Ethical behavior must begin with top management. Top management establishes the organization’s culture and defines what will and will not be acceptable behavior. Top management must create an organizational climate that rewards ethical conduct.
Management can use ethical advocates in high level decision making. These ethics specialists will sit as a full-fledged member of the board of directors and acts as the board’s social conscience.
Obey the law, both the letter and spirit of the law.
Tell the truth. Telling the truth is important in building trust with relevant stakeholders.
Show respect for people. The notion of treating people with respect has deep roots in the study of ethics.
Do unto others, as you would have others do unto you.
Practice participation, not paternalism. Learning about the needs of stakeholders, rather than deciding what is best for them. Eliciting ideas and views before finalizing any plans. Discuss the problem with the affected parties before making decision.
Establish ethics training programs for the employees to enable them to cope with ethical dilemmas.
Establish an ethics committee that reports directly to the board of directors. The committee may consist of internal and external members.
The functions of such committee may include- holding regular meetings to discuss ethical issues, dealing with gray areas,
communicating the code to all members of the organization, checking for all possible violation of the code, enforcing the code, conduct frequent and unpredictable audit,
Rewarding compliance and punishing violations and make them public so that it may deter others,
reviewing and updating the code, and Reporting activities of the committee to the board o directors. Formalize the ethical standards of the firms.
Prepare guidelines that detail how employees are to treat suppliers, customers, competitors, and other constituents.
Establish a formal code of ethics- written statements of the values ands ethical standards that guide the firm’s action.
A code is a statement of policies, principles or rules that guides behavior. Some codes specify penalties for offenders.
Management can use ethical advocates in high level decision making. These ethics specialists will sit as a full-fledged member of the board of directors and acts as the board’s social conscience.
Obey the law, both the letter and spirit of the law.
Tell the truth. Telling the truth is important in building trust with relevant stakeholders.
Show respect for people. The notion of treating people with respect has deep roots in the study of ethics.
Do unto others, as you would have others do unto you.
Practice participation, not paternalism. Learning about the needs of stakeholders, rather than deciding what is best for them. Eliciting ideas and views before finalizing any plans. Discuss the problem with the affected parties before making decision.
Establish ethics training programs for the employees to enable them to cope with ethical dilemmas.
Establish an ethics committee that reports directly to the board of directors. The committee may consist of internal and external members.
The functions of such committee may include- holding regular meetings to discuss ethical issues, dealing with gray areas,
communicating the code to all members of the organization, checking for all possible violation of the code, enforcing the code, conduct frequent and unpredictable audit,
Rewarding compliance and punishing violations and make them public so that it may deter others,
reviewing and updating the code, and Reporting activities of the committee to the board o directors. Formalize the ethical standards of the firms.
Prepare guidelines that detail how employees are to treat suppliers, customers, competitors, and other constituents.
Establish a formal code of ethics- written statements of the values ands ethical standards that guide the firm’s action.
A code is a statement of policies, principles or rules that guides behavior. Some codes specify penalties for offenders.
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