Ferrell, PhD (professor and chair in the Department of Marketing, and co-director of the Center for Business Ethics and Social Issues at Colorado State University), and Victoria Nemerson (President and CEO of The Integrity Institute), of the forthcoming book, The Value of a Corporate Ethical Disaster: Managing Recognition, Prevention, Discovery, Response, & Recovery, from Thomson South-Western Press (anticipated Spring 2006). Given the recent scandals, prudent company executives should also determine what sorts of on-going ethical training initiatives are underway at their accounting firms and among suppliers, vendors, distributors, and other “intertwined” entities. Common ethical and professional standards include assumptions that decisions and behaviors are conducted honestly and that employees and managers never knowingly harm or do damage to fellow employees, stakeholders, customers, clients, or vendors by deception, misrepresentation, fraudulent report, coercion, conflict of interest, or other acrimonious acts.Too frequently, top corporate executives think that ethical scandals “couldn’t happen to us.” Those sentiments are intrinsically related to the aftermath statement, “I never thought this would happen to us.” The reality is that all of the common justifications for ignoring integrity continuity planning are based on misplaced trust in unmanaged human nature and ignoring the systemic factors that give rise to ethical disasters.Managing integrity requires strategic planning and enactment beyond hiring “good, basically moral people.” Even systematically hiring only employees with perceived high levels of morals and ethics is no sure-fire method for preventing a major scandal.
The Chernobyl Disaster: Cancer following the Accident at the Chernobyl Nuclear Power Plant.
If employees know the company’s internal procedures and policies as well as its legal and regulatory requirements, follow disciplinary policy consistently and swiftly, contact and cooperate with law enforcement (when appropriate), and review stakeholder agendas, then possibly the company may emerge gracefully from the disaster.Information technology (IT) offers many opportunities to enhance or transform business, but requires carefully orchestrated efforts between the firm’s technology and business specialists.The war over Unocal has underlined the tense relationship between the U.S. and China.Businesses must manage integrity continuity by assessing their vulnerability to ethical disasters, taking proactive measures, and preparing to react when such scandals break.Positive Psychology provides guidance to help leaders more effectively manage goals by focusing on such factors as personal values, persistence, and confidence.Major differences have existed in U.S. and European antitrust law but new regulations could have significant impact on business decisions for global companies.How do you get assertive leaders to cooperate in a group dynamic rather than compete?The deployment of AI fits into the broader umbrella of cyber risk as part of enterprise risk identification and mitigation. Such planning must go beyond compliance issues and react… That kind of phenomena can be tied to the Chernobyl Nuclear plant which in this context is seen as act off greed for good reputation building by the lead engineer.
By encouraging the latter, the engineers at the plant breached the code of conduct which states that ‘Engineers shall perform services only in areas of their competence’ (Nspe.org, 2018). Finally, management must insure that a clear and efficient disciplinary process for lapses of integrity is in place.Every employee, manager, and executive in your company should participate in ethical training programs as part of the strategic commitment to integrity continuity management.
Graziadio Business School | Copyright © 2005 Pepperdine University Medical Lessons Learned From Chernobyl Relative to Nuclear Detonations and Failed Nuclear Reactors.
All of these written ethical codes should be distributed and reinforced with all employees.Executives must demonstrate top management’s commitment to integrity as a strategic goal of the corporation. Ethical misconduct disasters constitute serious costly risks to the continuity and survival of a business. Any organization negligence is always greeted with harsh force from the management. For example, consider the scandals questioning conduct of some priests within the Roman Catholic Church.
Regular headlines reveal that breakdowns of integrity collectively cost businesses billions of dollars in litigation, fraudulent financial acts, increased costs, fines, reputation and image damage, customer/client trust, lost sales and recovery costs, and potentially land senior management in prison.
Jargin, S. (2012). This would have eliminated the chances of unrecognized faults within the controlling system channels.
Ethical misconduct disaster with your President and CEO: arrested and charged Add Remove This content was COPIED from BrainMass.com - View the original, … Criteria should include specific examples of common or routine situations as exemplars so that there are clear cut “models” of what criteria are expected to govern or guide decisions and behavior for employees regarding what is (or is not) considered consistent with the company’s expectations. Furthermore, even good, moral individuals may be influenced by reward systems, unique temptations, or unseen pressures that will affect their ethical decision-making in some situations.74 percent admitted cheating on an exam at least once in the past year;38 percent admitted shoplifting at least once in the past year;37 percent admitted that they would lie “in order to get a good job.”In addition, the “inherent ethics” of the “good moral people” that a company hires include:Integrity continuity considerations are commonly ignored by senior management, particularly at the chief executive level. In fact, the more such examples are descriptive of the types of choices and situations that employees might be expected to encounter during their work performance, the more powerfully such illustrations can serve as the basis for integrity ideals that are likely to be enacted. It is wise to note that some people are always looking for shortcuts in their quest to build reputations. In not more than five hundred decades ago, scientific adventures were a dangerous business to undertake.