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CE 00317 - 2

Management and Planning

Diane Bishton – K229(d.k.bishton@staffs.ac.uk)

Ethics and Business Responsibility

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Introduction

In earlier discussion on Stakeholders,

you have seen that along with major Stakeholders in a business, we can all - including peoples in other parts of the world - be thought of as at least minor Stakeholders.

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In this lectureWe willReview major aspects of Ethics (from a

business & professional’s point-of-view) & consider some business practices considered to be ‘unethical’

Introduce the use of Codes of Practice (examples from ACM/IEEE & BCS included for your further information)

Consider personal ethics, professional responsibility & corporate social responsibility

Finish with a look at a selection of contemporary issues

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Ethics“concerns the study of moral principles and how individuals should conduct themselves in social affairs”Bennett R (Corporate Strategy 2e ,1999, p151)

It is concerned with - human well-being& an evaluation of morally good and bad features of an issue

Ethical ‘standards’ vary over time, between cultures, between nations Does business competitiveness rule out ethical business ?

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Ethics and Strategy

How big corporations use their wealth in the places they operate (e.g. at its height IBM $ > GNP Australia + NZ)

Power goes hand-in-hand with Responsibility - decision making affecting communities (Jaguar cars, Stoke pottery industry)

Consumer judgement of ‘worth’ not restricted to finance - includes ethical & ‘green’ issues

Managers’ own morals - from their originating culture

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Unethical Business Practice

Driving competing firms out of business by “dumping”

Covert involvement in a country’s political affairs

Law breaking - consumer protectionemployee health & safety (including display screen directives)equal opportunities environmental pollutionBut Laws have to be developed, and questionable practice can happen for many years in the intervening period

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Personal Ethics

‘Whistleblowing’ - what connotation does this word have ? ‘tale telling’ ?

- Illegal or questionable act - Firms choosing to close subsidiaries etc without informing workforce

- Bribing reps to win orders (‘business lunch’ etc)

(similarly to Govt or other officials - Olympics ?)

- withholding product etc. information

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Codes of Practice (1)

Government Agencies (e.g. guidance on Disability Discrimination

Act),

Professional Bodies (ACM/IEEE or BCS in computing),

Trade Associations or other

e.g. large organisations (Adidas- Salomon “Standards of Engagement” & ETI - Ethical Trade Initiative (an alliance of Trades Unions, Companies & Non-Govt Organisations see www.ethicaltrade.org)

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Codes of practice(2)

Outline ‘model’ procedures for good practice, recommendations for how things should be done, guidance on how to behave

Include examples of ‘good’ and ‘bad’ behaviour

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Why Have ‘Professional’ Codes?

To raise the status of a profession To define, raise & govern (enforce) standards of

practice As a method of communication & education To ensure that everyone (practitioners, clients,

general public) knows what is expected To provide protection for practitioners Part of the move towards a formal system of

accountability To put new professions on a par with older ones

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Enforcement Codes may be enforced by disciplinary

committees e.g. the BMA (British Medical Association) - being ‘struck off’

These are intended to apply additional, professional, sanctions over and above any legal or employment sanctions

Enforcement is really only effective if non compliance involves significant penalties

There is no ‘licence to practice’ for a software engineer, i.e. there are no real sanctions yet in place within Computing

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ACM/IEEE Code of Conduct

“[the code requires software engineers] to use ethical judgment to act in a manner which is most consistent with the spirit of the Code of Ethics and Professional Practice, given the circumstances”[ACM/IEEE Code of Ethics & Professional Practice, my italics] See the current code at acm.org

The 8 Principles within the Code are necessarily general:

(next 2 slides provided as supplementary material)

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ACM/IEEE Principles

1 PUBLIC - Software engineers shall act consistently with the public interest.

2 CLIENT AND EMPLOYER - Software engineers shall act in a manner that is in the best interests of their client and employer and that is consistent with the public interest.

3 PRODUCT - Software engineers shall ensure that their products and related modifications meet the highest professional standards possible.

4 JUDGMENT - Software engineers shall maintain integrity and independence in their professional judgment.

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ACM/IEEE Principles (cont.)5 MANAGEMENT - Software engineering managers and

leaders shall subscribe to and promote an ethical approach to the management of software development and maintenance.

6 PROFESSION - Software engineers shall advance the integrity and reputation of the profession consistent with the public interest.

7 COLLEAGUES - Software engineers shall be fair to, and supportive of their colleagues.

8 SELF - Software engineers shall participate in lifelong learning regarding the practice of their profession & promote an ethical approach to the practice of the profession.

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BCS – Code of ConductIs the only Chartered Engineering Institution for Information Technology (IT). Has Members in over 100 countries around the world.The Code describes the principal duties which BCS members

“should endeavour to discharge in pursuing their professional lives” [BCS] ( See also www.bcs.org.uk )

Code does not have the same regulatory powers as e.g. BMA. BCS Membership is not mandatory (yet)(next 3 slides provided as supplementary material)

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BCS – Duty to the Public Interest

Safeguard public health & safety & the environment and to have respect to basic human rights

Members shall have due regard to the legitimate rights of third parties.

An obligation to have knowledge and understanding of relevant legislation, regulations and standards and to comply with these requirements.

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BCS – Duty to Employers & Clients

Due care & diligence Endeavour to complete work

undertaken on time and to budget and shall advise their employer or client as soon as practicable if any overrun is foreseen.

Not to take advantage of the lack of knowledge or experience of others

Avoid conflict of interests Respect confidentiality

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BCS – Duty to the Profession

Uphold the reputation of the profession

Behave with integrity

Encourage and support others members of the profession in their professional development

Seek to enhance public understanding and knowledge of computing and information systems and technology

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Corporate Social ResponsibilityThere are no Professional Codes of Practice for

people in general management roles, no norms of conduct nor recommended management principles.

Bennett (1999) suggests a list of principles to “govern the conduct of business affairs” (p157) :

Concern for the quality of life, including job satisfaction Concern for the environment Fair reward for effort & enterprise Involvement and interest in the wider community Absence of unfair discrimination in employment Following the laws & customs of the community

These tend to modify rather than drive (or govern ?)

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Contemporary Issues

A selection from Bennett (1999)

Executive Pay - excessively high ?Bribery - bribe or gift ?Disclosure - pending unemployment ?Insider dealing - what (via who ?) you know ?

Consumerism - throwaway society ?

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SummaryWe haveReviewed major aspects of Ethics (from a

business & professional’s point-of-view) & consider some business practices considered to be ‘unethical’

Introduced the use of Codes of Practice (examples from ACM/IEEE & BCS included for your further information)

Considered personal ethics, professional responsibility & corporate social responsibility

Finished with a look at a selection of contemporary issues

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Additional references

Bennett chapter 8

UK legislation - follow the link!

UK Information Commisioner's Office - follow the link!

NCC Guides - follow the link!

The British Computer Society, Code of Conduct

at www.bcs.org.uk

“You’re Nicked ! ”, Walsh A, The Computer Bulletin May 1999

“Partner in Crime”, Walsh A, The Computer Bulletin May 2000