Lcm Mba Ethics

8/7/2019 Lcm Mba Ethics

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ETHICS AND HRM


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ETHICS, MORALITY AND VALUES

Ethics is the study of moralityMorals are the standards used to judgeright and wrongValues are the degree of conviction about

the way to conduct life


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CONVICTION

The degree of conviction to your values canbe described as primary, secondary, orperipheral Primary core values, unchanging

Secondary Important, but changeableoccasionally Peripheral Values that are known but not

lived by


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HOW DO WE GET VALUES?

Parents, family and friendsExperiencesThe environment (media, education)


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CONFLICT OF VALUES

Dramatic outcomes can occurwhen individuals and groups holdconflicting core values:

Religious wars Business scandals Crime


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ENVIRONMENTAL FACTORS

Over the last decade, ethical scandalsin business have been on the rise: Enron WorldCom Tyco Health South


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HOW TO STOP UNETHICALBEHAVIOR

A combination of external regulationsand compliance programs andvoluntary corporate ethics programsis the most effective way to combatinappropriate corporate behavior(Trevino, Weaver, Gibson, & Toffler,1999).


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EXTERNAL REGULATIONS

Sarbanes-Oxley Act (SOX) Requires CEOs and CFOs to sign

statements making them personallyresponsible for the accuracy of the quarterly

financial statements Knowingly misrepresenting the financialsopens them up to punishments includingfines and jail time

Protection for whistleblowers


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OTHER EXTERNAL REGULATIONS

Other external regulations includeregulations related to: Minimum wage Overtime compensation Discrimination Health and Safety Privacy


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ORGANIZATIONAL RESPONSES

Codes of ethics including: Explicit standards of rules to be followed Corporate values statements


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EXPLICIT STANDARDS

Explicit standards defineprecisely acceptable andunacceptable conduct such as

accepting gifts and the amountallowable


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CORPORATE VALUES STATEMENTS

Describes the core values thecompany wants its employees toexhibit including:

How employees are to treat oneanother How employees are to treat

customers and stockholders


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EFFECTIVE VALUES STATEMENTS

Must come from the top with the CEO beingdirectly involved in its developmentTop management must actively disseminatethe values statement and then live by itT

he values statement must be focused


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HR RESPONSES

Conduct surveys to determine: What behaviors are routinely being

rewarded and reinforced What values and attitudes are

prevalent How strong the pressure to engage in

misconduct is


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HR RESPONSES CONTINUED

Take steps to eliminate anddiscourage reasons formisbehavior and introduce and

encourage reasons to behaveethically


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Develop an appraisal system thatrewards individuals for ethicalbehaviors and punishes those whoact unethically


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HR can use its expertise tocommunicate with theworkforce to get out theethical message


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COSTS OF CORPORATEETHICS VIOLATIONS

$7 trillion in stock marketlossesLoss of jobs and retirement

savings by employees


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COSTS OF CORPORATEETHICS PROGRAMS

Costs of implementing andmaintaining compliance tocreate an ethical businessenvironment


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HUMAN COSTS

Unethical business environmentscan: Demotivate individuals Make good employees leave the

company Attract unethical employees Lead to the lack of trust by the

employees for the company


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ETHICS EFFECTIVENESS QUICK-TEST

Ethics Effectiveness Quick-Testasks eight questions about twelvedifferent areas that can help to

increase the ethical effectivenessin an organization


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GUIDELINES FOR FOSTERINGAN ETHICAL CULTURE

Have a well developed policy andprocedures manualEnforce policiesReward compliance

Recruit ethical employeesCreate a division to oversee ethics


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CONCLUSION

Whenever you are required tomake a difficult decision,especially one that is ethically

challenging, select an option thatyou would be comfortabledescribing to the nation on theevening news

Lcm Mba Ethics

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