Making it Stick | Why has the increased attention to corporate scandals proven to be something of a mixed blessing?

Why has the increased attention to corporate scandals proven to be something of a mixed blessing?

On the one hand, the average investor can be forgiven for thinking that the business world is full of crooks whose only purpose is to make as much money as possible. Problems with product quality, poor customer service, and fraudulent financial reports with no admission of guilt paint a very negative picture. The response to this negative picture has been the creation of new rules and tighter controls that now represent a greater risk for organizations who fail to comply with the expected standard of behavior. On the other hand, ethics has become an issue that also positively impacts the business world. This sense of value results in increased commitment and reduced turnover, which means greater profits for the company.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Making it Stick | What is the role of ethics officer and what message does it convey to stakeholders?

What is the role of ethics officer and what message does it convey to stakeholders?

The hiring of an ethics officer represents a formal commitment to the management and leadership of an organization's ethics program. The role usually develops as a separate department, responsible for enforcing the code of ethics and for providing support to any employees who witness unethical behavior. It sends a clear message to an organization's stakeholders and provides an appropriate person to whom employees and managers can when they need additional guidance and support.

Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | How can a whistleblower hotline be effective?

How can a whistleblower hotline be effective? Explain.

For a whistleblower hotline to be effective trust must exist between employees and the employer. This trust means that the information can be given anonymously and without fear of retaliation, even if the identity of the whistleblower is revealed during the investigation. The organization can make all the promises in the world, but until that first report is completely and thoroughly investigated, the hotline may never ring again.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | What factors can make a whistleblower lose legitimacy in the eyes of viewers?

What factors can make a whistleblower lose legitimacy in the eyes of viewers?

If there is evidence that the employee is motivated by the opportunity for financial gain or media attention, or that the employee is carrying out an individual vendetta against the company, then the legitimacy of the employee's whistle-blowing must be questioned.

Source: Ghillyer_Business Ethics A Real World Approach 2e

Making it Stick | Provide three examples of unethical behavior by a customer and a supplier

Provide three examples of unethical behavior by a customer and a supplier.

Customer

1. At a department store swapping a used piece of good with a brand new item.
2. Telling the cashier you gave him a $20 when you really gave him a $10 and you want the rest of your change back.
3. Wearing a new piece of clothing keeping the tags on it knowing you will return it after you have worn it.

Supplier

1. Having sweat shops in international countries to create profit maximization.
2. Selling an item that is a defective product.
3. False advertising

Source: Ghillyer_Business Ethics A Real World Approach 2e

Making it Stick | Case / Opinion | Code of Ethics 1986

Code of Ethics 1986

Your company wrote its code of ethics in 1986.  

You have been assigned to a team that has been tasked with updating the code to make it more representative of current business ethics issues like the Internet and modern business technology. 

What are your recommendations?



Source: Ghillyer_Business Ethics A Real World Approach 2e

Making it Stick | Case / Opinion | Team Representative

Team Representative

You have been asked to join a team as a representative of your department.  

The team has been tasked with the development of an ethics training program to support the company’s new code of ethics.  

What would your recommendations be?



Source: Ghillyer_Business Ethics A Real World Approach 2e

Making it Stick | What can a well written code of ethics do? 1. It can capture what the organization understands ethical behavior to mean. 2. It can establish a detailed guide of acceptable behavior. 3. It can state policies for behavior in specific situations. 4. It can document punishments for violations of those policies

What can a well written code of ethics do?

1. It can capture what the organization understands ethical behavior to mean.

2. It can establish a detailed guide of acceptable behavior.

3. It can state policies for behavior in specific situations.

4. It can document punishments for violations of those policies.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Making it Stick | What steps can be taken to create an ethical culture that is sustainable?

What steps can be taken to create an ethical culture that is sustainable?

1. Establish a code of ethics.

2. Support the code of ethics with extensive training for every member of the organization.

3. Hire an ethics officer.

4. Celebrate and reward ethical behavior demonstrated by employees.

5. Promote the organization's commitment to ethical behavior.

6. Continue to monitor the behavior as the organization grows.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Ethics & Technology | Define the term vicarious liability and cyberliability

Define the term vicarious liability and cyberliability.

Vicarious Liability:  A legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in the incident.

Cyberliability: Employers can be held liable for the actions of their employees in their internet communications to the same degree as if those employers had written those communications on company letterhead.        



Source: Ghillyer_Business Ethics A Real World Approach 2e  

Ethics & Technology | Case / Opinion | Telecommuting

Telecommuting

If you had a chance to work from home and telecommute, would you take it?  

If the opportunity meant that you had to allow your company to monitor every call on your phone and every keystroke on your computer, would you still take it?  

Explain why or why not.


Source: Ghillyer_Business Ethics A Real World Approach 2e

Ethics & Technology | Case / Opinion | Should you be allowed to surf the Web at work?

Should you be allowed to surf the Web at work?  Why or why not?

Students’ answers will vary. 

Surfing the Web at work is a controversial issue. 

Certainly surfing the Web at work can be viewed as wasting company time and money and should be limited. 

On the other hand, employees need to be able to redirect their minds to something other than their work and come back to it with a fresh thought process. 

The biggest issue becomes which Web sites are employees viewing. 



Source: Ghillyer_Business Ethics A Real World Approach 2e

Ethcis & Technology | Explain the difference between thin and thick consent

Explain the difference between thin and thick consent.

Thick Consent:  When jobs are plentiful and the employee would have no difficulty in finding another position, then the employee has a realistic alternative if he or she finds a monitoring policy unacceptable, and consent can be classified as thick.

Thin Consent:  When an employee receives formal notification that the company will be monitoring all email and Web activity. Either at the time of hire or during employment and is made clear in that notifications that his or her continued employment with the company will be dependent on the employee’s agreement to abide by that monitoring. 

Source: Ghillyer_Business Ethics A Real World Approach 2e

Ethics & Technology | Compare the employer and employee positions on electronic monitoring at the workplace

Compare the employer and employee positions on electronic monitoring at the workplace.

As an employee of an organization, your productivity during your time at work represents the performance portion of the pay-for-performance contract you entered into with the company when hired you. Therefore, your actions during that time are at the discretion of the company. The organization has an obligation to its stakeholders to operate as efficiently as possible, and to do so it must ensure that its company resources are not misused. From an employee's viewpoint, his or her contract should not intrude upon his or her civil rights as an individual. As such, employees should be notified of any electronic monitoring and its purpose. Electronic monitoring also implies that employees cannot be trusted, which raises the question: Why did the company hire that employee?



Source: Ghillyer_Business Ethics A Real World Approach 2e

Ethics & Technology | Differentiate between an intranet and an extranet

Differentiate between an intranet and an extranet.

An intranet is a company's internal Web site that contains information for employee access only. 

An extranet is a piece of a company's Internet network made available to customers or vendor partners using secured access with a unique password.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Case / Opinion | Guilt by Omission

Guilt by Omission

You work for a large retail clothing company that spends a large amount of its advertising budget emphasizing that its clothes are “Made in America.” 

You discover that only 15 percent of its garments are actually “made” in America. 

The other 85 percent are actually either cut from patterns overseas and assembled here in the United States, or cut and assembled overseas and imported as completed garments. 

Your hometown depends on this clothing company as the largest local employer. 

Several of your friends and family work at the local garment assembly factory. 

Should you go public with this information? Give your explanation.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Case / Opinion | Meatpacking Company

Meatpacking Company - Stealing

You work for a meatpacking company.  

You have discovered credible evidence that your company’s delivery drivers have been stealing cuts of meat and replacing them with ice to ensure that the delivery meets the stated weight on the delivery invoice.  

The company has 12 drivers and, as far as you can tell, they are all in on this scheme.  

Your company has a well-advertised whistle-blower hotline.  

What do you do?   





Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Discuss both positive and the negative views of whistleblowers in the media

Discuss both positive and the negative views of whistleblowers in the media. 

How do you view whistleblowers?

One could argue that whistleblowers provide an invaluable service to their organizations and to the general public. The discovery of illegal activities before the situation is revealed to the media could potentially save organizations millions of dollars in fines and lost revenue from the inevitable damage to their corporate reputation. However, in contrast to the general perception that whistleblowers are brave men and women putting their careers and personal lives at in order to "do the right thing," some feel that whistleblowers are motivated by money or personal egos. 

Student responses will vary on the second part of the question. 



Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Differentiate between internal and external whistleblowers

Differentiate between internal and external whistleblowers.

Internal whistleblowers are employees who discover misconduct in the workplace and communicate this to their supervisor, who then follows established procedures to address the misconduct within the organization. 

External whistleblowers are employees who discover corporate misconduct and choose to bring it to the attention of external parties, such as law enforcement agencies or the media.


Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Under what condition could whistle-blowing be considered unethical?

Under what condition could whistle-blowing be considered unethical?

Whistle-blowing can be considered unethical if the employee is motivated by financial gain or media attention, or if they carry a vendetta against the company.  In this case the legitimacy of their whistle-blowing must be questioned.  



Source: Ghillyer_Business Ethics A Real World Approach 2e

Blowing the Whistle | Is whistle-blowing a good thing?

Is whistle-blowing a good thing?

1. Many individuals, especially the media believe that whistle-blowing is a good thing, not only because it can save an organization millions of dollars, but because it can often prevent substantial harm to consumers. 
2. However, some individuals may argue that whistle-blowers are motivated by money or have egos and a “troublemaker” personality.  Also, some feel that whistle-blowers are “sneaks” or “squealer” who has broken the trust and loyalty of their employer.

Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | Case/Opinion | An appropriate response

An appropriate response.

Please prepare your arguments about this case for and against terminating his employment as a first step in restoring the reputation of your airline.

You sit on the Board of Directors of a major airline that just experienced a horrendous customer service event. 

A severe snowstorm stranded several of your planes and caused a ripple effect throughout your flight schedule, stranding thousands of passengers at airports across the country and keeping dozens of passengers as virtual hostages on planes for several hours as they waited for departure slots at their airport. 

The press has covered this fiasco at length and is already calling for a passenger bill of rights that will be based primarily on all the things your airline didn’t do to take care of its’ passengers in this situation. 

Your CEO is the founder of the airline, and he has been featured in many of your commercials raving about the high level of customer service you deliver. 

The board is meeting to review his continued employment with the company.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | Case/Opinion | Comply and Explain OR Comply or Else?

Do you think corporate governance should be enforced through the “comply and explain” model or the “comply or else” model? Explain your answer.

Student responses will vary. 


The “comply and explain” model gives corporations the benefit of the doubt and allows them to explain why they are not complying. 


The “comply or else” model is a much stricter model in which corporations are, essentially threatened to comply or face stiff financial penalties for not being in compliance.


Please state your opinion .....



Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | What are the six steps to effective corporate governance?

What are the six steps to effective corporate governance?

1. Create a climate of trust and candor
2. Foster a culture of open dissent
3. Mix up roles
4. Ensure individual accountability
5. Let the board assess leadership talent
6. Evaluate the board’s performance

Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | Discuss the payoff experienced by an organization that has a commitment to good corporate governance

Discuss the payoff experienced by an organization that has a commitment to good corporate governance. 

A corporation with a commitment to good corporate governance is more attractive to investors and creditors, and thus becomes more profitable. There have been numerous studies that highlight benefits of promoting good corporate governance.

Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | What is the argument in favor and against of merging the roles of chairman and CEO?

What is the argument in favor and against of merging the roles of chairman and CEO?

The argument in favor of merging the roles of chairman and CEO is one of efficiency. By putting the leadership of the board of directors and the senior management team in the hands of the same person, the potential for conflict is minimized and, it is argued, the board is given the benefit of leadership from someone who is in touch with the inner workings of the organization rather than an outsider who needs time to get up to speed.

The argument against merging the roles of chairman and CEO is an ethical one. Governance of the corporation is now in the hands of one person, which eliminates the checks and balances process that the board was created in the first place. This type of situation compromises the independence of the board, and the powers of the stockholders are minimized.



Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | Explain the difference between “comply or explain” and “comply or else.”

Explain the difference between “comply or explain” and “comply or else.”

The “comply or explain” method is a set of guidelines that require companies to abide by a set of operating standards or explain why they choose not to. 

The “comply or else” method is a set of guidelines that require companies to abide by a set of operating standards or face stiff financial penalties.



Source: Ghillyer_Business Ethics A Real World Approach 2e

CSR | Case / Opinion | Closing down a factory

Closing down a factory

Please prepare arguments for and against the following behavior:

Your company is managing to maintain a good profit margin on the computer parts you manufacture in a very tough economy. Recently, an opportunity has come along to move your production capacity overseas. The move will reduce manufacturing costs significantly as a result of tax incentives and lower labor costs, resulting in an anticipated 15 percent increase in profits for the company. However, the costs associated with shutting down your United States–based operations would mean that you wouldn’t see those increased profits for a minimum of three years. Your U.S. factory is the largest employer in the surrounding town, and shutting it down will result in the loss of over 800 jobs. The loss of those jobs is expected to devastate the economy of the local community.







Source: Ghillyer_Business Ethics A Real World Approach 2e

Making it Stick: Doing What’s Right in a Competitive Market | Key Terms

Key Terms - Making it Stick: Doing What’s Right in a Competitive Market

Ethics Officer:  A senior executive responsible for monitoring the ethical performance of the organization both internally and externally.

Organizational Integrity:  A characteristic of publicly committing to the highest professional standards and sticking to that commitment. 

Proactive Ethical Policies:  Policies that result when a company develops a clear sense of what they stand for as an ethical organization.

Reactive Ethical Policies:  Policies that result when organizations are driven by events and/or fear of future events.

Sustainable Ethics:  An ethical culture that persist long after the latest public scandal or the latest management buzzword.

Transparent Organization:  An organization that maintains open and honest communications with all stakeholders

Source: Ghillyer_Business Ethics A Real World Approach 2e

Ethics and Technology | Key Terms

Key Terms - Ethics and Technology

Cyberliability: Employers can be held liable for the actions of their employees in their internet communications to the same degree as if those employers had written those communications on company letterhead.          

                               

Thick Consent:  When jobs are plentiful and the employee would have no difficulty in finding another position, then the employee has a realistic alternative if he or she finds a monitoring policy unacceptable, and consent can be classified as thick.

Extranet:  A private piece of a company’s internet network that is made available to customers and/or vendor partners on the basis of secured access by unique password.

                                                             

Thin Consent:  When an employee receives formal notification that the company will be monitoring all email and Web activity. Either at the time of hire or during employment and is made clear in that notifications that his or her continued employment with the company will be dependent on the employee’s agreement to abide by that monitoring. 

Intranet:  A company’s internal website, containing information for employee access only.     

                                                                    

Vicarious Liability:  A legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in the incident.

Telecommuting:  The ability to work outside the office (from your home or anywhere else) and log into your company network (usually via a secure gateway such as a VPN, virtual private network).



Source: Ghillyer_Business Ethics A Real World Approach 2e