INTRODUCTION TO BUSINESS ETHICS Patricia Roy, HR Director and SPHR
ETHICS IN THE WORKPLACEEthics are the principles and standards that defineacceptable conduct. Many of the issues discussed duringthis training session are stated in the Acme Industries EthicsPolicy.After completing this training session, you will be asked tocomplete a short quiz and then will be asked to sign andreturn a copy of the Ethics Policy for our records.
ETHICS IN THE WORKPLACEFollowing this session you will be able to: Clearly understand the purpose and details of the Acme Ethics Policy Recognize Ethical Issues in the workplace Know how to report an unethical situation in the workplace Pass a short quiz
The Facts on Business Ethics Policies and TrainingOf employees surveyed: – 86% reported that their organizations have written standards of conduct – 69% reported that their organizations offer mandatory ethics training – 65% reported that their organizations have a place where they can seek ethics advice
The Purpose of our ETHICS POLICYThe success of our business is dependent on the trust andconfidence we earn from our employees, customers andsuppliers. It is easy to say what we must do, but the proof isin our actions.Our customers rely on Acme Industries and its employeesto act in an ethical manner in all of our actions.
Recognizing an Ethical IssueAn ethical issue is an identifiableproblem, situation, or opportunity that requiresa person to choose from among several actionsthat may be evaluated as right or wrong, ethicalor unethical. Did You Know? The most common types of observed misconduct are lying, withholding information, and abusive/ intimidating behavior.
Acme Industries Ethics Principles• Obeying the law• Respect for the individual and respect for diversity• Avoiding conflicts of interest• Accurate Recordkeeping• Protecting Confidential and Proprietary information• Appropriately utilizing Company resources• Uncompromising integrity and honesty in everything we do
General Expectations Regarding Ethics and ConductObeying the LawAcme Industries and its employees will comply with all applicablelaws and regulations.Respect for the individual and respecting diversityAcme is committed to respecting a culturally diverse workplace.We do not tolerate harassment or discrimination in the workplace.
General Expectations Regarding Ethics and ConductConflicts of InterestOccurs when a person must choose whether toadvance their own personal interest or those ofothers. We must avoid any business relationship oractivity that could interfere or appear to interfere withour ability to make fair decisions.Employees must avoid receiving substantial gift oreconomic gains (bribes, product bonuses, unusual pricebreaks, and other windfalls) designed to benefit thecustomer, vendor, competitor, or employee at theexpense of the company.
General Expectations Regarding Ethics and ConductRecordkeepingAll corporate records must be true, accurate andcomplete, and company data must be promptlyand accurately entered in our books.We must not improperly influence, manipulateor mislead any audit.
General Expectations Regarding Ethics and Conduct Confidential and Proprietary InformationWe will not disclose confidential, proprietary and/ornonpublic information of Acme Industries, itsemployees, customers and other business partners withouta valid business purpose and proper authorization.Examples of confidential information:• Trade secrets• Pricing and financial data• Customer names/addresses• Employee social security numbers and contact information
General Expectations Regarding Ethics and ConductUse of Company ResourcesEmployees and those who represent Acme Industries are trustedto behave responsibly and use good judgment to conservecompany resources. Managers are responsible for the resourcesassigned to their department.
General Expectations Regarding Ethics and ConductUncompromising integrity and honesty in everything we doAcme Industries is committed to integrity and honesty in all ofour business dealings. This means that we do not falselyrepresent ourselves in any of our business dealings.
General Expectations Regarding Ethics and Conduct Compliance with this policy of business ethics and conduct is the responsibility of every Acme Industries employee. Disregarding or failing to comply with this standard of business ethics and conduct could lead to disciplinary action, up to and including termination of employment.
Questions to Consider in Determining Whether an Action is Ethical• Are there any potential legal restrictions or violations that could result from the action? Will you break any laws?• Will this go against Acme policy?• Would this activity be accepted by your coworkers?• Will your decision or action withstand open discussion with coworkers and managers and survive untarnished?• Does this activity fit with your own beliefs and values?
Misconduct Observed in the WorkplaceNote the examples below of Misconduct Observed in the Workplace and how theyrelate to the Acme Principles of Conduct ACME PRINCIPLE OF CONDUCT VIOLATION Respect for the Individual Obeying the Law Conflicts of Interest Obeying the Law Recordkeeping Respect for the Individual/Diversity Obeying the Law Respect for the Individual/Obeying the Law
Misconduct Observed in the WorkplaceYour responsibility in Reporting Ethical, Legal orFinancial Integrity ConcernsKeep ethics in mind when taking action in the workplace.Prevent mistakes or wrongdoing by asking the right questionsat the right times.Managers must promptly address, report, and escalateissues that indicate a breach of ethics.The company prohibits retaliation against any employee ormanager reporting a violation of these ethics rules.
Common Reasons For Not Reporting Observed MisconductEmployee doesn’t believe corrective action will be takenAs stated earlier, managers have the responsibility to promptlyaddress, report, and escalate issues that indicate a breach of ethics.The Acme Industries Ethics Officer has the responsibility toinvestigate and resolve ethics issues.
Common Reasons For Not Reporting Observed MisconductEmployee fears retribution or retaliation from supervisor ormanagementThe company prohibits retaliation against any employee or managerreporting a violation of these ethics rules. Employees may alsoreport violations anonymously.
Common Reasons For Not Reporting Observed MisconductEmployee believes someone else would report the misconductEach employee should take responsibility and action if an ethicsviolation has occurred.Since ethics violations must be kept confidential, you most likely willnot be aware of any issues that have or have not been reported. Besure to report any perceived violation whether you believe someoneelse has or has not done so.
Ethics Review• Ethics are the principles and standards that define acceptable conduct.• The purpose of the Acme Ethics Policy is to establish guidelines for employee conduct• You can identify potential ethical problems by reviewing their relationship to the law, Acme policy, or personal beliefs.• Ethical questions and issues should be reported to your supervisor, any member of management, or the Acme Ethics Officer.
A last word on Ethics . . .We hope that you never have to face an ethicaldilemma at work, however, this Ethics Reviewwill help you to recognize and report issues thatmay occur.Acme Industries prides itself on maintaining anethical, fair workplace. Thank you for yourassistance in keeping it that way.Congratulations – you’re almost done!
Ethics QuizThe final steps:• Visit the following website to complete your quiz on Ethics: http://www.surveymonkey.com• Print and sign a copy of the Ethics policy and return it to Human Resources.