Critical Thinking Application 12-B

Developing Organizational Policy and a Code of Ethics1

Most large companies have developed codes of ethics and strict policy stipulations regarding employee behavior. The calamities at Countrywide Mortgage, Enron, Merrill Lynch, Tyco, WorldCom, Morgan Stanley, HealthSouth, and many others have stirred even more activity in this area. The information on policy and ethics is typically disseminated to employees during orientation when they join the firm and is included in the company handbook. It may be provided in the form of rules of conduct regard- ing professional demeanor, dress, working hours, and statements on EEO and affirmative action. Guidelines for whistle-blowing or reporting problems with conduct, health, safety, sexual harassment, discrimination, use of drugs or alcohol on the job, theft, fraud, Internet usage, or other grievances also may be included. While the infor- mation in the company policies manual often serves as a firms ethics code, it may not be labeled as such.

Assignment Do research to identify a company you are familiar with and from which you can borrow the firms poli- cies and procedures handbook or retrieve it through the Internet. Write a brief description of the company you have chosen. Identify the code of ethics for employee behavior and what (if any) policy exists regarding eth- ics and employee behavior. What issues are addressed? How confident do you feel in the companys code of eth- ics? What, if any, changes would you make in the orga- nizations code of ethics? Why? Outline the changes you would make. 1. Identify the important components of the organizational code of ethics. 2. Design a plan for implementing an ethical code in a company. 3. Provide suggestions for how an organization can monitor compliance with its code of ethics.

4. Provide an outline of what the code of ethics should look like. 5. How does the company monitor the system to be sure that the policy and code of ethics were being adhered to? What suggestions would you make to the firm if supervisors were not enforcing the ethical codes (e.g., allowing unsafe behaviors to go unreported)? 6. For that company, what is the CEOs view about a code of ethics? In general, what is the role of top management to ensuring an ethical workplace?

Does the employee handbook deal with the following issues? Should it?

1. A strict no-smoking policy for all employees on or off the job and a requirement that employees should report breaches of this policy to HR.

2. Absolute rules against any Internet surfing at work that is not business related.

3. A warning that computer usage will be monitored for surfing violations and performance measurement. The company warns new hires up front that electronic performance monitoring is routine and should be expected.

4. A strict prohibition against the use of personal cell phones. Only emergency calls are allowed during work hours. A warning also is included in the handbook about the possibility of telephone monitoring by management.

5. A strong statement from the CEO that employees are expected to participate in the United Way program and that the goal is 100 percent participation.

6. A statement that all employment disputes will be resolved through a mediation and arbitration process and that this requirement is a condition of employment and continued employment.

7. A strict statement that the employer and employee have an at-will relationship and that no matter what anyone working for the company may have said, the at-will condition still stands.

8. A strict statement prohibiting any relatives of employees from working for the company.

Would you be comfortable working for an orga- nization with the policies and procedures handbook you reviewed? Generate a list of the advantages and disadvantages.