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Corporate Ethics Program Guide

The chapter discusses the importance of developing an effective ethics program that includes a written code of conduct, ethics officer, training, auditing and enforcement. It provides tips for writing an effective code of conduct and highlights the role of ethics officers in developing, revising and disseminating the code. The chapter also notes how organizations can continuously improve their ethics program through monitoring, independent audits and addressing common mistakes.

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Sunu Rupesh
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88 views9 pages

Corporate Ethics Program Guide

The chapter discusses the importance of developing an effective ethics program that includes a written code of conduct, ethics officer, training, auditing and enforcement. It provides tips for writing an effective code of conduct and highlights the role of ethics officers in developing, revising and disseminating the code. The chapter also notes how organizations can continuously improve their ethics program through monitoring, independent audits and addressing common mistakes.

Uploaded by

Sunu Rupesh
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

Ethical Decision Making For Business 8e Fraedrich/Ferrell/Ferrell

CHAPTER 8

CHAPTER 8

Developing an Effective
Ethics Program
The Need for Corporate Ethics
Programs
• Organizations should develop an organizational
ethics program by establishing, communicating,
and monitoring uniform ethical values and legal
requirements
• A strong ethics program includes:
– Written code of conduct
– Ethics officer to oversee the program
– Care in the delegation of authority
– Formal ethics training
– Auditing, monitoring, enforcement, and revision of
program standards
Codes of Conduct

• Codes of conduct
– Formal statements that describe what an
organization expects of its employees
• Codes of ethics
– Most comprehensive document
– Consists of general statements that serve as
principles and the basis for the rules of conduct
• Statement of values
– Serves the general public and addresses
stakeholder interests
Corporate Codes of Ethics

Often contain six core values


1. Trustworthiness
2. Respect
3. Responsibility
4. Fairness
5. Caring
6. Citizenship
Source: Triangle Images
12 Top Tips for
Writing a Code of Ethics for Your Business
by Joel Saltzman
1. Choose Your Drafters (Carefully)
2. Look to Your Industry
3. Look Outside Your Industry
4. Get Inspired by Others
5. Put First Things First 
6. Look to Your Past
7. Create a First Draft (Then a 2nd, 3rd, 4th Draft or More) 
8. Keep it Simple
9. Make Sure Everyone Knows "These Are the Rules"
10. Make Sure Everyone Knows "Here's How You FOLLOW the
Rules"
11. Establish a Mechanism for Reporting Problems
12. Look to Your Present (And Your Future)
Ethics Officers

• Ethics officers or committees are responsible for


oversight of the ethics/compliance program
– Assess the needs and risks that an ethics program
must address
– Develop, revise, and disseminate the code
– Conduct training programs for employees
– Develop effective communication
– Establish audits and control systems
– Review and modify the program to improve
effectiveness
Systems to Monitor and Enforce
Ethical Standards
• An effective ethics program
employs many resources to
monitor ethical conduct
and measure the
program’s effectiveness
– Observing employees
– Internal audits
– Surveys
– Reporting systems
– Investigations
– Independent audits

Source: Digital Vision


Continuous Improvement

• Implementation requires designing activities to


achieve organizational objectives using available
resources and existing constraints
• Depends in part on how an
organization structures
resources and activities to
achieve its ethical objectives

Source: Stockbyte
Common Mistakes in
Designing/Implementing an Ethics Program

• Not having a clear understanding of the goals of


the program from the beginning
• Not setting realistic and measurable
program objectives
• Senior management’s failure to take
ownership of the ethics program
• Developing program materials that do not
address the needs of the average employee
• Transferring a domestic program internationally
• Designing a program as a series of lectures

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