1. Making It Stick: Doing What’s Right in a Competitive Market
Chapter 10
Making It Stick: Doing What’s Right in a Competitive Market
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2. 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
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3. 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
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4. 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
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5. 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
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6. 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
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7. 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
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8. 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
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9. 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
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10. 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
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11. 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
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12. 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
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13. 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
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14. 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
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15. 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
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