Codes of Ethics - Student

8/9/2019 Codes of Ethics - Student

1/37

Codes of Ethics


2/37

Code Development in General

Implicit in a code is the belief or hope that the

outcome of adhering to the code is ethicalbehavior.

The hallmark of a well-developed code of ethics

is the inclusion of the public in process, thegeneration of public confidence as a result of thecode, and the successful attention to concerns in

any number of different forms, including quality,price, choice, privacy, environment, laborstandards, human rights, health and safety,advertising, and issues of morality.


3/37

Code Development Process

As with strategic processes in general, there is afeedback loop that allows the system to learn.

That is, after a process of review, the code ofethics should be adapted to meet any of thechanging needs or circumstances of the

activities in question. One of the key advantage of this process is the

inclusion, at several stages, of the stakeholders

who will be involved or affected by the code ofethics. It also highlights the importance of compliance in

the implementation stage, and the reviewprocess.


4/37


There are a number of key roles thatgovernments should be willing to adopt inbalancing the many different stakeholder groupsand interests of the good of an industry orsector.

Included are contributions along the lines ofcatalyst, facilitators, endorser, and/or provider ofregulatory support.

With reference to the facilitator role,governments could be instrumental in providingphysical space, special documents or evenmonetary resources for the purpose of

generating enthusiasm within a group for theactive pursuit of a code of ethics.


5/37


If government has been able to contribute in a

facilitating or enabling fashion, there is still thetask of sitting down and generating the actualcode document.

A series of questions will need to be generatedin respect of current knowledge, backgroundand history, current and future needs, and so on,

in assembling the right people and knowledgebase to proceed with the code.


6/37

The Language of Codes

The form of the code of ethics refers to itslinguistic and grammatical style.

Codes should be written so that the reader willidentify with the intent and goal of the statement.

Impersonal messages distance the reader fromthe writer.

Codes should be written (oddly enough) withoutthe use of the word, shouldshould. This implies an

authoritarian nature that may turn away thecompetent reader who could interpret the use ofshould or will as overly paternalistic.


7/37


The choice of words is critical.

Wal-Mart employees are called associatesassociatesrather than workersworkers; psychologists care for

clientsclientsas opposed to patientspatients; universities

have professorsprofessorsand high schools haveteachersteachers.

Each of these semantic distinctions is importantand each demonstrates a degree of respect thatthe particular institution has for its stakeholder.stakeholder.


8/37


For those organizations that wish to make the

code an active document, a variety of methodsand mediums can be employed.

First, the document needs to be written in a

clear, concise and relevant fashion. If the message is sent, yet unclear, it will fail to

make an impact on behavior.

Once this most basic and important task isaccomplished, then it needs to be distributed.


9/37


Possible locations include the following: Policy and procedure manual Websites Employee handbook Newsletters

Financial statements Employee orientation manual Telephone/email directories

Brochures Training/educational manuals, video, CDs Identification cards Business cards


10/37


The essential point to be made here is that thecode needs to be part of all organizationalactivity.

It needs to be part of the organizational culture

(the way we do things around herethe way we do things around here) ratherthan a tool that is dug up each time a potentiallyunethical issue rears its ugly head.

Having a code does not make an organizationethical, but living by and through the code doesmake it an ethical organization.


11/37


The ability to affect decision-making is directly

related to the value that members place on thecode.

If the code is weakly valued, chances are that it

will not be internalized nor put into action. On theother hand, if the values the organizationespouses are also core values of the individual,

then it will become the conceptual basis ofindividual behavior.


12/37

For the development of successful

codes, a code should:1. Reflect the actual organizational philosophy

2. Be written clearly and concisely in order for ittoo be accessible by all members

3. Be written in order for the reader to feel that he

or she is part of the process rather than therecipient of a directive

4. Be a document that will lead to a behavioralchange or to the reinforcement of previouslyheld values


13/37

For the development of successful

codes, a code should:5. Clearly relate to actual decision-making

behavior (i.e. it should be part of the decision-making process in the organization)

6. Clarify the ethically ambiguous

7. Be widely and constantly communicated

8. Reflect the behavior and values of the

leadership9. Be enforceable

10. Inspire, educate, and regulate


14/37

Code Development in Practice

Organizations and professions on the whole have beengranted power and privilege by society, which comes

packaged with the expectation of a contribution to thebroader social well-being through a shared appreciationof overlapping values.

Just as the profession is bound by a set of values (e.g.integrity and safety) these must emerge as a function ofcommon purpose.

If the profession acts outside this connect, there is a

chance that the scope of moral evaluation (the societalnorms that govern behavior) will become both narrowedand flattened, leading to the disintegration of trust

between the community and the firm/professional.


15/37

Code Development in Practice

This suggests that the profession and society in generalmust be intricately intertwined in a relationship that is

bound by reciprocity and symbiosis. There are different perspectives on how values play

heavily in the development of codes of ethics at a

broader level. One is said to be a value-driven approach, while the

other is felt to reflect more of a market-drivenperspective.

The ends that each achieve for society may be different,emphasizing the importance of establishing goodprocesses that are built on inclusive core values.


16/37

Compliance

Compliance is a broad term that encompasses

implementation, monitoring, reporting, auditing,verification and enforceability, all of which serveto increase the likelihood of stakeholders

following a code. One of the most important issues facing codes

of ethics is the lack of monitoring and evaluation

in gauging code effectiveness.


17/37

Implementation

The implementation process is best begun byappointing a working group or task force to

plan and carry out implementation of the code. Seven strategies were broadly considered for

the purpose of code implementation, including:

1. Dissemination and publicity campaigns.2. Publications.3. Seminars and conferences.

4. Pilot projects.5. Awards.6. Education and training.7. Technical assistance.


18/37

Implementation

1. Dissemination and publicity campaigns. Letting people know the existence of the code of

ethics is stated to be the first and most importantstep in implementation.

This may be accomplished through press, radio,

television, display, videos, brochures, books, andlectures.

2. Publications.

The production of newsletter and occasional reportsis an excellent way of getting the point across to anynumber of target groups.


19/37


20/37

Implementation

6. Education and training.

Performance can be enhance through any numberof different education and training programs.

7. Technical assistance.

This comes in the form of expert missions at therequest of international organizations or in the formof research networks or task forces designed tomake recommendations on how programs,

planning, and services can be improved.

Technical assistance may also come in the form ofdatabases or academic resource centers to help

disseminate information on improving performancethrough codes of ethics.


21/37

Implementation

The development and implementation ofprinciples and codes of ethics must be inclusiveof a broad spectrum of interests if they are to besuccessful.

Achievement is therefore strongly tied toownership.

The most effective codes are of little use if not

accompanied by a plan to support not only theprocedural aspects of implementation, but alsothose who must make it happen (e.g. througheducation and other forms of assistance).


22/37

Implementation

Evaluation was also seen as an integral

part, which must be considered early on inthe planning process.

Failing to do so undermines the ability toadequately monitor the project throughmeasurable outcomes.


23/37

Monitoring

The development of a monitoring framework,

which is the collection of information on theeffectiveness of codes of ethics, and theassessment of whether the information is

accurate, complete, relevant, and reliable. The chief benefits of monitoring are:

1. The improvement of policy and performance

2. The promotion of openness

3. The assessment of progress


24/37

Monitoring

Other benefits are said to lie in: The opportunity to inform customers of the policies

and efforts Improvement of the corporate image The ability to assess customer awareness and

attitudes to codes of ethics The measurement of response and acceptance of thecode of ethics

The measurement of how extensive the code has

been implemented The identification of gaps or weaknesses in

implementation


25/37

Reasons why stakeholders compliance

subscribe to a code of ethics Moral obligation.

This factors touches on the desire to do the right thingdepending on circumstances.

When we are made aware of the consequences ofour actions we may exercise this desire.

Need to belong. Being part of a group often comes packaged with the

desire to comply with certain normative standards that

quickly emerge through interaction or education. Complying with these standards allows for a sense of

belonging and security.

R h k h ld li


26/37


subscribe to a code of ethics The threat of punishment.

Compliance will emerge if the threat of an externalbody is too heavy.

For example, service providers will comply withstandards if they feel they will lose market share or be

penalized by the external body. The threat of shame and embarrassment.

While shame is a self-imposed punishment,

embarrassment is a socially-derived sanction. Both may strengthen the willingness to comply with

normative standards.

R h k h ld li


27/37


subscribe to a code of ethics The extent of social bonding.

Service providers who have a strong socialbond to the group (other service providers)will be less likely to deviate away from the

accepted norms for fear of being excludedfrom the group.


28/37

Reasons why stakeholders non-compliance

subscribe to a code of ethics Limited awareness of accepted norms.

If the individual or group is unaware of the properprocedures they will be unable to follow them.

Actions may be completely innocent because of alack of knowledge.

Inappropriate environmental behavior.

The inappropriate behavior of one individual or group

may be assumed to be acceptable to others (e.g.going off the trial to take photographs).

R h k h ld li


29/37


subscribe to a code of ethics Limited awareness of negative consequences.

Some service providers may be unaware of thesignificance of the violation under scrutiny.

Without this knowledge, the code violation is seen asfrivolous.

Perceived irrelevant and unrealistic guidelines. Non-compliance is rationalized by the fact that the

code is not founded on an understanding of the needs

of service providers or participants. The feeling is that it may be based on erroneous

assumptions of information.

R h t k h ld li


30/37


subscribe to a code of ethics Deliberate violations based on financial

gain, ideological protest, revenge, maliceor fun.

This may include, for example, local peoplenot following a code of ethics because theyhave not been asked to do so.

Type of party that was responsible for


31/37

Type of party that was responsible for

monitoring of the code of conduct NoneNone no monitoring at all

First partyFirst party the firms themselves Second partySecond party business support groups suchas trade and industry associations

Third partyThird party external professionals paid by thefirm which is observed

Fourth partyFourth party combinations of different actors

(e.g. business support groups and social interestgroups)

Fifth partyFifth party social interest groups only, without

involvement of the firm Sixth partySixth party legal authorities


32/37

Reporting and Auditing

Reporting can be viewed in two very differentcontexts.

The first of these is referred to as wrongdoingand includes the reporting or whistle-blowingthat often follows from unethical acts in theorganization.

Wrongdoing is defined as behavior which ismorally wrong as well as behavior which isillegal, unethical, wasteful, inefficient, neglectful,an abuse of power, or violates organizationalrules or professional standards.


33/37


The importance of engendering anenvironment or culture where people can feelfree to identify and report wrongdoing are:

1. Good people should feel free to step forward and

communicate concerns2. Policy and practice should not be geared towards

shooting the messenger, but rather towards fixingthe problem

3. Bad news is sought so that small problems dontfester into big ones.


34/37


The second context of reporting that hasrelevance to codes, and which occurs at a

broader level, is the new trend amongstmultinational enterprises surrounding thedescription of environmental and social impacts

of operation through a sustainability report. Auditing is a process that allows for theassessment of performance against goals orother stated criteria.

Key issues surrounding the audit include theindependence of the entity undertaking theaudit, as well as whether the audit is done

internally or externally.


35/37


36/37

Enforcement

The sanction is designed to motivate the unit to avoidbreaking its their commitment and to increase the

likelihood that they will comply with the standards. The key to a successful code of ethics for an industry is

how it is able to police itself.

In any type of business there are at least seven keyprinciples required for success:

Act in good faith Willingly comply with the law

Exercise due care Respect the liberty and rights of others

Honor confidentiality Respect human well-being

Avoid conflicts of interest


37/37

Enforcement

Dismissal is the most common

punishments for acts contrary to the codeof ethics.

Other enforcement actions include:

Suspension

Probation

Demotion

Negative comments on evaluations

Codes of Ethics - Student

Documents

Transcript of Codes of Ethics - Student