Making It Stick: Doing What’s Right in a Competitive Market Chapter 10 Making It Stick: Doing What’s Right in a Competitive Market © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Learning Outcomes Develop the key components of an ethics policy Analyze the ramifications of becoming a transparent organization Understand the difference between reactive and proactive ethical policies Discuss the challenges of a commitment to organizational integrity © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Key Components of an Ethics Policy Characteristics of a market Demanding customers Impatient stockholders Aggressive vendors Demanding federal, state, and local officials Demanding creditors Aggressive competitors © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Sustainable Ethics Ethical behavior that persists long after the latest public scandal or the latest management buzzword Requires involvement of every member of the organization © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Stages in Making Ethical Behavior Sustainable Establish a code of ethics Support the code of ethics with extensive training for every member of the organization Hire an ethics officer Celebrate and reward the ethical behavior demonstrated by employees Promote the organization’s commitment to ethical behavior Continue to monitor the behavior © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Establish a Code of Ethics Well-written code of ethics can: Capture what the organization understands by ethical behavior Establish a detailed guide to acceptable behavior State policies for behavior in specific situations Document punishments for violations of policies © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Establish a Code of Ethics (continued 1) Recommendations from the Institute of Business Ethics to create an ethics code Find a champion Get endorsement from the chairperson and the board Find out what bothers people Pick a well-tested model © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Establish a Code of Ethics (continued 2) Produce a company code of conduct Try it out first Issue the code and make it known Make it work © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Support Code of Ethics with Extensive Training Each department of the organization should apply the code to examples that could arise in its area where employees can work on: Recognizing the ethical issue Discussing options for an appropriate response Selecting the best option for the organization © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Ethics Officer Senior executive responsible for monitoring the ethical performance of the organization both internally and externally Role usually developed as a separate department with the responsibility of: Enforcing the code of ethics Providing support to any employee who witnesses unethical behavior © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Encouraging Ethical Behavior Celebrate examples of good ethical behavior Award prizes for: Ethical behavior New and creative ideas Recognize employees who represent the standard of behavior Declare an Ethics Day, and allow every department to share its success stories © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Promote the Organization's Commitment to Ethical Behavior Ethics policy commits a person to doing the right thing for all stakeholders Make clear and firm promises to the stakeholders Deliver on those promises Offer concrete examples that the organization is committed to winning the trust of its customers © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Continuous Monitoring Any organization’s commitment to ethical performance must be watched constantly Continued growth of technology will present new situations for ethical dilemmas Code may need to be rewritten on a regular basis © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Becoming a Transparent Organization Reactive ethical policies: Result when organizations are driven by events and/or a fear of future events Proactive ethical policies: Result when the company develops a clear sense of what it stands for as an ethical organization Transparency: Organization maintains open and honest communications with all stakeholders © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Organizational Integrity Characteristic of publicly committing to the highest professional standards and sticking to that commitment Vital to earn the trust and confidence of the stakeholders for the long-term survival of the organization © 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.