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

2. 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.

3. 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.

4. 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.

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

6. 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?

7. 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

8. 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.

9. 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.

10. 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.

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

12. 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

13. 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

14. 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.

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

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