7 Organizations and Employees Individuals respond to incentives and firms that

7 organizations and employees individuals respond to

This preview shows page 60 - 61 out of 61 pages.

7. Organizations and Employees Individuals respond to incentives, and firms that wish to encourage their employees to act ethically can act purposefully to move them in that direction. 1. Firms can develop an ethical corporate culture. This typically involves using best practices to develop and promulgate a corporate code of conduct. Top officers must live up to the code themselves. They must not only punish employees who violate the code but reward employees who follow it. To learn more about becoming an ethical leader, view the videos Ethical Leadership: Best Practices (Links to an external site.) and Ethical Leadership: Perilous at the Top (Links to an external site.) from the UT Ethics Unwrapped website if you have not already done so.
Image of page 60
2. Firms can hire ethical people. There is no easier way to have ethical employees than to hire ethical people. 3. Firms should treat employees well. Treating employees poorly virtually invites them to act unethically. Ethics training can help. 4. Firms should structure incentives wisely. Part of what this means is that firms should avoid giving large bonuses contingent on factors that can be easily manipulated. Understanding how to ethically use incentives is not easy and conflicts of interest can easily arise. Watch the videos titled Incentive Gaming (Links to an external site.) and Conflict of Interest (Links to an external site.) from the UT Ethics Unwrapped website to learn how leaders can ethically motivate their employees.
Image of page 61

You've reached the end of your free preview.

Want to read all 61 pages?

  • Spring '08
  • BREDESON
  • Law, Common Law, Supreme Court of the United States

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes