<ul><li>O.C. Ferrell </li></ul><ul><ul><li>University of New Mexico </li></ul></ul><ul><li>John Fraedrich </li></ul><ul><u...
Chapter 8 Developing an Effective Ethics Program
The Responsibility of the Corporation as a Moral Agent <ul><li>Increasingly, corporations are viewed not merely as profit-...
Why Do Companies Develop Ethics Programs? <ul><li>To allow employees and stakeholders to understand the values of the busi...
Building Trust and Confidence <ul><li>Make customers the top priority </li></ul><ul><li>Assume personal responsibility and...
Values or Compliance Programs? <ul><li>Compliance orientation </li></ul><ul><ul><li>Legal terms, statutes, contracts, rule...
An Effective Ethics Program <ul><li>Code of ethics </li></ul><ul><li>Ethics compliance program </li></ul><ul><li>Monitor, ...
Code of Ethics and Conduct  <ul><li>Formal statement of what an organization expects in the way of ethical behavior (what ...
Six Steps in Implementing a Code of Ethics <ul><li>Distribute internally and externally </li></ul><ul><li>Assist employees...
Role of an Ethics Officer <ul><li>Coordinate the program with top management </li></ul><ul><li>Develop, revise, and dissem...
Common Mistakes in Designing and Implementing an Ethics Program <ul><li>Developing materials that do not address the avera...
Common Mistakes in Designing and Implementing an Ethics Program <ul><li>Not recognizing the need for a program </li></ul><...
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Ferrell7e Student Ch08

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Ferrell7e Student Ch08

  1. 1. <ul><li>O.C. Ferrell </li></ul><ul><ul><li>University of New Mexico </li></ul></ul><ul><li>John Fraedrich </li></ul><ul><ul><li>University of Wyoming </li></ul></ul><ul><li>Linda Ferrell </li></ul><ul><ul><li>University of New Mexico </li></ul></ul>Business Ethics Ethical Decision Making and Cases, Seventh Edition For in-class note taking, choose Handouts or Notes Pages from the print options, with three slides per page.
  2. 2. Chapter 8 Developing an Effective Ethics Program
  3. 3. The Responsibility of the Corporation as a Moral Agent <ul><li>Increasingly, corporations are viewed not merely as profit-making entities but also as moral agents that are accountable for their conduct to their employees, investors, suppliers, and customers. </li></ul>
  4. 4. Why Do Companies Develop Ethics Programs? <ul><li>To allow employees and stakeholders to understand the values of the business </li></ul><ul><li>To comply with policies and codes of conduct </li></ul><ul><li>To create the ethical climate of the business </li></ul><ul><li>To create TRUST </li></ul>
  5. 5. Building Trust and Confidence <ul><li>Make customers the top priority </li></ul><ul><li>Assume personal responsibility and accountability </li></ul><ul><li>Open and frequent communication </li></ul><ul><li>Handle crises honestly </li></ul><ul><li>Stick to your ethics code no matter what </li></ul>
  6. 6. Values or Compliance Programs? <ul><li>Compliance orientation </li></ul><ul><ul><li>Legal terms, statutes, contracts, rules, and penalties </li></ul></ul><ul><li>Values orientation </li></ul><ul><ul><li>Develop shared values </li></ul></ul><ul><ul><li>Focus on the abstract </li></ul></ul><ul><ul><li>Teach to aspire to ethical behavior instead of coercion </li></ul></ul>
  7. 7. An Effective Ethics Program <ul><li>Code of ethics </li></ul><ul><li>Ethics compliance program </li></ul><ul><li>Monitor, audit, and report misconduct </li></ul><ul><li>Training </li></ul><ul><li>Enforcement </li></ul><ul><li>Continuous improvement program </li></ul>
  8. 8. Code of Ethics and Conduct <ul><li>Formal statement of what an organization expects in the way of ethical behavior (what behaviors are acceptable or unacceptable) </li></ul><ul><li>Reflects senior management’s organizational values, rules, and policies </li></ul>
  9. 9. Six Steps in Implementing a Code of Ethics <ul><li>Distribute internally and externally </li></ul><ul><li>Assist employees in understanding </li></ul><ul><li>Specify management’s role </li></ul><ul><li>Make employees responsible for understanding the code </li></ul><ul><li>Establish grievance procedures </li></ul><ul><li>Provide a concluding statement </li></ul>
  10. 10. Role of an Ethics Officer <ul><li>Coordinate the program with top management </li></ul><ul><li>Develop, revise, and disseminate the code of ethics </li></ul><ul><li>Develop effective ethics training tools </li></ul><ul><li>Establish audit and control systems </li></ul><ul><li>Develop enforcement techniques </li></ul><ul><li>Revise the program as needed </li></ul>
  11. 11. Common Mistakes in Designing and Implementing an Ethics Program <ul><li>Developing materials that do not address the average employee </li></ul><ul><li>Implementing an “American” program to a firm’s international operations </li></ul><ul><li>Designing an ethics program with a few lectures or cases </li></ul><ul><li>Taking a legalistic approach </li></ul>
  12. 12. Common Mistakes in Designing and Implementing an Ethics Program <ul><li>Not recognizing the need for a program </li></ul><ul><li>Not setting realistic and measurable program objectives </li></ul><ul><li>Management’s failure to take ownership of the ethics program </li></ul>

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