Question

If you were appointed as President and CEO of a firm how would you implement a plan to have the company act ethically? How does one go about making a company ethical? Be specific and justify your approach.

Answer 1

Answer:-

First we disscus Impotance of Ethics : Trust and transparency in conduct is ever more important in our information-heavy age,and ethics need to be clearly stated,flowing down from the highest executives and owners,and if they are seen to push the limits of ethical behavior,they will as well.That's why a clear and comprehesive ethics policy should be in place.

Implement ;

Identify and Renew company values :Companies without a clear set of values may find themselves at a disadvantage when developing ethics programs.Ethics programs are most effective when pereived be employees to be ''values-driven,''rather than simply compliance-driven and values-based programs are most effective in reducing un ethical behaviour,strengthening employee commitment and making employees more willing to delivery bad news to managers.Many companies conduct regular company wide initiatives that involve employees at all levels of resposibility when renewing company values and updating them when appropriate.

Secure visible commitment from senior manager :Most ethics professionals agree that it is crucial to enlist senior management support for an ethics program to be successful.senior managers should participate in training sessions,make ethics a regular element in speeches and presentations,and align their own behavior with company standards.if employees view an ethics program as merely an effort to protect the reputation of top managment,the program may prove more harmful than no program at all.

Engage the Board of Directors :Engage directors in the ethics process by instituting a board ethics committee or by placing ethics on the board agenda as a regular item for discussion. Consider special training to enable directors to carry out their ethical responsibilities confidently. Many U.S. Businesses have instituted board ethics committees and training in recent years, a move motivated in part by the many regulations establishing that dirctors can be held liable for corporate moral transgressions.

Develop an Ethics Code or Code of Business Conduct :Comprehensive codes are aligned with business enterprise values and all applicable laws. This addresses the overall range of ethical dilemmas employees are probable to stand and are up to date frequently as new demanding situations emerge. It is vital to be clear and specific approximately what's required of employees, in which leeway is allowed in decision making and which ethical issues are nonnegotiable. Unclear rules and unclear expectations of employees are the single most prominent obstacle to ethical behavior.

Build Ethics Into Mission and Vision statements :Many companys build ethical values and goals into their mission and /or vision statements. This helps senior managers and employees understand that values and ethical standards are integral to all company operations and planning and not simply an “add-on” to be considered after important choices had been made.

Integrate Ethics Into all Aspects of Company Communications :Leverage existing company infrastructure to demonstrate to employees that ethics is an integral part of all operations and decision making. Integrate ethics and compliance training materials into a multiple delivery sources,including new employee orientations,managment courses, sales training, business meeting,business plans and other aspects of day-to-day activities commercial enterprise plans and different elements of every day activities.