Leadership: Ethical Issues in the Workplace Flashcards
Ethical workplaces
Aim for conduct that respects the rights of others
Steps for ethical values over time
- Leadership’s definition
- Organization’s culture
- Norms of behavior
- Codified in organization’s codes of conduct and reflected in all organization’s processes
Ethical behavior benefits
- Attract customers, investors and employees
- Leaders and workers are less likely to violate laws (cheaper) Atmosphere of trust, which translates to greater empowerment
HR Role in Supporting an Ethical Workplace
- Personal integrity
- Professional integrity
- Ethical agent
Being an ethical agent
Actions HR takes to support the organization’s ethical goals
PwC Framework
A framework employees can use to make ethical decisions
PwC Framework Steps
- Recognize ethical situations when they arise
- Establish the facts about the situation
- Evaluate the ethical dimension of possible actions
- Apply relevant codes of ethics and behavior to the options
- Consult with others
- Make a decision, own it, and learn from one’s mistakes
Recognize ethical situations as they arise step of PwC Framework
If the possible outcomes of an action trigger uneasiness about ethical or legal propriety, this is a signal to pause and consider the situation more fully.
Evaluate the ethical dimensions of possible actions step of PwC Framework
- Ethical criteria cannot be from religious beliefs or cultural norms
- Balance between interests and sacrificing one’s own interest
- Using moral codes
Moral codes include
- Utilitarian
- Rights
- Justice
- Common-good
- Virtue
Rights approach
Morality is to not go against human rights
Justice approach
Degree to which an action might be preferential or discriminatory
Common-good approach
Considers the impact of the decision on the entire group (or society)
Virtue approach
Considers if action will promote or obstruct the decision maker’s character development of those affected by the decision
Apply relevant codes of ethics and behavior to the options step of PwC Framework
- Organization and professions with their own codes of ethical behaviors
- Global organizations - parent country ethical norms may not align with legal and cultural requirements of host countries.
Consult with others step of PwC Framework
- Have ethical mentors within and outside the organization
- Privacy of those involved must be kept Important in ethical decisions
Ethical mentors
Individuals known to have ethical behavior and ability to understand and advise in complex situations
Make a decision, own it, and learn from one’s mistakes step of PwC Framework
- Leaders should explain their rationales and accept reactions
- Decision cannot be remade once made unless significant shortcomings have been uncovered
Transparency
- Disclosing details about dealings, transactions, or processes to those who have a vested interest.
- Supports trust with stakeholders
- Provides assurance when behaviors cannot be witnessed and it cannot be verified that they comply with laws, rules, or policies.
Honesty
- Commitment to truthfulness and fairness
- Abides by social and business norms
- Requires avoidance of conflicts of interest and use of bribery
Conflicts of interest
Situations where a person or organization may benefit from involvement in outside activities, relationships, or investments that conflict with or have an impact on the employment relationship or outcomes
Conflicts of interest can occur
- Person-to-organization level
- Organization-to-organization level
Person-to-organization conflict of interest
Employee’s personal interest conflicts with the employer/organization interest
Organization-to-organization conflict of interest
Organization serves a client in conflicting capacities or simultaneously serves two clients whose interest conflicts
Bribery
Exchange of anything of value to gain greater influence or preference.
Bribery in global environment
- Definition varies by country
- Professionals should be familiar with local business practices and local laws regarding bribery
Facilitating payments
Small payments of money or goods awarded to perform or speed up routine government actions
Anticorruption program implementation steps
- Identifying specific risk areas where payments are made
- Ex: promotional expenses, travel and entertainment, facilitating payments, charitable donations, lobbying
- Creat effective controls concerning the method and location of all payments.
- Providing culturally appropriate training and communication programs.
- Embedding disciplinary mechanisms within the business model to help mitigate areas of risk.
- Implementing robust monitoring, detection, and auditing processes.
- Periodically reassessing all corporate governance and compliance programs.
Confidentiality
Treatment of personal information that has been disclosed to another person or organization
Maintaining confidentiality
Is the agreement not to share or make public personal information
Confidentiality is an ethical behavior
Applies to all stakeholders and may have some legal force behind it
Workplaces that protect rights of employees include
- Creating a safe working environment
- Maintain a fair working environment
- Protecting employee privacy
Fair work environment
- Policies that promote fair recruiting, skill and career development
- Compensation systems that are compliant with local laws and regulations
Privacy
Individual’s right to freedom of intrusion into matters, actions, or information that is personal
