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Chapter 6

ADM 1101 Chapter Notes - Chapter 6: Influence Peddling, Categorical Imperative, Whistleblower

Course Code
ADM 1101
Kevin Petit- Frere

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Chapter 6: Management and Leadership
Statement of Values
- A description of the beliefs, principles and basic assumptions about what is desirable or
worth striving for in an organization
- Key components:
o Key stakeholder interests to be satisfied and balanced
o Emphasis on quality and/or excellence
o Efficiency
o Work climate
o Observance of codes
Codes of Conduct and Ethics
- Code of conduct: explicitly states what appropriate behaviour is by identifying what is
acceptable and unacceptable
o Enforced by an external power and authority; convey rules that tell people what
they must or must not do. Members of organizations must obey or face penalties for
failing to do so
o Key characteristics:
Imposed by others
What must be done or what must not be done
- Code of ethics: a statement of principles or values that guide behaviour by describing the
general value system within which a corporation attempts to operate in a given
o Voluntary codes of ethics suggest guidelines to follow and empower individuals to
act according to their consciences. Penalties are not imposed and writers emphasize
the qualities they think members should have.
o Key Characteristics:
Who we are
What we stand for
Guidelines or guiding principles
Types of codes
- Corporate or business enterprise
- Professional organizations
- Industry and sector
- Single issue
- Codes from national and international bodies
Criticisms of codes
- Unenforceable
- If enforced, penalties are insignificant
- Unnecessary, as most corporations already operate ethically
- Often idealistic
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- Written in meaningless generalities
- Merely to prevent government legislation
- Mere response to public criticism
Ethics Training
- Managers or outside consultants
- Online exercises
- Practical checklists and tests
o It is legal
o Benefit/cost test
o Categorical imperative
o Light of day test
o Do unto others
o Ventilation test
Conflicts of Interest
- A situation in which an individual has a private or personal interest that is sufficient to
appear to influence the objective exercise of that individual’s duties
o Three types of conflict (1) real; (2) apparent; (3) potential
- Examples:
o Self-dealing; accepting gifts or benefits; influence peddling; using employer’s
property; using confidential information; outside employment or moonlighting;
post-employment; personal conduct
Ethics audits and Consultants
- Systematic effort to discover actual or potential unethical behaviour in an organization
- Preventive and remedial purpose
- Useful in conjunction with a code of ethics
- Conducted by consultants
Ethics Officers and Ethics Committees
- Ethics officers:
o Independent manager
o Reports to the board of directors or CEO
o Reviews complaints or information from anyone in the organization or any
o Studies situation and recommends action
o Responsible for the ethics program
- Ethics committees:
o Comprising management, employees, and outside stakeholders
Ethics reporting systems and whistleblowing
- Corporations have established reporting systems so that they can become aware of issues
and concerns relating to corporate ethical conduct or irregularities (ie. Hotlines)
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find more resources at oneclass.com
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