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ethics ppt1

Apr 08, 2018

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Seema Gawai
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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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    8-7

    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