What “Ethics” Means ; BUSINESS ETHICS course

BUSINESS ETHICS What does it mean? Business in a market economy is based on reciprocity – which can be described as cooperation between customers and suppliers for their mutual benefit Cooperation is demonstrated by keeping commitments Keeping commitments leads to trust, and trust is the foundation for business ethics For AHI, business ethics means behavior that leads to : full compliance with the AHI Code of Ethics, and positive outcomes for stakeholders (shareowners, customers, employees, suppliers, communities)

BUSINESS ETHICS How is it demonstrated? An ethical business : Complies with the law Keeps its commitments Communicates openly and is transparent Seeks to advance the interests of stakeholders Upholds its values, and Holds itself accountable

ETHICAL DECISION-MAKING AT UTC Better decisions flow from a good process. AHI’s process for ethical decision-making has seven steps : Involve the right people Understand the facts Understand the legal requirements, including local laws Consider the duties owed “stakeholders” and the impact of alternatives Assess alternatives with reference to company values, Make a tentative decision that is lawful and reached on the merits Ask “Should I?”

CASE STUDY Gifts Facts: A delegation from the Ministry of Science and Technology (“S&T”) will visit a UTC site. A local UTC manager would like to present a gift to the S&T leader. The proposed gift is a leather portfolio with the UTC logo and costs €120. Questions : Is the timing of the gift relevant? For example, would it matter whether a contract decision was pending? YES  NO  Is the value of the gift relevant to the decision? YES  NO  Does it matter that a UTC logo is on the portfolio? YES  NO  Does it matter that the S&T leader is a government official? YES  NO 