Fundamentals of Management, 8th ed



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44

Part 1: An Introduction to Management

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what will not be acceptable behavior. Some companies have also started offering employ-

ees training in how to cope with ethical dilemmas. At Boeing, for example, line managers

lead training sessions for other employees, and the company has an ethics committee

that reports directly to the board of directors. The training sessions involve discussions

of different ethical dilemmas that employees might face and how managers might handle

those dilemmas. Chemical Bank, Halliburton, and Xerox also have ethics training pro-

grams for their managers. Still, issues continue to arise. For instance, one recent study

found an increase in the number of employees who called in sick when they were not,

in fact, ill but just wanted to have a day off.

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Organizations are also making greater efforts to formalize their ethical standards.



Some, such as General Mills and Johnson & Johnson, have prepared guidelines that

detail how employees are to treat suppliers, customers, competitors, and other constitu-

ents. Others, such as Whirlpool, Texas Instruments, and Hewlett-Packard, have devel-

oped formal



codes of ethics

—written statements of the values and ethical standards

that guide the firms’ actions. Of course, firms must adhere to such codes if they are to

be of value. In one now-infamous case, Enron’s board of directors voted to set aside the

firm’s code of ethics to implement a business plan that was in violation of that code.

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Of course, no code, guideline, or training program can truly substitute for the quality



of an individual’s personal judgment about what is right behavior and what is wrong

behavior in a particular situation. Such devices may prescribe what people should do,

but they often fail to help people understand and live with the consequences of their

choices. Making ethical choices may lead to very unpleasant outcomes—firing, rejection

by colleagues, and the forfeiture of monetary gain, to name a few. Thus, managers must

be prepared to confront their own conscience and weigh the options available when

making difficult ethical decisions.


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