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

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

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

Corporate Governance | Key Terms

Key Terms - Corporate Governance

Audit Committee:  An operating committee staffed by members of the board of directors plus independent or outside directors. The committee is responsible for monitoring the financial policies and procedures of the organization—specifically the accounting policies, internal controls, and the hiring of external auditors.

Board of Directors:  A group of individuals hired to oversee governance of an organization. Elected by vote of shareholders at the annual general meeting (AGM), the true power of the board can vary from institution to institution from a powerful unit that closely monitors the management of the organization, to a body that merely rubber-stamps the decisions of the chief executive officer (CEO) and executive team.

Compensation Committee:  An operating committee staffed by members of the board of directors plus independent or outside directors. The committee is responsible for setting the compensation for the CEO and other senior executives. Typically, this compensation will consist of a base salary, performance bonus, stock options, and other perks.

“Comply or Else”:  A set of guidelines that require companies to abide by a set of operating standards or face stiff financial penalties.

“Comply or Explain”:  A set of guidelines that require companies to abide by a set of operating standards or explain why they choose not to.

Corporate Governance:  The system by which business corporations are directed and controlled.

Source: Ghillyer_Business Ethics A Real World Approach 2e

CSR | Corporate Social Responsibility 5 | Would the CSR policies of an organization influence your decision to use their products or services? Why or why not?

Would the CSR policies of an organization influence your decision to use their products or services? Why or why not?

Student responses will vary. Many people are aware and respond to organizations decision to act in a socially responsible manner by patronizing them. The consumers who are conscience of a corporation’s charitable donations, or environmentally friendly practices are very likely to have a positive impression of the company and therefore purchase items from them. On the other hand, some consumers simply care about the lowest possible price.


Source: Ghillyer_Business Ethics A Real World Approach 2e