Download presentation
Presentation is loading. Please wait.
Published byJulius Hubbard Modified over 6 years ago
1
Chapter 8 Developing an Effective Ethics Program
2
Learning Objectives Understand the responsibility of the corporation to stakeholders Understand why businesses need ethics programs List the minimum requirements for an ethics program
3
Learning Objectives (continued)
Describe the role of codes of ethics in identifying key corporate risk areas Identify factors in successful ethics training, program types, and goals Examine the ways ethical standards are monitored, audited, and enforced
4
Ethics Programs Designed to encourage ethical decision making in business Have to be well-designed to prevent major misconduct
5
Responsibility of the Corporation to Stakeholders
Corporations are viewed as moral agents that are accountable to stakeholders Coverage of specific issues in the media about a firm adds to its reputation as a moral agent Corporation is created in the society to perform specific social functions and is accountable to the society for its actions
6
Need for Organizational Ethics Programs
Sensitizes employees about the potential legal and ethical issues within the work environment Ensures proper controls are in place to detect conflict of interest that impacts consumer well- being Helps eliminate unethical employees through screening techniques Promotes legal and ethical conduct by establishing, communicating, and monitoring ethical values and legal requirements
7
Effective Ethics Program
Ensures employees understand ethical values and comply with the policies and codes of conduct Helps avoid legal problems Developed as an organizational control system to help predict employee behavior
8
Requirements for Ethics and Compliance Programs
Standards and procedures, such as codes of ethics, that are reasonably capable of detecting and preventing misconduct High-level personnel who are responsible for an ethics and compliance program No substantial discretionary authority given to individuals with a propensity for misconduct Standards and procedures communicated effectively via ethics training programs Systems to monitor, audit, and report misconduct Consistent enforcement of standards, codes, and punishment Continuous improvement of the ethics and compliance program
9
Values versus Compliance Programs
Compliance orientation Requires employees to identify with and commit to specific required conduct Uses legal terms, statutes, and contracts Values orientation Focuses on developing abstract and shared values such as accountability and commitment
10
Codes of Conduct Formal statements that describe what an organization expects of its employees Code of ethics: Comprehensive set of general statements which serve as principles and as the basis for rules of conduct Values - Trustworthiness, respect, responsibility, fairness, caring, and citizenship Statement of values: Serves the general public and addresses distinct groups such as stakeholders
11
Table 8.4 - Developing and Implementing a Code of Ethics
12
Responsibilities of Ethics Officers
Assess the needs and risks of an organization-wide ethics program Develop and distribute a code of conduct or ethics Conduct training programs for employees Establish and maintain a confidential service to answer employees’ questions about ethical issues
13
Responsibilities of Ethics Officers (continued)
Ensure the company is in compliance with government regulation Monitor and audit ethical conduct Take action on possible violations of the company’s code Review and update the code
14
Ethics Training and Communication
Training programs educate employees about: Firm’s policies and expectations Relevant laws, regulations, and social standards Available resources and social support systems Empowers employees to ask tough questions and to make sound ethical decisions Initiatives should reflect the organization’s size, culture, values, management style, and employee base
15
Table 8.5 - Key Goals of Successful Ethics Training Programs
16
Systems to Monitor and Enforce Ethical Standards
External audit or review of company activities Role-playing exercises and questionnaires Providing awareness about an internal system that allows employees to report misconduct Case-management services and software Consistent enforcement of standards and taking necessary disciplinary action
17
Mistakes in Designing and Implementing an Ethics Program
Failure to understand ethics-related objectives while designing programs Setting unrealistic goals Senior management’s failure in taking ownership of the ethics program Developing ethical program material that does not help the average employee Converting a country-specific program into a firm’s global operation
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.