A clear code of business ethics is a key ingredient in the establishment of an ethics culture.

Chap 10:Business ethics can be defined as principles of conduct within organizations that guide decision making and behavior. Social responsibility refers to ations an org. take beyond what is legally required to protect or enhance the well-being of living things. Sustainability refers to the extent that an org.’s operations and actions protect, mend, and preserve rather than harm or destroy the natural environment. Seven Principles of Admirable Business Ethics: 1. Be trustworthy; no individual or business wants to do business with an entity it does not trust. 2. Be open-minded, continually asking for "ethics-related feedback" from all internal and external stakeholders. 3. Honor all commitments and obligations. 4. Do not misrepresent, exaggerate, or mislead with any print materials. 5. Be visibly a responsible community citizen. 6. Utilize your accounting practices to identify and eliminate questionable activities. 7. Follow themotto: Do unto others as you would have them do unto you.Unethical including: 1. Misleading advertising or labeling 2. Causing environmental harm 3. Poor productor service safety 4. Padding expense accounts 5. Insider trading 6. Dumping banned or flawed products in foreign markets 7. Not providing equal opportunities for women and minorities 8. Overpricing 9. Sexual harassment 10. Using company funds or resources for personal gainA key ingredient for 'establishing an ethics culture is to develop a clear code of business ethics. Donald Palmer provides six procedures to establish an ethics culture. 1) Punish wrongdoing swiftly and severely when it is detected. 2) Be careful to hire employees who possess high ethical standards. 3) Develop socialization programs to reinforce desired cultural values. 4) Alter chains of command so subordinates report to more than one superior. 5) Develop a culture whereby subordinates may challenge their superior's orders when they seem questionable. 6) Develop a better understanding of internal policies, procedures, systems, and mechanisms that could lead to misconduct.A code of ethics can be viewed as a public relations gimmick, a set of platitudes, or window dressing. To ensure that the code is read, understood, believed, and remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in which ethics issues may arise. Whistle-blowing refers to employees reporting any unethical violations they discover or see in the firm.Firms can align ethical and strategic decision making by incorporating ethical considerations into strategic planning, by integrating ethical decision making into the performance appraisal process, by encouraging whistle-blowing, and by monitoring departmental and corporate performance regarding ethical issues.

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