MODULE 2

Topics
Corporate Ethics Ethical Leadership Ethical Decision Making Work Ethics Ethical issues in Workplace Ethics and Cultural Issues Environmental Ethics Ethical Dilemma

Corporate Ethics

Corporate Ethics
The broad area dealing with the way in which a company behaves towards, and conducts business with, its internal and external stakeholders, including employees, investors, creditors, customers, and regulators

Corporate ethics
Corporate ethics is used to describe ethical practices and policies used in business. This means that a company that practices corporate ethics follows government rules and regulations, treats employees fairly and is a good citizen by giving back to the community where the business is located. Corporate ethics give companies a guide to measure what is right and wrong.

Business Ethics as Competitive Advantage

As the speed of comparable tangible assets acquisition accelerates and the pace of imitation quickens, firms that want to sustain distinctive global competitive advantages need to protect, exploit and enhance their unique intangible assets, particularly integrity

Business Ethics as Competitive Advantage

Behavior that is trusting, trustworthy, and cooperative, not opportunistic, will give the firm a competitive advantage. Sustainable global competitive advantage occurs when a company implements a value-creating strategy which other companies are unable to imitate.

Business Ethics as Competitive Advantage

Business ethics as competitive advantage involves effective building of relationships with a companys stakeholders based on its integrity that maintains such relationships

Warren Buffet
I want employees to ask themselves (when they are in doubt about whether a particular conduct is ethical or not) whether they are willing to have any contemplated act appear the next day on the front page of their local paper to be read by their spouses, children and friends with the reporting done by an informed and critical reporter.

Situation in which a business decision may be influenced for personal gain.

Telling the truth and adhering to deeply felt ethical principles in business decisions.

Employees disclosure of illegal, immoral, or unethical practices in the organization.

Businesspeople expect employees to be loyal and truthful, but ethical conflicts may arise.

Responsibilities to the General Public

Public Health Issues. What to do about inherently dangerous products such as alcohol, tobacco, vaccines, and steroids.
Protecting the Environment. Using resources efficiently, minimizing pollution.

Recycling. Reprocessing used materials for reuse. Developing the Quality of the Workforce. Enhancing quality of the overall workforce through education and diversity initiatives. Corporate Philanthropy. Cash contributions, donations of equipment and products, and supporting the volunteer efforts of company employees.

Responsibilities to Customers
The Right to Be Safe. Safe operation of products, avoiding product liability. The Right to Be Informed. Avoiding false or misleading advertising and providing effective customer service. The Right to Choose. Ability of consumers to choose the products and services they want.

The Right to Be Heard. Ability of consumers to express legitimate complaints to the appropriate parties.

Responsibilities to Employees
Workplace Safety. Monitored by Occupational Safety and Health Administration. Quality-of-Life Issues. Balancing work and family through flexible work schedules, subsidized child care, and regulation such as the Family and Medical Leave Act of 1993.
Ensuring Equal Opportunity on the Job. Providing equal opportunities to all employees without discrimination; many aspects regulated by law. Age Discrimination. Age Discrimination in Employment Act of 1968 protects workers age 40 or older. Sexual Harassment and Sexism. Avoiding unwelcome actions of a sexual nature; equal pay for equal work without regard to gender.

Responsibilities to Investors
Obligation to make profits for shareholders.

Expectation of ethical and moral behavior. Investors protected by regulation by the Securities and Exchange Commission and state regulations.

Why Misconduct Is Not Reported...

fear of not being considered a team player did not think corrective action would be taken fear of retribution (from management) no one else cares, why should I did not trust the organization to keep report confidential

"The Ordinary Heroes of the Taj,"

http://hbr.org/2011/12/the-ordinary-heroesof-the-taj/ar/1 Good Training May Mean Good Ethics

ETHICS
Embrace your purpose: Clarity of purpose leads to clarity of conduct. If youre not clear about your non-negotiable values youll be unclear when faced with ethical uncertainty.

THICS

Test your excuses: Its not my fault. I didnt have time. Everybody else was doing it. It is human nature to make excuses, but our excuses deprive us of the opportunity to learn from our mistakes. Two minutes of brutal honesty can save months of regret.

ET

HICS

Harness your moods: Its easy, especially in pressure situations, to let our moods master us. The more pressure we are under, the more likely we are to violate our own sense of whats right. First be aware of our moods, especially under pressure. Then harness them.

ETH CS
Insist on integrity: Everyone has an integrity gapthe distance between what we say we believe and how we actually behave. The key is to continually be growing in integrity so that the gap lessens and our beliefs and our behaviors come closer to alignment. The successful person is intentional about closing the integrity gap.

ETHI

CS

Cultivate trust: Act in a trustworthy way and trust others to do the sameuntil you have a good reason not to. The Golden Rule applies in the area of trust as well.

ETHIC

Self-differentiate: Self-differentiation is clarity about who you are as distinct from those to whom youre connected. Failure to self-differentiate promotes group-think, the careless willingness to let the group do your thinking for you. Dont ignore the group, but be aware enough to know where the group ends and we begin.

Apple Computers
Apple computer is reversing course and registering its products with a group that tracks green electronics, reports the Wall Street Journal. Apple recently removed its computers and monitors from the list of environmentally friendly products maintained by a group called Epeat (an acronym for the Electronic Product Environmental Assessment Tool), but changed its decision after at least one city government banned the purchase of Apple products. Apple had claimed that its products were actually environmentally superior in ways not measured by Epeat