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1. CHAPTER 11
Strategic Approaches to
Improving Ethical Behavior

2. Chapter Objectives
To provide an overview of the need for an
organizational ethics program
To consider crucial keys to development
of an effective ethics program
To examine effective implementation of
an ethics program

3. The Need for
Organizational Ethics Programs
Organizations are held accountable for
the conduct of their employees.
Organizations can create unethical
corporate cultures.
Stakeholders demand greater ethical and
social responsibility.

4. Developing and
Implementing a Code of Ethics
 Consider areas of risk and state values as well as necessary
conduct.
 Identify values that specifically address current
ethical issues.
 Consider values that link the organization to a stakeholder
orientation.
 Make the code understandable by providing
examples that reflect values.
 Communicate the code frequently in language employees
can understand.
 Revise the code each year.

5. Ethics Officers
 Assess organizational needs and risks
 Develop and distribute the code of ethics
 Conduct ethics training programs
 Establish and maintain a confidential system to respond
to ethics questions
 Make certain the company is in compliance with
government regulation
 Monitor and audit ethics conduct
 Take action when there is a code violation
 Review and update the code

6. Ethics Training and Communication
Educates employees about the firm’s
policies, expectations, relevant laws and
regulations, and general social standards
Makes employees aware of available
resources, support systems, and personnel
who can assist with ethics and legal advice
Can empower employees

8. Training and
Communication Initiatives
Should reflect the unique characteristics
of an organization
Must operate with a strong foundation
Are more effective if employees engage
in exercises that involve solving ethical
dilemmas that relate to their job

9. Establishing Systems to Monitor
and Enforce Ethical Standards
Help or assistance lines
Observation and feedback
Whistle-blowing

10. Implementing
Organizational Ethics Programs
Role of leadership
Transformational leaders
is a type of leadership style that can inspire positive changes
in those who follow. Transformational leaders are generally
energetic, enthusiastic, and passionate.
Transactional leaders
works through creating clear structures whereby it is clear
what is required of their subordinates, and the rewards that
they get for following orders.

11. Five Power Bases
 Reward power
 The extent to which an entity can control the dispensing of rewards or
benefits.
 Coercive power
 authority or power that is dependent on fear, suppression of free will,
and/or use of punishment or threat, for its existence.
 Legitimate power
 power derived from a job, position, or status and held as belonging to
the person in such a position.
 Expert power
 ability to influence other parties based on expertise and knowledge.
 Referent power
 influence over others, acquired from being well liked or respected by
them.