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Strategic Approaches To Improving Ethical Behavior

This document discusses strategies for developing and implementing effective organizational ethics programs. It outlines the need for such programs given organizations' accountability for employee conduct. It recommends establishing a code of conduct, appointing ethics officers, providing ethics training and communication, and monitoring systems to enforce standards. Leadership plays a key role by shaping corporate culture through various power bases and influencing how employees interpret ethical situations. The goal is to continuously improve ethics programs through implementation and assessment.

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Txos Vaj
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206 views15 pages

Strategic Approaches To Improving Ethical Behavior

This document discusses strategies for developing and implementing effective organizational ethics programs. It outlines the need for such programs given organizations' accountability for employee conduct. It recommends establishing a code of conduct, appointing ethics officers, providing ethics training and communication, and monitoring systems to enforce standards. Leadership plays a key role by shaping corporate culture through various power bases and influencing how employees interpret ethical situations. The goal is to continuously improve ethics programs through implementation and assessment.

Uploaded by

Txos Vaj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CHAPTER 6

Strategic Approaches to
Improving Ethical Behavior
Chapter Objectives

• To provide an overview of the need for an


organizational ethics program
• To consider crucial keys to development of an
effective ethics program
• To examine effective implementation of an
ethics program
The Need for
Organizational Ethics Programs
• Organizations are held accountable for the
conduct of their employees.
• Organizations can create unethical corporate
cultures.
• Stakeholders demand greater ethical and
social responsibility.
Codes of Conduct

Formal statements that describe what an


organization expects of its employees
Developing and
Implementing a Code of Ethics
• Consider areas of risk and state values as well as necessary
conduct.
• Identify values that specifically address current
ethical issues.
• Consider values that link the organization to a stakeholder
orientation.
• Make the code understandable by providing
examples that reflect values.
• Communicate the code frequently in language employees can
understand.
• Revise the code each year.
Ethics Officers

• Assess organizational needs and risks


• Develop and distribute the code of ethics
• Conduct ethics training programs
• Establish and maintain a confidential system to
respond to ethics questions
• Make certain the company is in compliance with
government regulation
• Monitor and audit ethics conduct
• Take action when there is a code violation
• Review and update the code
Ethics Training and Communication

• Educates employees about the firm’s policies,


expectations, relevant laws and regulations,
and general social standards
• Makes employees aware of available
resources, support systems, and personnel
who can assist with ethics and legal advice
• Can empower employees
Training and
Communication Initiatives
• Should reflect the unique characteristics of
an organization
• Must operate with a strong foundation
• Are more effective if employees engage
in exercises that involve solving ethical
dilemmas that relate to their job
Establishing Systems to Monitor
and Enforce Ethical Standards
• Help or assistance lines
• Observation and feedback
• Whistle-blowing
Questions to Ask Before
Engaging in External Whistle-blowing
• Have I exhausted internal anonymous reporting opportunities
within the organization?
• Have I examined company policies and codes that outline
acceptable behavior and violations of standards?
• Is this a personal issue that should be resolved through other
means?
• Can I manage the stress that may evolve from exposing
potential wrongdoing in the organization?
• Can I deal with the consequences of resolving an ethical or
legal conflict within the organization?
Continuous Improvement
of the Ethics Program
• Putting strategies into action
• Translating a plan of action into operational
terms and monitoring, controlling, and
improving organizational performance
Implementing
Organizational Ethics Programs
• Role of leadership
– Transformational leaders
– Transactional leaders
Leaders influence Corporate Culture

• Organizational leaders use their power and


influence to shape corporate culture. Power
refers to the influence that leaders have over
the behavior and decisions of subordinates.
Five Power Bases

• Reward power
• Coercive power
• Legitimate power
• Expert power
• Referent power
Variation in Employee Conduct

• Because people are culturally diverse and


have different values, they interpret
situations differently and will vary in the
ethical decisions they make on the same
ethical issue.

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