Business Ethics Corporate Governance Fiduciaries: Persons placed in positions of trust who use due care and loyalty in acting on behalf of the best interest of the organization Duty of Diligence: A duty of care to make informed and prudent decions Duty of loyalty; All decisions should be in the interests of the corporation and its stakeholders Conflict of Interest: When a person in a powerful authority uses the position to obtain personal gain usually at the expense of the organization BoD and Officers’ compensation ! To remove the opportunity for employees to make unethical decions; developed formal systems of accountability, oversight, and control are knwn as corporate governance Accountability: How closely workplace decisions are aligned with a firm’s stated strategic direction Alco compliance with ethical and legal considerations Oversight: A system of checks and balances that limits employees’ and managers’ opportunities to deviate from policies and strategies and that prevent unethical and illegal activities Control: Process of auditing and improving organizational decisions and actions