The lecture on the topic “Business Ethics and Ethics in Corporate Governance,” delivered on May 13 for students of EFFECTUS University of Applied Sciences by Dr. Silvija Vig, addressed current issues of responsible business conduct, integrity, and ethical decision-making in the modern corporate environment. Through a dynamic lecture and discussion with students, the importance of developing an organizational culture based on trust, transparency, and accountability was emphasized as a key prerequisite for the long-term sustainability and successful management of organizations.

During the lecture, it was highlighted that ethical business practices today represent one of the key factors of long-term organizational sustainability. Participants had the opportunity to learn about the benefits of ethical business conduct, among which increased legal compliance, higher employee satisfaction, stronger organizational commitment, better collaboration among employees, and more successful change management were particularly emphasized. It was also pointed out that organizations that develop an ethical culture become more attractive to talented employees, experience lower staff turnover, face fewer legal risks, and enjoy a better market reputation.

Special emphasis was placed on reputational risk, which is today considered one of the most significant strategic business risks. The lecturer stressed that responsibility for managing reputational risk lies at the highest levels of the organization—executive boards and top management—and that organizational culture and decision-making processes significantly influence stakeholder trust and the long-term stability of business operations.

The lecture also covered the differences between ethics, integrity, and business compliance. While ethics refers to rules and standards of behavior, integrity represents an individual’s internal moral compass and motivation to act correctly even when rules are not explicitly defined. It was emphasized that organizations cannot build sustainable business solely on formal legal compliance, but must also develop values that shape decision-making and relationships among employees.

Participants were also introduced to the concept of ESG (Environmental, Social and Governance), which today represents an important framework for assessing sustainability, social responsibility, and the quality of corporate governance. Through practical examples and case studies, discussions were held on organizations’ relationships with employees, clients, suppliers, and society as a whole, as well as on the importance of creating systems that encourage ethical behavior.

The lecture concluded with a discussion on the process of (un)ethical decision-making and the importance of organizational systems in shaping employee behavior. The message was emphasized that people cannot perform better than the system allows, further underlining the responsibility of organizations to create an environment that fosters accountability, transparency, and ethical conduct in business.

With this lecture, EFFECTUS University of Applied Sciences once again confirmed its focus on current topics in business, management, and corporate governance, as well as the importance of connecting the academic community with practice and contemporary business challenges.