August 31, 2012
Ethical Situations in Business
EST1 Task 2
Myself and two other individuals have decided to start a company that will provide management consulting services to nonprofit organizations. Our company will be small with about 15-20 total employees. Since many of our clients will be paying from funds provided by government sources, we have decided that it would be appropriate to have an ethics program in place before we start offering services. The ethical failures of many companies, has caused increased attention on the actions of corporations and those who act on their behalf. Many companies have responded by creating formal ethics programs to address to employees what actions and decisions are appropriate for working for the company.
A functional ethics program is custom made for the company based on their values, company size and industry. Since the ethics code will guide the employees, their feedback and ideas should be considered during the creation process. The key stakeholders, such as the customers, suppliers and local community's ideas will contribute more meaning to an ethics program. Many organizations have great programs in place and using some of their ideas will benefit our company greatly. Of course an ethics program must make clear who will be governed by it, whether it's the seniors officers or all employees. An ethics program must be put to practice, not to collect dust in a file cabinet, because an unused program is like false advertisement and reduces stakeholder's confidence in your company. There are many vehicles in which to train and educate employees; Such as online for very large companies or conference room meetings for small companies. An assessment or survey can measure if the employees grasp the value and meaning of company Code. A penalty and reward system should be in place for enforcement and to guide company ethics and values. In larger companies this duty may be assigned to a Compliance Officer or...
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