ethics ppt1
TRANSCRIPT
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1. Wages:
Fair wages depend on:
Local wages Firms ability to pay
Burdens of the job
Minimum wage laws
Fair relation to othersalaries in the firm
Wage negotiations
Local living costs
2. Working conditions:
Health and safety
Studying andeliminating job risks
Compensating for risks
Informing workers ofknown risks
Insuring workers
against unknown risks.
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Sweatshops: A workplace that has numerous health
and safety hazards and poor working conditions, as
well as low wages
Job satisfaction
Experienced meaningfulness
Experienced responsibilityKnowledge of results
Job specialization
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8-4
Developing an Effective
Ethics Program
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The Need for Organizational
Ethics ProgramsScandals in corporate world have lowered
the publics trust of business.
Understanding the factors that influenceethical decision-making can help companies
encourage ethical behavior.
Employees are not legal experts andtherefore need guidance with legal
issues impacting their jobs.
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Copyright Houghton Mifflin Company. All rights reserved. 8-6
An Effective Ethics
Program...helps ensure that all employees understand the
organizations values and comply with the
policies and codes of conduct that create itsethical climate
Diverse employee backgrounds
(education, experience, family)
make organizational socializationmore critical.
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Ethics Programs Can Help
Avoid Legal ProblemsThe program must be communicated to all
employeesproviding a common understanding
of organizational values, policies, andprocedures. Companies that act to prevent organizational
misconduct may receive a carrot and avoid
organizational penalties. Those that do not may receive a stick
fines and penalties.
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Effective Ethical Compliance
Programs...must deal effectively with the risk associated
with a particular business and has to become
part of the corporate culture
can help avoid civil litigation
must exhibit due diligence to prevent
misconduct
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Values Versus Compliance
Programscompliance orientation creates order by requiring that employees
identify with and commit to specified conduct
uses legal terms, statutes and contracts that teach
employees the rules and penalties for noncompliance
values orientation attempts to develop shared values
focuses more on an abstract core of ideals such as
respect and responsibility, although there are penalties
for misconduct
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Codes of Conduct...
are formal statements of what an organization
expects in the way of ethical behavior
will not solve every dilemma provide rules and guidelines
reflect senior managements desire for compliance
with values, rules and policies in support of an
ethical climate
should be specific enough to be reasonably
capable of preventing misconduct
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Codes of Conduct...
codes of conduct formal statements that describe what an organization
expects of its employees
codes of ethics most comprehensive document consisting of general
statements that serve as principles and the basis for the
rules of conductstatement of values serves the general public and addresses
stakeholder interests
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Manleys Six Steps to
Implementing a Code of Ethicsdistribute the code comprehensively: employees,
subsidiaries, and associated companies
assist in interpretation and understandingspecify managements role in implementation
make employees responsible for understanding
establish grievance proceduresprovide a conclusion or
closing statement
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Ethics Officers
Ethics officers or committees are responsible for
oversight of the ethics/compliance program:
coordinate program with top management develop, revise and disseminate the code
develop effective communication
establish audits and control systems provide consistent enforcement of standards
review and modify the program to improve
effectiveness
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Ethics Training and
Communicationprovides guidance for ethical standards and
activities that integrate the functional areas of
business
helps employees identify ethical issues and
provides a means to address and resolve them
can help reduce criminal, civil, and
administrative consequencesincluding:
fines, penalties, judgments, etc.
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Ethics Training Programs
Should...reflect organizational size, culture, values, management
style and employee base
improve employee understanding of ethical issuesinfluence the organizational culture, significant others,
and opportunity in the ethical decision-making process
overall, provide for recognition of
ethical issues, understanding ofculture and values, as well as
influence ethical decision making
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Systems to Monitor and
Enforce Ethical StandardsAn internal system for employees to report
misconduct is an opportunity to register
ethical concerns: ethics hot lines
questionnaires used to serve as benchmarks
Enforcement is also important: corrective actions to provide standards
and punishment
consistent enforcement critical
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Continuous Improvement of
the Ethics ProgramIf a company has determined that its ethical
performance has not been satisfactory,
management may want to recognize the wayethical decisions are made:
A decentralized organization may be centralized
(perhaps temporarily) so that top-level managers can
ensure that ethical decisions are made. A centralized organization may be decentralized
(perhaps temporarily) so that lower level managers
can make more decisions.
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Common Mistakes in Designing/
Implementing an Ethics Programnot having a clear understanding of the goals of the
program from the beginning
not setting realistic and measurable
program objectives
senior managements failure to take
ownership of the ethics program
developing program materials that do
not address the needs of the average employee
transferring a domestic program internationally
designing a program as a series of lectures