Chapter 6

Question 1

Corporate Ethics Programs

Answer 1

Some combination of a statement of values, code of conduct and/or ethics, ethics training, ethics audits and consulting services, ethics officers and committees, and ethics reporting systems.

Question 2

Statement of Values

Answer 2

Description of the beliefs, principles, and basic assumptions about what is desirable or worth striving for in an organization.

Question 3

Value statement may contain any combination of components, such as:

Answer 3

• key interests to be satisfied and balanced
• emphasis on quality and/or excellence in relation to product and service, employees, and technology
• efficiency as indicated by low cost, high productivity, and value for money or investment
• the atmosphere or climate of enterprise; for example, a good place to work, an emphasis on teamwork, managers’ support of staff, and development of employees
• the observance of codes of conduct to enhance integrity and to ensure fairness in all dealings

Question 4

Code of Conduct

Answer 4

Explicitly states what appropriate behaviour is by identifying what is acceptable and unacceptable.

Question 5

Code of Ethics

Answer 5

A statement of principles or values that guide behaviour by describing the general value system within which a corporation attempts to operate in a given environment.

Question 6

Codes that contribute to the management of ethics

Answer 6

• Corporate or business enterprise
• Professional organizations
• Industry and sector
• Single issue
• Codes from national and international bodies

Question 7

Conflict of Interest

Answer 7

a situation in which an individual has a private or personal interest that is sufficient to appear to influence the objective exercise of that individual’s duties.

Question 8

Common Conflicts of Interest

Answer 8

• Self-dealing
• Accepting gifts or benefits
• Influence peddling
• Using employer’s property
• Using confidential information
• Outside employment or moonlighting
• Post-employment
• Personal conduct

Question 9

3 types of conflict

Answer 9

• Real (a situation in which a manager or employee has knowledge of a private economic interest, or any kind of private or personal gain, that is sufficient to influence the exercise of their duties and responsibilities).
• Apparent (A situation where a conflict of interest can be deduced from appearances; exists when there is reasonable apprehension that a well-informed person could make the connection).
• Potential (A situation that may develop into an actual conflict).

Question 10

Ethics Audit

Answer 10

Systematic effort to discover actual or potential unethical behaviour in an organization.

Question 11

Ethics Office

Answer 11

An independent manager, reporting to the board of directors or CEO, who reviews complaints or information from anyone in the organization or any stakeholder, studies the situation, and recommends action if necessary.

Question 12

Compliance Officer

Answer 12

A manager who is responsible for ensuring that all employees are familiar with the corporation’s policies and codes, and government regulations and laws.

Question 13

Ethics Committee

Answer 13

A group, comprising directors, managers, or staff, formed to monitor ethical standards and behaviour.

Question 14

Several Issues related to whistleblowing

Answer 14

• credibility issue
• negative perception
• etc

Question 15

Integrity Management

Answer 15

An ethics program that combines a compliance-based and a values-based approach.

Question 16

Hypocritical Leader

Answer 16

strong moral manager and weak moral person

Question 17

Unethical Leader

Answer 17

Weak moral manager and weak moral person

Question 18

Ethical Leader

Answer 18

Strong moral manager and strong moral person

Question 19

Ethically Silent Leader

Answer 19

Weak moral manager and either a weak or strong moral person

Question 20

Corporate culture

Answer 20

a complex set of values, beliefs, assumptions, and symbols that define the way in which an organization conducts its business

Question 21

Ethical Corporate Culture

Answer 21

a “slice” or “subset” of the organization’s broader culture, maintained through an interplay and alignment of formal organizational systems, such as policies, leadership, authority structures, reward systems, training programs, and informal organizational systems such as peer behaviour and ethical norms.