11. Individual Ethics in a Corporate Environment

Question 1

What is public practice?

Answer 1

Provision of services to client directly

Question 2

What is business practice?

Answer 2

Salaried employment to advise on the running of the business in private or public sector to support legitimate and ethical objectives of the employer

Question 3

What is the pressure to collude?

Answer 3

• conflict between responsibilities to employer and profession
• acts may be contrary to law or standards
• must refuse
• disregard consequences
• takes courage
• balance professionalism with subservience

Question 4

How does corporate culture impact employee behaviour?

Answer 4

• corporate culture sets the ethical climate
• shared set of values, beliefs and traditions for acceptable behaviour
• sets what is important to the organisation
• varies from business to business
• effective ethical culture results in higher ethical behaviour
• pervasively communicated and maintained
• ethical consumerism
• need: corporate code of conduct, performance appraisals, reward and punishment

Question 5

What are corporate codes of conduct?

Answer 5

• authoritative statement setting out minimum standard of acceptable behaviour and guide for ethical conflicts
• addresses compliance with law, conflicts of interest, stakeholder relationships, confidential information, misuse of funds, company records, gifts and political contributions
• message to internal and external stakeholders of commitment
• positive image

Question 6

Is the code of conduct a tool of good governance?

Answer 6

• without the code as a guide individuals may pursue personal interests
• framework encourages ethical behaviour
• increases predictability in employee behaviour

Question 7

How does setting the tone influence conduct?

Answer 7

• role models need to encourage others and act per the values
• inconsistent behaviour sends the message that not following code is ok
• mentoring encourages conduct

Question 8

How does awareness and training influence conduct?

Answer 8

• cannot claim ignorance of code
• communicate through newsletters and intranet
• formal training through induction

Question 9

How does enforcement influence conduct?

Answer 9

• penalties deter but this may send the wrong message
• should address cause not problem
• should encourage good behaviour

Question 10

Importance of being ethical

Answer 10

Personal power - reduce sense of powerlessness

1. Courage to develop and stick to judgement
2. Reputation to consider
3. Communicate constructively
4. change Employers

Question 11

What is whistleblowing?

Answer 11

• disclosing confidential information
• public’s best interest
• without permission
• internally or externally

Question 12

What is the moral dilemma of whistleblowing?

Answer 12

• economic, social, emotional, personal and professional complexities
• public interest conflicts with loyalty and confidentiality
• weigh up factors to decide whether to whistleblow

Question 13

What is the duty of loyalty?

Answer 13

• loyalty and devotion to protect and advance the interest of one whom an obligation is owed
• loyalty is not absolute
• disloyalty to employer is obligation to society

Question 14

What is the duty of confidentiality?

Answer 14

• duty not to disclose information obtained as an employee
• conflict arises where employee finds illegal activity
• employee should refer to whistleblowing policy then legal advice

Question 15

How do people react to whistleblowers?

Answer 15

• traitor, disloyal
• professional consequences
• personal consequences
• financial consequences
• public sector has protection, but not private

Question 16

When can a person whistleblow?

Answer 16

• if there are no or inadequate internal policies
• appropriate moral motive
• reliable evidence for the reasonable person

Question 17

What is an internal protocol?

Answer 17

• ability to remedy problem or redemption
• informing management displays loyalty
• informing others than management
• if public disclosure will prevent public harm then there is a duty to disclose

Question 18

What is the moral motive?

Answer 18

• moral values
• guilt of inaction
• to protect public from harm

Question 19

What is reliable evidence?

Answer 19

• convince the reasonable person
• confident of reliability of information
• likely to be investigate or resolved after disclosure

Question 20

What are the costs of whistleblowing?

Answer 20

• bad publicity
• lawsuits
• diminished profit
• demoralisation
• encourage internal disclosure

Question 21

How to promote internal whistleblowing?

Answer 21

Re-engineer notion of loyalty
- support whistleblowing
- encouraged and properly handled
- open door policy
- loyalty is disclosure
Designated officer
- designated people to approach
- confidential
- system of investigation
Hotline
- phone or emails
- may lead to groundless accusations and waste of time and money to investigate