Purpose of Ethics in a Business Environment

Posted on 16. Mar, 2010 by admin in Ethics

Ethics can be defined as a set of moral values or principles that consist of a moral duty and obligation. In the business setting they are the rules or standards which govern the conduct of employees. This code of conduct encourages public confidence in the products and services of the company. A profession is formed on the basis of a generally accepted body of knowledge, a standard of achievement and code of ethics that is strictly enforced. A code of ethics is said to be a crucial element in the foundation of a profession. The three major accounting professional organizations follow an ethics code.

Ethics are especially important in the work of a management accountant so they have the right elements and are able to serve their management efficiently. The behavior of a management accountant is governed by the Institute of Management Accountants (IMA) Code of Ethics. When this code of ethics is followed a trusting relationship develops so the work of the accountants is able to be relied upon and it also enhances their professionalism. The four main standards that appear on the code of ethics are competence, credibility, confidentiality and integrity. The standard of competence requires that every member must maintain a high level of professionalism by continuing to develop their skills and knowledge, be able to perform their duties by still abiding by relevant laws and regulations. Also to provide supportive decisions and other information that is accurate and timely and lastly to be able to recognize any limitations or constraints that relate to the success o an activity. Credibility refers to each member being able to communicate information objectively and make sure that they disclose all relevant information and delays of deficiencies that have an effect on the organization or its operations. The concept of confidentiality refers to each member of the organization keeping all personal information discrete and secret unless it is necessary that the information is disclosed. All parties involved must be aware and comply to the confidential policy. It is also assumed that under this standard each member will refrain from using information that is considered confidential to have an illegal advantage or promote unethical activities. The last standard in the code of ethics is integrity. Integrity refers to the ability to adhere to moral and ethical principles and have regular communication to avoid conflicts of interest. Also acting with integrity includes refraining and abstaining from engagement in any activity that with discredit the company or be deemed as unethical. 

The Institute of Management Accountants (IMA) insures that all members of their organization should always behave ethically. Each member is obligated to commit to practices that are both ethical and professional. Their ethical principles include: Honesty, Fairness, Objectivity and Responsibility. Everyone has their own knowledge of honesty and what it means to be honest. Being truthful and sincere is said to be acting honestly and it will help in an organization if everyone possesses those qualities. Fairness in accounting is defined as a company’s financial statements being presents in an understandable, and comprehensive way to not favor one party over another. Objectivity refers to not acting based on personal feelings or prejudice and being unbiased. Responsibility is an obligation or duty to do things that you feel is right. In a business environment these are all key principles that each person must follow and uphold in order to maintain some sort of ethical standard to work and live by. Every member should not only abide by them but also encourage others in their organization to do the same; failure to comply can result in strong discipline.

Organizations can have as many rules and regulations they want when it comes down to acting ethical and how to punish those who don’t but sometimes conflicts do arise that can’t be handled just by your organization’s policies. In situations like these other courses of action must be applied and taken into consideration. To resolve ethical conflicts you should first talk to your supervisor and discuss the situation with them. If this doesn’t help to resolve the conflict it would be a good idea to keep moving up the chain of management until an immediate answer is found that would help to resolve the problem. Another option would be to discuss your possible outcomes to the situation with an IMA counselor to get a better idea of what your options are. To take it one step further you could also contact your attorney to legal obligations and rights that may be involved in the conflict of ethics.

There are always going to be ethical issues that arise but having a good ethics code within your organization there is a high chance that conflicts can be resolved. It is necessary that the ethics code be enforced and if someone is acting unethically or not abiding by the code that they person should face serious consequences. Ethics provide the foundation for which a civilized society can exist and therefore they are a key element in the success of all business and accounting professions.

Improve Yourself And Gain Further Skills – Mechanisms For Ethics Advice And Support – Artur Victoria Research And Studies

Posted on 15. Mar, 2010 by admin in Ethics

I will provide further advises on this issue. I am available for any requested individual needs.

This would cover the need to establish, within your organization, various mechanisms which will foster ethical behavior and allow individuals to seek advice on dilemmas, get support for difficult decisions etc. This might include:

Ethics Contact Officers

The establishment of a structure and process for advice giving, which is outside the normal hierarchical relationships between people. This must provide a focal point (or points) for enquiries / advice and uphold absolute confidentiality. It’s continued depends upon a track record of trust.

Responsibilities may include:

• Global accountability for developing and directing an organization’s ethics, compliance, and business conduct function for the total corporation or organization,

• Providing leadership, oversight, and expert advice to ensure appropriate development, interpretation, and implementation of ethics and compliance strategies, policies and programs,

• Accountability for all program activities relating to standards of conduct including ethical relationships with employees, customers, contractors, suppliers, shareholders, and other stakeholders,

• Providing leadership in the development of a compliance risk management program to assess, prioritize, and effectively manage legal and regulatory compliance,

• Accountability for the organization-wide confidential reporting program (such as a Hotline)allowing employees, customers, suppliers, and other stakeholders to report violations of the organization’s ethical standards, violations of law or corporate policy, without fear ofretaliation,

• Setting the strategy for and administering the organization’s annual or periodic ethics and compliance training, and regular communications around ethics, compliance and conduct
Issues,

• Conducting investigations into alleged violations of organisational ethics, compliance or conduct practices and making recommendations for resolution of misconduct – including disciplinary action,

• Measuring and assessing organisational performance in compliance and ethics arenas, and, providing comprehensive reports to the CEO and any committees, the Board of Directors etc.

Ethics Committees

Roles can include a spectrum from advisory (no hands-on) to very hands-on involvements, as follows. This will depend upon the organizational culture, nature of the business, tolerance for control of compliance outside traditional hierarchical structures etc:

• Develop and regularly review standards and procedures

• Resolve conflicts between competing ethical requirements

• Suggest behaviors’ that reinforce the organization’s ethics guidelines

• Assume responsibility for overall compliance

• Act as a court of last resort re: interpretations of standards and procedures

• Define how the organization balances the rights of individual employees against the organization’s needs

• Solicit stakeholder input regarding how standards and procedures are defined and enforced

• Develop and disseminate the organization’s standards, policies and guidelines on ethical decision making

• Oversight an Ethics “Hot Line” as a mechanism for seeking guidance and reporting suspected wrongdoing and to protect employees’ privacy

• Serve as the primary agent for enforcement and discipline

• Ensure that offences are not repeated, through direct action

• Provide a forum to foster communication among ethics committees at large

• Monitor and audit overall compliance

• Undertake or commission research projects on ethics issues relevant to the organization

Whistleblower procedures and protection

Three Polarized Views of Whistle blowing

• The worst possible disloyalty an employee can perpetrate – “ratting’ on others, or on the organization;
• An unfortunate but necessary evil, to be avoided at all costs, but ultimately may be necessary as the only option; and
• An expectation that it must happen – that everyone has the responsibility to blow the whistle – that it is a public duty. The organization needs to emphasize and assert where it stands on this and what it expects of its managers and leaders. Managers should ask themselves

Does my organization have clearly documented procedures for receiving and investigating a public interest disclosure from internal or external sources ?

Does my organization have appropriate safeguards to preserve confidentiality ?

Does my organization have trained investigators who can impartially perform investigations ?

Does my organization have a process for proper recording of public interest disclosures and the action taken on them?

Does my organization have documented procedures to protect staff who may be the subject of a reprisal because of a public interest disclosure ?

• Do my staff have a clear understanding of their ethical obligation to report fraud, corruption and maladministration of which they become aware ?

• Do my staff have a clear understanding of what a public interest disclosure is, how to make a public interest disclosure, and what they should do if they receive a public interest
disclosure in their role as a supervisor 7

The various types of whistleblowing:

Internal Whistle blowing

• Disclosure to someone within the organization itself.
• Is this ethical if it is “required” of employees ?
• Which loyalty takes precedence – that to the organization or to the cause at hand ?

Governmental Whistleblowing

• Unauthorised disclosure of actions and/or information relating to the activities of a government or its employees. Personal Whistleblowing
• Reporting the actions of another which we regard as injurious to us personally

Impersonal Whistleblowing

• Reporting the actions of another which we regard as injurious to others (not us personally). When is whistleblowing morally defensible. An hierarchy of conditions upon which whistIeblowing may be, or become, morally defensible:
• If the actions/practices contemplated for disclosure are very likely to do “serious and considerable” harm to individuals.
• If the actions/practices have been reported to the person or group immediately in authority (eg: the disclosing employee’s supervisor).
• If the person, or group in authority, does nothing about the allegations and if the employee
has exhausted all reasonable channels.
• If there is clear evidence which is accessible, can be documented, and which would be sufficient to prove a case to any reasonable empirical observer.
• If the employee believes that the disclosure may change how the situation is being handled
(eg: operating procedures), ie: there is a reasonable chance of a successful outcome.

The Whistleblower’s Checklist!

• Ensure the situation really warrants it (eg: is the potential harm of disclosure warranted, above the potential harm of non-disclosure)
• Examine your motives. What is your real reason for considering blowing the whistle ?
• Gather evidence, verify it and document your information. Determine exactly the behavior you are reporting and to whom it will be reported.
• State allegations appropriately, specifying exactly the type behavior being reported, who is being adversely affected, and how.
• Just the Facts. Avoid slander, and immoderate language. (This helps to avoid retaliation eg: litigation)
• Decide whether the whistleblowing will be open or anonymous.
• Decide whether you can disclose this information while still a member of the organization
or whether you should leave first.

Protection of Whistleblowers

• Can Whistleblowers EVER really be protected?
• Is it ethical if there is no such requirement?
• Which loyalty takes precedence (to the organization or to the fellow employee) ?

External Whistleblowing

• Disclosure to someone outside the organization itself.

-Harassment
-intimidation and victimization
-job-loss
-Threats
-personal injury
-discrimination
-property damage/loss
-physical abuse
-defamation suits

Rewards and Sanctions

Processes need to be put in place to ensure that there are visible, reliable and consistent rewards for high ethical behavior and penalties for non-compliance to organizational values

Ethics and Counselling Applications

Posted on 13. Mar, 2010 by admin in Ethics

“Ethics (from Greek – meaning “custom”) is the branch of axiology, one of the four major branches of philosophy, which attempts to understand the nature of morality; to distinguish that which is right from that which is wrong. The Western tradition of ethics is sometimes called ‘moral philosophy’”. (WIKIPEDIA).

The origins of ethics are related to the introduction of moral behaviour in early societies. The application of concepts such as ‘right’ and ‘wrong’, and the definition of these concepts in different environments, induced the need for a formal approach to social behaviour – an attempt to create commonality and organisation in a society. In this context, codes of behavior were created, and different forms of behaviour enforcement adopted.

As societies developed, and increasing importance was placed in structural thinking – such as the advent of sciences – meta-ethics became an eminent topic of discussion. Meta-ethics refers to the investigation of ethical statements, an actual analysis of ethics itself. Names such as Hobbes, Kant and Nietzsche were prominent in this period.

Nowadays, ethics is still a main topic of discussion. As societies evolve, the relationships between individuals become more complex, and so do the etiquettes and codes of conduct. The development of business relationships has raised many ethical dilemmas, and ethical counselling is one of them.

Ethical Counselling

Because counselling is not a regulated profession in many countries (including Australia), the use of ethical standards is a method of guiding the quality of the services provided by counsellors, the quality of training provided to counsellors, and of protecting clients.

These standards provide conduct guidelines for professionals and are an effective way support many counsellors lacking experience or knowledge of the industry. It also serves the purpose of structuring the counselling industry, providing common professional descriptions, definitions and service boundaries according to each type of counsellor.

There is a wide range of issues comprising the field of ethical counselling – which are also part of common guidelines for the practice of therapy. According to Daniluk and Haverkamp (1993), “the main ethical framework referred to in many discussions of therapy is one based on the concepts of autonomy, fidelity, justice, beneficence, non-maleficence and self interest”. In this context, we devise several ‘problem areas’ in ethical counselling:

Law and Counselling

The need for professionalisation has created a common link between ethical behaviour and legal conduct in the therapy fields. Legislation was provided to primarily protect clients from misguidance, and ultimately to provide guidelines for the profession. However, as cited previously, in most countries ethical conduct in counselling is not yet part of the legal framework – which outlines the importance of professional and industry peak associations in providing guidelines and codes of conduct for affiliated professionals.

The Australian Counselling Association is one industry association in Australia that provides ethical guidelines and a code of conduct for counsellors. The ACA’s Code of Ethics and Code of Practice are part of the Code of Conduct – which can be accessed from their website at www.theaca.net.au/docs/code_conduct.pdf. An excerpt from this Code is:

Counsellors will:

- Offer a non-judgemental professional service, free from discrimination, honouring the individuality of the client.

- Establish the helping relationship in order to maintain the integrity and empowerment of the client without offering advice.

- Be committed to ongoing personal and professional development.

Confidentiality

This area is closely linked with the legal issues in counselling therapy. Confidentiality plays a major role in defining the communication between a counsellor and a client, bearing in mind that trust is one of the backbones of a therapeutic relationship. Albeit confidentiality is a key component of the relationship, it is also one of the leading causes of ethical dilemmas for counsellors. Situations which may put the client – or other individuals – in danger usually require the counsellor to make difficult decisions in regards to breaching confidentiality. In many instances, the actual breach is a legal requirement as it may incur the prevention of a crime against the state, or another person.

Other predominant issues such as consultancy with supervisors or colleagues; definition of the type of confidentiality to be used (absolute or relative) prior to the counselling relationship; and session record-keeping, must be considered by therapists when practicing professional counselling.

Bad Practice

The issues of privacy and power in a counselling session can be prejudicial in terms of unethical practice. The private nature of a counselling session leaves a ‘gap for unsupervised practice’, and therefore it is quite difficult to be assessed. For instance, fairly recent explorations of unethical practice in therapy have shown the emerging problem of sexual abuse of clients. This issue is augmented by the power relationship between client and counsellor, in which the therapist could take advantage of their position of power to practice unethical behaviour.

Training and Professional Recognition (Australian Industry)

As cited before, counselling is not regulated in most countries. In order to standardise the industry, and ensure that counsellors have the necessary skills to professionally practice, training and recognition must be accentuated. In Australia, the ACA plays a role in coordinating industry efforts, providing information to the public and maintaining records of counsellors in practice.

That system protects clients from bad practice, and supports training standards for organisations that provide counsellor training. The Australian Institute of Professional Counsellors, as an example, is recognised by the ACA – which means that AIPC and the Diploma of Professional Counselling complies with industry standards defined by this peak organisation in regards to training standards for counsellors.

Safety and Negligence

These concepts are utmost concerns of counsellors in practice. A counsellor-client relationship is a very delicate encounter of an individual seeking help, and a professional providing advice. Primarily, it is the counsellor’s responsibility to provide a safe environment for the counselling session – particularly because physical and psychological safety is a premise for the counselling therapy to succeed. Negligence is closely related to the concepts of breach of confidentiality and safety. Observing principles for duty of care is part of ethical behaviour in counselling.

Complying with ethical guidelines is one of the most important aspects of being a professional counsellor. Creating awareness in both counsellor and clients of the boundaries of the services provided will lead to a better development of the profession, and overall improvement of industry standards. Counsellors are responsible for keeping up-to-date with professional codes of ethics, confidentiality guidelines, and other relevant information.

Subscribe to our FREE eZine.

Ethics in Education

Posted on 12. Mar, 2010 by admin in Ethics

In a post WorldCom, post Enron world, should colleges be doing more to prepare graduates for what lies ahead in the ‘real world’? It is safe to say that somewhere along the line ethics education has failed within this country. One need look no further than the front page of their morning paper, or the quarterly update of their portfolio, to realize how desperate this situation has become.

            Not so long ago businessmen, and women, were looked up to; the title of CEO came with an underlying respect from the employees of an organization, as well as outsiders. It really meant something to hold the highest position within a company. Flash back to today and the title Chief Executive Officer evokes quite a different picture. Type ‘CEO’ into any popular search engine and within 5.8 seconds you will be bombarded with over 300,000 results. Many of which also contain phrases like: crisis, bailout or lawsuit.

            In an effort to remedy this situation, Universities have begun to integrate ethics education into their business curriculums, as well as into the regular curriculum for all students. In a study conducted by Angela Hernquist, doctoral candidate from the University of Nevada Las Vegas, 90% of responding institutions indicated that Ethics was part of their curriculum. Over a decade earlier the Texas State Board of Public Accountancy passed the requirement that all licensed Certified Public Accountants complete a four hour, board approved, ethics course (VanZante). This requirement was later supplemented by two hours or ethics courses every three years. Following the Enron, and subsequent Anderson LLP collapses, TSBPA required an additional four hours of ethics every two years beginning January of 2005 (VanZante).

            It is certainly nice to hear that things are being done to ensure that graduates leaving their field of study will be better prepared for the workplace, but are we really meant to believe that a five credit course, or a mere four hours can change who a person really is? From personal experience I can confidently say no, the ethics education that I have received in college has done nothing to influence what kind of person I am. A brief rundown of the course syllabus may hold the key as to why I do not feel that I got my money’s worth of ethics. While utilitarianism and other various philosophies may be at the foundation of a great education, what do they really have to do with ethics today? Will I make a better CEO because I understand Ayn Rand?

            Time in the classrooms of our Universities would be better spent teaching mathematics, writing, or even psychology. Perhaps if we understood why people behaved unethically we could do something to stop it. One thing is clear; the ethics we are being taught today are failing us. Failing us as students, and as citizens of the world. If we are really to believe that we do not learn ethics until college that what hope is there when nearly 25% of Americans never make it that far (Henry). Are we a nation of heathens running around like a ticking time bomb? I propose that we begin learning ethics much earlier than college, even earlier than grade school. Ethics begin in the home, the community, and the individual.

            People are beginning to recognize the need for early ethics education in children, and have started to do something about it. Patti Martin, B.S., M.A., Director of Ethical Education, has opened an ethics course for children ages 2-12. Her program is called Sunday Ethical Education for Kids, or SEEKS. SEEK aims to do what some parents apparently cannot, to instill ethics into the children of the community in one hour segments. SEEK meets once a week, on Sundays naturally, at the University of Missouri Extension Center, in Mid Rivers Missouri. There are no expectations, just the hope that parents will bring their children by to get some much needed guidance on becoming a better person.

            Maybe more programs are needed in colleges, or maybe the child ethics courses offered at the University of Missouri are the answer. Whatever that answer may be, one thing is for sure, we haven’t found it yet, and if we do not find it soon we are setting ourselves up for more disaster. I don’t know how the rest of the country feels, but I am not looking forward to a lifetime of paying the high salaries of today’s CEOs in what feels like a never ending stream of corporate bailouts.

Henry, Tamara. “Report: Greater Percent of Americans Educated”. USA Today 6/05/2002

 Hernquist, Angela. “A Survey of Ethics Courses in State College and University Curricula”. University of Nevada Las Vegas. February 2005

“Raising Ethical Children”. Mid Rivers Ethical Society. 11/28/2008 <http://www.ethicallife.org/raising_children.html>.

VanZante, Neal. “Improving Professional Ethics”. The CPA Journal May 2005

Trends Impacting the Ethical and Sustainable Packaging Market

Posted on 11. Mar, 2010 by admin in Ethics

Ethical product development is now a major issue in the industry, and this trend includes the use and promotion of sustainable packaging formats. Ethical packaging is being driven by consumer environmental concern, retailer pressure and the development and promotion of manufacturer CSR. Retailers and manufacturers must be seen to be contributing to a greener and more sustainable way of life by the media, the industry and consumers alike. To remain competitive, retain consumer loyalty and be innovative, retailers and food and drinks manufacturers need to invest in ethical policies by either developing products in ethical packaging or promoting and reminding consumers to act ethically and responsibly.

Trends in Ethical and Sustainable Packaging is a new management report that examines the new innovations in ethical and sustainable packaging by category, region and material. It profiles major innovations within ethical and sustainable food and drinks packaging, including the latest packaging technologies and materials.

Discover the key trends impacting the ethical and sustainable packaging market and understand how these are changing packaging design with this new report…

This new report will enable you to

Gain insight into industry opinions on the usage and future of ethical and sustainable packaging through an exclusive survey of industry executives carried.

Create more effective competitive strategies with this reports detailed analysis of packaging technologies including recyclable, lightweight, biodegradable and packaging from natural sources. Evalualte the pro’s and con’s of these packaging innovations and decide whether these may be appropriate for your organisation.

Improve targeting and the effectiveness of your NPD strategies with this report’s analysis of Productscan data of over 6,000 ethical and sustainable packaging product launches between 2005 and 2008. Detailed analysis of leading ethical packaging types and insights into key regions and packaging materials.

Your questions answered…

To what extent should manufacturers and retailers be investing in ethical and sustainable packaging?
Which countries are driving NPD in ethical and sustainable packaging?
What are the most innovative forms of ethical packaging?
How will packaging regulation affect NPD in ethical and sustainable packaging?
How are key players, including Wal-Mart and PepsiCo investing in ethical and sustainable packaging?
What is driving the trend of ethical and sustainable packaging?

Some key findings from this report…

Packaging from natural sources is a key ethical innovation. Other leading innovations include biodegradable, lightweight and packaging made from recycled sources.

There has been an increase in the share of food and drinks launched in ethical packaging between 2004-2007. Within this share recyclable took the greatest share with 89.5% in 2007. However the largest growth was seen in biodegradable packaging and packaging made from recyclable materials.

53.5% of industry executives believe that recyclable packaging will be significantly important or the most important ethical packaging innovation over the next 5 years. 37.5% believe reduced packaging will be the most important.

Leading retailers are investing in ethical packaging initiatives. This includes Wal-Mart who has pledged to eliminate all private label packaging waste by 2010, with a look to have zero packaging waste land filled by 2025.

For more reports of your interest, please visit the following link: http://www.bharatbook.com/Market-Research/Packaging.html

Or

Contact us at:

Bharat Book Bureau
207, Hermes Atrium, Sector 11, PO Box.54, CBD Belapur, Navi Mumbai – 400 614, India.
Phone : +91 22 2757 8668 / 2757 9438
Fax : +91 22 2757 9131
E-mail : info@bharatbook.com
Website : www.bharatbook.com

Ethical Viewpoints

Posted on 10. Mar, 2010 by admin in Ethics

Ethical Viewpoints

Written by Shelley Godra 

How far would you go to help a friend?  Would you risk breaking the law?  These questions plagued my conscience last year when I opened my home to a close friend running from the military. In my opinion, I felt like I did the right thing offering my friend, Josh, a place to stay when he needed it the most; however, some people may disagree with my decision. Depending on the viewpoint, this situation could be seen as being ethically right or ethically wrong.

My friend enlisted into the Navy in the spring of 2006.  Josh completed boot camp and was staying at a naval base in Virginia.  In the beginning of the winter, he ran into some trouble and his punishment was 72 hours in the naval prison.  Instead of completing his jail sentence, Josh decided to leave the naval base and was considered absent without leave or “AWOL.”  When he showed up on my doorstep, I had the dilemma of deciding whether to let him stay or to send him on his way. 

A person with a transcendentalist viewpoint would have not only sent him on his way but would have also turned Josh over to the military authorities.  The transcendentalist viewpoint is motivated and committed to judging ethical situations based upon a religious standing.  There are either good or bad ethical decisions; there are neither gray areas nor excuses for bad ethical decisions.  Someone with this point of view would consider the actions both Josh and I took to be morally and ethically wrong.  Like the transcendentalist viewpoint, the legitimist viewpoint would also categorize this situation as being ethically wrong if he indeed broke the law.

The legitimist viewpoint holds the law above all other decision-making influences.  When considering if an action is ethically correct, someone with a legitimist point of view would look to see if the action followed government laws and policies.  In my situation, both Josh and I did not follow the laws.  Josh broke the law when he left the naval base and became AWOL, and I broke the law when I allowed him to stay at my house without turning him over to the military.  The individualist viewpoint would also see this situation as being ethically wrong, however, the reasoning is completely different.

The individualist viewpoint is only concerned with the advancement and capitalization of one’s own position in society.  Someone with this point of view would believe housing Josh as wrong because there is a chance of being punished by government authorities themselves.  This viewpoint also does not take existing relationships into perspective when making ethical decision; therefore, it would not matter to someone with individualist thinking that Josh is a close friend and needs help.  In contrast, there are viewpoints that would perceive this situation as being ethical.

The systemicist viewpoint looks at the bigger picture of an ethical dilemma and sees how everyone is affected by the decision. A person holding a systemicist viewpoint believes that the decision is ethically correct if it is good for the majority of the people involved.  In this particular situation, not only were Josh and I affected but also his family and the military.  Josh would have been out on the streets, running from the government, and on his own if I had turned him away.  His family would have been devastated if he had gotten caught and was sentenced to a period in jail.  The military has enough issues to deal with and does not need to be chasing an AWOL seaman around the country.  The majority of concerned parties’ interests would have chosen to have Josh stay at my house rather than be turned into the government or be denied shelter. 

The conventionalist viewpoint also looks at the bigger picture when deciding what is ethically correct.  Someone characterized as portraying a conventionalist viewpoint would determine what is ethically right and wrong by looking at what the majority of society would choose.  This reasoning is supported by the idea that most people are inherently good.  The majority of society would say that breaking the law is bad, however, the greater amount would also say that helping a close friend in need has superiority over the latter action.  Fellow peers and family would also agree with the previous decision of helping Josh.  Once putting priority to actions, the conventionalist viewpoint would assume assisting and housing Josh is the widely accepted ethical decision.  Furthermore, the experientialist viewpoint would consider this situation as doing the right thing.

An experientialist viewpoint relies on “gut feelings” and an intuitive sense of right.  A person with this point of view, like myself, does not think the situation through before deciding upon an ethical decision.  When I opened my door that day to find Josh, I knew instinctively that I would help him through his hardship.  I did not have to weigh the pros and cons to know whether or not I needed to help with his crisis.  I do not regret opening up my home to Josh; however, the decision may have been different if the situation was altered.

I would have turned Josh away from my home had a few details been altered in this ethical situation.  First, the severity of his charges would have changed my mind; Josh had gotten in trouble at the Virginia naval base for underage drinking.  If Josh had injured other people or committed a more severe crime then I would have not allowed him a place to stay.  Second, the parties involved could have swayed my decision as well.  If the FBI or another type of high profile government agency were chasing him then I would have turned him away based upon the individualist viewpoint.  I would not have risked the chance of jail in order to help my AWOL friend. 

In conclusion, there are several viewpoints that can be taken for every ethical situation; however, there is no absolute right viewpoint.  The concept taken when making ethical decisions depends on the predicament, the severity, and the people involved.  In this particular situation, Josh was my friend and needed help.  I did not care that he was AWOL and wanted by the military; I felt that our friendship was more important than the law.  I do not regret my decision, and I think I was ethically right.

Implementing Business Ethics

Posted on 09. Mar, 2010 by admin in Ethics

“The ethics of a business are whatever the top-dog says they are.”
- Bryce’s Law

INTRODUCTION

We hear a lot these days about the deterioration of ethics in business, e.g., graft,
corruption, cheating, favoritism, skimming money, etc. This has resulted in a public
relations nightmare for business. If consumers do not trust a company, its a matter
of time before it goes out of business. This is supported by recent studies that give
evidence there is a correlation between business performance and ethical practices
(see the Institute of Business Ethics).

Basically, the Institute’s study suggests there are long-term benefits associated with
enacting an ethics programs. Such studies and recent corporate snafus (e.g., Enron)
are impetus for companies coming to grips with ethics in the workplace.

There are essentially two considerations for devising an ethics program in
business; first, knowing what your ethics are, and, second; implementing them
in a consistent manner.

INTERPRETING ETHICS

There is little point in my telling you what is ethically right or wrong. You already
have an interpretation of this. But let us understand what influences our interpretation
of ethics; our interpersonal relations with others, such as our family, friends, neighbors,
fellow workers, as well as the media. Ethics is learned more than it is taught. It is based
on observations of the conduct of others, people we like and respect as opposed to those
we do not. It is then up to each of us to interpret these perceptions from which we will
base our conduct and behavior. The point is, we act on our perceptions, however accurate
or inaccurate they may be. Another influential factor are our own human frailties of
competitiveness, love, greed and ambition. But then again, this goes back to
interpersonal relations.

Let us recognize that ethical behavior is interpreted differently from person to person. What
one person may consider right or wrong may be different for the next person. The objective
in business is to implement a uniform form of behavior thereby instilling consumer
confidence in a company overall.

IMPLEMENTATION

Writing a corporate code of conduct is in vogue today as a means of articulating the
ethics of a business. Such codes are proudly displayed on web sites and in corporate
brochures more for public relations than anything else. True, they are useful for
disciplining an employee for an infraction of the rules, but I do not see them as an
effective way of implementing an ethics program. Understand this, regardless of what
the code of conduct states, the ethics of a business are whatever the top-dog says they
are. Too often I have seen companies say one thing, then act another, e.g.,
Enron.

Printed codes of conduct are nice, but we have to recognize that it is one thing to
enact legislation, quite another to enforce it. As stated earlier, ethical behavior
is based on observations. Regardless of what a code of conduct says in print, ethical
behavior is based on the relationship of superior and subordinate worker
relationships. If a subordinate observes an indiscretion by his superior, in all
likelihood it will be emulated by the subordinate. This phenomenon occurs
top-down in the whole corporate chain of command. If it breaks down anywhere
in the corporate hierarchy, it will become visible to the subordinate layers and
potentially create a “trickle-down” effect. This means the boss has to be a role
model for ethical behavior; they must “walk-the-walk” as well as “talk-the-talk.” If
they do not, it will not go unobserved by their subordinates. Managers, therefore,
should avoid the “do as I say, not do as I do” phenomenon. They must lead by
example. Anything less is sheer hypocrisy and will inevitably lead to changes
in behavior.

It is simply not sufficient to issue platitudes as to what is and what isn’t ethical
behavior. The manager must follow-up and assure ethical behavior is implemented
accordingly. In other words, we shouldn’t just “desire” truth and honesty, we
must “demand” it. If one person gets away with an indiscretion, others will surely
follow. As such, when writing out a code of conduct, be sure to stipulate the
penalties for its violation.

The success of a business ethics program is ultimately measured by how well it
becomes ingrained in the corporate culture. As we have discussed in the past,
corporate culture pertains to the identity and personality of the enterprise. All
companies have a culture; a way they behave and operate. They may be organized
and disciplined or chaotic and unstructured. Either way, this is the culture which
the enterprise has elected to adopt. What is important is that in order for an employee
to function and succeed, they must be able to recognize, accept and adapt to the
culture. If they do not, they will be rejected (people will not work with them).

The intuitive manager understands the corporate culture and how to manipulate
it. Changing the Corporate Culture involves influencing the three elements of the
culture: its Customs, Philosophy and Society. This is not a simple task. It must be
remembered that culture is learned. As such, it can be taught and enforced. For
example, a code of conduct is useful for teaching, as is a system of rewards and
penalties. Designating people to act as watchdogs of the culture can also be useful,
but be careful not to create a climate of paranoia. Ultimately, as a manager, you
want to create a culture that promotes the ethical behavior you desire.

For more information on “Corporate Culture,” see:

http://www.phmainstreet.com/mba/pride/eespcc.htm

CONCLUSION

We now live in strange socioeconomic times. 40-50 years ago we
normally had one parent staying home to raise the kids. Now it is commonplace
to find families where both the husband and wife are working and paying
less attention to their children, thereby relegating their parenting duties to
teachers and coaches. In other words, the family unit, which is the basic
building block for learning ethical behavior, is becoming severely hampered.

In business today we have a “fast-track” competitive mentality which does not
encourage a spirit of teamwork but, rather, more rugged individualism. Nor
does it promote employee loyalty. Further, we now live in a society that
encourages people to go into debt, thereby causing financial tensions.

Bottom-line, ethics is about people and trust. Consequently, we should be
sharpening our people skills as opposed to avoiding it. We don’t need more
maxims of how we should conduct our lives; we need to lead by example. As
such, we need more role-models and heroes than we do paperwork.

Let me close with one last thought on how ethics impacts business; there
is probably nothing worse in business than being caught in a lie, particularly
by a customer. Any trust that there may have been before disintegrates
immediately and business is lost. In this day and age, there is something
refreshingly honorable about a person where their word is their bond. Ethics
just makes good business sense.