MANAGING ETHICS

- Is it possible to actually change the ways in which employees behave? Many

organizational leaders, who are interested in creating more ethical climates, belive the
answer is “YES”.

ETHICS TRAINING

A means of providing employees and managers practice in handling ethical dilemmas

that they are likely to experience.

Elements:

1. Messages from top executives emphasizing ethical business practice.

2. Discussion of codes of ethics
3. Procedures for discussing or reporting unethical behavior.

Example:

At Matsushita, a large Japanes consumer electronics company, ethics training emphasizes

treating customers with dignity and respect.

ETHICAL STRUCTURES

The procedures and the division or department within a company that promotes and
advocates ethical behavior.

Elements:

1. Ethics officer - director of ethics compliance.

2. Ethics committee - another ethical structure approach is to have senior level
managers from different functions and units that provides ethical oversight and
policy guidance for management decisions.

BUSINESS ETHICS have international dimensions.

Example: (of ethical principles taught to employees at Matsushita.)

 A corporation is a public entity and it can exist only if it receives the support of society
and therefore must contribute to society.
 Treat people you do business with as if they were part of your family. Prosperity depends
on how much understanding one receives from the people with whom one conducts
business.
 After sales service is mor important than assistance before sales. Sell them goods that
will benefit them.
 It is not enough to work conscientiously. No matter what kind of job, you should think of
yourself as being completely in charge of and responsible for your own work.
 If we cannot make a profit, that means we are committing a sort of crime against society.
We take society’s capital, we take their people, we take their materials, yet without a
good profit, we are using precious resources that could be better used elsewhere.