Chapter 2 and 3 Essay Example

code of ethics can be a problem because you end up making some of the mistakes that Enron had made (Bateman/Snell 2011, pg. 59). A Code of Ethics is important on many levels. It sets up the character of the company from the top of management down to the bottom of the company.

An effective Code of Ethics establishes the ethical expectations for employees and management alike, and sets up ethics so that it will be enforced properly and employees of the company will know the consequences of their actions.

* Some companies are unwilling to take an ethical stand that may impose financial costs because some of these ethical problems that people cause can cost the company millions or even billions of dollars so the company is unwilling to forgo revenue just because someone is unethical (Bateman/Snell 2011, pg. 9).

* Consideration of ethics solely as a legal issue or a public relations tool can be a problem because a company needs to take an internal look at itself and needs to see how ethics can affect its day to day activities by being enforced every day (Bateman/Snell 2011, pg. 59).

* Lack of clear procedures for handling ethical problems: Some companies have not established a good Code of Ethics that would clearly show the consequences of their actions and their responsibilities as an employee (Bateman/Snell 2011, pg. 59). Responsiveness to the demands of shareholders at the expense of other constituencies (Bateman/Snell 2011, pg. 59). This can be bad because it shows that the company is just trying to look out for the bottom line (money) rather than considering the overall health of the company.

3. List the six

components that an Effective Ethics Program will include. The six components to making an ethics code effective are as follows.

* Involve those who have to live with the code in writing it (Bateman/Snell 2011, pg. 61).

* Focus on real-life situations that employees can relate to (Bateman/Snell 2011, pg. 1).

* Keep it short and simple, so it is easy to understand and remember (Bateman/Snell 2011, pg. 61).

* Write about values and shared beliefs that are important and that people can really believe in (Bateman/Snell 2011, pg. 61).

* Set the tone at the top, having executives talk about and live up to the statements (Bateman/Snell 2011, pg. 61).

* Establish statements that don’t differ from reality this can make your statement a joke to employees (Bateman/Snell 2011, pg. 61). References Bateman, Thomas S and Snell, Scott A (2011). M: Management, second edition. New York: The McGraw – Hill Companies.