Manager's Hot Seat: Whistleblowing: Code Red or Red Ink?

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Manager's Hot Seat: Whistleblowing: Code Red or Red Ink?

Today's successful managers operate in a challenging environment. Managers need to be aware of what constitutes ethics, values, the four approaches to ethical dilemmas, and how organizations promote ethics. There are three ways an organization may raise high standards$$supporting top managers and a strong ethical climate, providing ethics codes and training programs, and rewarding ethical behavior by protecting whistleblowers.

Top managers are cognizant of the fact that their organization's high ethical standards begin with them. Employees follow the example set forth by their leaders. If their leaders act in an ethical manner, they will likely do the same. Likewise, a top leader who compromises his$/$her ethics will have employees who act similarly. A code of ethics is used to clearly state top management's expectations for all employees and prohibits bribes, kickbacks, and other illegal activities. Managers must also reward good ethical behavior by not punishing whistleblowers, who are employees who report organizational misconduct to the public.