation of natural resources
considering the fact that natural resources are insufficient. This raised a concern because the
phosphate reserves being the only natural resource in Nauru Island became exhausted in 2006.
The following year too the secondary reserves of the phosphate began to be mined. Mr. Bhojani
the company director still has to appear in courts again for the issue.
2.4 Case example 2 of unethical business practice
Two Austarlian companies: Sundane Resources and Snowy Mountains Engineering companies
were accused to be involved in bribery scandals which were connected to presidents of Sri
Lanka and Congo. This emerged after the two companies managed to secure contracts in the
two countries worth multi million dollars. An investigation by Fairfax Media and the 7.30
revealed that Perth’s Sundance resources showed that there was a suspected bribery which
involved some members of Denis Sassou Nguesso the Congo Republic president’s family.
Snowy Mountain Engineering Company is also being investigated over allegations that its staff
member had an approval from the company to bribe foreign officials including some donations
which he gave when he was a cabinet minister to the party of Sri Lanka’s President, Maithrila
Sirisena. The Turnbull Government is requested to revise the Australia’s anti-corruption
framework so as to tackle the bribery allegations. All this matters are still being looked into.
The Australian Federal Police has a major task in analyzing the operations of Snowy Mountains
Engineering Company in the overseas. The 7.30 revealed that this company is suspected to
bribe officials in the overseas to obtain a $2.3 million sewerage project in Sri Lanka which was

Ethics and code of conduct 11
aid-funded. It is also accused of bribing to acquire a power plant project in Bangladesh. The
company’s internal mails also went viral providing an evidence of communication by the
company’s manager who was then a senior minister requesting a political donation before
signing the cabinet papers for a dam project. The minister Mr. Sirisena wanted to contest for an
upcoming election and wanted the company to donate some funds to his election. The email
was a request to know if they could meet up and went ahead to explain that it should be done
prior to signing the cabinet papers. However, Mr. Sirisena refuted the claims and requested
further details to confirm the participation of an office staff to the accusation. The president also
promised to coordinate with all the investigations regarding the case by commanding the
relevant authorities to take action against the matter. The engineering company manager also
wrote to the minister to inquire on the size of the token that was to be paid and the manager
replied saying that he depends on particular payments to some other unnamed parties first
because the signing of the agreements heavily relies on them. The company continued to
cooperate with the Australian Federal Police for investigations and hence no payments had
been made towards the political donation.
Sundance Resources is one of the biggest companies in Africa to venture into iron ores on
Cameroon and Congo borders. Its files however reveal that the company has been suspected in
an act to bribe some family members of the Congo’s president so as to acquire exclusive mining
permits. A report from the company’s African agents stated that it needed a back up from
President Denis Sassou Nguesso who was the head of state. The company made a decision to
strike a potential deal worth millions with the son and the nephew of the president to acquire a
biggest percentage of the shares in its subsidiary company in Congo. The president’s son was
in for the idea though he didn’t want the government of Congo to be part of this deal because
they would demand good explanations. He asked the company to partner with the Chinese
government in putting up their deal. It is suspected that the president’s son was afterwards
granted the shares and his father personally signed off the mining permits for Sundance
Company. A spokesman for the company said that a thorough assessment was being done in
regards to the issue. The Australian Federal Police claimed that the matter was being looked
into because the allegations were very critical. The federation is warning the Australian firms
that it is doing a lot of research and inquiries hence making companies to inform them against
such acts before they are held committing the offences. The commander claimed that any
company caught on the act will face the full effect of the law no matter what it is going to cost
them. The Australian government went ahead and gave the police federation an extra $15

Ethics and code of conduct 12
million to fight bribery cases in the country. Despite this move, more reforms are urgently
required to cab the rising cases of bribery allegations in the country.
3.0 Case analysis, judgments and recommendations
Corruption and bribery are the key issues that are being cited from the two case examples
above. Bribery involves taking or receiving offers and gifts which in turn should be given back in
the form of a certain favor or rather something has to be offered in return for the interest of the
suspected parties. Corruption is caused by greed for money and other materialistic needs by
individuals who are in power in order to give certain favors. It is also caused by lack of
transparency in governments and high levels of management (Mihelic Lipicnik &Tekavcic 2010).
It is very unethical to pay someone so as to do something against their duty because it gives an
unfair advantage to the wrong people. In the case 1 example a company owner bribed
government officials in order to receive a contract worth millions of money to construct housing
to cater for refugees in the region. He was also bribing government representatives to allow him
to mine phosphate and transfer it to other countries at relatively cheaper costs. It is unethical
because he gave out some amount of money to be allowed to exploit the only natural resource
in the Island. Snowy Mountain Engineering Company is also being accused of attempting to
give a political donation to the cabinet minister so that in return they be given big contracts
worth millions of money in the country. Sundance Resources is also reported to bribe the
president’s son with granting him shares in one of their big companies so that in return they be
given exclusive mining permits to mine iron ores. From the above bribery examples we learn
that both the parties being involved in bribery were benefiting. However it has a big negative
effect to other people in the country because they are the ones who are suffering the most. By
exploiting the only natural phosphate reserves in Nauru, it would mean that those people are no
longer going to enjoy the value of their mineral and also they would suffer the consequences of
the mines. Other companies in Sri Lanka will also suffer because they will never win tenders for
government projects despite them having the capacity to handle the contracts even more
efficiently. The Australian government however is on the lookout for following the right causes of
action in punishing the bribery victims who are going against the Australian ethical standards.