CIS 3250 CH 1

Unethical Behavior

Trends that have increased the risk of ______ ____: •More complex work environments spanning diverse cultures make it more difficult to apply principles and codes of ethics consistently. •Today's challenging economic climate has increased the pressure on organizations to maintain revenue and profits. •Heightened vigilance by employees, shareholders, and regulatory agencies has increased the risk of financial loss and lawsuits for businesses that act unethically.

Managers

Who is responsible for instances of misconduct?

Choose alternative

Ethical Decision Making Process •Defensible and consistent; consider impact on others

Identify Alternatives

Ethical Decision Making Process •Enlist help of others

Implement Decision

Ethical Decision Making Process •Transition plan

Ethical Decision Making Process

1. Develop a Problem statement 2. Identify alternatives 3. Choose alternative 4. Implement decision 5. Evaluate results

Employee Ethics Training

A comprehensive ethics education program: •Encourages employees to act ethically •Shows employees examples of how to apply the code of ethics in real life •Goals of ethics training: •Encourage employees to report any misconduct •Show employees effective ways of reporting incidents •Reassure employees that such feedback will be acted on and that they will not be subjected to retaliation

Vice

A habit of unacceptable behavior

Virtue

A habit that inclines people to do what is acceptable

Corporate Ethics Officer

AKA corporate compliance officer •Provides an organization with vision and leadership in the area of business conduct •Ideally a senior-level manager who reports directly to the CEO •Responsibilities: •Ensuring compliance with ethical procedures •Creating and maintaining the ethics culture envisioned by the highest level of corporate authority •Serving as the key contact person for ethics issues

Successful

Characteristics of a ____ Ethics Program •Employees are willing to seek advice about ethics-related issues. •Employees feel prepared to handle situations that could lead to misconduct. •Employees are rewarded for ethical behavior. •The organization does not reward success obtained through questionable means. •Employees feel positively about their company.

Employee Appraisals

Ethical Criteria in __ ____ •Treating others fairly and with respect •Operating effectively in a multicultural environment •Accepting personal accountability for meeting business needs •Continually developing others and themselves •Operating openly and honestly with suppliers, customers, and other employees

Develop Problem Statement

Ethical Decision Making Process •A clear, concise description of the issue •Don't make assumptions; verify "facts"

Evaluate Results

Ethical Decision Making Process •Poor alternative? •Bad implementation?

Board of Directors

Ethical Standards Set by ____ ____ ____ •Conduct themselves according to the highest standards of personal and professional integrity •Set the standard for company-wide ethical conduct •Ensure compliance with laws and regulations •Create an environment in which employees can: •Seek advice about business conduct •Raise issues •Report misconduct

Gray Areas

Ethical and Illegal/ Unethical and Legal

Corporate Social Responsibility

Organization takes responsibility for the impact of its actions on: •Shareholders •Consumers •Employees •Community •Environment •Suppliers

Concerns

____ About the Ethical Use of Information Technology •Surveillance of citizens by governments •Email and Internet access monitoring at work •Music and movies downloaded in violation of copyright laws •Unsolicited email and text messages •Identify theft by hackers •Plagiarism by students •Cookies and spyware used to track users' online purchases and activities

Reasons

_______ to Foster Corporate Social Responsibility and Good Business Ethics •Gain the goodwill of the community •Create an organization that operates consistently •Foster good business practices •Protect the organization and its employees from legal action •Avoid unfavorable publicity

Ethics

•A code of behavior defined by the group to which an individual belongs; more specific to a group

Supply Chain Sustainability

•A component of CSR focused on developing and maintaining a supply chain that meets the needs of the present without compromising the ability of future generations to meet their needs

Integrity

•Acting in accordance with a personal code of principles •Extending the same respect and consideration that one expects to receive from others •Applying the same moral codes in all situations •Consistency can be difficult to achieve in situations that conflict with one's moral standards. •Inconsistency also occurs if one applies moral standards differently depending on the situation or people involved.

Code of Ethics

•Highlights an organization's key ethical issues •Identifies the overarching values and principles important to the organization and its decision making Organizational code of ethics should: •Apply to directors, officers, and employees •Focus employees on areas of ethical risk •Offer guidance to help employees recognize and deal with ethical issues •Provide mechanisms for reporting unethical conduct •Foster a culture of honesty and accountability

Social Audit

•Organization reviews its ethical and social responsibility goals, and communicates its goals for the upcoming year. •Information is shared with: •Employees •Investors •Market analysts •Customers •Suppliers •Government agencies •Community

Morals

•Personal principles upon which an individual bases his or her decisions about what is right and what is wrong •Moral acts conform to what an individual believes to be the right thing to do

Law

•System of rules, enforced by a set of institutions, that tells us what we can and cannot do; more societal •Legal acts are acts that conform to the law

Bathsheba Syndrome

•Term used to describe the moral corruption of those in power •Refers to the biblical story of King David, who became corrupted by his power and success •Moral corruption of people in power is often facilitated by a tendency for people to look the other way when their leaders behave inappropriately