This empirical study of Fortune 1000 firms assesses the degree to which those firms have adopted various practices associated with corporate ethics programs. The study examines the following aspects of formalized corporate ethics activity: ethics-oriented policy statements; formalization of management responsibilities for ethics; free-standing ethics offices; ethics and compliance telephone reporting/advice systems; top management and departmental involvement in ethics activities; usage of ethics training and other ethics awareness activities; investigatory functions; and evaluation of ethics program activities. Results show a high (...) degree of corporate adoption of ethics policies, but wide variability in the extent to which these policies are implemented by various supporting structures and managerial activities. In effect, the vast majority of firms have committed to the low cost, possibly symbolic side of ethics management (e.g., adoption of ethics codes and policies, etc.). But firms differ substantially in their efforts to see that those policies or codes actually are put into practice. (shrink)

One of the crucial intellectual and social challenges facing corporation leaders is to foster a new way of thinking about business and society which recognizes the multinational corporation as a key player in society's responsibility to support and maintain fairness in the global reorganization of markets. In order to establish a sound global social economy, we are in need of the organizing and directing principles of solidarity and subsidiarity. Both of these principles speak to the need of transforming our public (...) and private institutions in such a way that all persons are placed in positions whereby they can share in the benefits of the newly-formed global economy. (shrink)

An integrity-based approach to ethics management combines a concern for the law with an emphasis on managerial responsibility for ethical behavior. Though integrity strategies may vary in design and scope, all strive to define companies’ guiding values, aspirations, and patterns of thought and conduct. When integrated into the day-to-day operations of an organization, such strategies can help prevent damaging ethical lapses while tapping into powerful human impulses for moral thought and action. Then an ethical framework becomes no longer a burdensome (...) constraint within which companies must operate, but the governing ethos of an organization. (shrink)

This book is the most systematic, comprehensive and philosophically sophisticated discussion of police ethics yet published. It offers an in-depth analysis of the ethical values that police, as servants of the community, should uphold as they go about their task. The book considers the foundations and purpose of police authority in broad terms but also tackles specific problems such as accountability, the use of force, deceptive stratagems used to gain information or trap the criminally intentioned, corruption, and the tension between (...) personal values and communal concerns. Offering the fullest, most rigorous and up-to-date treatment of police ethics currently available, this book will be a perfect textbook in courses on applied ethics in philosophy departments or police and criminal justice ethics in departments of criminology and law schools. (shrink)

This paper discusses corporate governance issues from a compliance viewpoint. It makes a distinction between legal and ethical compliance mechanisms and shows that the former has clearly proven to be inadequate as it lacks the moral firepower to restore confidence and the ability to build trust. The concepts of freedom of indifference and freedom for excellence provide a theoretical basis for explaining why legal compliance mechanisms are insufficient in dealing with fraudulent practices and may not be addressing the real and (...) fundamental issues that inspire ethical behavior. The tendency to overemphasize legal compliance mechanisms may result in an attempt to substitute accountability for responsibility and may also result in an attempt to legislate morality which consequently leads to legal absolutism. The current environment of failures of corporate responsibility are not only failures of legal compliance, but more fundamentally failures to do the right (ethical) thing. (shrink)

. American businesses and corporate executives are faced with a serious problem the loss of public confidence. Public criticism, increased government controls, and growing expectations for improved financial performance and accountability have accompanied this decline in trust. Traditional approaches to corporate governance, typified by agency theory and stakeholder theory, have been expensive to direct and have focused on short-term profits and organizational systems that fail to achieve desired results. We explain why the organizational governance theories are fundamentally, inadequate to build (...) trust. We advance a conceptual framework based on stewardship theory characterized by “covenantal relationships” and argue that design of governance mechanisms using a covenantal approach is more effective in building trust in organizations. A covenantal relationship is a specialized form of a relational contract between an employee and his or her organization. We argue that regardless of incentives and control mechanisms carefully designed through contractual mechanisms, in the absence of covenantal relationships it is extremely difficult to build trust within organizations. We propose that organizations are more likely to build trust – both at the organizational level and at the interpersonal level – when they create reinforcing and integrated systems that honor implied duties of “covenantal relationships.”. (shrink)

. In this paper, we consider the nature of recent corporate abuses both in the U.S. and in Europe, and how globalization has had an impact on amplifying their consequences. We discuss the rules-based and principles-based remedies that have been proposed in each region, respectively. With a focus on the U.S. Sarbanes-Oxley Act (SOA), we examine the principles forwarded by this act, and how it addresses those principles with specific rules and governance mechanisms. Invoking Integrative Social Contracts Theory (ISCT), we (...) conclude with a reconciliation of the principles and rules-based approaches to corporate governance as suggested by theory. (shrink)

This paper examines the critical role that organizational leaders play in establishing a values based climate. We discuss seven mechanisms by which leaders convey the importance of ethical values to members, and establish the expectations regarding ethical conduct that become engrained in the organizations climate. We also suggest that leaders at different organizational levels rely on different mechanisms to transmit values and expectations. These mechanisms then influence members practices and expectations, further increase the salience of ethical values and result in (...) the shared perceptions that form the organizations climate. The paper is organized in three parts. Part onebegins with a brief discussion of climates regarding ethics and the critical role of values. Part two provides discussion on the mechanisms by which leaders and members transmit values and create climates related to ethics. Part three provides a discussion of these concepts with implications for theory, research, and practice. (shrink)

Does the need to make a profit outweigh the need to reward employees fairly? Should you tell your staff why you fired someone and risk being sued for defamation? Is it more important to make payroll or pay your vendors? Business professionals face ethical decisions like these every day. Such dilemmas will keep even the most seasoned managers tossing and turning at night. You can rest assured that at some point in your career you'll be faced with making, or witness (...) the making of, an ethical decision-and the action you take will not only define you, but also what your company stands for. The pressure to make the right choices is incredible; indecision or one small misstep can be the kiss of death in today's highly competitive, fast-moving economy. Productivity can drop off, employee morale can plummet, dissatisfied customers can flee, and your competitor may take a large bite out of your profits-while the dilemma remains unsolved. The Good, The Bad, and Your Business shows companies how to run more efficiently by improving their navigation of everyday moral business dilemmas. Respected writer and journalist Jeffrey Seglin reveals how otherwise decent people can make mistakes and find themselves in serious ethical trouble. His practical approach uses real-life examples to help you see the difference between a "gray area" and an outright misdeed so you can act faster when faced with such ethical decisions. Without being preachy or theoretical, The Good, The Bad, and Your Business looks at how others have faced moral dilemmas and gives you the tools to help you reach your own decisions. You'll see firsthand how businesspeople have grappled with difficult issues, from how to draw the line between lying and posturing, to whether it's ever ethical to spy on competitors, to how to align personal beliefs with business practices. You'll also discover the common misperceptions about ethics in business and learn how to define your "comfort" level so that you can conduct business knowing you've made thoughtful decisions with full knowledge of the possible consequences. The Good, The Bad, and Your Business: * Looks at how company owners and managers make difficult decisions as they try to keep cash flow strong enough to stay in business * Examines how to deal with employee issues, from how far to go to help a troubled employee to what policy-if any-to take on romantic relationships between coworkers * Reveals the motivations that lie behind how people decide where to "draw the line" on what they will and will not do * Focuses on how the decisions you make can affect the common good-the larger community in which you're doing business "Well-written and lucid, this book does not preach; it teaches the reader how to think intelligently about hard choices. Every executive who wants to build a successful business and wants to do so with integrity-should read this book."-Jim Collins, Coauthor, Built to Last "It's a rare business book that can truly change your life, and Jeff Seglin's latest is just that. You'll find no grandstanding or buzzwords, but rather a compelling blend of research and worldly experience, written by a master. He's the perfect travel guide for the examined life we all must lead to achieve meaningful success. Don't miss this one!"-Steven Leveen, Cofounder and President, Levenger "Finally a book about modern ethics and business that you don't have to get all dressed up to read! Writing with a sure touch, lively language, and a wonderful wit... Jeff Seglin has found a way to wake up his subject without once getting bogged down. He never lectures... he knows his stuff and he respects his readers' intelligence. This terrific book is the next best thing to talking to your smart, warm, and funny best friend about the toughest decisions you'll ever have to make. It's flat-out superb."-Nancy K. Austin, Coauthor, A Passion for Excellence. (shrink)

An option for Business Ethics course offered in business schools or in philosophy departments, this text balances the perspectives of business and philosophy in the cases and readings. The focus of this text is on the benefits of good corporate conduct to the companies who practice good business ethics.

. Recent corporate scandals have focused the attention of a broad set of constituencies on reforming corporate governance. Boards of directors play a leading role in corporate governance and any significant reforms must encompass their role. To date, most reform proposals have targeted the legal, rather than the ethical obligations of directors. Legal reforms without proper attention to ethical obligations will likely prove ineffectual. The ethical role of directors is critical. Directors have overall responsibility for the ethics and compliance programs (...) of the corporation. The tone at the top that they set by example and action is central to the overall ethical environment of their firms. This role is reinforced by their legal responsibilities to provide oversight of the financial performance of the firm. Underlying this analysis is the critical assumption that ethical behavior, especially on the part of corporate leaders, leads to the best long-term interests of the corporation. We describe key components of a framework for a code of ethics for corporate boards and individual directors. The proposed code framework is based on six universal core ethical values: (1) honesty; (2) integrity; (3) loyalty; (4) responsibility; (5) fairness; and (6) citizenship. The paper concludes by suggesting critical issues that need to be dealt with in firm-based codes of ethics for directors. (shrink)