mktg ethics ferrell

apathetic example

An Apathetic Culture. Countrywide seemed to show little concern for employees and customers. The company's culture appeared to encourage unethical conduct in exchange for profits. Minimal concern for either people or performance. Steel companies and airlines.

Outline the Auburn Creed's specific commitments.

Auburn is committed. Committed to hard work, education, honesty and truthfulness, a sound mind, obedience, the human touch, our Country, and the Auburn family.

Why is the Ethics Officer such an important part of an ethics program?

Ethics officers are responsible for managing their organizations' ethics and legal compliance programs.

Informal group

two or more individuals with a common interest but without an explicit organizational structure.

company examples of values and principles

Consider the ethics program at construction and engineering company Bechtel Corporation. Top managers at Bechtel show strong support for ethical conduct. Every year the company holds an ethics awareness workshop for its employees and supports organizations such as Transparency International and Business Ethics Leadership Alliance.

marriott

"As we change and grow, the beliefs that are most important to us stay the same—putting people first, pursuing excellence, embracing change, acting with integrity and serving our world. Being part of Marriott International means being part of a proud history and a thriving culture."

Kelloggs

"W.K. Kellogg has given us a rich legacy of integrity, and honoring that legacy has been a significant part of Kellogg Company's success story. Our Global Code of Ethics and K Values™ preserve our enduring commitment to integrity by shaping our ethical performance culture and by providing clear guidance so our employees and stakeholders know where we stand and how we conduct business globally. Both demonstrate our unwavering commitment to doing business the right way - the Kellogg way." There global code of ethics is available in 13 different languages.

Outline the 4 types of organizational cultures in Figure 7-2.

1. caring culture 2. Integrative culture 3. Apathetic culture 4. Exacting Culture

caring example

A Caring Culture. Ben & Jerry's embraces community causes, treats its employees fairly, and expends numerous resources to enhance the well-being of its customers. High concerns for people but minimal concern for performance issues.

What do you have to have to be on Ethisphere

A distinction that honors superior achievements in transparency, integrity, ethics and compliance based on our proprietary rating system, the corporate Ethics Quotient™.

exacting example

An Exacting Culture. Employees are held to high standards to ensure maximum performance, consistency of delivery, and efficiency. Shows little concern for people but a high concern for performance; it focuses on the interests of the organization. UPS.

How do principals and values impact organizational ethical decision-making?

An organizational ethical culture is shaped by effective leadership. An ethical corporate culture needs shared values along with proper oversight to monitor the complex ethical decisions being made to employees.

Define corporate culture.

Corporate culture- a set of values, norms and artifacts, including ways of solving problems that members (employees) of an organization share.

What are some of the key risk areas that Wilson Nash discussed with the class?

Difference is a risk that Wilson discussed along with the future challenges of the company. Some of the challenges were use of technology, workforce development, and field/office division.

What are some of the key elements that must exist to support an ethical organizational culture?

Ethical culture reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior. Communication is also important.

Explain (define) each of the interrelated factors.

Ethical issue intensity- the relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization. Individual factor- when people need to resolve issues in their daily lives, they often base their decisions on their own values and principles of right or wrong. Organizational factors- research has established that in the workplace, the organization's values often have greater influence on decisions than a person's own values. Opportunity- describes the conditions in an organization that limit or permit ethical or unethical behavior.

What are the key components of Brasfield and Gorrie ethical culture?

Exceptional people, trusting relationships, great projects, strong communities, generosity. Safety is a big deal.

How would you take a company like Wells Fargo and make changes that would have a positive influence on ethical decision-making and the ethical culture of the firm?

I would change the way Wells Fargo employees are rewarded and have the top management take a course on ethical culture. The top management put pressure on the employees and drove them to unethical acts.

What are the key benefits of ethics auditing?

It can improve a firm's performance and effectiveness, increase its attractiveness to investors, improve its relationship with stakeholders, identify potential risks, and decrease the risk of misconduct and adverse publicity that could harm its reputation.

example of differential

New sales people are encouraged by old sales people to pad their expense accounts.

integrative example

Starbucks—An integrative Culture. Starbucks always looks for ways to expand and improve performance. It also exhibits a high concern for people through community causes, sustainability, and employee health care. Combines a high concern for people and performance. Boston Consulting Group.

How do companies plan for ethical misconduct disasters?

Such contingency planning assesses risks, plans for eventualities, and provides ready tools for responding to ethical crisis. The process of ethical disaster-recovery planning involves assessing an organization's values, developing an ethics program, performing an ethics audit, and developing contingency plans for potential ethical disasters.

How would you defend the investment of ethics auditing in the process?

The "World's Most Ethical Companies" have often shown better financial performance than the firms in the general stock indexes.

How can an ethics audit be used to improve an ethics program and encourage ethical conduct?

The audit provides an opportunity to measure conformity to the firm's desired ethical standards. Regulation has been found to have a positive effect on financial reporting quality.

example of ethical disaster

The misconduct of Raj Rajaratnam at Galleon Group, Andrew Fastow at Enron, Dennis Kozlowski at Tyco, and Bernie Ebbers at WorldCom caused financial disasters on both organizational and global levels.

Which is most important in impacting employee behavior: ethics training and codes or culture?

The most important in impacting employee behavior is culture. Research indicates the ethical values embodied in an organization's culture are positively correlated to employees' commitment to the firm and their sense that they fit into the company. The more employees perceive an organization's culture to be ethical, the less likely they are to make unethical decisions.

ethics culture

The value-based ethics culture relies upon an explicit mission statement that defines the core values of the firm and how customers and employees should be treated. The focus of this type of corporate culture is on values such as trust, transparency, and respect to help employees identify and deal with ethical issues.

compliance culture

This culture uses a legalistic approach to ethics and use laws and regulatory rules to create codes and requirements. Codes of conduct are established with compliance as their focus, with rules and policies enforced by management. Instead of revolving around an ethical culture, the company revolves around risk management.

whistle blowing example

Whistle-blowers are sometimes refrain from reporting the ethical misconduct they have seen for fear of being retaliated against by the company or the employees committing the ethical misconduct.

Explain the "Variation in Employee Conduct" framework

a. Because people are culturally diverse and have different values, they interpret situations differently and the ethical decisions they make on the same issue will vary. b. 10% follow their own values and beliefs; believe that their values are superior to those of others in the company. c. 40% always try to follow company policies d. 40% go along with the work group e. 10% take advantage of situations if the penalty is less than the benefit and the risk of being caught is low.

What are some of the common mistakes that companies make in implementing their ethics pregame?

a. Failure to understand and appreciate ethical goals is the first mistake many firms make when designing ethics programs. b. Not setting realistic and measurable program objectives c. Senior management's failure to take ownership of the ethics program d. Developing program materials that do not address the needs of the average employee e. Transferring an "American" program to a firm's international operations f. Designing an ethics program that is little more than a series of lectures

Comprehensively outline an effective ethics training program

a. Identify key risk areas employees will face b. Provide experience in dealing with hypothetical or disguised ethical issues within the industry through mini-cases, online challenges, DVDs, or other experiential learning opportunities c. Let employees know wrongdoing will never be supported in the organization and employee evaluations will take their conduct in this area into consideration d. Let employees know they are individually accountable for their behavior e. Align employee conduct with organizational reputation and branding f. Provide ongoing feedback to employees about how they are handling ethical issues g. Allow a mechanism for employees to voice their concern that is anonymous, but provides answers to key questions (24-hour hotlines) h. Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma they do not know how to resolve

What are the 5 types of power and how can they be used to impact organizational behavior?

a. Reward power- refers to a person's ability to influence the behavior of others by offering them something desirable. b. Coercive power is essentially the opposite of reward power. Instead of rewarding a person for doing something, coercive power penalizes actions or behavior. c. Legitimate power stems from the belief that a certain person has the right to exert influence and certain others have an obligation to accept it. d. Expert power is derived from a person's knowledge (or a perception that a person possesses knowledge). e. Referent power may exist when one person perceives that his or her goals or objectives are similar to another's.

Provide the general framework for an ethics audit.

a. Secure the commitment of top managers and board of directors b. Establish a committee to oversee the ethics audit c. Define the scope of the audit process, including subject matter areas important to the ethics audit d. Review the organization's mission, policies, goals, and objectives and define its ethical priorities e. Collect and analyze relevant information in each designated subject matter area f. Have the results verified by an independent agent g. Report the findings to the audit committee and, if approved, to managers and stakeholders

What are the 7 minimum requirements of an ethics and compliance program?

a. Standards and procedures, such as code of ethics, that are reasonably capable of detecting and preventing misconduct. b. High-level personnel who are responsible for an ethics and compliance program. c. No substantial discretionary authority given to individuals with a propensity for misconduct. d. Standards and procedures communicated effectively via ethics training programs. e. Systems to monitor, audit, and report misconduct. f. Consistent enforcement of standards, codes, and punishment g. Continuous improvement of the ethics and compliance program

Diagram the framework for understanding ethical decision making in business.

a. The framework includes ethical issue intensity, individual factors, organizational factors, and opportunity. All of these interrelated factors influence the evaluations of and intentions behind the decisions that produce ethical or unethical behavior. These four factors lead to business ethics evaluations and intentions which leads to ethical or unethical behavior.

What is the triple bottom line and how does it help companies to engage in ethical and socially responsible conduct?

a. This approach to measuring social, financial, and environmental factors (or people, places, and planet) recognizes that business has a responsibility to positively influence a variety of stakeholders, including customers, employees, shareholders, community, and the natural environment. b. When making an increased commitment to social responsibility, sustainability, or ethics, companies consider implementing triple bottom line reporting as a way to confirm their investments and initiatives support their organization's values and overall success.

Centralized organization

a. decision-making authority is concentrated in the hands of top-level managers, and little authority is delegated to lower levels. i. Centralized organizations stress formal rules, policies, and procedures backed up with elaborate control systems. Code of ethics may specify the techniques used for decision-making.

Decentralized organization

a. decision-making authority is delegated as far down the chain of command as possible. If widely shared values and effective ethics programs are in place in decentralized organizations, there may be less need for excessive compliance systems

Formal group

an assembly of individuals with an organized structure that is explicitly accepted by the group.

Whistle-blowing

exposing an employer's wrong-doing to outsiders such as the media or government regulatory agencies. The term is sometimes used to refer to internal reporting of misconduct to management, especially through anonymous reporting mechanisms often called hotlines.

What is an ethical disaster?

follow recognizable phases of escalation, from ethical issue recognition and the decision to act unethically to the organization's discovery of and response to the act.

impact of formal groups in ethical decision making

i. Committees bring diverse personal moral values to the ethical decision-making process and may expand the number of alternatives considered. ii. Groupthink, no individual responsibility.

impact of informal groups in ethical decision making

i. Informal groups help develop informal channels of communication, sometimes called the grapevine, that are important in every organization. The grapevine is an important source of information for individuals to asses ethical behavior within their organization.

What is an ethics audit?

is a systematic evaluation of an organization's ethics program and performance to determine effectiveness.

Differential association

is the idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or belong to other intimate personal groups.

Group norms

standards of behavior groups expect of their members. They help define acceptable and unacceptable behavior within a group.

Values-

subjective and related to choice, used to develop norms, provides guidance to organizations, differs across cultures and firms.

Principles-

widely accepted, used to develop values and standards, establishes pervasive boundaries for behavior, and valued across cultures.