Ethical_System_of_Inquiry

Ethical System of Inquiry Latasha Brown University of Phoenix PHL 323: Ethics in Management Mary Carter September 29, 2008 "Performance with integrity is what we are about.” (Code of Business: Ethics and Conduct, 2007). In developing a system of inquiry, I chose to use the ethics code for H&R Block. H&R Block is committed to constantly achieving the highest level of business ethics and conducting business in an honest and forthright manner. (Code of Business: Ethics and Conduct, 2007). Since its original establishment, the Code of Business Ethics and Conduct has provided H&R Block employees guidance for maintaining the company’s core values and beliefs. Although the company and industry has undergone significant change, the standards and values have remained constant. The company’s values are Client Focused, Excellence, Integrity, Respect and Teamwork. The “code” is established to show how to conduct business in a legal and ethical manner while upholding company values. The code of ethics for H&R Block is very extensive; however, there are seven main areas of focus. The areas of focus are an introduction to the code, compliance and enforcement, our clients, our people and environment, conflicts of interest, our assets and fair business practices. Through these seven areas, I have developed a system of inquiry to be used in evaluating decision-making, problem solving, and behavior in a business setting. Introduction to Code The introduction must clearly identify the purpose of the code. The purpose of the code is to support the company’s commitment to ethical business conduct and provide uniformity in our approach to business ethics issues. The code is critical to the company’s reputation and continued success. The code is to be followed by all associates (including senior management), officers, stakeholders, and members of the Board of Directors and any subsidiary companies. In addition, it will be expected that any suppliers, vendors or business partners will also support the code. To further reiterate the importance of the code, the code will be a condition of employment for all associates. This code will ultimately serve as a guide to help you make decisions, solve problems, and determine how you should behave while conducting business. Compliance and Enforcement In order to have a code, there must be a system for monitoring the effectiveness and enforcing the actual policies and procedures contained herein. A committee will be assigned to oversee the code of ethics and a review team will be in place to ensure compliance. Each associate will be required to read and sign a certificate of acknowledgement upon their initial hiring. Each associate will also be requested to initial annually, or as required, any updates or changes to the code. The associate will also be given opportunity to address any concerns with the code prior to signing the acknowledgement form. The review committee will address the concerns. Each associate will bear equal responsibility in enforcing the code. It will be your responsibility to report any code violations to the audit and review committees. A system will be in place for these reports to be made anonymously. The associate will also be protected from any retaliation as a result of the report. All associates, regardless of their position, who violate the code or other company policies, are subject to discipline. This discipline may include termination of employment. Certain violations may also result in criminal penalties and civil judgments against associates. Our Clients Due to the nature of the business, clients trust us with extremely personal, financial information. Therefore, we must exercise caution when handling all client information and documents. Protecting client information is essential to business and is also required by the privacy laws of the state. Everyone with any level of access to client information is responsible for upholding this code. Intentional misuse or mishandling of client information can result in civil and criminal penalties. Likewise, if you encounter a client trying to use our services for unlawful purposes, you must never assist that person. Lastly, we must not solicit gifts or gratuities from our clients. We must also be careful not to solicit outside services to our clients. Our People and Environment As a company, we must also commit ourselves to our staff. This means providing them with a work environment that is discrimination and harassment free. They must also be provided a safe and healthy workplace. In addition, we will demand that associates treat one another with dignity and respect. Those in leadership should be role models for this type of behavior. It is expected that associates’ information be treated with the same confidentiality as client information. In relation to the environment, we will comply with all safety and environment codes and laws. We will protect the environment in any way possible by minimizing adverse affects of our daily operations. This also means that we will not allow illegal drugs, weapons, or alcohol on our property. It will be a collective effort to maintain these safe and healthy conditions. Conflicts of Interest There must be no conflicts between your obligations to the company and your activities in your free time. While we understand and respect your right to take on justifiable business, and other opportunities outside of your position with the company, you must avoid any form of a conflict which could negatively impact you or the company. You must always consider how your activities might appear and avoid any perception of a conflict of interest. In the event of an apparent conflict of interest, you must immediately disclose it in writing to the audit and review committee. It will then be decided on an individual basis whether it is truly a conflict and any remedy if needed. Our Assets Company’s assets may be physical items such as equipment, materials and computers. They may also be intangible items such as proprietary information or trade secrets. Every associate must aid in protecting the company’s assets. The misuse or damage of company assets will simply not be tolerated. In addition, company resources (computers, printers, phones, fax machines and mail services) must not be used for personal reasons. Lastly, one must never use the company’s assets to promote products and services not offered by the company itself. Fair Business Practices The company is held to the fair competition laws in the United States and other countries when conducting business. These laws protect consumers from anti-competitive activities. It also promotes fairness when dealing with competitors and suppliers. The laws strictly forbid behavior that unfairly eliminates competitors. This includes unfair price setting as well as making negative statements towards the competitors. The laws also prevent us from accepting gifts, gratuities or improper payments in lieu of business services. Decision Making You are ultimately responsible for your own decisions. You should never take any action that is in violation of the Code even if directed to do so by a manager or because such action may provide a financial benefit to you or the company. You will be subject to discipline in either case. The role of employees in the organization and their ethical responsibilities must be identified and the objectives should be clarified before decision making. Employees, middle managers and executives have designated roles in the process. For example most of the middle managers can be considered as specialists for the workplace in their departments. Objectives can be derived from many sources. The manager should develop a measurable criterion from the code of ethics to understand how well these objectives are being met. These measures can be time periods for the improvement of the awareness of ethical responsibilities. Then the manager should seek alternatives that fulfill as many of the objectives as possible and determine if these alternatives fit to the objectives in ethical conduct. While doing this, he/she must be able to explain the reasons of the relations of alternatives and objectives to other employees. The manager should choose the alternative that satisfies the majority of the organization. After the implementation the manager should listen to the complaints and feedbacks and monitor the impacts in the workplace to develop this alternative. Employees should always be encouraged to communicate the matters of mutual interest to the management. Problem Solving The managers should first figure out what kind of ethical problems does the organization face and what prevents them to solve these issues. Sometimes they may have lack of information to define the problem precisely. They must state the reasons why these issues are considered as ethical problems. While doing these they should refer to the company policy and match the issue that contradicts to the code of ethics. After preparing the problem statement they must review it and discuss it with the employees whose job descriptions and specializations create responsibility and who have special expertise and experience about the issue. During the discussion the committee should figure out whether the issue is the real problem or a symptom of a larger one. It is always more feasible and less time consuming to go directly to the main source of issues. If there were similar events that happened in the past and were successfully solved, they should refer to these solutions. They have to determine different ethical dimensions and the conditions that solutions should satisfy. During this stage they should try to forecast the possible effects of the solution method. For example, if the problem is related to the organizational integrity, they need to determine whether the solution will result in the mutual benefit of employees and the company at the same time. Behavior The managers should be aware of the individual morals and values of employees coming from different backgrounds and identify their sources. Then they should analyze the relationship between these values and behaviors at personal and professional levels so that they can understand the patterns of specific reasoning. Further training may be necessary to integrate some of the employees to the code of ethics and help them to understand the importance of communication. It is important to recognize truth, bias, or prejudice in their opinions. Managers should also recognize the changing ethics and organizational ground rules and understand the relationship between ground rule dynamics and the continuous improvement process of the ethical conduct. The system of inquiry must focus on interpersonal skills rather then personal expertise and knowledge. Measure of Company Progress The measure of company progress will vary in each area of development. In decision making, as noted earlier, there should be time periods for the improvement of the awareness of ethical responsibilities. At the end of this time period, the manager should review whether or not objectives for improving ethical responsibilities were met. Review of the objectives met could be determined through observation (both managerial and employee) and the amount of complaints received (or in some cases perhaps not received) from customers or others involved in the business. To measure the effectiveness of problem solving, managers and employees who take responsibility of the issues at hand can revisit the issues after an agreed amount of time. As noted, the committee should figure out whether the issue is the real problem or a symptom of a larger one. Depending on the issues the company faces, reviewing the problem after the set amount of time should result in either the eradication of the problem entirely, or suggestions for improvement and permanent solutions for the future. Unlike decision making and problem solving, the behavioral area will be much harder to determine company progression. While the manager should be aware of each employee’s morals and values, the manager may be too busy to witness behavior on an every day basis. In this manner, employee behavior should initially be gauged with testing to verify the way an employee may potentially act in stressful situations and ethical dilemmas. Measure of progression can then be based through footage from cameras which can be installed to record employee behavior. Confidential programs can also be set into action which would allow managers to receive feedback from employees on the actions of other employee’s. Using the H&R Block’s code of ethics, I have developed a system of inquiry to be used in evaluating decision-making, problem solving, and behavior in a business setting. This basic system of inquiry is a general formation which can be applied to virtually any corporation; however more specific adjustments may be required depending on the company, the operations, and the employees. As with any changes to be made within a company, the most important aspect to consider is how the changes will be implemented and to develop a realistic plan to adjust to any “hiccups” which may occur. In the case of H&R Block, continual improvements and revisions in respect to their code of ethics have helped keep them at the forefront of a trustworthy and ethical business operation. References: Code of Business: Ethics and Conduct. 2007. Retrieved September 27, 2008 From:www.hrblock.com/company/investor/gov_guide/code_of_ethics.pdf