Presentation on theme: "Ethics and Year 1 Education August, 2007 Vikas Kakkar."— Presentation transcript:
Ethics and Year 1 Education August, 2007 Vikas Kakkar
Why Do We Need Ethics? Most Recent Corporate Governance Scandal in HK –Corporate governance activist David Webb revealed that Eganagoldfeil (HKEX Stock Code 48) has been manipulating earnings for the past few years, converting possible losses into profits. –http://www.egana.com/ir_f5.htmhttp://www.egana.com/ir_f5.htm –Stock price has fallen from HK$6.5 to HK $2.2, wiping out nearly 70% of the market capitalization.
Why Do We Need Ethics? What is the one of the most important factors behind the problems in the U.S. mortgage markets? –Low income families were sold houses they could not afford by offering them very low (even zero) initial interest rates –Many of them were mislead into believing that they would easily be able to obtain refinancing at lower rates in the future –It is estimated that 1 to 3 million families could be rendered homeless because of this crisis
FB’s Approach to Ethics The Ethics program was started about 3 years ago Unique in that instead of having a separate course, we embed ethics directly in the Curriculum Have adopted a set of 5 core values which all Year 1 teachers should strive to inculcate in their students Students can see how the same fundamental values apply in different business disciplines
5 Core Values Quiz: What are the 5 core ethical values adopted by FB?
5 Core Values Honesty/Integrity ( 誠, 正直 ) –A business professional should be honest and incorruptible. Responsibility ( 忠, 忠誠, 負責 ) –A business professional should be accountable for her/his actions. Fairness ( 公, 公正 ) –A business professional should strive to treat her clients and colleagues fairly. Respect ( 敬 ) –A business professional should have respect for the individual, for diversity, for the environment and for property rights. Compassion/Kindness ( 仁, 善, 慈 / 憐憫, 同情 ) –A business professional should serve society and be concerned about alleviating human suffering.
Answer Dr. Chow Yei Ching Founder and Chairman of Chevalier Holdings, a multinational conglomerate (Chevalier International, HKEX Stock Code 25) Dr. Chow was in CityU last week to attend the naming ceremony of the “Chow Yei Ching School of Graduate Studies”
Secret of his success… “As a successful entrepreneur, Dr Chow considers integrity to be a highly important quality...” "A friend was willing to lend me money on condition that I paid it back in five days. So on the fourth day I looked for other means to raise money to settle the debt on time. With the reputation I had built, my friends were willing to lend me money again," Dr Chow said. Dr Chow said young people should not only acquire knowledge and skills but also pay attention to the cultivation of high moral character, which would benefit their whole life.
Example From Finance Question: Who is the most successful and famous investor of all time? Warren Buffett (“Sage of Omaha”) Started an investment partnership in 1956. Earned a 29.5% annual return (compound) until 1969. In 1969 he found the market highly speculative, with P/E ratios of 50 or 100 quite common. He dissolved the investment partnership with the following statement to his partners:
Continued… “I will not abandon a previous approach (Value Investing) whose logic I understand, although I find it difficult to apply, even though it may mean forgoing large and apparently easy profits to embrace an approach which I don’t fully understand, have not practiced successfully and which could lead to substantial permanent loss of capital.”
Conclusions & Ethics Resources It is hoped that this project will raise self-awareness by encouraging reflection on what we teach and how we teach Inspire and enable teachers to become effective agents of human values You can download examples of how these values can be integrated into different courses at the following Year 1 website: http://year1.cityu.edu.hk/tiki-index.php You will need a password…