Business Ethics BBA MBA Lecture 222324 Developing Ethical

Business Ethics BBA & MBA Lecture 222324 Developing Ethical Programs Course Lecturer: Farhan Mir

The Responsibility of the Corporation as a Moral Agent • Increasingly, corporations are viewed not merely as profit-making entities but also as moral agents that are accountable for their conduct to their employees, investors, suppliers, and customers.

Why Do Companies Develop Ethics Programs? • To allow employees and stakeholders to understand the values of the business • To comply with policies and codes of conduct • To create the ethical climate of the business • To create TRUST

Building Trust and Confidence • Make customers the top priority • Assume personal responsibility and accountability • Open and frequent communication • Handle crises honestly • Stick to your ethics code no matter what

Values or Compliance Programs? • Compliance orientation – Legal terms, statutes, contracts, rules, and penalties • Values orientation – Develop shared values – Focus on the abstract – Teach to aspire to ethical behavior instead of coercion

Developing Effective Ethical Programs https: //www. youtube. com/watch? v=BKZQ 5 rh. B 68&list=PLs 7 ot. Dh. XYK-t 9 Zj 4 t. Bc. Rr. Oeu 0 ae 9 Qos. S

Dynamics and Challenges of Ethical Programs https: //www. youtube. com/watch? v=RElw. At. KM 1 FE

An Effective Ethics Program • • • Code of ethics Ethics compliance program Monitor, audit, and report misconduct Training Enforcement Continuous improvement program

Code of Ethics and Conduct • Formal statement of what an organization expects in the way of ethical behavior (what behaviors are acceptable or unacceptable) • Reflects senior management’s organizational values, rules, and policies

Volvo Code of Ethics https: //www. youtube. com/watch? v=ZRA_GJ 9 Yx 38

Six Steps in Implementing a Code of Ethics • Distribute internally and externally • Assist employees in understanding • Specify management’s role • Make employees responsible for understanding the code • Establish grievance procedures • Provide a concluding statement

Role of an Ethics Officer • Coordinate the program with top management • Develop, revise, and disseminate the code of ethics • Develop effective ethics training tools • Establish audit and control systems • Develop enforcement techniques • Revise the program as needed

Common Mistakes in Designing and Implementing an Ethics Program • Developing materials that do not address the average employee • Implementing an “American” program to a firm’s international operations • Designing an ethics program with a few lectures or cases • Taking a legalistic approach

Common Mistakes in Designing and Implementing an Ethics Program • Not recognizing the need for a program • Not setting realistic and measurable program objectives • Management’s failure to take ownership of the ethics program 8 -14

Chapter 4 LG’s Employee Basic Ethics