HARVARD BUSINESS REVIEW ON CORPORATE ETHICS. Reviewed By: ARCHANA YADAV RAM SINGH. INTRODUCTION.
LYNN SHARP PAINE: She is John G . McLean Professor of Business Administration at the Harvard Business School.
- Joseph L. Badaracco Jr.
The quiet moral leaders focuses on small thing, careful moves, controlled and measured efforts. The quiet approach to leadership is easy to misunderstood and mock. It doesn't inspire and thrill. In contrast to Heroic leadership, quiet leadership doesn’t show us the heights that human spirit can reach. The vast majority of difficult human problems are not solved by the dramatic efforts of people at the top but the constant striving of people working far from the limelight.
- Laura L. Nash
The author introduced a procedure to test pragmaticallythe ethical content and human fallout of everyday decisions in business and other organizational settings. “Twelve Questions for Examining the Ethics of a Business Decision” poses the 12 Questions.
The twelve questions are a way to articulate an idea of the responsibilities involved and to lay them open for examination.
8. Can you discuss the problem with the affected parties before you make your decision?
9. Are you confident that your position will be as valid over a long period of time as it seems now?
10. Could you disclose without qualm your decision or action to your boss, your CEO, the Board of Directors, your family, society as a whole?
11. What is the symbolic potential of your action if understood? If misunderstood?
12. Under what conditions would you allow exceptions to your stand?
The situation for testing business ethics remain complex. But by avoiding theoretical enquiry and limiting the expectations of corporate goodness to a few rules for social behaviour that are based on common sense, we can develop an ethic that is appropriate to the language, ideology and institutional dynamics of business decision- making and consensus.
- Saul W. Gellerman
The author explores the numerous rationalizations that lead to unethical behaviour. He offers practical suggestions to help ensure the preservation of ethical propriety; establish clear ethical guidelines for all employees; stress formally and regularly that loyalty of the company does not excuse acts that jeopardize its good name; teach managers, “When in doubt, don’t”; have company watchdogs to sniff out possible misdeeds; raise the frequency and unpredictability of audits and spot checks; when you detect a trespass, make the punishment quick, meaningful and public. Above all, listen to your own moral voice. Chances are it’s there saying “don’t”.
A good way to avoid management oversights is to subject the control mechanisms themselves to periodic surprise audit. The focus should be to make sure that internal audits and control are functioning as planned. In the end, it is up to the top management to send clear and pragmatic message to all employees that good ethics is still the foundation of good business.
- Kenneth R. Andrews
The author argues that ethical failure are not only an individual’ fault but that are management problem too.
CEOs, directors, and other senior executives can readily raise their organizations ethical standard- once they make up their mind to do so.
To the author, business ethics is a challenge with three parts:
- Lynn Sharp Paine
These programs are designed by the corporate counsel and the Goal of these program is to prevent, detect and punish legal violations. Such programs tend to emphasize the prevention of unlawful conduct, primarily by increasing surveillance and control and by imposing penalties for wrongdoers.
A compliance approach to ethics overemphasizes the threat of detection and punishment in order to channel behaviour in lawful directions.
It combines a concern for the law with an emphasis on managerial responsibility for ethical behaviour. While integrity strategy will differ in design and scope, all strive to define companies guiding values, aspirations and patterns of thoughts and conduct. When integrated into the day-to-day operations of a company, such strategies can help prevent damaging ethical lapses, while tapping into powerful human impulses for moral thought and action.
While compliance is rooted in avoiding legal sanctions, organizational integrity is based on the concept of self- governance in accordance with the set of guiding principles.
Cost of settlement: $60 million
- Thomas Donaldson
Companies must help managers distinguish between practices that are merely different and those that are wrong. When it come to shaping ethical behaviour, companies must be guided by three principles:
Conflict of Relative Development:
In this type of conflict, ethical standards conflict because of the countries different levels of economic development. As economic development in a developing country improve, the incidence of that sort of conflict usually decreases.
Conflict of Cultural Tradition:
This kind of conflict is due to strongly held religious and cultural beliefs that differs between countries and any increase in the country’s level of economic development which is quite high is not likely to change rules.
Ex – Saudi Arabia does not allow women to work as corporate manager, instead women can work only in few profession such as education and health care. The prohibition stems from strong held religious and cultural beliefs.
How To Resolve Conflict of Relative Development ?
To resolve this conflict manger must ask the question would the practice acceptable at home if my country were in similar stage of development.
How To Resolve Conflict of Cultural Tradition:
Manager should deem a practice permissible only if they can answer “no” to both of the following questions
Ex- Japanese gift giving
- Joseph L. Badaracco Jr.
Peter Adario, another central figure in the book, is a mid-level manager caught in a situation where there is a conflict between his personal values and the professional obligations he has as employee/manager dedicated to serve the best interest of his employer. This type of conflict occurs on a monthly, if not weekly basis for many managers.
At a personal level, Dr. Sakiz faced a version of the question,
To resolve their toughest business challenges, executives need to refocus on their core values. Self inquiry must lead to shrewd, persuasive and self confident action if it is to be an effective tool. Managers need to determine if their ethical vision will be supported by their coworkers and employees .To succeed top level executives must negotiate their ethical vision with share holders, customers, and employees.
- Bowen H. McCoy