Workplace Ethics

What is Workplace Ethics?

Workplace Ethics, are codes of conduct that influence the development of an ethical culture within the workplace

ž  Its Shaped by:

ž  Workplace policy

ž  Laws & regulations

Should not be:

ž  Misleading

Several Motives:

•       To recover a company’s image after a notorious business scandal

•       To avoid the loss of a good corporate image, or being sued for

•       Misconduct

•       To build a corporate reputation

•       To enhance stakeholder relationships

•       To act with real commitment

Ethical Issues in Business

•       Contract Issues

•       Misappropriation and Fraud

•       Infringement of Intellectual Property

•       Industrial or corporate Espionage

•       Fraud

•       Counterfeit

•       Embezzlement

•       Trade Secrets

•       Conflicts of Interest

•       Tax evasion and Tax avoidance

Use and Misuse of power

Power means ‘to be able ‘: to possess the ability to make choices or influence outcomes. Power can be held by one person or by a group.

Lord Acton (1834-1902), Power tends to corrupt, and absolute power corrupts absolutely.

Workplace

•       Equity in managing people

•       Favouritism

•       Misuse of corporate resources

•       Transparency of Information

Corporate Governance

Mellahi, Morrell & Wood  2010"Corporate Governance  can be viewed as a system, made up of arrangements by which organisations can be directed and controlled.

"OECD 1999 "Specified the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders, and other stakeholders, and sells out the rules and procedures on corporate affairs"

 •       It is important to perform in a manner consistent with expectations of government and the law.

•       It is important to comply with various national and supra-national laws and regulations.

•       It is important to be a law-abiding corporate citizen.

•       It is important that a successful firm be defines as one that fulfils its legal obligations.

•       It is important to provide goods and services that at least meet the minimal legal requirements.

Within an organisation

Some Issues

•       Employee rights

•       Fair Wages

•       Sexual/Racial Harassment

•       Taking advantage of company resources

•       Equal opportunities

•       Work life balance

•       Data Protection

•       Right to Due Process – Promotion, disciplinary proceedings

•       Right to join unions, associations

•       Working conditions

•       Equal pay

•       Whistleblowing

•       Fair treatment in an interview

•       Employee duties

•       Acceptable level of performance

•       Loyalty

•       Duty to comply with the law – Bribery

•       Respect employers property – working time, fraud, theft, use of property

Some theorists…

Fitzgerald 1999 states:-

“If workers have a halfway decent living, circumstances, are they are likely to be productive and committed to the firms success.”

Jerome Kerviel cited  in ethics in Action 4.1,pp162-3, who bought  down Societe Generale in 2008 – companies do not have complete control of their employees.

Employer and employee relationship is now subject to legislation.

John Ruggie 2008

Framework 3 pillars:

Based on business & human rights to the UN Human Rights Council in

•       the state duty to protect against human rights abuses by third parties, including business;

•       the corporate responsibility to respect human rights; and

•       greater access by victims to effective remedy, both judicial and non-judicial.  '