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BE lecture 8 10 business ethic managemeng之 code of ethics
MSc Business Ethics week 8 Managing business ethics: code of ethics Typical components of business ethics management Mission or values statements Codes of ethics Reporting/advice channels Ethics managers, officers and committees Ethics consultants Ethics education and training Auditing, accounting and reporting Codes of Ethics Codes of ethics are voluntary statements that commit organizations, industries, or professions to specific beliefs, values, and actions and/or set out appropriate ethical behaviour for employees 4 main types of ethical codes Organisational or corporate codes of ethics Professional codes of ethics Industry codes of ethics Programme or group codes of ethics Content of codes and ethics Codes of ethics typically attempt to do one or both of the following: Define principles or standards that the organization, profession or industry believes in or wants to uphold; Set out practical guidelines for employee behaviour, either generally or in specific situations (such as accepting gifts, treating customers etc.) Critical views on ethical codes Clash with needs for flexibility Applicability to multiple/novel situations Generalised statements of obligation (Hosmer 1987) PR device Questionable control mechanisms that potentially influence employee beliefs, values and behaviours (Schwartz 2000) ‘suppress’ individual moral instincts and emotions in order to ensure bureaucratic conformity and consistency Effectiveness of codes of ethics Not what a code says but how it is developed, implemented and followed up Suggestions for successful implementation Maximise participation of organisation members in development stage to encourage commitment and ‘buy in’ (Newton, 1992) Discipline employees found in breach (Webley 2001) Follow-through (Trevino et al. 1999) Global codes of ethics Can organisations devise one set of principles for all countries in which they operate? Cross-cultural issues most commonly addressed are: Gifts (hospitality and bribes) Conflicts
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