Ethics Midterm (2)

Conflict of Interest

A conflict of interest occurs when your judgment or objectivity is compromised. The appearance of a conflict of interest—when a third party could think your judgment has been compromised—is generally considered just as damaging as an actual conflict.

Due Care Theory

According to some observers, products and services should be produced and delivered according to the "due care" theory. 10 This theory stipulates that due care involves these elements: Design. Products and services should meet all government regulations and specifications and be safe under all foreseeable conditions, including misuse by the consumer. Materials. Materials should meet government regulations and be durable enough to withstand reasonable use. Production. Products should be made without defects. Quality control. Products should be inspected regularly for quality. Packaging, labeling, and warnings. Products should be safely packaged, should include clear, easily understood directions for use, and should clearly describe any hazards. Notification. Manufacturers should have a system in place to recall products that prove to be dangerous at some time after manufacture and distribution.

Personal Responsibility

Another basic customer right involves our taking personal honesty and responsibility for the products and services that we offer. There's probably no issue that will more seriously affect our reputation than a failure of responsibility. Many ethical disasters have started out as small problems that mushroomed. Especially in service businesses, where the "products" are delivered by individuals to other individuals, personal responsibility is a critical issue.

Overt Bribe or Kickback

Anything that could be considered a bribe or kickback is a clear conflict of interest. It doesn't matter whether the bribe or kickback is in the form of money or something else of substantial value that is offered in exchange for access to specific products, services, or influence.

(Subtle) Bribes

Bribes can be interpreted to include gifts and entertainment. Some organization have instituted policies that allow no gifts at all, even gifts of nominal value. Accepting discounts on personal items from a vendor will also be interpreted as a conflict. The formula to use when determining whether to accept a discount is simple: if it's a formal arrangement between your company and a supplier and it's offered to all employees, it's probably acceptable; if the discount is being extended only to you, it's generally not considered acceptable.

Harassment

Do compliments constitute harassment? They do when they embarrass someone and serve to undermine an individual's professional standing in front of coworkers. It's the manager's job to maintain a balance between the rights of the individual and the rights of the group—in this case, the attempt by one individual to impose his or her opinions or behavior on other team members. The objectives are fairness and respect for each individual.

Office Romance

From an ethics perspective, it's most important to avoid romance with anyone you supervise or who supervises you because of the conflict of interest involved and the potential for unfair treatment of other direct reports (and most companies have antinepotism policies). The supervisor's judgment is likely to be compromised by the relationship, and others in the work group are likely to lose respect for both parties and be concerned about preferential treatment. Honesty is another ethical issue that emerges.

Good Managers

Good managers do four things really well: hire good people, define clear expectations (including ethical expectations), recognize excellence and praise it, and finally, show their people that they care. To employees, managers are the company, and if managers are not able to manage the basics well, it will be extremely difficult to inspire people to meet business goals or live organizational values.

Star Employees

How companies manage "star" employees is one of the most telling characteristics of their ethical cultures. If an organization treats stars in a way that is consistent with their organizational values, the culture of the organization will be strengthened. On the other hand, if an organization states one thing in its values statement and permits star behavior to deviate from the organization's stated values, the entire culture can be undermined. Perhaps the biggest cultural question is who gets to be considered a star in the first place. Does only quantitative performance matter, or does performance based upon ethical values also figure in (as we recommend)? In a strong ethical culture, a star would be someone who not only performs well in terms of the bottom line but also achieves that bottom-line performance in a way that is consistent with other values such as respect for people and integrity.

Drug and Alcohol Abuse

Most corporations have policies that prohibit any kind of drug or alcohol use on company premises, and many companies have severe penalties for employees who are caught working under the influence of alcohol or drugs. Both alcoholism and drug addiction are costly in terms of the abuser's health, and they can both cause extreme danger in the workplace. Substance abuse is considered an illness (and generally not an offense that will get the employee fired—at least in many large corporations), and the employee usually will be counseled by human resources. If abuse is present, most large employers offer substance abuse programs for employees and will probably insist that your employee participate in such a program. In most large companies, employees are given one or two chances to get clean. If the problem recurs, substance abusers can be terminated.

Discipline

Most managers view disciplining employees as something to be postponed for as long as possible. Many people in a work environment simply ignore a worker's shortcomings and hope the situation will improve. Discipline, however, is important not only to ensure worker productivity but also to set the standard that certain behaviors are expected from all employees, and to meet the requirements of the U.S. Sentencing Guidelines. The effects of unreasonable discipline (and unreasonable assignments) are far reaching, and that's why discipline needs to be appropriate to the offense and consistent with what others have received.

Discrimination

Occurs whenever something other than qualifications affects how an employee is treated. Unequal treatment, usually unfavorable, can take many forms. Racial, ethnic, religious, or sexual stereotypes can creep into the behavior of even the most sophisticated individuals, even without their conscious awareness. Discrimination can be a subtle or not-so-subtle factor not only in working relationships but also in hiring, promotions, and layoff decisions. People who don't fit a "corporate profile" may be passed over for advancement because they're female, or a member of a minority group, or too old, or for other reasons that may or may not be covered in protectionist legislation.

Whistleblowing

Once you decide to blow the whistle, you need to think carefully about how to go about it. Unless you want to be branded as someone with poor judgment, you have to be very careful about how you raise ethical concerns. Usually, the CEO is one of your last resorts, to be approached only after you've exhausted every other internal resource. Some of the triggers to help you determine whether an issue is serious enough to be raised beyond your immediate manager include an issue that involves values such as truth, employee or customer (or other stakeholder) rights, trust, fairness, harm, your personal reputation or the reputation of your organization, and whether the law is being broken or compromised.

Confidentiality

Privacy is a basic customer right. Privacy and the obligation to keep customer information in confidence often go beyond protecting sales projections or financial information. It can also mean keeping in strict confidence information concerning acquisitions, mergers, relocations, layoffs, or an executive's health or marital problems. In some industries, confidentiality is so important an issue that companies prohibit their employees from publicly acknowledging a customer relationship. In the financial services industry, for example, it's common practice to refuse to divulge that XYZ Company is even a customer. On occasion, third parties may ask for customer information. For example, a reporter or a client may ask you about customer trends. It's never acceptable to discuss specific companies or individuals with a third party or provide any information that might enable a third party to identify a specific customer. If you want to provide information, you can offer aggregate data from a number of companies, as long as the data doesn't allow any one customer to be identified.

employee engagement

Research indicates that perhaps the best way to encourage ethical behavior is to create an organizational culture that is built to enhance employee engagement and that uses as its linchpin the quality of managers. short, it is discretionary effort, or how committed employees are to their work. Are they willing to provide excellent customer service? Are they willing to work overtime if needed to meet a deadline? Are they willing to go the extra mile in providing solutions? We can divide employees into three groups along an engagement continuum. For our purposes, let's just call them actively engaged, not engaged, and actively disengaged.

Terminations

Terminations come in many varieties, none of them pleasant. There are terminations for cause—meaning that an individual has committed an offense that can result in instant dismissal. "Cause" can represent different things to different companies, but generally theft, assault, cheating on expense reports, forgery, fraud, and gross insubordination (including lying about a business matter) are considered as cause in most organizations. Many companies define cause in their employee handbooks. There are also terminations for poor performance. This type of firing is most often based on written documentation such as performance appraisals and attendance records. Many employers have a formal system of warnings that will occur before someone is actually terminated for poor performance. A verbal warning is usually the first step in the process, followed by a written warning and then termination. The process can differ from company to company. Whatever the reason for a termination, you can take certain steps as a manager to make it easier for the employee being terminated and for yourself. 10 Again, the main goals are to be fair, to deliver the news in a way that is aligned with your organization's values, and to allow the employee to maintain personal dignity.

Conflict of Interest (Why Unethical?)

The basis of every personal and corporate relationship is trust, and it exists only when individuals and corporations feel they're being treated fairly, openly, and on the same terms as everyone else. Conflicts of interest erode trust by making it look as if special favors will be extended for special friends; that attitude can enhance one relationship, but at the expense of all others. If you're suspected of a conflict of interest, the least you can expect is an investigation by your company. If it determines that your behavior demonstrates a conflict or the appearance of a conflict, you may be warned, disciplined, or even fired depending on the nature of your behavior. If you've accepted a bribe or kickback, you could face termination and even arrest. Being involved in a conflict of interest means that your judgment has been compromised, and this can severely damage your professional reputation.

Consumer Protection Constructed

The framework of consumer protection as we know it today was constructed during the Kennedy administration. In his speech to Congress on consumers in 1962, President John F. Kennedy outlined four consumer rights: the right to safety, the right to be heard, the right to choose, and the right to be informed. 9 This message and the legislation that resulted laid the groundwork for today's consumer movement.

Standards Go Both Ways

The message: Say it politely, but say it firmly and unequivocally. If a coworker or manager asks you to betray your standards—even in the tiniest of ways—refuse to compromise your standards, or you'll end up being confronted with increasingly thorny dilemmas.

Employee Safety

The most basic of employee rights is the right to work without being maimed or even killed on the job. In 1970, the Occupational Safety and Health Administration (OSHA) was created in an attempt to protect workers from hazards in the workplace. OSHA's mission is not only to protect workers against possible harm but also to ensure that employees are informed of the hazards of their particular industry and job.

Advertising

The subject of ethics in advertising is a murky one, simply because there are varying opinions of exactly what truth is, and furthermore, what responsible is. How truthful or responsible does advertising have to be to qualify as ethical? In advertising, there's a thin line between enthusiasm for a product and highpressure sales tactics, between optimism and truth, and between focusing on a target market and perhaps tempting that market into unfortunate activities.

Use of Corporate Resources

The use of corporate resources involves your fulfilling your end of the employer--employee "contract." It means being truthful with your employer and management and being responsible in the use of corporate resources, including its finances and reputation. The important thing is to treat your company's resources with as much care as you would your own.

Ethics and Shareholders

This ethical obligation includes serving the interests of owners and trying to perform well in the short term as well as the long term. It also means not engaging in activities that could put the organization out of business and not making short-term decisions that might jeopardize the company's health in the future. only when managers care about the legitimate interests of stockholders do they strive to perform well economically over time, and in a competitive industry that is only possible when they take care of their customers, and in a competitive labor market, that is only possible when they take care of those who serve customers—employees." 94 Thus taking care of shareholders also means ultimately taking care of other key stakeholder groups.

Slippery Slope

We are less able to see others' unethical behavior when it develops gradually. Example: Auditors may be more likely to accept a client firm's questionable financial statements if infractions have accrued over time. Be alert for even trivial ethical infractions and address them immediately. Investigate whether a change in behavior has occurred.

Overvaluing Outcomes

We give a pass to unethical behavior if the outcome is bad. Example: A researcher whose fraudulent clinical trial saves lives is considered more ethical than one whose fraudulent trial leads to deaths. Remedy: Examine both "good" and "bad" decisions for their ethical implications. Reward solid decision processes, not just good outcomes.

fairness

When most people think about fairness, they mean equity, reciprocity, and impartiality. Most people think of fairness as being inconsistent with prejudice and bias. It's important to remember that, to employees, fairness is not just about the outcomes they receive (pay, promotion, etc). Employees care at least as much about the fairness of decision-making procedures and about the interpersonal treatment they receive when results are communicated. People are more likely to accept bad news if they believe the decision was made fairly. An organization that uses fair procedures and treats with sensitivity sends a powerful message to all employees that it values them as important members of the community.

Performance Evaluation

When we talk about performance evaluation, we're really talking about two things. First, there's a written assessment of an employee's performance. Most large companies have a formal performance management system, with forms to standardize the process, and a mandate to complete a written evaluation on every employee (usually once each year). These written appraisals usually have some influence on any salary adjustments, and they usually become part of the employee's permanent personnel file. Second, there's the informal process of performance evaluation that ideally is an ongoing process throughout the year. When a manager gives continuous feedback—when objectives are stated and then performance against those objectives is measured—employees generally aren't surprised by the annual written performance appraisal. performance evaluation is one of the most important activities managers do, and it should be conducted regularly and in person. Most employees can and will accept honest feedback if it is delivered in a clear, honest, and sensitive manner and if expectations were clear in the first place. It is especially important to provide the employee with the specifics of any problem behavior, explicit goals for improvement including a timeline, and follow-up.

Product Safety

a major ethical obligation of any organization is to produce a quality product or service. Just as obviously, nothing will put a company out of business faster than offering a product that is dangerous, poorly produced, or of inferior quality. Competition in the marketplace generally helps ensure that goods and services will be of a quality that is acceptable to consumers. However, sometimes a company becomes the victim of external sabotage (like Johnson & Johnson), and sometimes a company makes a foolhardy decision, and the result is a product that is not safe. one of the most common faults in ethical decision making is to ignore the long-term consequences of a decision. Although most organizations try hard to produce a product or service of high quality (to stay in business, if for no other reason), many don't take the time to identify all stakeholders and think long term about the consequences of their decisions. In issues that involve product safety and possible harm to consumers, thinking long term is critical. Is this product going to harm someone? How serious is the potential harm? Even if it might harm only one person, is there a way that can be avoided? Is there a way we can warn against possible harm? What can we do to ensure this product's safety?

Conflict of Interest

if an organization's customers or other stakeholder group think that an organization's judgment is biased because of a relationship it has with another company or firm, a conflict could exist. Corporate or organizational conflicts are just as risky as those that exist between individuals, and they should be avoided at all costs.

Hostile work environment

means that a worker has been made to feel uncomfortable because of unwelcome actions or comments relating to sexuality.

Primary Stakeholders

those groups or individuals with whom the organization has a formal, contractual relationship. In most cases this means customers, employees, shareholders or owners, suppliers, and perhaps even the government.

Sexual harassment

unwelcome sexually oriented behavior that makes someone feel uncomfortable at work. It usually involves behavior by someone of higher status toward someone of lower status or power. Sexual harassment claims are not initiated only by women.

People issues

we use this term to describe the ethical problems that occur when people work together. The problems may concern privacy, discrimination, sexual and other types of harassment, or simply how people get along.

Quid pro quo

harassment means that sexual favors are a requirement--or appear to be a requirement-- for advancement in the workplace.

Stakeholder Model

Abrahams' model identifies three primary stakeholders—business partners, customers, and employees—and three secondary stakeholders—opinion formers, community, and authorities. He maintains that by analyzing a company and its business using those six groups as a guide, one can begin to identify how a variety of calamities might affect a company's reputation and the value of its brand, and how much those calamities might ultimately cost.

employer-employee contract

Both parties have expectations, and rights, and offer consideration to the other—all are characteristics of a contractual relationship. Your employer pays you in salary and benefits to perform a job, and your organization expects you to behave in a certain way; you have a responsibility to be "part of the family" and exhibit loyalty and other corporate "virtues" and to refrain from other, less desirable behaviors. On the other hand, you expect not only a salary for the work you perform but also a modicum of fairness. Most people expect employers to treat them decently and to provide an appropriate work environment. Whenever we discuss the employer-employee contract in this chapter, it's this complicated set of expectations that we're referring to.

Buck Stops with Managers

As a manager, you can design your own little insurance policy to help protect you and your organization from employees who might cause problems. You can begin to protect yourself by understanding and internalizing the idea that the people who report to you are looking to you for guidance and approval. That means that you need to actively manage ethics. Your employees want to know what your rules are, so you need to think carefully about your standards and consciously try to communicate and enforce them. Most important, you need to understand that you are a role model and your employees will follow your example. Set Clear Standards The very best way for managers to gain credibility and respect among employees is to set clear standards, live by those standards, very deliberately communicate them, and insist that everyone adhere to them. And, don't be afraid to set ethical standards that say "how" you want your people to behave. Remember, ethical standards are needed in order to balance the financial goals that can narrow employees' attention to just focusing on bottom line outcomes rather than how those outcomes are achieved. It's important to understand that, as a manager, you are setting standards and communicating organizational culture all the time. In fact, failing to deliberately set ethical standards is a standard in itself, since your employees may very well interpret it as meaning you have no standards. In this era of teams and empowered employees, managers need to be very deliberate in spelling out what they stand for and "how things are going to be done around here." Those ethical standards have to be demonstrated by the manager and enforced, or people won't believe them. It's what "walking the talk" really means. Plus, employees figure out what really matters to an organization by observing manager behavior. This is how culture gets baked into an organization (and once employee perceptions are baked in, they are very difficult to change).

Ethics and Employees

Certainly, one of the key stakeholder groups in any corporate situation should be the employees of the organizations involved in the case. Organizations have myriad ethical obligations to their employees. Some of these could include the right to privacy, the right not to be fired without just cause, the right to a safe workplace, the right to due process and fair treatment, the right to freedom of speech (e.g., whistleblowing), and the right to work in an environment that is free of bias.

Ethics and the Community

Companies are citizens in their communities, just as individuals are, and because of their size, companies can have an outsized impact on their communities. Therefore a major stakeholder in business must be the communities of which corporations and other organizations are a part. Perhaps the most obvious way a company can affect its community is through its approach to the environment The resulting public outcry resulted in the Environmental Protection Act in 1969 and the creation of the Environmental Protection Agency (EPA) in 1970. The goal of both the act and the agency is to protect the environment—air, water, earth—from the activities of businesses and individuals. Of course, we all need to think long term about the health of the planet and its environs for ourselves, our children, and other generations to follow. In addition to environmental concerns, another issue that affects all of us as a society is relatively new: Internet privacy.

Managing a Diverse Workforce

Companies that best address the needs of a diverse population will probably be in a better position to succeed than companies that ignore this new reality. Managers must be able to deal with individuals of both genders and all ages, races, religions, ethnic groups, and sexual orientations. Managers need to have this ability themselves, and they need to encourage this ability in team members. Managers must become "conductors" who orchestrate team performance—sometimes teaching, sometimes coaching, and always communicating with employees and empowering them to learn and make good decisions. The second skill set required of the new manager involves positively influencing the relationships among other team members and creating an ethical work environment that enhances individual productivity. Since a bias-free person hasn't been born yet, managers also must be able to counsel team members in their relationships with one another. Because every team will include a wide range of personalities, a manager frequently needs to be a referee who mediates and resolves disputes, assigns tasks to the workers who can best accomplish them, and ensures that fairness is built into the working relationships of team members.

Fiduciary Responsibilities

Concern the obligations resulting from relationships that have their basis in faith, trust, and confidence. certain professions, such as banking, accounting, law, religion, and medicine have special obligations to customers. These obligations are commonly referred to as fiduciary responsibilities. The law and the judicial system have recognized these special obligations, and they are spelled out in the codes of ethics for those professions. Fiduciary responsibilities hold these professionals to a high standard, and when they violate those responsibilities, the punishment is often harsh.

Dress Codes

Dress codes tend to raise some people's hackles. The intention of most dress codes is not to restrict individuality, but to ensure a professional appearance in the workplace. Ethnic garb shouldn't really be an issue, as long as it's modest. The aim of most dress codes is to eliminate clothing that could be viewed as immodest or too casual to a customer. Dress codes are also a very visible manifestation of your organization's culture, and how employees are advised to dress should be aligned with other elements of culture. For example, if a company is casual and egalitarian, informal dress is part of that. Managers may encourage formal dress in certain situations (such as when employees meet with conservative clients), but the reason should be explained. This issue is all about having words match actions.

Hiring

Effective managers need to be proficient at hiring the best people who fit the organizational culture, evaluating their performance, recognizing and praising excellence, and disciplining or even terminating poor performers. Hiring, promotions, and terminations should be based on qualifications, period. Talent and ability come in a variety of packages. When managers use anything other than those two factors to evaluate qualifications for hiring, promotions, or work assignments, they shortchange not only the individual but also their employer and their customers One way to hire is to deeply understand your own organizational culture and to hire based on how well a candidate will "fit" into the existing culture. Both the organization and the employee are likely to be more satisfied when a good fit is achieved. So, managers must strike a delicate balance. They need to hire people who fit the current culture, but also they need to be open to people who fit, but may be different. To be successful, organizations need to nurture strong cultures that have enough differences to encourage innovation and balance and that counter the tendency to hire to a "profile."

Customer Confidence Issues

Excellent customer service also means providing a quality product or service at a fair price, honestly representing the product or service, and protecting the customer's privacy. Customer confidence issues include a range of topics such as confidentiality, product safety and effectiveness, truth in advertising, and special fiduciary responsibilities. We use the term customer confidence issues as an umbrella to address the wide range of topics that can affect your relationship with your customer. These are ethical issues because they revolve around fairness, honesty, responsibility, truth, and respect for others. Customer relationships can't survive without these basics of trust. .

Family and Personal Issues

Family and personal issues are those situations and conditions that, though not directly related to work, can affect someone's ability to perform. People simply can't leave their personal and family problems at home. The difficulty in situations like these is achieving a balance between maintaining a worker's right to privacy and ensuring fairness to coworkers. The yardstick is that if someone is performing well, and his or her attendance is satisfactory, there's probably no cause for action by the manager, beyond offering assistance if the worker wants it. Personal illnesses and chemical dependencies of employees present a different set of issues. These situations can affect work schedules as well as an individual's ability to perform. Most corporations have explicit policies for managing employee illness. It's important to remember that illnesses of any kind—depression, cancer, AIDS—are private and should be kept confidential. These conditions cause no danger to coworkers, and many people who suffer from them can resume normal or modified work schedules. Managers can help these employees by protecting their privacy and by being fair and compassionate.

Harassment (is Discriminatory)

Harassment (sexual or otherwise) is considered to be a form of discrimination. It is therefore an ethical issue because it unfairly focuses job satisfaction, advancement, or retention on a factor other than the employee's ability to do the job. Most instances of sexual harassment have nothing to do with romance and everything to do with power and fairness..

Layoffs

Layoffs can result from many kinds of reorganizations, such as mergers, acquisitions, and relocations, or they can be the result of economic reasons or changes in business strategy. A layoff can result from a decision to trim staff in one department or from a decision to reduce head count across the company. Whatever the reason, layoffs are painful not only for the person losing his or her job but also for the coworkers who'll be left behind. Coworkers tend to display several reactions: they exhibit low morale; they become less productive; they distrust management; and they become extremely cautious. In addition, layoff survivors are generally very concerned about the fairness of the layoff. They need to feel that the downsizing was necessary for legitimate business reasons; that it was conducted in a way that was consistent with the corporate culture; that layoff victims received ample notice; and that the victims were treated with dignity and respect. If management provided "a clear and adequate explanation of the reasons for the layoffs," survivors are more likely to view the layoffs as being fair. 9 Once again, if a company espouses respect and concern for employees in its values statements or executive speeches and then lays off employees in a particularly brutal way, it undermines employee confidence in the organization. Layoffs and other terminations speak volumes about what a culture truly values. Smart companies make sure that their actions are aligned with their values.

Indirect Blindness

We hold other less accountable for unethical behavior when it's carried out through third parties. Example: A drug company deflects attention from a price increase by selling rights to another company, which imposes the increase. Remedy: When handing off or outsourcing work, ask whether the assignment might invite unethical behavior and take ownership of the implications.

Motivated Blindness

We overlook the unethical behavior of others when it's in our interest to remain ignorant. Example: Baseball officials failed to notice they'd created conditions that encouraged steroid use. Remedy: Root out conflicts of interest. Simply being aware of them doesn't necessarily reduce their negative effect on decision making.

Ill Conceived Goals

We set goals and incentives to promote a desired behavior, but they encourage a negative one. Example: The pressure to maximize billable hours in accounting, consulting, and law firms leads to unconscious padding. Remedy: Brainstorm unintended consequences when devising goals and incentives. Consider alternative goals that may be more important to reward.

Continually Communicate

You can improve the communication within your department by holding regular staff meetings where you discuss the company mission, business results, and the way you want things done. Talk about what you stand for and what you want your department to stand for. Use ethical language—for example, when employees are designing a new program or product, ask them in a staff meeting if they have considered everyone who could be affected by their plans. Ask them if they think they're doing the right thing. Framing business decisions in ethical terms goes a long way toward increasing moral awareness, communicating your standards, and emphasizing Once you have deliberately articulated and communicated your standards both privately to individuals and publicly in front of your team, you need to think about how approachable you are. You need to think long and hard about how you react when people raise issues or ask questions or deliver criticism. If you kill the messenger or react with hostility if someone asks a question, or if you seem too busy to clarify directions, you are asking for trouble. Your people may well consider you unapproachable, and managers who aren't approachable lay the groundwork for being blindsided.

Employee Downsizings

can result from many business conditions, including economic depressions, the desire to consolidate operations and decrease labor costs, and increased competition and unmet corporate objectives, to list just a few. However justifiable the reason may be, the result always involves human misery. Organizations may not have an ethical obligation to keep labor forces at a specific number. They do, however, have an obligation to hire and fire responsibly. employees have the right to be treated fairly, without bias, and on the basis of their ability to perform a specific job. If a layoff or downsizing is necessary—if it involves one person or many—the layoff should be done with respect, dignity, and compassion.

Secondary Stakeholder

individuals or groups to whom the organization has obligations, but who are not formal, contractual partners.

Managers are Role Models

managers are indeed role models—not because they want to be, but because of the positions they hold. Being a manager and a good role model means more than just doing the right thing; it means helping your employees do the right thing. A manager who is a good role model inspires employees, helps them define gray areas, and respects their concerns. The most important thing for managers to remember about their job as role model is that what they do is infinitely more important than what they say. They can preach ethics all they want; but unless they live that message, their people won't. As a manager, all eyes are upon you and what you're doing. Your actions will speak much louder than your words, and if there is a disconnect between the two, you will have no credibility—and employees may even question the credibility of your organization.

Managers are the Lens

managers are the lens through which employees view the company as well as the filter through which senior executives view employees. As we noted earlier in this chapter, managers are the critical ingredient in growing employee engagement: to many employees, managers are the company. Managers can be the inspiration for someone to stay with an organization or the impetus for someone to leave. As a result, managers have more influence and need more senior management attention, more training, and more communication skills than any other employee group.

Valuing Diversity

means treating people equally while incorporating their diverse ideas. Discrimination means treating people unequally because they are, or appear to be, different. Valuing diversity is a positive action, while discrimination is a negative action. Valuing diversity tries to incorporate more fairness into the system, while discrimination incorporates unfairness into the system. The key to valuing diversity is understanding that different doesn't mean deficient, and it doesn't mean less. Different means different.

Four Drivers of Engagement

the four drivers of engagement are as follows: 1. Line of sight. Employees understand the company's strategic direction, how the company makes money, and how their individual efforts play a role in that revenue-generating enterprise. Note: Business goals and ethical values are important elements in an organization's strategic direction. 2. Involvement. Employees are involved in the enterprise; they actively participate, and their ideas are heard. Note: This kind of employee involvement encourages the two-way communication that is critical for ethical issues to be identified and resolved . 3. Information sharing. People get the information they need to be effective, when they need it, and information goes in all directions—up, down, and across the organization as needed. Note: Cultures that encourage information sharing are more likely to be open organizations that identify and resolve ethical issues rather than sweeping them under the rug . 4. Rewards and recognition. Business goals and values are clearly spelled out, and employees know what they need to do and how they need to behave to get rewarded. Note: It is critical for companies to pay close attention to the incentives that goals and values will provide for ethical (or unethical) behavior.

Providing Honest Information

we're talking about telling the truth within your organization and providing honest information to others within your company. "Fudging" numbers can have serious consequences since senior management may make crucial decisions based on flawed data. If you're asked to skew any kind of corporate information, you should consult with someone outside your chain of command—such as the legal, human resources, or audit department—and then decide whether it's time to move on. Serious corporate scandals, sometimes leading to jail terms for those involved, often begin with these "one-time" requests. Once you're involved, it's almost impossible to extricate yourself from an almost inevitable downward spiral.