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While Chapter 5 introduced the theoretical concepts relating to the ethics of business, this
chapter describes management practices, in particular, ethics programs in corporations, and
ethical leadership.
CHAPTER GUIDE
One approach to discussing this vignette is to pose the following questions (discussions
included):
Whistleblower
His/her family
Co-workers – that have to cope with situation.
Supervisor – whistleblower’s boss who has to respond.
Other managers – might be involved.
Outside stakeholders – such as customers or suppliers might learn of incidents and be
concerned.
Do nothing/continue
Ask to stop
Eliminate or alter reporting system
Page 6-1 |
The Ethical Practitioners’ Association of Canada (EPAC) is described in Responsibility for
Ethics 6.2. It could be used in discussing this vignette; in particular, the following pages are
relevant:
The EPAC web site is an example of the role professional associations play in influencing how
managers view and manage ethics.
Supplementary Materials:
Many corporations and other organizations have used values as an approach to influencing ethics
and responsibilities. But, the use of values is criticized:
Page 6-2 |
Examples of values statements are easy to find and those of other corporations could be
used. For more background on Cameco’s values, visit their web site at:
https://www.cameco.com/about/our-vision.
Discussion Question:
What do the values mean to you? – It is likely that different responses would be received.
Has the corporation provides uranium, are these values still relevant or appropriate?
Giving Voice to Values (GVV) is a new approach to teaching ethics. Instead of emphasis on
ethical analysis to determine right versus wrong, the approach focuses on implementation and
asks the question: “What would I say and do if I were going to act on my values?”
According to the developer Mary Gentile, “Giving Voice to Values holds the promise to
transform the foundational assumptions upon which the teaching of business ethics is based, and
importantly, to equip future business leaders to not only know what is right—but how to make it
happen.”
Brief introductions to GVV by Mary C. Gentile of Babson College are available at:
• http://www.youtube.com/watch?v=Zna7du3h-Sw
• http://www.youtube.com/watch?v=KzcI-pFXLgU
This is an extensive section on codes of conduct and ethics. Although Table 6.1 makes this
distinction at the beginning of the section, there is an important point to be made: many
organizations do not distinguish between codes of conduct and codes of ethics. Please note that
much of the discussion refers to both statements, for example,
“The Contents of Codes,” and “Criticisms of Codes.”
The following two examples illustrate the different approaches to codes of conduct and ethics.
Practices vary among corporations and there is no one approach to accomplish the purpose of the
codes, that is, to influence corporate behaviour with regards to ethics and responsibilities.
Everyday Ethics 6.2: Manulife Financial’s Code of Business Conduct and Ethics
Page 6-3 |
This insert is to illustrate the comprehensiveness of corporate codes. It is recommended
that the Code is reviewed in class. The Code is available at:
http://www.manulife.com/public/files/201/1/CodeofBusinessConductandEthics.pdf
This is a code of ethics for a professional group. Note that the “principles” of a code of
ethics are illustrated, but the organization has also the equivalent to a code of conduct
described as rules.
The details of the Standards of Professional Responsibility for CFP® Professionals and
FPSC® Registered Candidates are available at http://www.fpsc.ca/professional-standards.
The Guidance to FPSC Code of Ethics is available at http://www.fpsc.ca/guidance-code-
of-ethics.
It is important for organizations to provide some sought of checklist or tests that employees can
access to assess ethical implications in the workplace. Two examples of these checklists and tests
are described.
Conflict of interest is not that well understood by managers and is a source of ethical
misconduct. It is a topic included in many codes.
A critical part of any ethics training is to acquire managers and employees with the concept of
conflict or interest as it is to source of many ethical dilemmas. Furthermore, many employees
and others in society are either unaware or fail to understand conflict of interest. Examples are
given in Table 6.3 and Everyday Ethics 6.1 outlines a comprehensive conflict of interest policy.
Decision Questions:
1. Does this policy provide clear guidance on conflict of interest?
2. How would the following clause be interpreted?
Define an ethics audit and explain the role of ethics officers and ethics committees
Ethics audits have become more common. The main purpose of this section is to describe ethics
officers and ethics committees. Note that other ethics accountability measures will be covered in
Chapter 9.
This is a network of managers and others involved with formulating and administering
ethics policies in corporations. They include consultants mentioned in this section but
also the ethics officers and committees discussed in the next section.
Student Assignment: Ask students to visit the Association’s web site at “Ethical
Standards” for Members of the Ethics Practitioners’ Association of Canada (EPAC) at
http://www.epac-apec.ca/our-ethical-standards. There is an Application Guide for
EPAC’s Ethical Standards at http://epac-apec.ca/resources/application-guide-for-epacs-
ethical-standards/.
How applicable are the values listed? What is your assessment of the Code of Ethics?
• An Act to establish a procedure for the disclosure of wrongdoings in the public sector,
including the protection of persons who disclose the wrongdoings at
http://www.parl.gc.ca/HousePublications/Publication.aspx?doc=C-
11&Language=E&parl=38&pub=bill&ses=1.
• “Providing real protection for whistleblowers,” Treasury Board of Canada at
http://www.tbs-sct.gc.ca/faa-lfi/fs-fi/16/09fs-fi-eng.asp.
• “Canadian Whistleblower Laws,” Canadian Law web site
http://www.canadianlawsite.ca/whistle-blower.htm
• “Pocket Guide to Whistleblowing,” Professional Institute of the Public Service of
Canada at
http://www.pipsc.ca/portal/page/portal/website/stewards/pdfs/whistleblowing.en.pdf
Page 6-5 |
• In June 2016, the Ontario Securities Commission (OSC) established an Office of the
Whistleblower. Compensation of up to $5 million can be paid to tipsters. More
information at http://www.osc.gov.on.ca/en/whistleblower.htm. Media coverage of this
Office included the risks for whistleblowers: only applies to matters covered by the OSC;
if penalty less than $1 million, whistleblower receives nothing; employees have a duty of
confidentiality and fidelity to employer which will be violated; employees have to report
issue to employer who may not consider the matter important; and alleged misconduct
may not be legal wrongdoing.
Many of the materials are applicable to the public sector (that is, Government employment), but
there is some whistleblowing relating to business. For example, the Fairwhistleblower site
includes business.
Note title used by Barrick for its code: “Code of Business Conduct and Ethics.” This is
likely a more appropriate title as many corporations mix the contents of their codes.
Discussion Question:
Have students access Barrick’s Code at:
http://www.barrick.com/files/governance/Barrick-Code-of-Business-Conduct-and-
Ethics.pdf
How would you evaluate the code against what you have learnt so far in this chapter?
A discussion can be held about one or more of these movies as students have likely seen
them. It is also feasible to show one in class or YouTube videos for “Whistleblowing” or
“Whistleblower.”
Note the sequence in which those responsible are listed; it starts at the top with the Board of
Directors and works down to managers. It is key that those at the top are committed to ethics and
demonstrate this clearly to all others in the corporation.
The discussion of immoral, amoral, and moral management and leadership is an extension of
these concepts from Chapter 5.
Page 6-6 |
LO6.8 Ethics Programs: Approaches
This section gives to ways of categorize ethics programs. Note how the various topics covered so
far in the chapter are incorporated into these programs. Table 6.5 that distinguishes between
compliance-based and integrity-based approaches is particularly useful.
The questions provide guides to assessing the ethical implications of a decision. The questions
are based on materials in Chapter 6.
1. Is it legal? This guide refers to violations of the law or regulations, and the failure to
follow an organization’s code of conduct or policy.
2. Does it comply with your organization’s values? An organization’s values statement is a
source of guidance when confronted with decisions with ethical implications.
3. Is it feasible? The availability of financial and human resources is considered as well as
any social and cultural constraints.
4. What is your self-interest and/or does a conflict of interest exist? One should always be
aware focus on one’s self and the ignoring of others. Also, your personal or private
interests should not be inconsistent with your profession or occupation.
5. Does the decision comply with your values and society’s moral standards? The decision
should coincide with your personal values (hopefully virtuous ones!) and with morally
acceptable behaviour in society.
6. Is justice being served? Attention is given to the process involved to implement the
decision. In particular, is the process fair to all involved?
7. What individual or societal rights are involved? Identify the rights and evaluate their
appropriateness and whether or not they are in conflict.
8. What are the consequences of the decision? There is concern for the distribution of the
harms and benefits. Harms should be minimized.
9. What will others think if/when the decision is disclosed? Thought is given to the
consequences of transparency. It might also be described as the TV Test or the Light of
Day Test.
10. What do others think? This guide involves asking others what they would do or what they
think of what you are considering. Also known as a “Ventilation” Test.
11. What would others do in the same situation? Thought is given to whether what is
considered right for you would be right for others.
Page 6-7 |
Review of Laczniak’s ethical propositions provides a good summary of many points covered in
the chapter. The listing of the benefits of ethics programs is a good overview of topics covered in
Chapters 5 and 6.
Recognize that ethical misbehaviours may occur despite management efforts and the
implementation of ethics programs.
This is a new section and recognizes that ethical misbehaviour may occur despite management
efforts and the implementation of ethics programs.
The Business Ethics blog is written by Chris MacDonald, Ph.D.; MacDonald teaches at the Ted
Rogers School of Management, Ryerson University, Toronto, where he is also Director of the
Jim Pattison Ethical Leadership Education and Research Program at the Ted Rogers Leadership
Centre.
The blog can be accessed at http://businessethicsblog.com. The blog is updated frequently and
covers current topics being addressed in the media.
Supplement Material:
Page 6-8 |
Another blog that students may find useful is posted by Andrew Crane and Dirk Matten, two
professors from the Schulich School of Business, York University. It is described as “an
informed and thought-provoking analysis of what lies behind the headlines and headaches of
business ethics and corporate social responsibility.” It can be accessed at
http://craneandmatten.blogspot.ca/.
Supplementary Material:
Additional questions relating to the Chapter’s materials are available in the Appendix 6.2.
1. What values do you think corporations and their managers should observe in business?
Which ones do you really think they follow?
Training can certainly be done, but its effectiveness is often questioned. Ethical breaches
can never be eliminated; moral perfection is not possible. This is the case even with
training. But, training increases awareness and sensitivity in many managers, and
overall does accomplish something.
Page 6-9 |
5. Why is it becoming necessary to have one manager to coordinate corporate ethics
programs?
There is not one way to address ethics as indicated by the use of “program.” The range
of possibilities is suggested by Table 6.5 which identifies a range of compliance-based
and integrity-based approaches. Large corporations in particular are finding it
necessary to have one manager to coordinate ethics programs. Otherwise, it is neglected
because of other work commitments.
Corporations are alerted to real and potential ethical problems so that remedial action
can be implemented.
They indicate to employees (and other stakeholders) that management takes codes of
conduct and ethics seriously.
They are designed (or should be) to protect the informant.
7. What are the positive aspects of whistleblowing? What are some downsides?
Positive aspects:
• Benefits of an ethics reporting system (question 6).
• Alerts management to problems.
Downsides:
• Dangers/costs to whistleblower.
• Difficult to ascertain whether or not issue is worthy of disclosure.
• May be trivial claims; motives of whistleblower.
• Managers must take claims seriously and respond.
Top management must set the example, that is, “walk the talk.” If they fail to do this,
others in the corporation will not take the programs seriously and likely ignore them. The
consequences of not responding to corporate ethics and responsibilities may lead to
poorer performance by the corporation (even economically).
12. In your experiences in the workplace or educational institution, have you been provided
with appropriate ethical leadership?
According to the law, no as technically he did not follow the appropriate approach.
A popular view would be yes. He was a victim and had a right to protect his property.
Some in society feel taking the law into one’s own hands is appropriate.
Right of self-defence
Right to protect their property (including right to make a citizen’s arrest).
Right to expect that the law provides protection and a solution to the problem.
4. What are the dangers of taking the law into your own hands, that is, becoming a
vigilante?
Follow-up Information:
Page 6-11 |
Chen was acquitted of the charge as the police’s response to inadequate, but it cost him time
and money. His case was the basis for a change in the Criminal Code.
The Criminal Code was changed to allow a store owner to make an arrest of this type.
Background to the changes are available in “Legislative Summary of Bill C-26: The
Citizen’s Arrest and Self-Defence Act,” Library of Parliament Research Publication”
http://www.parl.gc.ca/About/Parliament/LegislativeSummaries/bills_ls.asp?Language=E&ls
=c26&Parl=41&Ses=1&source=library_prb.
• Self-defence
• Defence of property
• Citizen’s arrest
Lawyers and legal scholars raised several concerns about the changes to the Criminal Code
relating to citizen’s arrest, self-defence and protection of property:
It appears not much has changed if media coverage is any indication. Two examples are:
• Timothy Appleby and Jill Mahoney, “New citizen’s-arrest law greeted with applause,
criticism,” The Globe and Mail, March 12, 2013, A4.
• Chris Selley, “Citizens’ arrest bill fails to fix problems: Why did the system go after
the wrong man?,” National Post, March 16, 2013, A17.
Caring – Heidi acted with compassion. Should the store’s policy act in the same way?
Personal virtues – Heidi was acting to address the needs of others. Helping others as a
virtue.
Page 6-12 |
Utilitarian – Acting in the best interests of all stakeholders. Allocation of benefits and
harms maybe challenging.
Justice – the process in disciplining a violation of policy.
Yes, technically as there was an existing policy. In other words, Subway was following
the “law” has outlined by its policies.
APPENDIX 6.1
• The Ethics and Compliance Initiative is the oldest non-profit organization devoted to the
advancement of high ethical standards and practices in public and private institutions.
http://www.ethics.org/. Practical materials are included in the Ethics Toolkit at:
http://www.ethics.org/research/free-toolkit.
• The Canadian Centre for Ethics and Corporate Policy encourages ethical decision
making. http://www.ethicscentre.ca/EN/index.cfm.
Page 6-13 |
• Institute for Business Ethics encourages high standards of business behaviour based on
ethical values. http://www.ibe.org.uk/.
• Society for Business Ethics. Professional association promoting business ethics. Note
links under “Resources.” http://sbeonline.org.
Appendix 6.2
Additional Questions
Question: You are the chief executive officer of an American subsidiary in Canada that has had
its best year ever for sales and profitability. This has prompted many of your staff to take out
new mortgages or buy expensive cars. However, you have been told—and sworn to secrecy—
that the company will close its Canadian operations within a year. Your job is to ensure an
orderly operation until then. Some of the staff are close friends and will be in financial difficulty.
What should you do? What should the company do?
Question: You have come across evidence that your boss has been submitting and getting paid
for inappropriate expenses. You feel an ethical obligation to talk to human resources about this.
But you worry that your job could be in jeopardy if your boss finds out that something has been
said. What should you do? What should the company do?
Comment on these expressions. Explain why or why not this may be the case. Suggest how you
would describe managers’ behaviour when confronted with moral dilemmas. How do the amoral,
moral, and immoral management models relate to the expressions? Give some guidance to
managers confronted by decisions with ethical implications and/or by moral dilemmas.
Page 6-14 |
Another random document with
no related content on Scribd:
Anjoemara. Groote vischsoort (Hoplias macrophthalmus = Macrodon
aimara), die in de Midden- en Boven-rivieren en hare zijstroompjes van
G. veel voorkomt, en wier vleesch zeer smakelijk is. Behalve met den
hengel en met springlijnen, wordt de A. meestal met zg. springmanden
(Z. a.) gevangen.
Apoetoe. Knots, strijdbijl der I., gemaakt uit het zware en harde
ijzerhout en het fraaie letterhout. De Apoetoe wordt tegenwoordig nog
slechts bij feesten en dansen gebruikt.
Armadil. Naam voor het gordeldier, meer in het bijzonder van een
groote soort (Priodontes giganteus). Het schild van de gewone soort,
die als alle Gordeldieren in eigengegraven holen, meest op
zandterreinen huist, wordt in de I.-hutten vaak gezien. In S. heet het
gordeldier schildvarken, in het N.E. kapasì.
Azéman. Heks, die volgens het geloof der negers des nachts in
lichtenden gloed rondwaart, om menschen bloed uit te zuigen. Het volk
gelooft, dat de vampier (Z. a.) een doode is, die ’s nachts zijn graf
verlaat, om den levenden bloed uit te zuigen. De Azéman kan allerlei
vormen aannemen en door kleine openingen binnendringen.
[Inhoud]
B.
Bakróe. Soort geest, die gezegd wordt in een dwerg te huizen. Deze
kan ook den vorm van dieren aannemen en tijdelijk in levenlooze
voorwerpen zijn verblijf opslaan. De bakróe, waaraan ziekten en
allerlei ongemakken toegeschreven worden, kan, zoo gelooft men,
alleen door de Wisiman (Z. a.) uitgedreven worden. De Bakróe neemt
in het neger-bijgeloof een belangrijke plaats in. (Zie verder:
Encyclopedie v. W. I. en P. b.).
Beltiri, ook wel Sakoerá genoemd, is een taaie, vaste massa, uit
gebrande Cassave (Z. a.) bereid, soms ook uit verschillende
palmzaden. De I. hebben op reis steeds beltiri bij zich, om het in het
drinkwater op te lossen.
[Inhoud]
C.
[Inhoud]
D.
Dichters. Zie o.a. „Love Letters” van Mrs. Ryan (Ed. Mc Clurg and Co.
Chicago, 1907), waarin een jonge Hopi-I. die in de Oost-Staten der
Unie was opgevoed en gekerstend was, zijn hart uitstort aan zijn
blonde, Amerikaansche geliefde, die hij, terug verlangend naar het
Indiaansche leven, heeft moeten verlaten, en waarin hij ook zijn
afvalligheid aan den godsdienst der blanken, wegens zijne
ongeschiktheid voor den I., in deze woorden tot uiting brengt: „Not
anything of conventional religion, called Christian, has any appeal to
the Hopitù. It is too cold—too far away. The mythology of the Christian
does not bring the gods so close as the mythology of the Indian”. Dit
oordeel staat niet alleen. Een S. C. drukte zich als volgt uit (P. a.): „Gij
sluit jelui God in een huis op; wij zoeken Hem in zijn werkplaats, de
Natuur”. Zie ook: K. c.
[Inhoud]
E.
[Inhoud]
F.
[Inhoud]
G.
H.
[Inhoud]
I.
[Inhoud]
J.
Jakono. Vrienden.
Het woord Joroka, dat spook of schim beteekent, is na den invoer der
N., spoedig in hunne taal overgenomen.
[Inhoud]
K.
Kamisa. Lendenkleed, meest van blauw katoen, dat zoowel door I.-
mannen als door vrouwen (bij deze langer) gedragen wordt. Bij de
Boschnegers is het hier doorgaans kortere en eenige kleedingstuk der
mannen een lap katoen, die tusschen de beenen doorgehaald wordt,
en waarvan voor- en achtereinde over een als gordel dienenden
katoendraad afhangen.
Kanoa. Een zeer groote korjaal (boot), die vroeger bij de Indianen
speciaal voor oorlogsdoeleinden werd gemaakt en wel 200 à 300
krijgers bevatten kon.
Kapitein. Hoofd van een I.-dorp. Bij de B. staat een kapitein in rang
onder een Groot kapitein.
Kapasi. Zie: gordeldier.
Krab. Aan de lage kusten van G. wemelt het van krabben, hetzij aan
het modderige strand, hetzij in ondiep water; maar ook in helder water
en op het land komen zij er voor. Omtrent de soorten is men het nog
niet geheel eens. In Juli en September zamelen de I. massa’s kr. in,
om ze als voedsel te gebruiken. In deze maanden houden de dieren
hun „carnaval”, waarbij zij in menigte over den modder rondloopen en
dan dikwijls gevechten leveren. Men ziet ze dan hunne holen in- en
uitkruipen, en kunnen dan met de handen gevangen worden. Door de
I. worden deze dieren als de grootste lekkernij beschouwd, zoodat zij
in genoemde maanden in hunne booten naar het strand of naar de
moerassige rivieroevers trekken en de dieren bij duizenden in hunne
Krabkorven meê naar hun dorp kunnen nemen. [406]
[Inhoud]
L.
Leba of Libba is bij de N. een booze geest, die den mensch vervolgt.
Volgens de Penards (P. b.) beteekent L. ook „zwaarte” en wordt als
een oude vrouw gedacht, in lompen gehuld, in het woud wonende en
belast met schuld en zonden. Zij zou, als men haar nadert, een deel
van haar last op den persoon kunnen afwentelen, dan zelf in een geest
veranderen, en onhoorbaar menschen besluipen, op wie zij zich van
een deel harer zonden ontlast. De beslopene voelt zich lusteloos,
zwaar, verliest alle eetlust. Alleen de geestenbezweerder (Obiaman)
kan de leba uitdrijven, enz.