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Chapter Six ETHICS TRAINING Visit http://wileymanagementupdates.com/ for the latest in business news stories. Copyright © 2012 John Wiley & Sons Chapter 6 Discuss the importance of organizational Learning Objectives Chapter 6, Collins: Business Ethics trust Describe the extent of ethics training nationwide Understand the shortcomings of webbased ethics training programs Develop 10 types of ethics training workshops Create business ethics scenarios for workshop discussion Administer ethics personality surveys Assess the ethics training workshop Building Trust and an Ethical Culture W. Edwards Deming stated, “Trust is mandatory for optimization of a system…Without trust, each component will protect its own immediate interests to its own long term detriment, and to the detriment of the entire system” Chapter 6, Collins: Business Ethics Building Trust and an Ethical Culture Trust eliminates psychological barriers separating employers and employees Trust creates economic benefits through enhanced individual and organizational performance Hard-earned trust can quickly disappear when violated, which can hamper organizational performance Chapter 6, Collins: Business Ethics Extent of Ethics Training Organizations may be tempted to eliminate ethics training as an extraneous expense when budgets are tight, but this is exactly when ethics training is needed most Employees who tend toward the relativistic belief that cutting ethical corners may be necessary to “save the organization” might sound heroic in the short term, but these actions can come back to haunt the organization in the long term Chapter 6, Collins: Business Ethics Who to Train Upper-level managers establish the overall ethics tone that is then filtered throughout an organization Ethics training can help organizational leaders achieve consensus on how to address difficult situations they encounter Direct supervisors have the most immediate impact on the ethics of subordinates Chapter 6, Collins: Business Ethics Web-Based Ethics Training Web-based training offers a simple method for making employees aware of the most common ethical issues Chapter 6, Collins: Business Ethics The Workshop Facilitator An ideal workshop facilitator is someone the participants trust and who has the requisite skills to create a safe learning environment Chapter 6, Collins: Business Ethics Framing the Training Workshop There is no “one-size-fits-all” ethics training program, yet there are general trends and best practices found among organizations Chapter 6, Collins: Business Ethics Ethical Culture Assessment Annually assessing the organization’s ethical performance based on its Code of Ethics offers an opportunity for employees to discuss relevant ethical issues related to work activities Exhibit 6.2 (next slide) provides a 10-step process for conducting this workshop Chapter 6, Collins: Business Ethics Exhibit 6.2: Ethics Training Options Chapter 6, Collins: Business Ethics Ethical Culture Assessment Chapter 6, Collins: Business Ethics Code of Conduct Analysis Code of conduct content: The ethics training workshop facilitator can use a game format to engage the minds of employees when educating them about Code of Conduct content Chapter 6, Collins: Business Ethics Code of Conduct Analysis Applying the Code of Conduct to Specific Situations Coca-Cola’s ethics training includes reviewing the company’s Code of Business Conduct Coca-Cola’s Code of Business Conduct, and one scenario and correct answer, appear in the “Best Practice in Use” exhibit (next slide) This format teaches employees about previous disciplinary actions taken by the organization Chapter 6, Collins: Business Ethics Code of Conduct Analysis Chapter 6, Collins: Business Ethics Code of Conduct Analysis Outcome of code of conduct violations Chapter 6, Collins: Business Ethics The facilitator can design a workshop educating employees about the types of unethical activities that have previously occurred within the organization or industry, and how the guilty person was punished Typical Behaviors Experienced The workshop facilitator can introduce employees to the most common ethical problems experienced in the industry, explore the extent to which attendees have witnessed the problem, and guide them in how best to respond to the most prominent issues Chapter 6, Collins: Business Ethics Apply the Systematic Rational Ethical Decision-Making Framework This training workshop teaches employees how to apply the systematic rational ethical decision-making framework to particular situations Insert Exhibit 6.5 Chapter 6, Collins: Business Ethics Create Business Ethics Scenarios for Discussion The most meaningful ethical issues to explore are those employees observe, experience, or hear about while employed either in their current organization or for a previous employer Insert Exhibit 6.6 Chapter 6, Collins: Business Ethics Create Business Ethics Scenarios for Discussion Chapter 6, Collins: Business Ethics Fraud and Theft Exploration The terms theft, fraud, and embezzlement are interrelated Theft refers to taking someone’s property without their permission Fraud is the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets Embezzlement is a particular type of theft and fraud whereby an employee steals money from his or her employer Chapter 6, Collins: Business Ethics Fraud and Theft Exploration Employee workshops on fraud detection are a disincentive for those considering committing a fraud and can help detect frauds as soon as they occur Insert Exhibit 6.8 Chapter 6, Collins: Business Ethics Level of Moral Development Analysis Ethics training can help employees better understand their own ethical profile One of the most important ethics measures—level of moral development— remains an elusive concept to measure Chapter 6, Collins: Business Ethics Ethics Personality Measures A variety of ethics and personality measures linked with ethical attitudes, decision-making, and behaviors can serve as the focus of an ethics training workshop: Idealism/Relativism measures whether a person tends to be an “idealist” or “relativist” when responding to an ethical dilemma Ethical Ideology measures whether a person tends to be “principled” (deontology) or “expedient” (relativism) when responding to an ethical dilemma Chapter 6, Collins: Business Ethics Ethics Personality Measures Moral Identity measures whether a person internalizes moral character traits (internalization) and projects them to others (symbolization) Moral Courage measures whether a person exercises moral principles Empathy measures a person’s emotional reaction to the experiences of another person Altruism measures whether a person engages in altruistic behaviors Chapter 6, Collins: Business Ethics Ethics Personality Measures Trust measures whether a person is willing to be vulnerable in supervisor interactions Ethical Self-Efficacy measures whether a person believes he or she can successfully perform an ethical behavior Machiavellianism measures whether a person identifies with “the ends justify the means” Chapter 6, Collins: Business Ethics Ethics Personality Measures Locus of Control measures whether a person believes she or he controls (internal), or is controlled by (external), events in life Life regard measures whether a person values living a meaningful life (framework) and whether this desire is being fulfilled (fulfillment) Chapter 6, Collins: Business Ethics Benchmark to an Ideal Employee Employees need to know in advance what managers expect of them Have each manager independently develop a list of behavioral attributes an ideal employee would possess Share these lists with other managers in small groups and combine similar items under the same heading Then present the composite profile of an ideal employee to subordinates for the purposes of self-assessment feedback Chapter 6, Collins: Business Ethics In a workshop setting, have employees individually answer the sets of questions in Exhibit 6.10 and discuss their responses in small groups Chapter 6, Collins: Business Ethics Assessing the Ethics Training Workshop Keep the assessment tool simple and short for employees and the facilitator: Were specific real-life situations addressed? Were questions raised by participants? Did the trainer serve as a coach and facilitator, rather than a lecturer? Were participants shown how to address, report, or correct ethical problems? Were the situations raised linked back to the Code of Ethics, Code of Conduct, or organizational strategy? Chapter 6, Collins: Business Ethics