Fundamentals of Management, 8th ed

Ethical compliance

is the extent to which the organization’s members follow basic

ethical (and legal) standards of behavior. We noted earlier that organizations have

increased their efforts in this area—providing training in ethics and developing

guidelines and codes of conduct, for example. These activities serve as vehicles for

legal compliance

The extent to which

an organization

complies with local,

state, federal, and

international laws

ethical compliance

The extent to which

an organization and

its members follow

basic ethical

standards of

behavior

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Part 1: An Introduction to Management

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enhancing ethical compliance. Many organizations also establish formal ethics com-

mittees, which may be asked to review proposals for new projects, to help evaluate

new hiring strategies, or to assess a new environmental protection plan. They might

also serve as a peer review panel to evaluate alleged ethical misconduct by an

employee.

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