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Ch 8 note template A good ethics program should…
allow for the circulation of ideas and issues, be sturdy enough to support various issues, be flexible and adaptable. To establish, support and encourage an ethical business culture
Minimum requirements for an ethics program
Standards and procedures that are reasonably capable of detecting and preventing misconduct. High-level personnel who are responsible for an ethics compliance program. No substantial discretionary authority given to individuals with a propensity for misconduct. How can an ethics program help avoid legal issues?
The federal sentencing guidelines encourage companies to assess key risks and create programs to address them before ethical issues erupt. Prior to the federal sentencing guidelines, there was no incentive for proactive ethics training, only the vague threat of legal action. A proactive ethics program enacted prior to a scandal can help avoid, or minimize, civil liability if the company can prove its program’s effectiveness.
What can we do in addition to creating an ethics program?
Code of conduct- a formal statement that describes what an organizational expects of its employees.
Code of ethics- general statements that serve as principles and as the basis for rules of conduct.
Statement of values - based code of ethics components. Trust, Respect, Responsibility, Fairness, Caring, Citizenship. Developed by management with input from all stakeholders for the public
Codes of ethics fail because…
The code is not promoted and employees do not read it
The code is not easily accessible
The code is written too legalistically and not understood by average employees
Six things to consider when developing a code of
ethics Developing and implementing an ethics program should tie together codes of conduct, code of ethics and statement of values
1. Consider areas of risk and state the values as well as conduct necessary to comply with laws and regulations. Values are an important buffer in preventing misconduct.
2. Identify values that specifically address current ethical issues
3. Consider values that link the org to a stakeholder orientation. Find overlaps in org and stakeholder values.
4. Make the code understandable by providing examples that reflect values.
5. Communicate the code frequently and in language employees can understand.
6. Revise annually with input from stakeholders and org members
Common mistakes in
designing and implementing an ethics program
Failure to understand the goals of an ethics program.
Not setting realistic and measurable program objectives.
Senior mgmt. failing to take ownership
Developing program materials that do not address the needs of the average employee
Transferring an “American” program to an international operation
Designing a program that is little more than a collection of lectures
Ethics training should be…
1. should be ongoing and interactive
2. be relevant, personal and have an impact on every day decision making.
What is the best system to monitor Employee Input. Employees do not report misconduct when they fear retaliation or when they
and enforce ethical standards?
think it will fall on deaf ears.
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0
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