Manager's Hot Seat: Keep to the Code

In todays challenging business environment, with demanding customers who want better products and services at lower prices; impatient stockholders who want higher stock prices every quarter; aggressive vendors who want to sell you more of everything; and cut-throat competitors who want to steal your customers, holding on to your promise to run an ethical business and to do the right thing for all your stakeholders can be very challenging.

As the following video describes, doing the right thing in business, as in life, is not always easy. In a meeting with two employees, the director of sales discovers her team has been using unethical practices while trying to increase sales. What is her response to this situation? What would you do differently?

1.After talking with Justin and Neil about their business behavior, Kimberly says she needs to hold a code of ethics seminar for her team. Which of the following statements describes a well-written code of ethics?

Multiple Choice

• All these statements describe a well-written code of ethics.
• It acts as the organizations value statement.
• It establishes a detailed guide to acceptable behavior.
• It documents punishment for ethics violations.
• It specifies policies for behavior in certain situations.

2. What does Neil mean when he says hes not above working in the gray?

Multiple Choice

• Hes motivated to see how pop-up restaurants can bring in new business.
• Hes happy to see Justin use his family connections to get ahead in the marketing department.
• Hes too old and successful to try something new.
• Hes interested in learning how new technologies can increase sales.
• Hes okay with giving certain customers freebies or special treatment in order to make a sale.

3.Which of the following strategies would represent a formal commitment by Independence Materials management to an organizational ethics program?

Multiple Choice

• providing free Super Bowl tickets to a top customer
• setting up fake social media accounts to track local competitors
• promoting the CEOs nephew to a senior marketing position
• hiring an ethics officer
• publicizing the companys donations to a local homeless shelter

4. According to the text, once an organization establishes a code of ethics, what should be the next stage in the process?

Multiple Choice

• Monitor ethical behavior as the organization grows.
• Offer extensive training for every member of the organization.
• Promote the organizations commitment to ethical behavior.
• Hire an ethics officer from outside the organization.
• Reward the ethical behavior demonstrated by employees.