Chapter 8 - Ethics

32. The ethics and compliance officer in an organization must differentiate between which of the following types of ethical issues? a) discrimination and harassment b) material and inmaterial issues c) right and wrong d) all of the above e) none of the above

b) material and inmaterial issues

51. Whistleblowers are always perceived as disgruntled employees seeking revenge against a boss or employer.

False

52. Legal advisors recommend that it is irrelevant whether or not the whistleblower has convincing, documented evidence before moving forward with informing an external authority.

False

54. Though increasingly viewed as a public service in the interest of society, whistleblowing does not merit legal protections through the law.

False

Essay Qn 5: Describe the process a manager can undertake to engage employees in discussion of ethical misconduct.

A diverse set of managerial techniques and attributes can help employees become comfortable sharing sensitive ethical information: • Provide ongoing dialogue for ethical discussions - if it is normal to have conversations about ethics, then discussing instances of potential ethical misconduct becomes part of the workplace culture. • Highlight the importance of introducing the organization's code of ethics and the ethical decision-making framework during employee orientation - refer to these documents as often as possible and relate them directly to specific decisions and actions. • Become an "approachable" manager to help employees overcome fears about discussing any workplace problem, including ethical misconduct. • Honest managers attract honest reactions - managers who honestly share their ethical challenges tend to attract employees wanting to discuss their own ethical challenges or observations about ethical misconduct. • Having frequent interactions with subordinates increases a manager's approachability. • Managers must thrust their ethical institutions and engage the subordinate in future conversation if there is a sense that the employee is hesitant to discuss something. In large corporations, an ethics and compliance officer, ombudsperson, chaplain, and assist lines are other internal mechanisms for eliciting and discussing ethical issues.

Essay Qn 4: Provide at least five examples of reasons why some employees do not report ethical misconduct.

A wide range of reasons for maintaining silence about an observed ethical misconduct can be attributed to organizational factors, observer factors, and anticipated negative outcomes. Organizational Factors: Examples of reasons why some employees do not report ethical misconduct are work culture discourages conveying negative information or dissent, loyalty to employees, manager, organization, and profession is not aligned with ethics, no established reporting system beyond chain of command, and the lack of anonymity for reporting misconduct. Observer Factors: Five examples of reasons why some employees do not report ethical misconduct are habituated not to share sensitive information, low moral intensity, lack of evidence, lack of empowerment, and lack of seniority. Anticipated Negative Outcome: Five examples of reasons why some employees do not report ethical misconduct are being labeled or viewed negatively, damaging a relationship, retaliation or punishment, negatively impacting other, and being blamed for the problem.

48. The roles of the organization's ethics and compliance officer and ombudsperson are interchangeable.

False

49. It is impossible to discourage false accusations with an effective assist line.

False

34. People are often uncomfortable conveying negative information to organizational leaders who welcome ethical discussions.

False

36. Employee silence is less likely when the chain of command is the only mechanism for reporting and when the person behaving unethically can readily identify the information source.

False

39. An "open door" policy between supervisors and employees means the door remains open during every conversation, to ensure an open and transparent process of discussion.

False

42. Legislation including Sarbanes-Oxley Act of 2002 ensures that whistleblowers will face no negative consequences after blowing the whistle.

False

43. The False laims Act initially passed in 1863 and strengthened in 1986 is designed to protect employers from whistleblowers making false accusations.

False

44. It is not important whether or not the ethics and compliance officer is perceived as someone with authority in the organization

False

45. In order to be effective, the ethics and compliance officer must be someone in a dedicated position, not someone who serves that function in addition to another role such as legal counsel.

False

47. In order to successfully prosecute wrongdoing in the workplace, the employee who raised the concern must identify him/herself during the investigation process.

False

Essay Qn 3: Discuss the attributes of an effective ethics and compliance officer.

The attributes of an effective ethics and compliance officer includes insider status and is well networked with business unit managers, a high position that exemplifies authority, the trust and respect of organizational executives, independence from senior staff and freedom from internal political pressure, operational experience, knowledge of organizational issues and activities, access to internal information as needed, knowledge of ethical theories, counseling and communication skills, and problem-solving skills.

Essay Qn 2: Discuss the typical duties and skills of an ethics and compliance officer.

The typical duties and skills of an ethics and compliance officer are to manage internal reporting systems, assess areas for ethical risks, offer guidance, monitor the organization's adherence to its Code of Ethics and Code of Conduct, oversee the ethics communication strategy, develop and interpret ethics policies, oversee the ethics training program, receive information abut potential wrongdoings, collect and analyze relevant data, ensure that decisions are made and enforces, and inform employees about outcomes.

Essay Qn 1: Discuss the steps associated with best practices in the internal reporting process.

There are 14 steps associated with best practices in the internal reporting process. Step 1: Develop the ethics reporting policy in partnership with those in upper management positions to establish their buy-in. Step 2: Communicate the ethics reporting policy to all employees through multiple media, such as the employee handbook, email, the company intranet site, department meetings, and training sessions. Step 3: Emphasize the importance of reporting concerns about unethical and illegal conduct. Management cannot act on what it does not know. Step 4: Assure people that any form of retaliation against an employee who raises an ethical concern is prohibited. Step 5: If appropriate, the employee should first attempt to resolve the issue by directly approaching the individual engages in the questionable activity. Step 6: If direct discussion or resolution is not possible, then the employee should confidentially meet with the Ethics & Compliance Officer (ECO) to discuss the issue. Step 7: If the employee prefers not to reveal his or her identity, then the employee should anonymously submit the concern to the ECO through the organization's intranet reporting system or in a sealed box. Establish a means of communication if the issue becomes a high-priority item needing additional information from the employee. Step 8: Assure the employee that his or her identity will not be revealed without consent. Step 9: Interview the employee and discuss clarifying questions. Step 10: Develop a plan for investigating the case in a manner that honors the employee's confidentiality or anonymity. Step 11: Conduct the investigation in a fair and confidential manner. Step 12: If the investigation reveals that the employee's allegations are accurate, take prompt action to correct the wrongdoing. Step 13: Inform the employee about the outcome of the investigation. Step 14: Establish an appeals process for employees dissatisfied with the outcome of the initial investigation. Provide an advocate, probably from the Human Resources Department, to assist an employee who wishes to appeal an outcome.

33. Ethical misconduct at the workplace can be undertaken for the purposes of enhancing the company's financial performance agenda or for personal benefits for those engaging in the misconduct.

True

35. Authoritarian leaders rule according to the saying "my way or the highway," tend to expect absolute loyalty, and consider taking suggestions from subordinates as a leadership weakness.

True

37. Fear of retaliation for reporting unethical conduct from colleagues and supervisors is a realistic concern.

True

38. Employees are more likely to discuss an ethical concern with a manager if these types of discussions occur on a regular basis.

True

40. Ethics-related information can come from suppliers and customers, in addition to employees.

True

41. Assist lines or "ethics hotlines" can help address issues of confidentiality and false accusations in reporting wrongdoing.

True

46. Even smaller organizations with less than 50 employees can benefit from a clearly articulated internal reporting system for ethical issues.

True

50. A method for preserving employee anonymity in the internal reporting system is to use an identification number for the case and filter communications through a resource such as EthicsPoint or other telephone services.

True

53. Several resources including nonprofit advocacy and lobbying organizations exist to provide support to potential or actual whistleblowers.

True

55. With enhancements to the internal reporting process and development of an approachable management style, organizations can reduce the need for employee whistleblowing.

True

31. Observers of ethical misconduct will often remain silent when they perceive reporting as a violation of ___________ to employees, managers, and the organization. a) loyalty b) whistleblowing c) professionalism d) silence e) none of the above

a) loyalty