Presentation on theme: "Team 12 Business Ethics A Chief Ethics Officer? A Chief Ethics Officer for Microsoft?"— Presentation transcript:
Team 12 Business Ethics A Chief Ethics Officer? A Chief Ethics Officer for Microsoft?
Business Ethics Roadmap Role of Chief Ethics Officer Pros and Cons of Chief Ethics Officers Can ethical standards be imposed top down? Chief Ethics Officer – Fad or Here to Stay?
Business Ethics Chief Ethics Officer – What do they do? Foster and maintain ethical behaviour within corporations Handle complaints (ethical dilemmas and associated problems) Legal compliance “Navigate the grey space that is above the law” – Megan Barry, Former Chief Ethics Officer, Nortel
Business Ethics Pros and Cons of a Chief Ethics Officer Time pressures on CEO Specific “expertise” Independence Internal Ombudsman Internal Sounding Board Systematises ethical practice Positive signal (market/internal) Costs vs Benefits Is it necessary? Bad signal to the market? Responsibility can’t be delegated Potential Abdication Window Dressing PROSCONS
Business Ethics Would a CE thics O reduce the level of unethical behaviour? HBS Study on performance of ethics based businesses – 756% increase in net income!!!!! But is a CEO the best way to go? Can help decision making where ethical dilemmas exist Advantages over non-executive directors – specific expertise, daily contact with the organisation Very useful as part of a wider culture change Will not address the issues around direct fraud / theft – Enron etc. James Hardie Test – would a Chief Ethics Officer have made a difference in this situation?
Business Ethics Can ethical standards be imposed top down? Equivalent to culture shaping from the top – the 3 C’s – Culture, Control and Consequences Walk the Talk / Set the Tone – Principled Leadership Provides a set of Principles that can guide actions (Grace / Cohen 1998) but for application to specific situations you need it embedded in culture to support individual moral decision-making. Needs to be supported by formal organisational processes – HR practices (Employment decisions, Promotion decisions, Disciplinary decisions) Needs to be congruent with other functions in the organisation When the chips are down…real test
Business Ethics Latest fad? Is it a fad or part of an evolutionary process in business? Macro trends enforcing need for CEO - Shareholder activism (CALPERS) - Regulatory compliance (Sarbanes-Oxley) - Globalization (cross-cultural ethical systems) Practical considerations that may limit it to a fad - Contemporaneous political considerations (Spitzer et al) - Requires a skilled and capable individual - Role could be ambiguous and create unnecessary bureaucracy Efficacy