Ethics at Work: Your Attitude and Responsibilities ECFC CHAPTER 4 7/3/2001 Ethics at Work: Your Attitude and Responsibilities

ECFC CHAPTER 4 Objectives 7/3/2001 Understand the differences among ethics, integrity, values, and social responsibility. Describe methods of determining ethical standards and resolving ethical dilemmas. Discuss how today’s companies are addressing business ethics. Understand your responsibility regarding ethical behavior at work.

Understanding Ethics Ethics is… The study of the general nature of morals and of the specific moral choices to be made by a person. The rules and standards governing the conduct of a person or the members of a profession. A concern for individuals and organizations.

Ethics Involves… Telling right from wrong. Doing what is good, right, and proper. Having integrity—the strict adherence to a code of behavior. Having values—beliefs, principles, standards, and qualities you consider worthwhile.

“The Six Pillars of Character” Trustworthiness Respect Responsibility Fairness Caring Citizenship

Does It CLICK? When faced with a tough decision, see if it CLICKS: Consequences—What will be the consequences of my actions? Legal—Is it legal? Image—Would I like to see this on the front page of the newspaper? Culture—Does it support my organization’s culture and values? Knot—Does it cause a knot in my stomach?

Social Responsibility Social responsibility is the obligation we have to make choices or decisions that are beneficial to the whole of society. Decisions commonly involve Environmental pollution and waste Welfare, health, and safety Inflation Discrimination Poverty Homelessness and hunger

Social Responsibility Perspectives Classical Perspective—Businesses need not feel responsible for social issues and should concentrate on being profitable to support a healthy economy. Accountability Perspective—Businesses are accountable for their actions and have a responsibility to be fair and considerate in their business practices. Public Perspective—Businesses work with government to actively solve social and environmental problems and improve the general quality of life.

The Foreign Corrupt Policy Act Guards against unethical practices in international business. Requires U.S. companies to operate ethically in their worldwide business dealings. Makes it illegal to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business or directing business to, any person.

Solving Ethical Dilemmas Validate the conflict. Make sure it is real and you have all the facts. Assess the risks involved. Do a cost-benefit analysis. Act on your decision. Proceed with tact and caution. In a troubled situation, get help from a trusted source. In extreme situations, consider whistleblowing—reporting practices that are detrimental or illegal. Consider a change in jobs if an organization’s or boss’s ethics are in conflict with yours.

Considerations for Facing Ethical Dilemmas Promise keeping Nonmalevolence Mutual aid Respect for persons Respect for property

How Companies are Addressing Ethics Providing written standards of conduct Requiring employees to sign off on policies Providing training Enforcing sanctions Offering confidential systems for reporting wrongdoings Requiring strong commitment and enforcement from senior management

Sarbanes-Oxley Act of 2002 Complex regulations that protect investors and enforce corporate accountability and responsibility Requires accuracy and reliability of accounting and disclosures in publicly traded corporations Grants the SEC increased regulatory control Imposes greater criminal and compensatory punishment on executives and companies that do not comply Establishes procedures for handling whistle-blower complaints

Ethical Behavior at Work Know your own value system. Learn about and respect the value systems of others. Learn about ethics and the norms of your place of business. When confronted with something that feels uncomfortable, take time to think. Be responsible for your own decisions. You will reap the benefits or pay the consequences.

Key Terms Ethics Integrity Values Social Responsibility Classical Perspective Accountability Perspective Public Perspective Enlightened Self-Interest Code of Ethics

Key Terms Foreign Corrupt Policy Act Ethical dilemmas Whistleblowing Sarbanes-Oxley Act