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At exactly what dollar amount would the students draw the line?
EMAIL
• Electronic mail (email) is one of the most prominent forms of communication within and
outside organizations.
DISCUSSION ACTIVITY
Have students discuss whether organizations should allow employees to use email at work for
personal reasons? If yes, under what conditions? Would the number of hours an employee
worked matter—would it be okay if a person worked 50 hours a week but not if a part-time
employee?
CHAPTER QUESTION 5: HOW WOULD YOU IMPLEMENT AN EFFECTIVE CODE
COMMUNICATION STRATEGY?
BACKGROUND
Codes cannot be effective if employees are unaware they exist or if rumors spread that the code
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ELEMENTS OF A COMMUNICATION STRATEGY
Elements of the communication strategy include:
• Connecting the code to the organization’s strategy
• Mentioning the code of ethics in job announcements
• Introducing the codes during employee orientation
OBSTACLES FOR AN EFFECTIVE CODE
• Social pressure can be a major obstacle to code effectiveness.
• Employees are hesitant to report code violations committed by their friends, peers, or
manager.
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CHAPTER QUESTION 6: HOW CAN YOU TRANSFORM A CODE OF ETHICS INTO
AN ASSESSMENT TOOL?
ANNUAL CODE OF ETHICS ASSESSMENT
The last phase of implementation is probably the most important—use the code as an
organizational assessment tool. Make the code of ethics a living document by annually
assessing how well the organization and its employees live up to it.
Table 5.4 provides a 10-step process for assessing an organization’s ethical performance
based on its code of ethics. The employee activity can be accomplished within 60 to 90
minutes.
• Step 1: Form small groups around common job tasks and have participants read
the organization’s code of ethics.
• Step 5: Each group member shares a story about the survey item with the highest
score. What happened during the past year that exemplifies why the organization
is doing so well in that category?
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• Step 8: The group summarizes its scores and suggestions for improvement, and
DISCUSSION ACTIVITY
Have students obtain their organization’s code of ethics and transform it into an assessment
survey. This could also be done for the college or school if a code of ethics or values statement is
available.
Then ask them to evaluate how well the organization lives up to its code of ethics, and answer
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Chapter 5 QUESTIONS ANSWERED
Chapter Question 1: What is the difference between a code of ethics and a code of conduct?
• The terms code of ethics and code of conduct are often mistakenly used interchangeably.
They are two unique documents.
CODE OF ETHICS
• A code of ethics briefly describes broad ethical aspirations.
• A code of ethics, sometimes referred to as a values statement, is similar to the Ten
CODE OF CONDUCT
• A code of conduct more extensively describes acceptable behaviors for specific
situations that are likely to arise.
• A code of conduct, often developed by an employee with legal expertise, provides
Chapter Question 2: What are five key benefits of having a code of ethics?
BENEFIT #1: Aligns the organization’s values with industry, professional, and legal codes
BENEFIT #2: Demonstrates managerial concern for ethics
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Chapter Question 3: How would you create a bottom-up code of ethics for an organization?
13-STEP PROCESS
Step 1: Obtain approval from executives.
Step 2: Create a code writing team.
Step 3: Gather list of ethical issues from relevant stakeholders.
Step 4: Define a “code of ethics.”
Chapter Question 4: What topics should be addressed in a code of conduct?
The New York Stock Exchange recommends that a code of conduct address the
following seven topics:
1. Conflicts of Interest. Avoid conflict or potential conflict between an
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3. Confidentiality. Do not disclose nonpublic information that could benefit
competitors or harm the organization.
4. Fair Dealing. Abstain from any unfair treatment of customers, suppliers,
competitors, and employees, such as concealment, abuse of privileged
Chapter Question 5: How would you implement an effective Code communication
strategy?
Elements of the communication strategy include:
• Connecting the code to the organization’s strategy
• Mentioning the code of ethics in job announcements
• Introducing the codes during employee orientation
Chapter Question 6: How can you transform a code of ethics into an assessment tool?
Instructor Resource
Collins, Business Ethics 3e
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The last phase of implementation is probably the most important—the code should be
used as an organizational assessment tool. It should be made a living document by
annually assessing how well the organization and its employees live up to it.
Table 5.4 provides a 10-step process for assessing an organization’s ethical performance
based on its code of ethics. The employee activity can be accomplished within 60 to 90
minutes.
• Step 1: Form small groups around common job tasks and have participants read
the organization’s code of ethics.
• Step 2: Each group member independently evaluates how well the organization
meets each of its ethical aspirations using a 5-point Likert scale.
• Step 5: Each group member shares a story about the survey item with the highest
score. What happened during the past year that exemplifies why the organization
is doing so well in that category?
• Step 6: Each group member shares a story about a survey item with a low score.
• Step 7: Each group member shares a strategy and action steps that would improve
the low score, and integrates ideas and suggestions from other group members to
CHAPTER 5 ANALYSIS FOR “WHAT WOULD YOU DO?” OPENING DILEMMA
Chapter 5: What Would You Do? Vendor Relationships
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Summary
• You work as a purchasing agent in a company’s technology procurement office that purchases large
amounts of computer equipment.
What would you do?
A. Speak with your boss Harry about your concerns
B. Speak with HR about your concerns
Table 6.3 Systematic Rational Ethical Decision-Making Process
1. Who are all the people affected by the action?
2. What option benefits me the most? (egoism)
Do nothing (Option D: This option benefits you the most since you will not have to
3. What option does my social group support? (social group relativism)
Mixed: Other managers may say that it is difficult to prove conflict of interest and that such
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However, other managers and coworkers may encourage you to report (Option B and C)
4. What option is legal? (cultural relativism)
Both: The company’s code explicitly prohibits conflicts of interest and it appears that your
5. What option is the greatest good for the greatest number of people affected? (utilitarianism)
Speak with HR about your concerns (Option B): This option allows the company to
6. What option is based on truthfulness and respect/integrity toward each stakeholder?
(deontology)
Mixed: Speaking with your boss Harry (Option A) shows consideration and concern that he
7. What option would a virtuous person do? (virtue ethics)
Speak with your boss (Option A): This option shows respect toward your boss and
Option
Option Strengths Based on
Application of Ethical Theories
Option Weaknesses Based on
Application of Ethical Theories
A: Speak with your
Confronting your boss shows
Your boss may retaliate against
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boss
consideration and respect. This
you. He will likely fire you and
B: Speak with HR
This option allows your company to
investigate potential wrongdoing
and you may be included as part of
Your boss will not write you a letter
of support when you apply to
different positions.
C: Report to the
ethics hotline
This option allows your company to
investigate potential wrongdoing.
The deal with Jacobs Data may be
Your boss will likely know that you
reported him and will retaliate
against you. You may lose your job.
D: Do nothing
E: Other?
Option Chosen
Option B: Speak with HR about your concerns.
Chosen Because
This choice is based on cultural relativism, utilitarianism and in part by
social group relativism and deontology. Your company’s code of conduct
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How Will You
Manage Chosen
Your boss will likely not write you a letter of recommendation and you
may suffer retaliation, even though the company’s policy prohibits
CHAPTER 5 ANALYSIS FOR UP FOR DEBATE
Up for Debate: Speaking Fees for Physicians
Some pharmaceutical companies offer physicians payments to make presentations and attend
conferences. Some individuals claim that these payments are vaguely disguised bribes and create
a conflict of interest. Rather than doing what is best for patients, receiving these pharmaceutical
company payments predisposes physicians toward the pharmaceutical company’s products when
writing prescriptions and making purchases, thus creating a conflict of interest.
Critical Thinking Questions
1. Should physicians accept speaking fees and conference expenses paid for by pharmaceutical
companies?
Up for Debate: Speaking Fees for Physicians—Should physicians accept speaking fees and
conference expenses paid for by pharmaceutical companies?
Yes
• Speaking events enhance new
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• Physicians also receive free samples,
which reduces patient care costs,