CH#19 BUSINESS AND PROFESSIONAL ETHICS

Question 1

Why companies need code of ethics

Answer 1

managing for compliance
managing stakeholder relations
creating value based organization

Question 2

how to make code of ethics effective

Answer 2

• They are endorsed by the top management
• Employees are given training on how to implement the codes of ethics
• The codes must be kept up-to-date
• The codes must be available to everyone within and outside the organization.

Question 3

general statement about ethical conduct

Answer 3

he has my respect for protecting integrity with excellence

• acting at all times with integrity
• protecting the environment
• the ‘pursuit of excellence’
• respect for the individual.

Question 4

dealing with stakeholder groups

Answer 4

Dealing with stakeholders’ groups: A code of conduct might address its main concerns about its dealings with stakeholder groups and its ethical treatment of each group.
* Employees: Code of ethics might include statements about:
▪ Human rights
▪ Equal employment opportunity
▪ Policies on harassment
▪ Health and safety of employees
▪ Policy against receiving bribes or gifts
* Customers: Code of ethics might include statements about:
▪ Fair dealing with customers
▪ Truthfulness in advertisement
▪ Respect for privacy and data confidentiality
* Competitors: Code of ethics might include statements about:
▪ Dealing with competitors
▪ Obtaining and using information about competitors

Question 5

practical consideration for whistleblowing

Answer 5

An employee considering ‘blowing the whistle’ should think about the
following before deciding to actually blow the whistle:
* Are all the facts correct? Could they have misinterpreted something or mistakenly drawn the wrong conclusion?
* Is there sufficient evidence to justify blowing the whistle?
* They should double-check they have thought about the situation objectively and with neutral emotion (rather than, say, at a time of anger).
* Consider discussing events in confidence with an independent confidential third party e.g. a professional helpline or legal advisor.
* Think about the impact that blowing the whistle may have on the whistleblower’s career. Is the risk of being victimised and bullied outweighed by the benefits of proceeding with blowing the
whistle?
* Double-check company policy and whistleblowing procedures in the staff handbook. The
whistleblower must ensure they follow company procedures at all times.
* Establish whether there is scope to discuss events confidentially with the human resources department.
* Is there an internal audit department who could be made aware of relevant events and take
ownership of reporting any issues?
* Consider if there is a legal obligation to report – for example in many countries there is a legal
obligation to report the discovery of money- laundering or terrorism activities.

Question 6

problems with whistleblowing

Answer 6

• Experience in many organizations has shown that when an individual reports concerns about
  illegal or unethical conduct, the individual is often victimized, by colleagues and management.
• On the other hand, some individuals make allegations about colleagues or managers that are unfounded. The allegations might be made for reasons of malice and dislike, or because there has been an argument at work. Malicious allegations about colleagues and managers should not be tolerated.