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Complete Guide
to Ethics Management:
An Ethics Toolkit for Managers
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Complete Guide
to Ethics Management:
An Ethics Toolkit for Managers
Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008.
(This guide is located at http://www.managementhelp.org/ethics/ethxgde.htm
on the Web.)
The profession of business ethics
has long needed a highly practical resource that is designed particularly
for leaders and managers -- those people charged to ensure ethical
practices in their organizations. Unfortunately, far too many
resources about business ethics end up being designed primarily
for philosophers, academics and social critics. As a result, leaders
and managers struggle to really be able to make use of the resources
at all.
Also, far too many resources
about business ethics contain sensationalistic stories about businesses
"gone bad" or prolonged preaching to businesses to "do
the right thing". These resources often explore simplistic
ethical questions, such as "Should Jane steal from the company?"
The real world of leaders and managers is often much more complex
than that.
This guide is a straightforward and
highly practical tool designed to help leaders and managers implement
comprehensive ethics management systems in their workplaces --
systems to deal with the complex, ethical issues that can occur
in the day-to-day realities of leading and managing an organization.
For Web readers:
This free guidebook is about 20 pages long
(8 1/2" x 11" pages). If you are reading the document
on the World Wide Web, please wait until the document is fully
loaded before attempting to link to its sections listed below.
The best approach to using this guidebook may be to print it out
for ongoing reference. The Free Management Library provides
additional information about ethics and a great range of other
free information about management. For a complete list of library
topics, see http://www.managementhelp.org/topics.htm
Disclaimer:
The author, Carter McNamara, MBA, PhD, makes no warranty, express
or implied, nor assumes any legal liability for accuracy, completeness,
or usefulness of any information from this guide.
Another Tool to Effectively Infuse Ethical Principles:
If you
are planning to infuse strong, ethical principles throughout your
company or want to change the culture of your company, then you
might take the advice of Bob Kniffin, Vice President of External
Affairs, at Johnson and Johnson (J&J) company. The way that
J&J handled an ethical issue (the "Tylenol scare"
crisis) in the 1980s is probably one of the most inspiring and
enlightening examples of how to successfully deal with a major
ethical issue in business. Kniffin was one of the key players
in helping J&J to handle the crisis so effectively. Kniffin
said that it was not the J&J Credo (a form of a code of ethics)
that helped J&J to handle the crisis so well. Rather, it was
the ongoing "challenge sessions" that the company regularly
held in order for each person to clarify their own perspective
and commitment to the J&J Credo. Authenticity Consulting's
peer coaching groups are a powerful, yet straightforward, means
to organize, facilitate and evaluate challenge sessions. For more
information about the peer coaching groups, go to our
publications
site (http://www.authenticityconsulting.com/act-lrn/AC_pubs.htm)
and consider the "Program Planning Kit".
About this Free Guidebook
· This free guidebook
aims to fill a large void of practical, realistic ethics information
for leaders and managers,
whether
nonprofit or for-profit.
· This guidebook takes about two hours to read.
It is concisely written and well organized as a step-by-step guidebook
for handy reference.
· This guidebook is free in order to make its contents
highly accessible to organizations, particularly those
with limited resources. The free nature of this document does
not in any way indicate that its content are of low value -- high
fees and impressive presentation do not necessarily imply high
value.
· The author hopes the online form of this document
remains a dynamic community resource that is continually
modified and improved by feedback, particularly from leaders and
managers -- those people in the trenches who are charged with
applying business ethics techniques in the workplace.
This document contains the following sections:
Document Fills Void of Practical Ethics Information for Leaders and Managers
What is Business Ethics?
10 Myths About Business Ethics
10 Benefits of Managing Ethics in the Workplace
One Description of a Highly Ethical Organization
Ethics Management Programs: An Overview
8 Guidelines for Managing Ethics in the Workplace
6 Key Roles and Responsibilities in Ethics Management
Ethics Tools: Codes of Ethics
Ethics Tools: Codes of Conduct
Ethics Tools: Policies and Procedures
Ethics Tools: Resolving Ethical Dilemmas (with Real-to-Life Examples)
Ethics Tools: Training
About the Author
Bibliography of Practical Resources
Also see Related Info in the Free Management Library.
Acknowledgment
Particular "Thanks!" goes to Twin Cities-based consultants,
Doug Wallace and Jon Pekel, of the Fulcrum Group (651-714-9033;
e-mail at jonpekel@comcast.net),
for contributing key information to this document. I have referenced
their copyright where I included their key materials in this guidebook.
Document Fills a Void of Practical Business
Ethics Information for Leaders and Managers
Current Literature is Focused
on Needs of Philosophers, Academics and Social Critics --
Leaders and Managers Require More Practical Information About
Managing Ethics
Managing ethics in the workplace holds tremendous benefit for
leaders and managers, benefits both moral and practical. This
is particularly true today when it is critical to understand and
manage highly diverse values in the workplace.
However, the field of business ethics has traditionally been the
domain of philosophers, academics and social critics. Consequently,
much of today's literature about business ethics is not geared
toward the practical needs of leaders and managers -- the people
primarily responsible for managing ethics in the workplace. The
most frequent forms of business ethics literature today typically
include: a) philosophical, which requires extensive orientation
and analysis; b) anthologies, which require much time, review
and integration; c) case studies, which require numerous cases,
and much time and analyses to synthesize; and d) focus on social
responsibility, which includes many examples of good and bad actions
taken by companies. (This lack of practical information is not
the fault of philosophers, academic or social critics. The problem
is the outcome of insufficient involvement of leaders and managers
in discussion and literature about business ethics. More leaders
and managers must become involved. This guidebook aims to increase
that involvement.)
What's Conspicuously Missing is the "How to" of
Managing Ethics in the Workplace
But it isn't from lack of examples that managers aren't better
at managing ethics in the workplace -- they require more practical
information about managing ethics. This problem was explained
very well by Stark in his article, "What's the Matter with
Business Ethics?" published in the Harvard Business Review
(1993, May/June, pp. 38-48). Brenner (Journal of Business
Ethics, V11, pp. 391:399) notes "while much has been
written about individual components of ethics programs, especially
about codes of ethics, the literature is much more limited on
ethics programs." Wong and Beckman (Journal of Business
Ethics, V11, pp. 173-178) note that "researchers are
claiming that current literature is filled with strong arguments
for more ethical corporate leadership and incorporation of ethics
in business curriculum, but what is conspicuously missing is the
"how to" in actually putting ethical goals and theories
into practical action."
Myths Abound About Business Ethics, e.g., "Ethics is
Simply to Do What's Right"
Lack of involvement from leaders and managers in the field of
business ethics (again, this is the fault of no one or of everyone)
has spawned a great deal of confusion and misunderstanding among
leaders and managers about business ethics. McDonald and Zepp,
in their article "What Should Be Done? A Practical Approach
to Business Ethics" (Management Decision, 28,
1, 1990, pp. 9-13), note that when someone brings up the topic
of business ethics "... it tends to bring up cynicism, righteousness,
paranoia, and laughter." Many leaders and managers believe
business ethics is religion because it seems to contain a great
deal of preaching. Or, they believe it to be superfluous because
it seems to merely assert the obvious: "do good!"
Business Ethics Literature is Often Far Too Simplistic --
So Many Leaders and Managers Think Business Ethics is Irrelevant
Stark notes that "often ethicists advance a kind
of moral absolutism that avoids many of the difficult and most
interesting questions." Case studies to explore ethical dilemmas
are often far too simplistic, presented as if every real-life
situation has a right and wrong e.g., "should I lie, cheat
or steal?" Consequently, many managers believe business ethics
is irrelevant because too much business ethics training avoids
the real-to-life complexities in leading organizations. (This
document contains samples of real-to-life, complex ethical dilemmas,
in a subsection, "Examples of Real-to-Life Complex Ethical
Dilemmas" in the upcoming section "Ethics Tools: Resolving
Ethical Dilemmas.") Bob Dunn, President and
CEO of San Francisco-based Business for Social Responsibility,
explains, "Ethical decisions aren't as easy as they used
to be. Now, they're the difference between right -- and right."
Preston Townley, in his speech "Business Ethics: Commitment
to Tough Decisions" (Vital Speeches, January 1992,
pp. 208-211), states that "... it ought to be fairly easy
to choose between right and wrong by relying on principles, but
business activity often demands that we select from alternatives
that are neither wholly right or wholly wrong."
What is Business Ethics?
Let's Start With "What is ethics?"
Simply put, ethics involves learning what
is right or wrong, and then doing the right thing -- but "the
right thing" is not nearly as straightforward as conveyed
in a great deal of business ethics literature. Most ethical dilemmas
in the workplace are not simply a matter of "Should Bob steal
from Jack?" or "Should Jack lie to his boss?"
(Many ethicists assert there's always
a right thing to do based on moral principle, and others believe
the right thing to do depends on the situation -- ultimately it's
up to the individual.) Many philosophers consider ethics to be
the "science of conduct." Twin Cities consultants Doug
Wallace and John Pekel (of the Twin Cities-based Fulcrum Group;
651-714-9033; e-mail at jonpekel@atti.com)
explain that ethics includes the fundamental ground rules by which
we live our lives. Philosophers have been discussing ethics for
at least 2500 years, since the time of Socrates and Plato. Many
ethicists consider emerging ethical beliefs to be "state
of the art" legal matters, i.e., what becomes an ethical
guideline today is often translated to a law, regulation or rule
tomorrow. Values which guide how we ought to behave are considered
moral values, e.g., values such as respect, honesty, fairness,
responsibility, etc. Statements around how these values are applied
are sometimes called moral or ethical principles.
So What is "Business Ethics"? The concept
has come to mean various things to various people, but generally
it's coming to know what it right or wrong in the workplace and
doing what's right -- this is in regard to effects of products/services
and in relationships with stakeholders. Wallace and Pekel explain
that attention to business ethics is critical during times of
fundamental change -- times much like those faced now by businesses,
both nonprofit or for-profit. In times of fundamental change,
values that were previously taken for granted are now strongly
questioned. Many of these values are no longer followed. Consequently,
there is no clear moral compass to guide leaders through complex
dilemmas about what is right or wrong. Attention to ethics in
the workplace sensitizes leaders and staff to how they should
act. Perhaps most important, attention to ethics in the workplaces
helps ensure that when leaders and managers are struggling in
times of crises and confusion, they retain a strong moral compass.
However, attention to business ethics provides numerous other
benefits, as well (these benefits are listed later in this document).
Note that many people react that business ethics, with its continuing
attention to "doing the right thing," only asserts the
obvious ("be good," "don't lie," etc.), and
so these people don't take business ethics seriously. For many
of us, these principles of the obvious can go right out the door
during times of stress. Consequently, business ethics can be strong
preventative medicine. Anyway, there are many other benefits of
managing ethics in the workplace. These benefits are explained
later in this document.
Two Broad Areas of Business Ethics
1. Managerial mischief.Madsen and Shafritz, in
their book "Essentials of Business Ethics" (Penguin
Books, 1990) further explain that "managerial mischief"
includes "illegal, unethical, or questionable practices of
individual managers or organizations, as well as the causes of
such behaviors and remedies to eradicate them." There has
been a great deal written about managerial mischief, leading many
to believe that business ethics is merely a matter of preaching
the basics of what is right and wrong. More often, though, business
ethics is a matter of dealing with dilemmas that have no clear
indication of what is right or wrong.
2. Moral mazes. The other broad area of business ethics
is "moral mazes of management" and includes the numerous
ethical problems that managers must deal with on a daily basis,
such as potential conflicts of interest, wrongful use of resources,
mismanagement of contracts and agreements, etc.
Business Ethics is Now a Management Discipline
Business
ethics has come to be considered a management discipline, especially
since the birth of the social responsibility movement in the 1960s.
In that decade, social awareness movements raised expectations
of businesses to use their massive financial and social influence
to address social problems such as poverty, crime, environmental
protection, equal rights, public health and improving education.
An increasing number of people asserted that because businesses
were making a profit from using our country's resources, these
businesses owed it to our country to work to improve society.
Many researchers, business schools and managers have recognized
this broader constituency, and in their planning and operations
have replaced the word "stockholder" with "stakeholder,"
meaning to include employees, customers, suppliers and the wider
community.
The emergence of business ethics is similar to other management
disciplines. For example, organizations realized that they needed
to manage a more positive image to the public and so the recent
discipline of public relations was born. Organizations realized
they needed to better manage their human resources and so the
recent discipline of human resources was born. As commerce became
more complicated and dynamic, organizations realized they needed
more guidance to ensure their dealings supported the common good
and did not harm others -- and so business ethics was born.
Note that 90% of business schools now provide some form of training
in business ethics. Today, ethics in the workplace can be managed
through use of codes of ethics, codes of conduct, roles of ethicists
and ethics committees, policies and procedures, procedures to
resolve ethical dilemmas, ethics training, etc.
10 Myths About Business Ethics
Business ethics in the workplace
is about prioritizing moral values for the workplace and ensuring
behaviors are aligned with those values -- it's values management.
Yet, myths abound about business ethics. Some of these myths arise
from general confusion about the notion of ethics. Other myths
arise from narrow or simplistic views of ethical dilemmas.
1. Myth: Business ethics is more a matter of religion than
management. Diane Kirrane, in "Managing Values: A
Systematic Approach to Business Ethics,"(Training
and Development Journal, November 1990), asserts that "altering
people's values or souls isn't the aim of an organizational ethics
program -- managing values and conflict among them is ..."
2. Myth: Our employees are ethical so we don't need attention
to business ethics. Most of the ethical dilemmas faced
by managers in the workplace are highly complex. Wallace explains
that one knows when they have a significant ethical conflict when
there is presence of a) significant value conflicts among differing
interests, b) real alternatives that are equality justifiable,
and c) significant consequences on "stakeholders" in
the situation. Kirrane mentions that when the topic of business
ethics comes up, people are quick to speak of the Golden Rule,
honesty and courtesy. But when presented with complex ethical
dilemmas, most people realize there's a wide "gray area"
when trying to apply ethical principles.
3. Myth: Business ethics is a discipline best led by philosophers,
academics and theologians. Lack of involvement of leaders
and managers in business ethics literature and discussions has
led many to believe that business ethics is a fad or movement,
having little to do with the day-to-day realities of running an
organization. They believe business ethics is primarily a complex
philosophical debate or a religion. However, business ethics is
a management discipline with a programmatic approach that includes
several practical tools. Ethics management programs have practical
applications in other areas of management areas, as well. (These
applications are listed later on in this document.)
4. Myth: Business ethics is superfluous -- it only asserts
the obvious: "do good!" Many people react that
codes of ethics, or lists of ethical values to which the organization
aspires, are rather superfluous because they represent values
to which everyone should naturally aspire. However, the value
of a codes of ethics to an organization is its priority and focus
regarding certain ethical values in that workplace. For example,
it’s obvious that all people should be honest. However, if
an organization is struggling around continuing occasions of deceit
in the workplace, a priority on honesty is very timely -- and
honesty should be listed in that organization’s code of ethics.
Note that a code of ethics is an organic instrument that changes
with the needs of society and the organization.
5. Myth: Business ethics is a matter of the good guys preaching
to the bad guys. Some writers do seem to claim a moral
high ground while lamenting the poor condition of business and
its leaders. However, those people well versed in managing organizations
realize that good people can take bad actions, particularly when
stressed or confused. (Stress or confusion are not excuses for
unethical actions -- they are reasons.) Managing ethics in the
workplace includes all of us working together to help each other
remain ethical and to work through confusing and stressful ethical
dilemmas.
6. Myth: Business ethics in the new policeperson on the
block. Many believe business ethics is a recent phenomenon
because of increased attention to the topic in popular and management
literature. However, business ethics was written about even 2,000
years ago -- at least since Cicero wrote about the topic in his
On Duties. Business ethics has gotten more attention recently
because of the social responsibility movement that started in
the 1960s.
7. Myth: Ethics can't be managed. Actually, ethics
is always "managed" -- but, too often, indirectly. For
example, the behavior of the organization's founder or current
leader is a strong moral influence, or directive if you will,
on behavior or employees in the workplace. Strategic priorities
(profit maximization, expanding marketshare, cutting costs, etc.)
can be very strong influences on morality. Laws, regulations and
rules directly influence behaviors to be more ethical, usually
in a manner that improves the general good and/or minimizes harm
to the community. Some are still skeptical about business ethics,
believing you can't manage values in an organization. Donaldson
and Davis (Management Decision, V28, N6) note that management,
after all, is a value system. Skeptics might consider the tremendous
influence of several "codes of ethics," such as the
"10 Commandments" in Christian religions or the U.S.
Constitution. Codes can be very powerful in smaller "organizations"
as well.
8. Myth: Business ethics and social responsibility are the
same thing. The social responsibility movement is one
aspect of the overall discipline of business ethics. Madsen and
Shafritz refine the definition of business ethics to be: 1) an
application of ethics to the corporate community, 2) a way to
determine responsibility in business dealings, 3) the identification
of important business and social issues, and 4) a critique of
business. Items 3 and 4 are often matters of social responsibility.
(There has been a great deal of public discussion and writing
about items 3 and 4. However, there needs to be more written about
items 1 and 2, about how business ethics can be managed.) Writings
about social responsibility often do not address practical matters
of managing ethics in the workplace, e.g., developing codes, updating
polices and procedures, approaches to resolving ethical dilemmas,
etc.
9. Myth: Our organization is not in trouble with the law,
so we're ethical. One can often be unethical, yet operate
within the limits of the law, e.g., withhold information from
superiors, fudge on budgets, constantly complain about others,
etc. However, breaking the law often starts with unethical behavior
that has gone unnoticed. The "boil the frog" phenomena
is a useful parable here: If you put a frog in hot water, it immediately
jumps out. If you put a frog in cool water and slowly heat up
the water, you can eventually boil the frog. The frog doesn't
seem to notice the adverse change in its environment.
10. Myth: Managing ethics in the workplace has little practical
relevance. Managing ethics in the workplace involves identifying
and prioritizing values to guide behaviors in the organization,
and establishing associated policies and procedures to ensure
those behaviors are conducted. One might call this "values
management." Values management is also highly important in
other management practices, e.g., managing diversity, Total Quality
Management and strategic planning.
10 Benefits of Managing Ethics in the Workplace
Many people are used to reading
or hearing of the moral benefits of attention to business ethics.
However, there are other types of benefits, as well. The following
list describes various types of benefits from managing ethics
in the workplace.
1. Attention to business ethics has substantially improved
society. A matter of decades ago, children in our country
worked 16-hour days. Workers’ limbs were torn off and disabled
workers were condemned to poverty and often to starvation. Trusts
controlled some markets to the extent that prices were fixed and
small businesses choked out. Price fixing crippled normal market
forces. Employees were terminated based on personalities. Influence
was applied through intimidation and harassment. Then society
reacted and demanded that businesses place high value on fairness
and equal rights. Anti-trust laws were instituted. Government
agencies were established. Unions were organized. Laws and regulations
were established.
2. Ethics programs help maintain a moral course in turbulent
times. As noted earlier in this document, Wallace and
Pekel explain that attention to business ethics is critical during
times of fundamental change -- times much like those faced now
by businesses, both nonprofit or for-profit. During times of change,
there is often no clear moral compass to guide leaders through
complex conflicts about what is right or wrong. Continuing attention
to ethics in the workplace sensitizes leaders and staff to how
they want to act -- consistently.
3. Ethics programs cultivate strong teamwork and productivity.
Ethics programs align employee behaviors with those top
priority ethical values preferred by leaders of the organization.
Usually, an organization finds surprising disparity between its
preferred values and the values actually reflected by behaviors
in the workplace. Ongoing attention and dialogue regarding values
in the workplace builds openness, integrity and community -- critical
ingredients of strong teams in the workplace. Employees feel strong
alignment between their values and those of the organization.
They react with strong motivation and performance.
4. Ethics programs support employee growth and meaning.
Attention to ethics in the workplace helps employees face reality,
both good and bad -- in the organization and themselves. Employees
feel full confidence they can admit and deal with whatever comes
their way. Bennett, in his article "Unethical Behavior, Stress
Appear Linked" (Wall Street Journal, April 11, 1991,
p. B1), explained that a consulting company tested a range of
executives and managers. Their most striking finding: the more
emotionally healthy executives, as measured on a battery of tests,
the more likely they were to score high on ethics tests.
5. Ethics programs are an insurance policy -- they help
ensure that policies are legal. There is an increasing
number of lawsuits in regard to personnel matters and to effects
of an organization’s services or products on stakeholders.
As mentioned earlier in this document, ethical principles are
often state-of-the-art legal matters. These principles are often
applied to current, major ethical issues to become legislation.
Attention to ethics ensures highly ethical policies and procedures
in the workplace. It’s far better to incur the cost of mechanisms
to ensure ethical practices now than to incur costs of litigation
later. A major intent of well-designed personnel policies is to
ensure ethical treatment of employees, e.g., in matters of hiring,
evaluating, disciplining, firing, etc. Drake and Drake (California
Management Review, V16, pp. 107-123) note that “an employer
can be subject to suit for breach of contract for failure to comply
with any promise it made, so the gap between stated corporate
culture and actual practice has significant legal, as well as
ethical implications.”
6. Ethics programs help avoid criminal acts “of omission”
and can lower fines. Ethics programs tend to detect ethical
issues and violations early on so they can be reported or addressed.
In some cases, when an organization is aware of an actual or potential
violation and does not report it to the appropriate authorities,
this can be considered a criminal act, e.g., in business dealings
with certain government agencies, such as the Defense Department.
The recent Federal Sentencing Guidelines specify major penalties
for various types of major ethics violations. However, the guidelines
potentially lowers fines if an organization has clearly made an
effort to operate ethically.
7. Ethics programs help manage values associated with quality
management, strategic planning and diversity management -- this
benefit needs far more attention. Ethics programs identify
preferred values and ensuring organizational behaviors are aligned
with those values. This effort includes recording the values,
developing policies and procedures to align behaviors with preferred
values, and then training all personnel about the policies and
procedures. This overall effort is very useful for several other
programs in the workplace that require behaviors to be aligned
with values, including quality management, strategic planning
and diversity management. Total Quality Management includes high
priority on certain operating values, e.g., trust among stakeholders,
performance, reliability, measurement, and feedback. Eastman and
Polaroid use ethics tools in their quality programs to ensure
integrity in their relationships with stakeholders. Ethics management
techniques are highly useful for managing strategic values, e.g.,
expand marketshare, reduce costs, etc. McDonnell Douglas integrates
their ethics programs into their strategic planning process. Ethics
management programs are also useful in managing diversity. Diversity
is much more than the color of people’s skin -- it’s
acknowledging different values and perspectives. Diversity programs
require recognizing and applying diverse values and perspectives
-- these activities are the basis of a sound ethics management
program.
8. Ethics programs promote a strong public image.
Attention to ethics is also strong public relations -- admittedly,
managing ethics should not be done primarily for reasons of public
relations. But, frankly, the fact that an organization regularly
gives attention to its ethics can portray a strong positive to
the public. People see those organizations as valuing people more
than profit, as striving to operate with the utmost of integrity
and honor. Aligning behavior with values is critical to effective
marketing and public relations programs. Consider how Johnson
and Johnson handled the Tylenol crisis versus how Exxon handled
the oil spill in Alaska. Bob Dunn, President and CEO of San Francisco-based
Business for Social Responsibility, puts it best: “Ethical
values, consistently applied, are the cornerstones in building
a commercially successful and socially responsible business.”
9. Overall benefits of ethics programs: Donaldson
and Davis, in “Business Ethics? Yes, But What Can it Do for
the Bottom Line?” (Management Decision, V28, N6, 1990) explain
that managing ethical values in the workplace legitimizes managerial
actions, strengthens the coherence and balance of the organization’s
culture, improves trust in relationships between individuals and
groups, supports greater consistency in standards and qualities
of products, and cultivates greater sensitivity to the impact
of the enterprise’s values and messages.
10. Last - and most -- formal attention to ethics in the
workplace is the right thing to do.
One Description of a Highly Ethical Organization
Mark Pastin, in The Hard Problems
of Management: Gaining the Ethics Edge (Jossey-Bass, 1986),
provides the following four principles for highly ethical organizations:
1. They are at ease interacting with diverse internal and external
stakeholder groups. The groundrules of these firms make the good
of these stakeholder groups part of the organizations' own good.
2. They are obsessed with fairness. Their groundrules emphasize
that the other persons' interests count as much as their own.
3. Responsibility is individual rather than collective, with individuals
assuming personal responsibility for actions of the organization.
These organizations' groundrules mandate that individuals are
responsible to themselves.
4. They see their activities in terms of purpose. This purpose
is a way of operating that members of the organization highly
value. And purpose ties the organization to its environment.
Doug Wallace asserts the following characteristics of a high integrity
organization:
1. There exists a clear vision and picture of integrity throughout
the organization.
2. The vision is owned and embodied by top management, over time.
3. The reward system is aligned with the vision of integrity.
4. Policies and practices of the organization are aligned with
the vision; no mixed messages.
5. It is understood that every significant management decision
has ethical value dimensions.
6. Everyone is expected to work through conflicting-stakeholder
value perspectives.
Ethics Management Programs: An Overview
About Ethics Management Programs
Organizations can manage ethics in their workplaces by establishing
an ethics management program. Brian Schrag, Executive Secretary
of the Association for Practical and Professional Ethics, clarifies.
"Typically, ethics programs convey corporate values, often
using codes and policies to guide decisions and behavior, and
can include extensive training and evaluating, depending on the
organization. They provide guidance in ethical dilemmas."
Rarely are two programs alike.
"All organizations have ethics programs, but most do not
know that they do," wrote business ethics professor Stephen
Brenner in the Journal of Business Ethics (1992, V11, pp.
391-399). "A corporate ethics program is made up of values,
policies and activities which impact the propriety of organization
behaviors."
Bob Dunn, President and CEO of San Francisco-based Business for
Social Responsibility, adds: "Balancing competing values
and reconciling them is a basic purpose of an ethics management
program. Business people need more practical tools and information
to understand their values and how to manage them."
Benefits of Managing Ethics as a Program
There are numerous benefits in formally managing ethics as a program,
rather than as a one-shot effort when it appears to be needed.
Ethics programs:
· Establish organizational roles to manage ethics
· Schedule ongoing assessment of ethics requirements
· Establish required operating values and behaviors
· Align organizational behaviors with operating values
· Develop awareness and sensitivity to ethical issues
· Integrate ethical guidelines to decision making
· Structure mechanisms to resolving ethical dilemmas
· Facilitate ongoing evaluation and updates to the program
· Help convince employees that attention to ethics is not
just a knee-jerk reaction done to get out of trouble or improve
public image
8 Guidelines for Managing Ethics in the Workplace
The following guidelines
ensure the ethics management program is operated in a meaningful
fashion:
1.Recognize that managing ethics is a process.
Ethics is a matter of
values and associated behaviors. Values are discerned through
the process of ongoing reflection. Therefore, ethics programs
may seem more process-oriented than most management practices.
Managers tend to be skeptical of process-oriented activities,
and instead prefer processes focused on deliverables with measurements.
However, experienced managers realize that the deliverables of
standard management practices (planning, organizing, motivating,
controlling) are only tangible representations of very process-oriented
practices. For example, the process of strategic planning is much
more important than the plan produced by the process. The same
is true for ethics management. Ethics programs do produce deliverables,
e.g., codes, policies and procedures, budget items, meeting minutes,
authorization forms, newsletters, etc. However, the most important
aspect from an ethics management program is the process of reflection
and dialogue that produces these deliverables.
2. The bottom line of an ethics program is accomplishing
preferred behaviors in the workplace. As with any management
practice, the most important outcome is behaviors preferred by
the organization. The best of ethical values and intentions are
relatively meaningless unless they generate fair and just behaviors
in the workplace. That's why practices that generate lists of
ethical values, or codes of ethics, must also generate policies,
procedures and training that translate those values to appropriate
behaviors.
3. The best way to handle ethical dilemmas is to avoid their
occurrence in the first place. That's why practices such
as developing codes of ethics and codes of conduct are so important.
Their development sensitizes employees to ethical considerations
and minimize the chances of unethical behavior occurring in the
first place.
4. Make ethics decisions in groups, and make decisions public,
as appropriate. This usually produces better quality decisions
by including diverse interests and perspectives, and increases
the credibility of the decision process and outcome by reducing
suspicion of unfair bias.
5. Integrate ethics management with other management practices.
When developing the values statement during strategic
planning, include ethical values preferred in the workplace. When
developing personnel policies, reflect on what ethical values
you'd like to be most prominent in the organization's culture
and then design policies to produce these behaviors.
6. Use cross-functional teams when developing and implementing
the ethics management program. It’s vital that the
organization’s employees feel a sense of participation and
ownership in the program if they are to adhere to its ethical
values. Therefore, include employees in developing and operating
the program.
7. Value forgiveness. This may sound rather religious
or preachy to some, but it’s probably the most important
component of any management practice. An ethics management program
may at first actually increase the number of ethical issues to
be dealt with because people are more sensitive to their occurrence.
Consequently, there may be more occasions to address people’s
unethical behavior. The most important ingredient for remaining
ethical is trying to be ethical. Therefore, help people recognize
and address their mistakes and then support them to continue to
try operate ethically.
8. Note that trying to operate ethically and making a few
mistakes is better than not trying at all. Some organizations
have become widely known as operating in a highly ethical manner,
e.g., Ben and Jerrys, Johnson and Johnson, Aveda, Hewlett Packard,
etc. Unfortunately, it seems that when an organization achieves
this strong public image, it's placed on a pedestal by some business
ethics writers. All organizations are comprised of people and
people are not perfect. However, when a mistake is made by any
of these organizations, the organization has a long way to fall.
In our increasingly critical society, these organizations are
accused of being hypocritical and they are soon pilloried by social
critics. Consequently, some leaders may fear sticking their necks
out publicly to announce an ethics management program. This is
extremely unfortunate. It's the trying that counts and
brings peace of mind -- not achieving an heroic status in society.
6 Key Roles and Responsibilities in Ethics Management
Depending on the size of the
organization, certain roles may prove useful in managing ethics
in the workplace. These can be full-time roles or part-time functions
assumed by someone already in the organization. Small organizations
certainly will not have the resources to implement each the following
roles using different people in the organization. However, the
following functions points out responsibilities that should be
included somewhere in the organization.
1. The organization's chief executive must fully support
the program. If the chief executive isn't fully behind
the program, employees will certainly notice -- and this apparent
hypocrisy may cause such cynicism that the organization may be
worse off than having no formal ethics program at all. Therefore,
the chief executive should announce the program, and champion
its development and implementation. Most important, the chief
executive should consistently aspire to lead in an ethical manner.
If a mistake is made, admit it.
2. Consider establishing an ethics committee at the board
level. The committee would be charged to oversee development
and operation of the ethics management program.
3. Consider establishing an ethics management committee.It
would be charged with implementing and administrating an ethics
management program, including administrating and training about
policies and procedures, and resolving ethical dilemmas. The committee
should be comprised of senior officers.
4. Consider assigning/developing an ethics officer. This
role is becoming more common, particularly in larger and more
progressive organizations. The ethics officer is usually trained
about matters of ethics in the workplace, particularly about resolving
ethical dilemmas.
5. Consider establishing an ombudsperson. The ombudsperson
is responsible to help coordinate development of the policies
and procedures to institutionalize moral values in the workplace.
This position usually is directly responsible for resolving ethical
dilemmas by interpreting policies and procedures.
6. Note that one person must ultimately be responsible for
managing the ethics management program.
Ethics Tools: Codes of Ethics
About Codes of Ethics
According to Wallace, "A credo generally describes the highest
values to which the company aspires to operate. It contains the
`thou shalt's. A code of ethics specifies the ethical rules of
operation. It's the `thou shalt not's." In the latter 1980s,
The Conference Board, a leading business membership organization,
found that 76% of corporations surveyed had codes of ethics.
Some business ethicists disagree that
codes have any value. Usually they explain that too much focus
is put on the codes themselves, and that codes themselves are
not influential in managing ethics in the workplace. Many ethicists
note that it's the developing and continuing dialogue
around the code's values that is most important.
Occasionally, employees react to codes
with suspicion, believing the values are "motherhood and
apple pie" and codes are for window dressing. But, when managing
a complex issue, especially in a crisis, having a code is critical.
More important, it's having developed a code. In the mid-70s,
Johnson and Johnson updated their credo in a series of challenge
meetings. Bob Kniffin, Vice President of External Affairs, explains,
"We pored over each phrase and word. We asked ourselves,
`Do we still believe this?' Our meetings resulted in some fine
tuning, but basically we didn't change the values. The meetings
infused the values in the minds of all of us managers." Many
believe this process guided them in their well-known decision
to pull Tylenol bottles off the shelves and repackage them at
a $100 million expense. Kniffin offers some sound, practical advice.
"In a crisis, there's no time for moral conclusions. Get
those done beforehand. But also realize there's no substitute
for sound crisis management. For example, have a list of people
with fundamental knowledge, such as who transports your products
where and when."
Developing Codes of Ethics
Note that if your organization is quite large, e.g., includes
several large programs or departments, you may want to develop
an overall corporate code of ethics and then a separate code to
guide each of your programs or departments.
Also note that codes should not be developed out of the Human
Resource or Legal departments alone, as is too often done. Codes
are insufficient if intended only to ensure that policies are
legal. All staff must see the ethics program being driven by top
management.
Note that codes of ethics and codes of conduct may be the same
in some organizations, depending on the organization's culture
and operations and on the ultimate level of specificity in the
code(s).
Optional: Also see in the Free
Management Library at http://www.managementhelp.org:
1.
Organizational
Culture - review to get a basic understanding
of "personalities" of organizations
2. Strategic
Planning - specific to developing
a Values Statement
3. Valuing Diversity- to consider that there are other
values and perspectives
Consider the following guidelines
when developing codes of ethics:
1. Review any values need to adhere to relevant laws and
regulations; this ensures your organization is not (or
is not near) breaking any of them. (If you are breaking any of
them, you may be far better off to report this violation than
to try hide the problem. Often, a reported violation generates
more leniency than outside detection of an unreported violation,
particularly per the new Federal Sentencing Guidelines.) Increase
priority on values that will help your organization operate to
avoid breaking these laws and to follow necessary regulations.
2. Review which values produce the top three or four traits
of a highly ethical and successful product or service in your
area, e.g., for accountants: objectivity, confidentiality,
accuracy, etc. Identify which values produce behaviors
that exhibit these traits.
3. Identify values needed to address current issues in your
workplace. Appoint one or two key people to interview
key staff to collect descriptions of major issues in the workplace.
Collect descriptions of behaviors that produce the issues. Consider
which of these issues is ethical in nature, e.g.., issues in regard
to respect, fairness and honesty. Identify the behaviors needed
to resolve these issues. Identify which values would generate
those preferred behaviors. There may be values included here that
some people would not deem as moral or ethical values, e.g., team-building
and promptness, but for managers, these practical values may add
more relevance and utility to a code of ethics.
4. Identify any values needed, based on findings during
strategic planning. Review information from
your SWOT analysis (identifying the organization's strengths,
weaknesses, opportunities and threats). What behaviors are needed
to build on strengths, shore up weaknesses, take advantage of
opportunities and guard against threats?
5. Consider any top ethical values that might be prized
by stakeholders. For example, consider expectations of
employees, clients/customers, suppliers, funders, members of the
local community, etc.
6. Collect from the above steps, the top five to ten ethical
values which are high priorities in your organization (see item
#7 below for examples).
7. Examples of ethical values might include (the
following list is the "Six Pillars of Character" developed
by The Josephson Institute of Ethics, 310-306-1868):
a) Trustworthiness: honesty, integrity, promise-keeping,
loyalty
b) Respect: autonomy, privacy, dignity, courtesy, tolerance,
acceptance
c) Responsibility: accountability, pursuit of excellence
d) Caring: compassion, consideration, giving, sharing,
kindness, loving
e) Justice and fairness: procedural fairness, impartiality,
consistency, equity, equality, due process
f) Civic virtue and citizenship: law abiding, community
service, protection of environment
8. Compose your code of ethics; attempt to associate with
each value, two example behaviors which reflect each value. Critics
of codes of ethics assert that they seem vacuous because many
only list ethical values and don't clarify these values by associating
examples of behaviors.
9. Include wording that indicates all employees are expected
to conform to the values stated in the code of ethics. Add
wording that indicates where employees can go if they have any
questions.
10. Obtain review from key members of the organization.
Get input from as many members as possible.
11. Announce and distribute the new code of ethics (unless
you are waiting to announce it along with any new codes of conduct
and associated policies and procedures). Ensure each employee
has a copy and post codes throughout the facility.
12. Update the code at least once a year. As stated
several times in this document, the most important aspect of codes
is developing them, not the code itself. Continued dialogue and
reflection around ethical values produces ethical sensitivity
and consensus. Therefore, revisit your codes at least once a year
-- preferably two or three times a year.
13. (Note that you cannot include values and preferred behaviors
for every possible ethical dilemma that might arise. Your
goal is to focus on the top ethical values needed in your organization
and to avoid potential ethical dilemmas that seem mostly likely
to occur.)
Ethics Tools: Codes of Conduct
About Codes of Conduct
"Codes of conduct specify actions in the workplace and codes
of ethics are general guides to decisions about those actions,"
explains Craig Nordlund, Associate General Counsel and Secretary
at Hewlett Packard. He suggests that codes of conduct contain
examples of appropriate behavior to be meaningful.
The Conference Board found that codes of conduct are increasingly
sophisticated and focused at lower levels in companies. Departments
frequently have their own codes. Be careful, though. An organization
could be sued for breach of contract if its practices are not
in accord with its policies. That’s why legal departments
should review codes of conduct and other ethics policies. Also,
that’s why it’s critical for organizations to review
their policies at least once a year to ensure they are in accordance
with laws and regulations.
Optional: also see in the Free
Management Library at http://www.managementhelp.org:
1. Employee Law - review major issues and topics
to discern what behaviors to avoid in the workplace
2. Policies (Personnel) - review more specifics about what behaviors
to avoid
Developing a Code of Conduct
Note that if your organization is quite large, e.g., includes
several large programs or departments, you may want to develop
an overall corporate code of conduct, and then a separate code
to guide each of your programs or departments. Consider the following
guidelines when developing codes of conduct:
1. Identify key behaviors needed to adhere to the ethical
values proclaimed in your code of ethics, including ethical
values derived from review of key laws and regulations, ethical
behaviors needed in your product or service area, behaviors to
address current issues in your workplace, and behaviors needed
to reach strategic goals.
2. Include wording that indicates all employees are expected
to conform to the behaviors specified in the code of conduct.
Add wording that indicates where employees can go if they
have any questions.
3. Obtain review from key members of the organization. Be
sure your legal department reviews the drafted code of conduct.
4. Announce and distribute the new code of conduct
(unless you are waiting to announce it along with any associated
policies and procedures). Ensure each employee has a copy and
post codes in each employee's bay or office.
5. (Note that you cannot include preferred behaviors for
every possible ethical dilemma that might arise.)
6. Examples of topics typically addressed by codes of conduct
include: preferred style of dress, avoiding illegal drugs,
following instructions of superiors, being reliable and prompt,
maintaining confidentiality, not accepting personal gifts from
stakeholders as a result of company role, avoiding racial or sexual
discrimination, avoiding conflict of interest, complying with
laws and regulations, not using organization's property for personal
use, not discriminating against race or age or sexual orientation,
and reporting illegal or questionable activity. Go beyond these
traditional legalistic expectations in your codes -- adhere to
what's ethically sensitive in your organization, as well.
(Note that, as with codes of ethics, you may be better off to
generate your own code of conduct from scratch rather than reviewing
examples from other organizations.)
Ethics Tools: Policies and Procedures
Optional: also see in the Free Management Library at http://www.managementhelp.org:
Policies (Personnel) - review to understand how to develop and
apply personnel policies
1. Update policies and procedures to produce behaviors preferred
from the code of conduct, including, e.g., personnel,
job descriptions, performance appraisal forms, management-by-objectives
expectations, standard forms, checklists, budget report formats,
and other relevant control instruments to ensure conformance to
the code of conduct. In doing so, try to avoid creating ethical
dilemmas such as conflicts-of-interest or infringing on employee's
individual rights.
2. There are numerous examples of how organizations manage
values through use of policies and procedures. For example,
we're most familiar with the value of social responsibility. To
produce behavior aligned with this value, organizations often
institute policies such as recycling waste, donating to local
charities, or paying employees to participate in community events.
In another example, a high value on responsiveness to customers
might be implemented by instituting policies to return phone calls
or to repair defective equipment within a certain period of time.
Consider the role of job descriptions and performance appraisals.
For example, an advanced technology business will highly value
technical knowledge, creativity and systems thinking. They use
job descriptions and performance appraisals to encourage behaviors
aligned with these values, such as rewarding advanced degrees,
patents, and analysis and design skills.
3. Include policies and procedures to address ethical dilemmas.
See the next section, "Ethics Tools: Resolving Ethical
Dilemmas," to select a method which is most appropriate to
your organization's culture and operations.
4. Include policies and procedures to ensure training of
employees about the ethics management program. See a following
section, "Ethics Tools: Training."
5. Include policies and procedures to reward ethical behavior
and impose consequences for unethical behavior.
6. Include a grievance policy for employees to use to resolve
disagreements with supervisors and staff.
7. Consider establishing an ethics "hotline."
This function might best be provided by an outside consultant,
e.g., lawyer, clergyperson, etc. Or, provide an anonymous "tip"
box in which personnel can report suspected unethical activities,
and do so safely on an anonymous basis.
8. Once a year, review all personnel policies and procedures.
If yours is a small organization, consider including all
staff during this review. Take a full day for all staff to review
policies and procedures, and suggest changes.
9. For guidance in establishing personnel policies, see
the Guide to Personnel
Management and Policies (http://www.managementhelp.org/mgmnt/prsnlmnt.htm).
Ethics Tools: Resolving Ethical Dilemmas (with Real-to-Life Examples)
Definition of an Ethical Dilemma
Perhaps too often,
business ethics is portrayed as a matter of resolving conflicts
in which one option appears to be the clear choice. For example,
case studies are often presented in which an employee is faced
with whether or not to lie, steal, cheat, abuse another, break
terms of a contract, etc. However, ethical dilemmas faced by managers
are often more real-to-life and highly complex with no clear guidelines,
whether in law or often in religion.
As noted earlier in this document, Doug Wallace, Twin Cities-based
consultant, explains that one knows when they have a significant
ethical conflict when there is presence of a) significant value
conflicts among differing interests, b) real alternatives that
are equality justifiable, and c) significant consequences on "stakeholders"
in the situation.
An ethical dilemma exists when one
is faced with having to make a choice among these alternatives.
Real-to-Life Examples of Complex Ethical Dilemmas
· "A customer (or client) asked for a product
(or service) from us today. After telling him our price, he said
he couldn't afford it. I know he could get it cheaper from a competitor.
Should I tell him about the competitor -- or let him go without
getting what he needs? What should I do?"
· "Our company prides itself on its merit-based
pay system. One of my employees has done a tremendous job all
year, so he deserves strong recognition. However, he's already
paid at the top of the salary range for his job grade and our
company has too many people in the grade above him, so we can't
promote him. What should I do?"
· "Our company prides itself on hiring minorities.
One Asian candidate fully fits the job requirements for our open
position. However, we're concerned that our customers won't understand
his limited command of the English language. What should I do?"
· "My top software designer suddenly refused to use
our e-mail system. He explained to me that, as a Christian, he
could not use a product built by a company that provided benefits
to the partners of homosexual employees. He'd basically cut himself
off from our team, creating a major obstacle to our product development.
What should I do?"
· "My boss told me that one of my employees
is among several others to be laid off soon, and that I'm not
to tell my employee yet or he might tell the whole organization
which would soon be in an uproar. Meanwhile, I heard from my employee
that he plans to buy braces for his daughter and a new carpet
for his house. What should I do?"
· "My computer operator told me he'd noticed
several personal letters printed from a computer that I was responsible
to manage. While we had no specific policies then against personal
use of company facilities, I was concerned. I approached the letter
writer to discuss the situation. She told me she'd written the
letters on her own time to practice using our word processor.
What should I do?"
· "A fellow employee told me that he plans
to quit the company in two months and start a new job which has
been guaranteed to him. Meanwhile, my boss told me that he wasn't
going to give me a new opportunity in our company because he was
going to give it to my fellow employee now. What should I do?"
Optional: also see in the Free
Management Library at http://www.managementhelp.org:
1.
Feedback
2.
Listening
3.
Questioning
4.
Conflict
(interpersonal)
5.
Negotiating
6.
Valuing
Diversity
3 Methods to Resolve Ethical Dilemmas
Organizations should develop and document a procedure for dealing
with ethical dilemmas as they arise. Ideally, ethical dilemmas
should be resolved by a group within the organization, e.g., an
ethics committee comprised of top leaders/managers and/or members
of the board. Consider having staff members on the committee,
as well. The following three methods can be used to address ethical
dilemmas. Methods include an ethical checklist, a ten-step method
and a list of key questions. (Note that The Golden Rule is probably
the most common method to resolve ethical dilemmas. The rule exists
in various forms in many of the world religions.)
Method One - Ethical Checklist
Twin Cities-based consultants, Doug Wallace and Jon Pekel, suggest
the following ethical checklist to address ethical dilemmas. If
necessary, revise your decision and action plan based on results
of the this test.
NOTE:
To get the longer version of this document, see Ten-Step Method for Ethical Decision-Making
Ethical Checklist
Circle the appropriate answer on the
scale; "1" = not at all; "5" = totally yes
1.
Relevant Information Test.
Have I/we obtained as much information as
possible to make an informed decision and action plan for this
situation?
1
2
3
4
5
2.
Involvement Test.
Have I/we involved all who have a right to
have input and/or to be involved in making this decision and
action plan?
1
2
3
4
5
3.
Consequential Test.
Have I/we anticipated and attempted to accommodate
for the consequences of this decision and action plan on any
who are significantly effected by it?
1
2
3
4
5
4.
Fairness Test.
If
I/we were assigned to take the place of any one of the stakeholders
in this situation, would I/we perceive this decision and action
plan to be essentially fair, given all of the circumstances?
1
2
3
4
5
5.
Enduring Values Test.
Do this decision and action plan uphold my/our
priority enduring values that are relevant to this situation?
1
2
3
4
5
6.
Universality Test.
Would I/we want this decision and action
plan to become a universal law applicable to all similar situation,
even to myself/ourselves?
1
2
3
4
5
7.
Light-of-Day Test.
How would I/we feel and be regarded by others
(working associates, family, etc.) if the details of this decision
and action plan were disclosed for all to know?
1
2
3
4
5
8.
Total Ethical Analysis Confidence
Score
. Place the total of
all circled numbers here.
How confident can you be that you have
done a good job of ethical analysis?
7-14
15-21
22-28
29-35
Not very confident
Somewhat confident
Quite confident
Very confident
Used with permission from Copyright holders: Doug Wallace and Jon Pekel, Twin Cities-based consultants
in the Fulcrum Group (651-714-9033; e-mail at jonpekel@atti.com).
Do not copy without reference to copyright owners. Not to be used for commercial purposes.
Method Two - Ten-Step Method of Decision Making
Wallace and Pekel also provide the following ten-step method.
STEPS
NOTES
1. What are the known FACTS in the situation?
2. Who are the key STAKEHOLDERS, what
do they value and what are their desired outcomes?
3. What are the UNDERLYING DRIVERS causing
the situation?
4. In priority order what ethical principles
or operating values do you think should be upheld in this situation?
5. Who should have input to, or be involved
in, making this decision?
6. List any alternative and action plans
that would:
a) prevent or minimize harm to stakeholders
b) uphold the priority values for this situation
c) be a good solution to the situation
Alternative 1
Alternative 2
Alternative 3
7. Build a WORSE-CASE SCENARIO for your
preferred alternative to see how it affects the stakeholders.
Rethink and revise your preferred alternative if necessary.
8. Add a PREVENTATIVE ETHICS component
to your action plan that deals with the underlying drivers causing
the situation listed in Step 3.
9. Evaluate your chosen decision and
action plan against the checklist on the reverse side.
10. Decide and build an action plan,
and implement and monitor it.
Used with permission from Copyright holders: Doug Wallace and Jon Pekel, Twin Cities-based consultants
in the Fulcrum Group (651-714-9033; e-mail at jonpekel@atti.com).
Do not copy without reference to copyright owners. Not to be used for commercial purposes.
Method Three - Twelve Questions to Address Ethical Dilemmas
Laura L. Nash poses 12 questions to help managers address ethical
dilemmas.
1. Have you defined the problem accurately?
2. How would you define the problem if you stood on the other side of the fence?
3. How did this situation occur in the first place?
4. To whom and to what do you give your loyalty as a person and as a member of the corporation?
5. What is your intention in making this decision?
6. How does this intention compare with the probable results?
7. Whom could your decision or action injure?
8. Can you discuss the problem with the affected parties before you make your decision?
9. Are you confident that your position will be as valid over a long period of time as it seem now?
10. Could you disclose without qualm your decision or action to
your boss, your CEO, the board of directors, your family, society as a whole?
11. What is the symbolic potential of your action if understood? misunderstood?
12. Under what conditions would you allow exceptions to your stand?
(adapted from: Nash, L. (1981). Ethics Without the Sermon. Harvard Business Review, (59))
Ethics Tools: Training
The ethics program is essentially
useless unless all staff members are trained about what it is,
how it works and their roles in it. The nature of the system may
invite suspicion if not handled openly and honestly. In addition,
no matter how fair and up-to-date is a set of policies, the legal
system will often interpret employee behavior (rather than written
policies) as de facto policy. Therefore, all staff must be aware
of and act in full accordance with policies and procedures (this
is true, whether policies and procedures are for ethics programs
or personnel management). This full accordance requires training
about policies and procedures.
Optional: Also see in the Free
Management Library at http://www.managementhelp.org
Training Basics
for Supervisors and Learners
1. Orient new employees to the
organization's ethics program during new-employee orientation.
2. Review the ethics management program in management training
experiences.
3. Involving staff in review of codes is strong ethics training.
4. Involving staff in review of policies (ethics and personnel
policies) is strong ethics training.
5. One of the strongest forms of ethics training is practice
in resolving complex ethical dilemmas. Have staff use
any of the three ethical-dilemma-resolution methods in this guidebook
and apply them to any of the real-to-life ethical dilemmas also
listed in this guidebook.
6. Include ethical performance as a dimension in performance
appraisals.
7. The best ethics trainer: Bill Goodman, Chief
Human Resource Officer at Aveda, describes, "We start our
training even in our job ads," then adds, "but the best
trainer is the behavior of our leaders."
8. Give all staff a copy of this free "Complete Guide
to Ethics Management."
About the Author
Carter McNamara, MBA, PhD, is a Twin
Cities-based consultant in the areas of leadership development,
board development and strategic planning. He has managed in a
wide variety of organizations including startup, public-private,
small and large nonprofit, and large corporation. He received
comprehensive ethics training as an employee in a large defense
contractor, various ethics classes and continuing research in
business ethics. In addition, as a manager, he has struggled through
several major ethical dilemmas (one was quite public) so he knows
and understands the experience. He has led development of several
codes of ethics and conduct, as well. Carter holds a BA in Social
and Behavioral Sciences, BS in Computer Science, an MBA, and a
PhD in Human and Organization Development.
Bibliography of Practical Resources
Hardcopy documents:
The following references are to hardcopy documents that provide
information about managing ethics in the workplace:
Berenbeim, R. E. (1992, Spring). "The
Corporate Ethics Test". Business and Society Review, 31(1),
77-80.
Brenner, S. N. (1992). "Ethics
Programs and Their Dimensions". Journal of Business Ethics,
11,391-399.
Buchholz, R. A. (1989). "Fundamental
Concepts and Problems in Business Ethics". In Madsen,
P., & Shafritz, J. M. (Eds.) (1990). "Essentials of Business
Ethics". New York: Penguin Books.
Carroll, A. B. (1990). "Principles
of Business Ethics: Their Role in Decision Making and in Initial
Consensus". Management Decision, 28(8), 21-23.
Dean, P. J. (1992). "Making Codes
of Ethics 'Real'." Journal of Business Ethics, 11, 285-290.
Deborah, B. (1991, January/February).
"Asking for Help: A Guide to Using Socially Responsible Consultants".
Business Ethics Magazine, pp. 24-29.
Francis, David R. (1991, June). "Prevent
Trouble by Improving Ethics". Christian Science Monitor,
p. 9.
Fulcrum Consulting Group, 1093 Snelling
Ave. South, Saint Paul, MN 55116. Phone 1-800-55-ETHIC.
Gandz, J. & Bird, F. G. (1989,
Autumn). "Designing Ethical Organizations". Business
Quarterly, 54(2), 108-112.
Genfan, H. (1987, November). "Formalizing
Business Ethics". Training and Development Journal, pp. 35-37.
Josephson Institute of Ethics, 310
Washington Boulevard, Suite 104, Marina del Rey, California. Phone
310-306-1868.
Kirrane, D.E. (1990, November). "Managing
Values: A Systematic Approach to Business Ethics". Training
and Development Journal, pp. 53-60.
Madsen, P., Ph. D., & Shafritz,
J. M., Ph. D. (Eds.). (1990). "Essentials of Business Ethics".
New York: Penguin Books.
McDonald, G., & Zepp, R. (1990).
"What Should Be Done? A Practical Approach to Business Ethics".
Management Decision, 28(1), 9-13.
Nash, L. (1981). "Ethics Without
the Sermon". Harvard Business Review, (59).
Navran Associates Management Consultants,
3037 Wembley Ridge, Atlanta, GA. Phone 404-493-8886.
Reynolds, L. (1992, July/August).
"The Ethics Audit. Business Ethics Magazine", pp. 20-22.
Sims, R. R. (1991). "Institutionalization
of Organizational Ethics". Journal of Business Ethics, 10,
493-506.
Strong, K. C., & Meyer, G. (1992).
"An Integrative Descriptive Model of Ethics Decision Making".
Journal of Business Ethics, 11, 89-94.
Thompson, T. (1991, Spring). "Managing
Business Ethics". Canadian Public Administration, 34(1),
153-157.
Toffler, B. (1991, Winter). "Doing
Ethics: An Approach to Business Ethics Consulting". Moral
Education Forum, 16(4), 14-20.
World Wide Web Links:
The following are links to Websites about business ethics.
Extensive list of lists of Websites, of institutes and of topics
(http://www.duke.edu/~wgrobin/ethics/surfing.html)
General business ethics resources at the Center
for Applied Ethics (http://www.ethics.ubc.ca/resources/business/)
General site for ethics on the Web (http://commfaculty.fullerton.edu/lester/ethics/ethics_list.html)
Center for Applied Ethics at http://www.ethics.ubc.ca/
(http://commfaculty.fullerton.edu/lester/ethics/listserver.html)
For the Category of Ethics:
Related Library Topics
Recommended Books
Business Ethics
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on the title of the book in that bubble to get more information, too.
Social Responsibility
The following books are recommended because of their highly practical nature and often
because they include a wide range of information about this Library topic. To get more information about
each book, just hover your cursor over the image of the book. A "bubble" of information will be displayed. You can click
on the title of the book in that bubble to get more information, too.
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