CHAPTER_6 - CHAPTER 6 Approaches Strategic to Improving...

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CHAPTER 6 Approaches Strategic to Improving Ethical Behavior 0PURPOSE AND PERSPECTIVE In this chapter, we provide an overview of why businesses need to develop an organizational ethics program. Next, we consider the factors that are crucial for the development of such a program: a code of conduct, an ethics officer and appropriate delegation of authority, an effective ethics training program, a system to monitor and support ethical compliance, and continual efforts to improve the ethical program. Finally, we discuss implementation of an organizational ethics program, including the roles of leadership and corporate culture. 0LECTURE OUTLINE I0. The Need for Organizational Ethics Programs0 A0. Some people will always do things in their own self-interest. B0. Pressure to succeed can create opportunities that reward unethical behavior. C0. Recent corporate ethics crises have destroyed the public’s trust.0 10. Consumers want CEOs that demonstrate trust as a priority. 20. Companies must meet the public’s demands for ethical decision making. D0. There are two basic approaches to control in an ethics program. 10. A compliance orientation creates order by requiring that employees identify with and commit to specific required conduct. It uses legal terms, statutes, and contracts that teach employees the rules and penalties for noncompliance. 20. The other type of system is a values orientation, which strives to develop shared values. Although penalties are attached, the focus is more on an abstract core of ideals such as respect and responsibility. II0. Codes of Conduct0 A0. Most companies begin the process of establishing organizational compliance programs by developing codes of conduct (also called codes of ethics), which are formal statements that describe what an organization expects of its employees.0 10. Codes of conduct do not have to be so detailed that they take into account every situation. 20.
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CHAPTER_6 - CHAPTER 6 Approaches Strategic to Improving...

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