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Developing an Ethics Program

Monitoring Systems

Observation

Audits & Investigations

Surveys

Role-playing exercises

Compliance-management software

The Corporation as Moral Agent

Why Codes of Ethics Fail

Ethics Officers

  • the code is not promoted
  • the code is not easily accessible
  • too legalistic
  • too vague
  • top management never refers to the code
  • assess needs and risks
  • develop & distribute a code of ethics
  • conduct ethics training
  • establish a confidential reporting procedure
  • ensuring compliance
  • auditing ethical conduct
  • taking actions against violations
  • reviewing and updating the code

Root Causes of Misconduct

  • personal gain
  • opportunity
  • fear of losing one's job
  • lack of resources
  • disregard of codes of conduct
  • the ends justify the means
  • lack of familiarity with standards
  • Corporations are agents of society
  • Generally have the same rights and responsibilities as individuals
  • Society holds corporations accountable for the conduct, decisions, and consequences of the decisions of their employees
  • Employees have a moral obligation to responsibly think through complex ethical issues relevant to the corporation
  • Misconduct may result from individuals or a collective pattern of decisions supported by the corporate culture
  • A coherent ethics program does not evolve through independent individual and interpersonal relationships

Unethical or Illegal?

You want to skip work to go to a Mavericks game, but you need a doctor's excuse, so you make up some symptoms so that your insurance company pays for the doctor's visit.

Common Mistakes

  • failure to appreciate the code of ethics
  • setting unrealistic program objectives
  • senior management fails to take ownership of the code of ethics
  • materials do not address the needs of employees
  • transferring a domestic program to an international site
  • Lecture-driven instead of applied learning

Key Goals

  • Identify key risk areas
  • Applied learning
  • Enforce that unethical conduct will never be supported
  • Encourage individual accountability
  • Provide ongoing feedback
  • Allow for an anonymous reporting mechanism
  • Provide a hierarchy of leadership for employees to contact

The Need for Ethics Programs

  • to detect unethical/illegal behavior
  • to gain competitive advantages
  • to link employees through a unified corporate culture
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