7/5/2012

RESPONSIBLE BUSINESS ENTERPRISE : AN INNOVATION ON ORDINARY BUSINESS

AND ROLE OF PROFESSIONALS IN ITS DEVELOPMENT

Presented by: Group of CA students (ICAN)

Background

Business Environment
External Internal

Business opportunities & threats

Technology Changes Globalization Government Policy

Cut throat competition Wealth maximization Responsible Business Conduct

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Responsible Business Conduct

Operation of business in economically, socially and environmentally sustainable manner

Balancing the interest of diverse stakeholders

What is an RBE?

Simply, a business practicing responsible business conduct. An innovation to an ordinary business through following transformations:
Understanding own organization, Developing ethical standards and procedures, Meeting expectations of stakeholders, Improved performance & profit, and finally Contribution to the community

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Understanding Own Business

Understanding
Vision Mission Goals

Communicating it to all level of staffs

Development of Ethical Standards and Procedures

Code of Ethics Quality Control Manual Operational Procedure Human Resource Policy Investment Policy Environment Policy Gift Policy

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Meeting expectations of stakeholders

Implementation of developed standards Meeting expectations of

Customers Employees Investors Creditors Government authorities

Enhancing Performance, Profit &Goodwill

Contribution to the Community

Corporate Social Responsibility RBE as responsible steward of community resources People, Planet and Profit Growth of both companies and communities

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Benefits to an RBE

Enhanced reputation and goodwill (by the sense of social responsibility), Reduced risks (by retaining loyal customers and compliance with the law), Reduced costs (by reducing mistakes, misconducts and misunderstandings), Protection from unethical employees (by attracting best employees after properly addressing employee rights & benefits),

Benefits to an RBE (contd.)

Enhanced performance, productivity, and competitive position (by satisfying the reasonable expectations of the stakeholders) Expanded access to capital, credit, and foreign investment (by enhanced performance and fair financial reporting) Increased revenue and sustained long-term growth (by proper integration of 3Ps bottom line of business: people, planet and profit)

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Role of Professionals

As an Auditor
Watchdog of a business conduct Compliance of Standards on Auditing Consideration of Laws Ensuring compliance with acceptable financial reporting framework Professional Code of Ethics

Role of Professionals (contd.)

As a Decision maker
Corporate governance Management

As a Consultant
Business advisor Consulting SMEs Tax consultancy

As a Policy maker

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Conclusion

RBE is the need of modern business It addresses dimension of ethical business conduct like :
compliance with laws, risk management, reputation enhancement and value adds to the community

Professional guided by professional ethics can sow seed of ethics in business

Thank You