Ethics Program in Firms

Ethics Programs in Firms

Ethics programs in firms play a critical role in communicating an organization's business beliefs and code of conduct to the workers, clients, investors, and vendors.

When a company establishes an effective ethics program, it helps in strengthening the existing relationship between customers and the workers (Kaptein, 2009).

In this regard, the firm's reputation is drastically improved and maintained.

Moreover, through the formation of an effective ethics program, the level of customers' satisfaction will improve since the program will offer accurate details and make an effort to resolve the existing challenges that both the employees and customers experience.

In most firms, staffs may be familiar with an organization's informal belief in business ethics (Kaptein, 2009).

However, establishing a program that will solely concentrate on eliminating any confusion and misinterpretation of particular decisions can play a central role of providing every individual with the same details on how to behave ethically within and outside the company.

In addition, an ethics program ensures that an organization complies with all the outlined regulations and rules.

Program Management Control Tools

In a bid to create and implement an effective ethics program, program management control tools must be established.

The inception of the program management controls plays a significant role in ascertaining the credibility of the ethics program to the board and the management team.

When an ethics program offers unfulfilled promises and performs contrary to the expectations, it loses its credibility (Kaptein, 2011).

In addition, other elements of an ethics program depend on the needs of a firm and the abilities of the staffs.

For instance, in order to have an efficient program, the executive board of directors should exhibit a high level of commitment both in financing the program and offering insightful ideas.

Moreover, the program should be designed in such a way that it has both formal and informal ethics organizational structure.

In a bid of ensuring that the policies are applied consistently, the program should have a cross-functional review panel (Kaptein, 2011).

Also, an ethics program should have a statement of fundamental values to be observed by the workers at all time.

Furthermore, the program should be audited periodically by both external and internal auditors.

In addition, in order to track all the activities and actions of the ethics program, a program database should be put in place.

The ethics program should also have an investigative ability to positively respond to the allegations of wrongdoings from the clients and the workers.

In order to provide guidance and interpretation, the ethics program should have an ethics helpline, ethics officer, ethics committee, and ethical leadership (Kaptein, 2011).

Preventing Unethical Methods

Today, as opposed to the previous decades, workers are increasingly feeling more pressured to successfully meet the goals and objectives of their organizations.

When staffs presume the goals highlighted by a firm as unreasonable, they may resort to unethical methods of meeting them (Sekerka, 2009).

However, in order to prevent the employees from resorting to such means, efficient ethics program should be introduced.

The first step to be taken during the implementation of the ethics program in an organization is the identification of the mission and purpose of the program.

In addition, the firm's ethical culture should be identified and reviewed in order to ensure comprehensive reporting and taking everyone accountable.

Furthermore, to ensure that the program is in compliance with the local and global laws, the organization's goals and objectives should be identified and clearly outlined.

The risks that are associated with the firm's business goals and objectives should also be identified.

Moreover, in a bid to clearly define the roles and functions of each worker, accountability and authority company chart should be created (Sekerka, 2009).

Also, in order to reduce the impending effect of the risk to the firm and effectively respond to the impact of the same, an efficient management response plan must be developed.

References

Kaptein, M. (2009). Ethics programs and ethical culture: A next step in unraveling their multi- faceted relationship. Journal of Business Ethics, 89(2), 261-281.

Kaptein, M. (2011). Understanding unethical behavior by unraveling ethical culture. Human relations, 64(6), 843-869.

Sekerka, L. E. (2009). Organizational ethics education and training: A review of best practices and their application. International Journal of Training and Development, 13(2), 77-95.