Discuss at least three ways that an organization can promote ethics.
What will be an ideal response?
There are several ways an organization may promote high ethical standards on the job, as follows:
Create a strong ethical climate: An ethical climate represents employees’ perceptions about the extent to which work environments support ethical behavior. It is important for managers to foster ethical climates because they significantly affect the frequency of ethical behavior.
Screen prospective employees: Companies try to screen out dishonest, irresponsible employees by checking applicants’ résumés and references. Some also use personality tests and integrity testing to identify potentially dishonest people.
Institute an ethics code and training program: A code of ethics consists of a formal written set of ethical standards guiding an organization’s actions. Most codes offer guidance on how to treat customers, suppliers, competitors, and other stakeholders. The purpose is to clearly state top management’s expectations for all employees.
Reward ethical behavior and protect whistle-blowers: It’s not enough to simply punish bad behavior; managers must also reward good ethical behavior, as in encouraging (or at least not discouraging) whistle-blowers. A whistle-blower is an employee who reports organizational misconduct to the public, such as health and safety matters, waste, corruption, or overcharging of customers.
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Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn's May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit$5,200 Outstanding checks$4,600 Bank service fees, not yet recorded by company$25 A NSF check from a customer, not yet recorded by the company$600 The adjusted cash balance should be:
A. $21,000 B. $16,400 C. $16,425 D. $11,200 E. $17,000
Greg works for Geneva Steel Corporation. Greg's duties include managing the overall processes for the company and transforming the steel resources into goods. Which department would Greg most likely work in?
A. Accounting B. CIO C. Operations management D. Marketing
Which of the following metrics represents an unfilled customer order for a product that is out of stock?
A. Back order B. Inventory turnover C. Inventory cycle time D. Customer order cycle time
Connor Publishing's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share. What is its effective annual (not nominal) rate of return?
A. 6.62% B. 6.82% C. 7.03% D. 7.25% E. 7.47%