Ethics 4-6

  1. Strategic core
    A company's: philosophy and mission, vision, what it believes drives value added, and how it treats its stakeholders.
  2. Ethics Program Orientation Types
    Compliance-based, integrity/value-based, satisfaction of external stakeholders, protect top management from blame, or a combination.
  3. Compliance-based orientation focus
    Preventing, detecting, and punishing violations of the law.
  4. Integrity or values-based orientation focus
    Defines organizational values and encourages employee commitment.
  5. Satisfaction of external stakeholders orientation focus
    Improvement of image with and relationships with external stakeholders.
  6. Protect top management from blame orientation focus
    Cover your ass (CYA)
  7. Important aspects of ethical culture
    Ethical leadership by executives/supervisors, reward systems, perceived fairness, open discussion, authority structure that emphasizes an employee's accountability, organizational focus that communicates care for employees, official policies and procedures, supporting offices, supporting structures.
  8. Ethical programs' usual dimensions
    • Formal ethics code
    • Ethics committees developing policies, evaluating, investigating
    • Ethics communications systems
    • Ethics officers providing coordinating policies, education, or investigating
    • Ethics training
    • Disciplinary processes
  9. Seven impact dimensions
    • Unethical behavior
    • Employee awareness
    • Looking for ethics advice within the company
    • Delivering bad news to management
    • Ethics violation are reported
    • Better decision making due to the ethics program
    • Employee commitment to the organization
  10. Ethical renewal
    The process of building trust within an organization
  11. Omissions from ethical cultures of most concern:
    • lack of strong CEO involvement
    • lack of training
    • failure to renew employee commitment to the code
    • lack of communications
  12. Development of an ethical corporate culture
    • Assign responsibility
    • Ethics audit
    • Ethics risk assessment
    • Top management support
    • Develop consensus on key ethical values
    • Develop code of conduct
    • Develop ethics program
    • Establish a review mechanism
  13. Rational for developing ethics codes
    • Instrumental
    • Compliance
    • Stakeholder commitment
    • Value/Mission
    • None/composite
  14. Depths of ethics code coverage
    • Credo - inspirational short statements
    • Code of ethics - deals with ethics principles, short
    • Code of conduct - deals with principles plus examples
    • Code of practice - detailed rules
  15. Kohlber's six stages of maturity
    • 1: ethical due to fear of being punished
    • 2: ethical because they realize it is in their best interest
    • 3: Ethical due to peer pressure
    • 4: Accept obedience to moral and ethical laws
    • 5: Develop a concern for social welfare of society
    • 6: Principled conscience
  16. Code guidance alternatives
    • Obey these rules
    • Seek advice before acting
    • Act on your best judgement, but disclose
    • Guiding principles that indicate this is what we are and stand for
  17. Four organizations leading the development of standards and codes of conduct
    • Social Accountability International (SAI)
    • Fair Labor Association (FLA)
    • Maquila Solidarity
    • International Labor Office (ILO)
  18. A properly function code is essential to:
    • The development and maintenance of an ethical corporate culture
    • An effective internal control system
    • Due diligence defense for directors and officers
    • Effective empowerment for employees to make ethical decisions
    • Sending proper signals to external stakeholders
Card Set
Ethics 4-6