Page 235 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 12: Behavioural Implementation

Code of Ethics Notes

They are another important element of an ethical organisation. Such mechanisms provide a
statement and guidelines for norms and beliefs as well as decision–making. They provide
employees with a clear understanding of the ethical standards of the organisation. Many large
companies have developed such codes code of conduct.

Reward and Evaluation Systems

An appropriate reward and evaluation system should consider both the outcomes and the
means adopted to achieve the organisational goals and objectives. Inappropriate reward systems
may cause individuals to commit unethical acts.

Policies and Procedures

Most of the unethical behaviours in organisations could be traced to the absence of policies and
procedures to guide behaviour. It is important to carefully develop policies and procedures to
guide behaviour so that all employees are encouraged to behave in an ethical manner. However,
it is not enough merely to have policies “on the books”. Rather, they must be effectively
communicated, enforced and monitored. The company should also follow sound corporate
governance practices.
Ethics Training

The purpose of ethic training is to encourage ethical behaviour. Companies should provide
appropriate training in ethical standards. It enables managers to align ethical behaviour with
organisational goals.

Ethics Audit

Companies should undertake periodic audits to ensure that proper ethical standards are being
followed by all deportments of the organisation.

Chief Ethics Officer

Some large corporations appoint a senior officer with the exclusive responsibility of overseeing
the ethical conduct of employees. He functions like a watchdog on ethics.
Ethics Committee

An ethics committee establishes polices regarding ethical conduct and resolves major ethical
dilemmas faced by the employees of an organisation. Ethics committee performs such functions
as organisation of regular meetings to discuss ethical issues, identifying possible violations of
the code, enforcing the code, rewarding ethical behaviour etc.

Ethics Hotline

This is a special telephone line that enables employees to bypass the proper channel for reporting
their ethical dilemmas and problems. The line is usually handled by an executive also investigates
the matter and helps resolve the problems of the concerned employees.

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