2. Business Ethics
• Differ from general ethics
▫ Stakeholders vested in the ethical performance of
the organization
▫ Your work environment may provide situations
that clash with your personal value system
3. Organizational Culture
• The values, beliefs, norms shared by employees
of the organization
• Sums up the policies and procedures of the
functional departments within the organization
4. Value Chain
• R&D
• Manufacturing
• Marketing
• Sales
• Customer Service
5. Value Chain cont…
• Human Resource Management
• Finance
• Information Systems
• Management
6. R&D
• Create new products
▫ Incorporate customer feedback
▫ Competitive feedback
▫ Strategic input
• Ethical Dilemma
▫ Creating products of the highest quality, safety, &
reliability all within a predetermined
manufacturing cost
7. Manufacturing
• Build the designs created by R&D
• Ethical Dilemmas
▫ Build it fast or build it right?
8. Marketing
• Includes
▫ Advertising
▫ PR
▫ Sales
• Ensures the product reaches satisfied customers
• Ethical Dilemmas
▫ Do customers really “need” these products
▫ Is this manipulation or placing a product in the
hands of customers to better the customers’ lives?
9. Marketing cont…
• So who does a company owe responsibility to?
▫ Stockholders
▫ Customers
• AMA Code of Ethics
▫ http://www.marketingpower.com/AboutAMA/Pa
ges/Statement%20of%20Ethics.aspx
• DMA Code of Ethics
▫ http://www.dmaresponsibility.org/guidelines/
10. Human Resources
• Job description
• Recruitment/Selection of “right” candidate
• New employee orientation
• Payroll and benefits management
• Performance review documentation
• Disciplinary/training documentation
• Career Development Program Plan
• Final Paperwork/Benefit Severance/Exit
Interview
11. HR Cont…
• Ethical Dilemmas
▫ Arise when there’s a failure to plan ahead
• Should HR be at center of corporate code of
ethics as its voice of reason?
▫ Ensure ethics is a top priority
▫ Ensure leadership selection & development
▫ Ensure proper programs & policies are in place
▫ Aware of ethical issues (legislation, etc)
14. • Ford and Firestone: What went wrong?
http://www.youtube.com/watch?v=wdxiglfVpK
Q
Hinweis der Redaktion
It’s not only the organization as a whole but the subcultures within the various departments that make up the organization’s culture*When the subculture’s cultures are the same as the organization’s, this means you have a strong organizational cultureEach department faces ethical dilemmas of different kinds
What is value chain: the key functional inputs provided to transform raw materials into a delivered product or service*Research & Development: develops and creates new product designs*Manufacturing: sources the components & builds the product*Marketing: advertising – promotes the product/service*
Within the value chain’s functional areas there are line functions that support them*HRM: coordinates recruitment, training, & personnel development*Finance: internal/external accounting personnel & external auditors*IS/IT: maintains data transfer/security, email, web sites, individual hardware & software*Management: supervisory role (oversees all operational functions)Each of these functional lines represent personnel, dollars & technology – all the resources an organization commits to
R&D professionals are responsible for a company’s future growth -they create the products that recruit new customers and bring current customers back
Utilitarianism – offer the greatest good to the greatest number of peopleUniversal Ethics – actions taken out of duty and obligation rather than based on the needs of the situation
Code of Ethics: doing no harm, fostering trust, and improving customer confidence in the integrity of the marketing exchange system while establishing clear ethical values of honesty, responsibility, fairness, respect, openness, & citizenshipSo even if a company follows this ethical code, is it really ethical to convince people to buy something they don’t really need?
Standard operating procedures accountants use to govern themselves*In order to keep investors satisfied, some corporation legally defer receipts from one quarter to the next *This can get tricky of what becomes deferment versus falsifying accounts/books