This document discusses developing and implementing an effective organizational ethics program. It emphasizes that ethics programs are necessary because organizations are accountable for employee conduct and can enable unethical cultures. An effective program includes developing a code of conduct that clearly states values and examples, communicating the code frequently, conducting ethics training, and establishing confidential systems to handle ethics issues. It also discusses the roles of ethics officers and leaders in transforming culture and monitoring programs.

1. CHAPTER 11
Strategic Approaches to
Improving Ethical Behavior

2. 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

3. 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.

4. 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.

5. 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

6. 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

8. 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

9. Establishing Systems to Monitor
and Enforce Ethical Standards
Help or assistance lines
Observation and feedback
Whistle-blowing

10. Implementing
Organizational Ethics Programs
Role of leadership
Transformational leaders
is a type of leadership style that can inspire positive changes
in those who follow. Transformational leaders are generally
energetic, enthusiastic, and passionate.
Transactional leaders
works through creating clear structures whereby it is clear
what is required of their subordinates, and the rewards that
they get for following orders.

11. Five Power Bases
 Reward power
 The extent to which an entity can control the dispensing of rewards or
benefits.
 Coercive power
 authority or power that is dependent on fear, suppression of free will,
and/or use of punishment or threat, for its existence.
 Legitimate power
 power derived from a job, position, or status and held as belonging to
the person in such a position.
 Expert power
 ability to influence other parties based on expertise and knowledge.
 Referent power
 influence over others, acquired from being well liked or respected by
them.