Corporate Responsibility A Module in the Micro-eCourse: Introduction to Engineering Ethics Prepared by: Dr. Prem Chopra Professor of Engineering Management.

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Presentation transcript:

Corporate Responsibility A Module in the Micro-eCourse: Introduction to Engineering Ethics Prepared by: Dr. Prem Chopra Professor of Engineering Management University of Tennessee at Chattanooga August 2003

What is Corporate Responsibility? Corporate responsibility is the obligation of a corporation to promote basic values of integrity and ethical conduct in dealing with employees, customers, shareholders and the public, while improving health, safety and the environment Thus, a corporation should operate in an ethical manner while providing service beyond the pursuit of profits for shareholders

Features of an Ethical Corporation Ethical values are widely acknowledged Corporate code of ethics Top management commitment Procedures for resolving ethical conflicts (reference 1)

Corporate Ethical Values In so far as corporations are formed and operated by individuals, corporate and individual ethics are inseparable Good engineering, good business and good ethics work together (reference 1) Managers and employees acknowledge and apply ethical values in service to corporate interests and to customers and the public (reference 1)

Corporate Code of Ethics A documented corporate code of ethics lends legitimacy to corporate commitment to ethics Code is legitimate and meaningful part of corporate dialogue Job descriptions for all levels of employees and managers are tied to the Code (reference 1)

Management Commitment Top management must set moral tone by word, commitment and action Official pronouncements must be backed by support and respect for professionals who are guided by their professional codes of ethics Managers must foster confidence that they are serious about ethics (reference 1)

Resolution of Ethical Conflicts Procedures for resolving ethical conflicts must be spelled out clearly Whistleblowers must be not be penalized Managers must be totally familiar with the corporations code of ethics and the professional codes of ethics governing their subordinates Managers must be educated on conflict resolution Some ethically-centered corporations designate a senior executive as ombudsman for ethical matters (reference 1)

References for this Module 1. "Introduction to Engineering Ethics," by Roland Schinzinger and Mike W. Martin, McGraw Hill, 2000.