How to Implement Values Driven Management - Essay Example

?Running head: INDIVIDUAL PROJECT Individual Project Individual Project Ethical standards refers to the principles that whenadhered to promote the company’s values such fairness, trust, good behavior and kindness among others. There is no one set of standards created for all companies to follow, but each company develops their own standards that fit the organization. Ethical standards cannot be always enforceable in the company since they are more frequently defined and somehow open to interpretation. However, there are some ethical standards that are very specific for example “Every executive team member of the Expert Consulting Group (ECG) must disclose his or her financial interest in the Government Allies in the company”. Such ethical standard promotes high standards of integrity and ethical behavior for the benefit of the company instead of an individual. The ethical standards in any business create a fundamental foundation in maintaining public trust, for every ECG member. In the first situation the executive member of ECG violated professional integrity, honesty, objectivity and genuineness while serving in the company. The financial interest disclosure of any member serving as an executive in the company in Government Allies increases the integrity standards in the company’s leadership to all investors. Any person serving in the leadership roles is entitled to show uppermost level of transparency and trust. The shareholders have a lot of expectation in the leadership of the company and if that confidence is not maintained may lead to the migration of the investors. In this case there may be no confidence in the management of the ECG stock after the completion of the initial public offer (IPO) successfully and the acquisition if all executive members and their families does not disclose their financial interest. The undisclosure of the financial interest by this executive may be due the benefits she and her spouse might achieve from the acquisition without being noticed. In an organization, personal intention may affect the business, generate conflict with the stakeholders and even attract government interference. A company that lacks written code of ethics has negative reputation from external and as well internal public (Michael, 2010). Several lawsuits may also be witnessed due to company employees acting in contrary to ethics that are significant to the organization’s productivity. Professional integrity brings implicit trust of the shareholders interest and more confidence in the management of the company. In the second scenario a team of members of ECG is formed to develop a proposal and give a presentation to X in order to win the contract in Information technology consultancy. One of the members who had worked with the two current executive at X Telco may influence the results of the bids review either negatively or positively depending on the past relationship when working with them. In this situation the composition of the team to participate in the review exercise may have violated the professional relationship code of conduct. This is because the past working relationships may increase the chances to harm the reviewing results or impair the team’s professional judgment. However, in some situations it may not be completely feasible to avoid nonprofessional or social contacts between the members in the two companies. Implicit trust is perceived as being an ethical practice in the management of dual relationship in the operations of the organizations. It is supposed to be communicated very clearly down the administrative line before taking the executive roles. The policy that relates to the company’s code of ethics finds its application in this regard (Hoffman &Dawn-Marie, 2002). The code of ethics in any organization should be clearly understood by all employees irrespective of their position in the work place. To enhance this understanding, the management of the ECG has the obligation of training and writing standardized ethical policies down and passing them to all employees. The written ethical standards in the organization eliminates any possibility of conflicting interests and opinions, witch hunting, loss of reputation along with prestige and any possible government interference in the activities of the organization (Hoffman &,Dawn-Marie 2002). The code of ethics in the organization should incorporate major facets of the activities of business that include practices of sales, marketing and promotion, contracts, subcontracts and vendors, policies of purchase, hiring and firing, transfers and promotions, high perks for executives, codes of conducts for employees, security and welfare issues of employees, operational safety, pollution control and many others. It is also a requirement for the codes of ethics to address all statutory requirements that are of importance to the state in which the business operates without ambiguity. This is where issues such as non-deployment with respect to child labor, compensation for overtime, social security and medical insurance of employees, issues of tax and pollution control. Organizations within the business scope increases focus on the industry consolidation and changes in business regulations and laws. For ECG to remain responsive and competitive to the market, it requires an environment whereby there is written code of ethics all members. Businesses that apply codes of ethics modify their products and services as well as delivery channels. In order to maintain a legal compliance to written code of ethics, a business organization develops and ensures maintenance of its sound compliance system on management and integrates it to the overall structure (Michael, 2010). ECG business professionals may manage their partnerships with third party sources to ensure adequate compliance of regulations and laws applicable to different products or services. However, weaknesses in compliance of ethical systems may result to violation of the business processes and this has likelihood of causing harm to the particular company and other stakeholders (Lord, 1996). Another importance of the compliance to written code of ethics is that it ensures establishment and implementation of its compliance responsibilities (Aboody, 2008). Efficient written code of ethics is a system that results to meeting the organization’s legal requirements as well as incorporating internal policies to business processes. In an environment with best compliance systems, operations are effectively reviewed and this indicates that the company meets its ethical considerations (Michael, 2010). Written code of ethics also results to taking the right and correct action tools and necessary systems. An effective compliance to written code of ethics results to the business companies encompassing some key interdependent control elements that include: compliance program, compliance audit, compliance oversight and management board as well as an effective responsive team for customer complaints and these are very important in spearheading the organizations performance (Aboody, 2006). ECG need to seek appropriate supervision and consultation to help in decision making whenever ethical, legal and other dilemmas arises. Code of conduct is widely referred to as the standard ethical behavior expected for the organization’s behaviors on the business. It guides individuals to holding themselves to good standards of ethical behavior (Michael, 2008). Code of conduct is mainly applied with aims of basically guiding the preservation of confidential documents and information, minimizing conflicts of interest that arise in organizations and incorporating opportunities for fair business competition. Standard code of conduct is also used as a guideline in the support of decision making for the organization (Lord, 1996). It widely clarifies the company’s values and principles and provides ways for connecting them with the business standards of professional conduct. A standard conduct provides efficient guidelines for business behavior that serve as significant communication channels that reflect on the organization and its relationship with the external community. Codes of conduct also serve in providing great opportunities for the companies to develop positive public identities that can contribute to a soft regulatory environment and supportive political base. This also increases high levels of trust from the public and other business stakeholders (Michael, 2008). The implication of code of conduct in an organization is the ethical behaviors that are expected of the employees in that organization. The code of conduct facilitates for adherence to the uppermost standards of ethics in as far as the behavior of the employees in business are concerned. Basically, the codes addresses issues of expectations of abiding to the law, preservation of confidential information, conflicts of interest, corporate opportunities, issues of bribery, inside trading among others (Hoffman &Dawn-Marie, 2002). The intended application of code of conduct is a central reference and guide in the decision making process on daily routines in the organization. The code also makes important clarifications about the mission, the principles as well as the values of the organization and connecting them to standardized professional conducts. Code of conduct in the organization discloses the operations of the company and offers visible guidelines of employee behavior. A thoughtful and properly documented code of conduct is a vital communication vehicle that reveals the pledges made by the organization in regard with the maintenance of the highest values including employee commitments. The code also reflects important standards of business and the relationship of the organization to the society (Hoffman &Dawn-Marie, 2002). Properly documented code of conduct offers an opportunity for discussions regarding business ethics in order to improve on decisions of ethical dilemmas and prejudices that occur in the work place on daily basis. The codes are complementary tools to the policies, rules and standards of performance in the organization. Through these codes, responsible organizations like ECG can positively transform their identity that facilitates a supportive political as well as regulatory environment that consequently improves public and stakeholders confidence (Hoffman & Dawn-Marie, 2002). In conclusion the compliance officer is on great task to review the existing ethical standards, make relevant research on the legal perspective and develop a comprehensive code of conduct for ECG. As much the company has successfully emerged to the top with the existence of the current ethical standards much need to done to maintain this standard and create more confidence and attract more investor. In business accountability, transparency and integrity are the main pillars to drive to greater heights and stability. References Hoffman, W. M. & Dawn-Marie, D., (2002). Ethics Matters: How to Implement Values-Driven Management, p. 77. Read More