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Five principles to ethical leadership
Approaches to Management Ethics
Importance of organizational ethics
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Developing a Code of Ethics Standard
Ethics standard represents a part of philosophy which deals with moral conduct and values system that gauge what is the right or wrong actions. Similarly ethical standards are guideline of conduct which is accepted and valued by society or a specific group including areas like business, health, spiritual, educational, and personal ethics. Most “code of ethics” is established as principle set by an organization or an individual asserting the standard and prospects that will governs their behavior.
“Code of ethics” delivers a structure for consideration about ethical accountability both at the personal or professional level. The major difference between personal “code of ethics” and professional “code of ethics” is personal “code of ethics” are based on individual value whereas, professional “code of ethics” are based on a collective standard that are mandated by an organization for the stakeholder involved. Many organization develop their own “code of ethics” however, there was certain event that led the Congress to enacting certain laws that dealt with ethical issues. One example of these type laws was the “The Federal Sentencing Guidelines for Organizations (FSGO)” that was passed by Congress in the early 1990s.
The “Federal Sentencing Guidelines for Organizations (FSGO)”, enacted in November 1991, established the characteristic for organizational ethical compliance programs.
The procedures was based on the “six principles of the DII”, created new method for dealing with misconduct by codifying into law incentives that encourage organizations to engage in preventing misconduct (Ferrell et al., 2013). The organizations accomplish this by developing applicable internal legal and et...
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...Ethics, 113(2), 317-331. Doi: http://dx.doi.org/10.1007/s10551-012-1306-6
Ncube, L. B., & Wasburn, M. H. (2006) Strategic collaboration for ethical leadership: A mentoring framework for business and organizational decision making. Journal of Leadership & Organizational Studies, 13(1), 77-92. Retrieved from http://search.proquest.com/docview/203143075?accountid=32521
Orin, R. M. (2008). Ethical Guidance and Constraint under the Sarbanes-Oxley Act of 2002. Journal of Accounting, Auditing & Finance, 23(1), 141-171.
Rutherford, M. A., Parks, L., Cavazos, D. E., & White, C. D. (2012). Business ethics as a required course: Investigating the factors impacting the decision to require ethics in the undergraduate business core curriculum. Academy of Management Learning & Education, 11(2), 174. Retrieved from http://search.proquest.com/docview/1033316250?accountid=32521
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: Ethical decision making and cases: 2011 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning.
Ethics continues to be a hot issue in the business world. The focus on business ethics grew after several significant business scandals beginning in the millennium. These scandals prompted the government to pass new accounting regulations to increase the control and accuracy of financial reporting. A prominent piece of legislation is the Sarbanes-Oxley Act of 2002, which applies to publicly traded businesses. The basis of Sarbanes-Oxley is to increase the reliability and accuracy of financial reporting (Noreen). At the time of these scandals, many businesses and individual professions already had ethical and accounting standards in place. Subsequently, more businesses have developed ethical codes of conduct.
Which of the six principles in the AICPA Code of Conduct is most related to Article 1.5 of the California Accountancy Act? Explain your conclusion.
Ethics is defined as values relating to human conduct with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions. It represents the core value system and the moral precepts held, or rules of conduct followed by individuals, institutions, or societies while making choices in the course of everyday problem solving. They create a framework for determining “right” versus “wrong”. (Journal, n.d.)
Chief Ethics Officers (CEOs) may not have been very popular around a decade ago, but the demand for such a position is beginning to grow within larger companies. From this point forward, when I mention CEOs in this paper, please understand that I am referring to Chief Ethics officers and not Chief Executive Officers. CEOs began appearing in corporate America around the same time as the inception of the Federal Sentencing Guidelines for corporations. According to these guidelines, the companies who have instituted compliance and ethics programs within their institutions wouldn’t have received as severe a punishment as those without the programs in place[2].
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases: 2011 custom edition (9th ed.). Mason, OH: South-Western Cengage Learning.
The act introduced changes to the regulation of corporate governance. The intent of the act is to protect investors from inaccurate financial reporting. It sets forth strict compliance regulations and harsh penalties for violations (Cross & Miller, 2012). The Sarbanes-Oxley Act is made up of eleven titles designed to restore public opinion and trust. The titles address issues independent of one and another, but it is the fluidity among them that allows them to operate as one. The act requires companies to establish internal controls to safeguard the integrity of its financial reporting. In turn, these controls are designed to provide shareholders a level of confidence in the company’s discloser reports. Also a, year-end financial audit is completed, along with an assessment of the overall effectiveness of the company’s internal auditing programs (Cross & Miller,
The work emphasizes that having business ethics and a code of conduct can be a preventive medicine. The intended audience is the general public, management team, large businesses that have yet to create and develop a code of conduct, and businesses who are searching for a solution towards resolving ethical dilemmas in their workplace. The relevance of this work to our topic is it’s unique outlook on how the code should not only be developed with HR and the legal departments with the only intention of keeping policies legal but to see it being navigated by top management. It will also help us establish the usefulness of the code of conduct in relationships with stakeholders. A special feature of this work is the large-scale of sections it has on the topic of code of ethics. It contains a content section at the very top of the article that helps navigating toward sections easier. It also includes quotes from CEO’s, ethics professor Stephen Brenner form the Journal of Business Ethics, Twin Cities-based consultant Doug Wallace, etc. The writer of this article is Carter McNamara who has a MBA and PhD who specializes in organizational development and
[1] Ethics is defined as “the code of moral principles and values that governs the behaviour of a person or a group with respect to what is right or wrong” (Samson and Daft, 2005, p.158)
The Hollate Manufacturing case provided by Anti-Fraud Collaboration has well illustrated how several common issues in an organization contributed to the fraud’s occurrence. These issues can be categorized into two major groups: ethical culture (internal aspect) and internal control system (external aspect). By taking effective actions to enhance these two aspects, an organization can protect itself against the largest frauds, which result in financial and reputational damage.
Having a code of ethics leads to improved employee behavior, which is a huge part of culture for a standard company. Because employees are the people who create value for the company, in which way, they need to have honest and candid altitudes to the company. Having a code of ethic is a useful tool to manage an organization’s values, responsibilities, and ethical duties. To make the codes work, companies must put the code of conduct into the business so that employees know how it applies to them. The code is also a way for employees to get advice about ethical problems or concerns. “According to the 2009 National Business Ethics Survey, eighty-nine percent of those polled felt management adequately discussed the importance of ethical conduct. Similarly, 2008-2009 Integrity Survey, published by KPMG Forensic, it was found that ethics programs, including codes of conduct, had a strong impact on how employees felt. Ninety percent of those surveyed who worked in companies with a code of conduct felt they were motivated to do the right thing. This compares with just 43 percent of people who work in companies without strong codes of conduct.” (NCARB) The code of conduct plays an important role in the business no matter
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business Ethics: Ethical Decision Making and Cases. Mason, Ohio: South-Western Cengage Learning.
The Botwinick Prize in Ethics. (n.d.). Retrieved March 23, 2010, from The Sanford C. Bernstein & Co. Center for Leadership and Ethics at Columbia Business School: http://www4.gsb.columbia.edu/leadership/speakerseries/botwinick
Many organization as well as professionals and associations are being gaining in accept code of ethics to understand the ethical attitude of members and employees in their everyday action. In today world ethics accept in all field to overcome the problems and to solve the situations in legal way.
Ethics is central for any organization in treating employees fairly and helping the organization advance its mission. There is no single best way for dealing with ethical challenges, but it is very important for managers to develop ethical policies and procedures for implementation. To minimize possible unethical decisions by staff members, it is important to incorporate written standards grounded in organizational values in the code of conduct.