|
According
to research, in the United States the word ethics is likely
the most common descriptor associated with business ethics
programs. In fact, U.S. corporate titles and functions ethics
officer, ethics offices have done much to institutionalize
the term. This is not, however to say that using the term
ethics in U.S. locations cannot engender problems during a
training session, e.g., confusion among ethics, business ethics,
and morality. U.S. multinational companies are increasingly
shying away from the term ethics in favor of such terms as
integrity or business practices, which are more appropriate
for cross-cultural use. (Martens, vol. 6)
Another
appreciable difference between ethics training in the United
States resides in the deployment of scenario questions. U.S.
scenarios questions are typically designed to anticipate a
right or wrong answer. (vol. 6, issue 1) The US case model
more frequently calls upon open-end questions, for which no
final determination as to the correctness of participant responses
is anticipated. Biefnot notes, In the United States, one cannot
leave a question unanswered. There is always a good answer
and a bad answer.
Studies
have mention that in the United States most companies provide
resources to assist employees in resolving ethical and compliance
dilemmas. Bonime-Blanc notes that every issue requires a case-by-case
analysis and most problems are in the gray area. Under the
U.S. compliance system, it is extremely important to provide
employees with the appropriate resources to help them think
through their issues. In fact, the goal of discussing ethics
questions in the United States is often to allow employees
to identify appropriate corporate resources, where guidance
can be obtained or to which the issue can be escalated. The
U.S. legal system has long encouraged the use of internal
resources to provide for whistle blowing outlets internally
and externally. The recently enacted Sarbanes-Oxley Act of
2002 only underscores this legal imperative. (Martens, vol.6)
It is for this reason that most ethics training programs in
the United States, unlike their European equivalents, spend
much time describing and helping employees to understand corporate
resources. Web-based training is becoming increasingly popular
in the United States. The benefits of e-training for U.S.
companies could include cost-effectiveness, consistency of
content, an ability to focus on company policies and law,
the identification of right versus wrong answers, and the
ability to quantify and document employee levels of participation.
Differing business environments, needs, cultural attitudes,
and histories have helped shape the training approaches of
companies in each region. Despite these differences, there
is much to learn by examining the approaches to ethics on
both sides of the Atlantic. (vol.6) Today, corporate leaders
no matter where they are located should keep an open mind
when reviewing and evaluating their companies’ approaches
to business ethics and those of their counterparts overseas.
Once a company has identified the goals and objectives of
an ethics program and ethics training, it must determine which
methodologies and tools will best support them. It is, perhaps,
now in the best interest of companies whether in the United
States, or elsewhere to look beyond what lay in their own
backyards when considering what methods and tools to adopt
to construct an effective ethics program. (International Business
Ethics Review) Business ethics defines how a company integrates
core values such as honesty, trust, respect, and fairness
into its policies, practices, and decision making. Business
ethics also involves a company's compliance with legal standards
and adherence to internal rules and regulations. As recently
as a decade ago, business ethics consisted primarily of compliance-based,
legally-driven codes and training that outlined in detail
what employees could or could not do with regard to areas
such as conflict of interest or improper use of company assets.
(Business for Social Responsibility, 2005) Today, a growing
number of companies are designing values-based, globally consistent
programs that give employees a level of ethical understanding
that allows them to make appropriate decisions, even when
faced with new challenges.
A
series of ethics, governance, and accounting scandals in 2002
rocked the corporate world, damaged stock markets, and caused
investors, regulators and others to question the assumption
fairly or unfairly that most companies do the right thing
most of the time. (2005) These scandals destroyed major companies
and led to fines and prison terms for executives, providing
a stark reminder of the importance of ethical business practices.
In response, many orporations, especially in the U.S., took
a serious look at strengthening their ethics programs. Leadership
companies have found that ethics policies and programs with
some or all of the following elements go a long way toward
building an ethical culture, reducing risk, and demonstrating
a commitment to integrity: (2005) Strong, visible support
from top management Ensuring that ethical values such as honesty
and not only performance values such as innovation, figure
prominently in mission statement and codes of conduct Appointing
ethics officers, creating innovative ethics training formats,
and setting up ethics help lines Carrying out ongoing evaluations/audits
of ethical performance, with rewards and sanctions Creating
board ethics and/or corporate responsibility committees
ERC's
report is the result of one of the largest, most in-depth
and rigorous recent studies on the attitudes of American workers
towards workplace ethics, similar to a study by ERC in 1994.
The study was conducted by telephone interviews with 1,500
randomly selected employees in the for-profit, non-profit,
and governmental sectors, located across the contiguous 48
states of the U.S. (August 2000) The findings of the new survey
indicate that a greater number of U.S. corporations, agencies,
and organizations are promoting ethics in the workplace and
supporting training programs. More than 80 percent of the
interviewees said their organization has some form of ethics
program in place, and that statistic goes up to 90 percent
for organizations with more than 500 employees.
Employees
with more than five years tenure in their organizations feel
greater pressure to compromise these standards than do newer
employees. Our new findings suggest that many organizations
may not be meeting the ethical expectations of their employees,
said Joshua Joseph, Research Analyst at ERC who developed
the study. He pointed out that one in every three employees
says they have observed some form of ethical misconduct within
the past year, most notably lying to employees, customers,
vendors and the public, withholding needed information, or
abusive and intimidating behavior toward employees. (2000)
Other ethical concerns of employees included sexual harassment,
mis-reporting of hours worked, breaking environmental and
safety regulations, and outright stealing, among others. (2000)
As many as 17 percent of interviewees reported race, gender,
or related forms of discrimination, while 5 percent had concerns
about accepting bribes. More than two in five employees who
witnessed some form of misconduct did not report it, due to
fear of being seen as troublemakers by management or fear
of pressure from co-workers. Moreover, more than 40 percent
of workers who file complaints about misconduct say they are
disappointed by management responses. (Workers Report on Ethics
in U.S. Companies) ERC's findings show that across the country,
and in every employment sector, ethics matter a great deal
to employees. In fact, many interviewees stated that their
organization's concern for ethics is a key reason why they
remain in their jobs. The study shows a clear link between
business ethics and business success. Organizations that do
not pay enough attention to ethics programs and practices
at work may be putting their organizations at risk for more
ethical misconduct, said ERC's Daigneault. "This will
only lead to greater problems detecting misconduct when it
occurs and more difficulty attracting and keeping good people.’’
(2000)
One
of the most difficult questions is: How do we resolve the
conflicts between our home nation's civil laws and ethical
principles and those of the country in which we are doing
business? What can we expect other countries' views of business
ethics to be? Attention to ethical business conduct is growing
in parts of the world previously unconcerned about it; especially
as some governments pass anticorruption laws and more multinational
corporations (MNCs) formalize ethics codes and pro- grams
to strengthen their internal ethical climate. More companies'
managers are becoming aware of the risk of expensive legal
entanglements caused by doing business with firms having lower
ethical standards than their own. (Robert, 1994) Worldwide
watchdog groups, such as Greenpeace, and global news coverage
networks, such as the BBC and CNN, also increase the risk
of global public relations disasters. More and more businesses
around the globe, small as well as large, are becoming multinational.
Worldwide, local businesses are beginning to grapple with
their own ethical dilemmas. (Petry, 1994) For these reasons,
it is important to expand the scope of the international business
ethics field beyond a critique of large First-World MNCs.
The Ninth Bentley College Conference on Business Ethics, therefore,
was titled, International Perspectives on Business Ethics."
The
call for papers sought submissions on a variety of issues
of which the impact of multinational corporate operations
on the environment and culture of host countries was but one.
Other suggested topics were cross-cultural comparisons of
ethical attitudes and/or business codes of conduct; the possibility
of transnational codes of business ethics; unique ethical
problems and specific ethical viewpoints of developing countries;
and business/government relations conducive to sustainable
economic growth. (Robert, 1994)
Bibliography:
Martens, Lori Tansey. ‘Transatlantic Perspectives
on Business Ethics Training’, International Business
Ethics
Review, (Volume 6, Issue 1)
‘Business for Social Responsibility’
(2005)
‘Workers Report on Ethics in U.S. Companies’
(August 08, 2000)
Robert, Frederick et al. ‘Emerging
Global Business Ethics’, Quorum Books, Westport, CT
(1994) p.14
|