CORPORATE ETHICS TRAINING PROGRAMS Developments In Business Simulation & Experiential Learning, Volume 24, 1997 CORPORATE ETHICS TRAINING PROGRAMS Bahaudin G. Mujtaba, Nova Southeastern University INTRODUCTION Ethics establishes the required rules and standards that govern the moral behavior of individuals or groups. It also distinguishes between right and wrong conducts. It involves honest consideration to underlying motive, to possible potential harm, and to congruency with established values and rules. Ethics is a branch of philosophy that theoretically, logically, and rationally determines right from wrong, good from bad, moral from immoral, and just from unjust actions, conducts, and behavior. Applied ethics refers to moral conclusions based on rules, standards, codes of ethics, and models that help guide our decisions. Creating an Ethics Program Companies need a framework, which their associates can use to make decisions that are aligned with their company’s mission and values. A mission or vision statement basically describes the purpose for the existence of the company and accomplishing it is usually a never-ending process. This statement also determines things that the company values and stands for in the society in which it operates. Values are our core beliefs or desires that guide or motivate our attitudes and actions such as honesty, integrity, and fairness. Some people value honesty and some value dishonesty, which can be considered as one of their values. Values can and may change over time as evidenced by the data and the priorities we put on things today compared to forty or fifty years ago. Also people from different cultures, backgrounds and societies may have different values which guide their decisions. This is why it is important that each company has clear values that are communicated to its associates. Majority of the population would associate the word “honesty” and “integrity” with moral behavior. One needs to remember that honesty applies to all situations and not just coworkers and company superiors. Honesty means openness to superiors, coworkers, customers, basically all human beings we come in contact with, and most importantly to oneself. Gandhi said we should be honest in all departments of life and not just here and there because partial honesty does not work. So, the words honesty and integrity can nominally be described by all of the following adjectives: honest, inspiring, integrity, promise-keeping, loyalty, fair-minded, cooperative, caring for others, respect for others, determined, responsible citizenship, pursuit of excellence, accountability, and universal social responsibility like Gandhi and Mother Teresa. Guidelines For Facilitators The information on ethical issues should be designed to help participants become aware of their personal and professional behavior in both society in general and in their work setting. Most of the cases and exercises should be designed to stimulate participant’s thinking and sharing of different viewpoints. As a trainer and/or facilitator, one should acknowledge participants various viewpoints and decide how much time to allow for each discussion. Some cases and exercises may take more or less time depending on the participant’s background and interests. It is important to realize that there may not always be one right answer to each dilemma, however, as trainers and facilitators it is our responsibility to provide an environment for all participants to share their ideas and feelings. It is important to encourage sharing of ideas and feelings, but it is even more important to assure participant’s that their ideas and emotions would be totally confidential and would not get out of the four walls of the conference room. It is also 130 Developments In Business Simulation & Experiential Learning, Volume 24, 1997 useful to understand everyone’s point of view from their perspective. Facilitators should be more supportive than judgmental in order to encourage participation. Trainers should also make it a point to remind the audience that they should not be afraid to say, “they are not sure where they stand on certain issues”. Participants might be at the workshop for different reasons. Some might be there for self-development purpose, while others might be there because their organization requires them to attend. Those sent by their organizations may feel as though they were sent because someone thought their ethical values are harmful to the organization and this is why they are here. So, it is important to mention that we are all here to become aware of our personal ethics, values, and to see how they can help us personally as well as professionally to make educated decisions in our society. As a facilitator or trainer, one should bring current cases or clippings from daily newspapers and journals because they are the best tools for practical learning and application of ethics. Certain companies and individuals have been on the news and radio that are examples of conducts that can destroy the image of the person and/or even the company. In some cases the importance of money and profits became greater than trying to do the right thing. This has been shown by the Sears Automotive case, where the mechanics were charging people for unneeded work to increase their volume for meeting or exceeding quotas. So, leaders and executives should look at their reward systems from all aspects, including the motivation and incentives it provides for accomplishing the results. Another example of this would be the Bausch and Lomb’s managers and executives who inflated their sales volume of Ray-Ban sunglasses to meet set performance standards or targeted goals. They were sending a large supply of these glasses to customers who did not need them. Some of those customers were sent two years of supplies despite the fact that they did not ask for them. Training workshops should be designed to explain ethical theories and their application to the current environment of business and it should be industry specific. The participants should become knowledgeable about ethical issues and should have a model to follow in order to resolve ethical issues. It is becoming increasingly important to promote ethical awareness and moral behavior in our changing world of business because even a single decision can have a major impact as shown by the Chernobyl disaster where thousand of people were affected worldwide. Summary To determine if a decision is ethical or not, one can use the following questions as a guideline. If any of the answers are “No”, then the decision may need further consideration. Is it honest? Is it aligned with company policies and codes? Is it legal? Is it aligned with my own personal values? Does it harm anyone? Are the benefits greater than cost? Who is affected by it and can it be justified? Does it violate human rights? Is everyone being treated equally? In a perfect world, would there be better alternatives? Would I disclose this decision without hesitation to the media, my family and friends, and to my coworkers and superiors? Will I feel good about myself? Companies can also emphasize Kant’s Categorical Imperative also called the “supreme principle of morals” at the individual level to filter out immoral decisions. Kant’s Categorical imperative is the universal moral rule in which we command ourselves to abide and follow. It states that “act only on the maxim that you can at the same time will that it should become a universal law.” According to Immanuel Kant, an action is moral if: a) it can be suggested to being made consistently universal. b) it derives and respects the autonomy of human beings; and c) it respects rational beings as ends in themselves. 131 Table of Contents Volume 24, 1997 Incorporating Computer Telephony into the MIS Course A Learner Oriented Infrastructure for videoconferencing Based Distance Education Courses The Identification of Temporally Related Structural Elements of the Experiential Component of Electronic Spreadsheet Tasks Does Involvement Influence Learning from Simulation Participation? Some Relationships with Helpfulness and Performance Outcomes Musings on Business Garne Performance Evaluation Performance on a TE Simulation: What does it represent? The Business Policy Game: An International Simulation - An Assessment Tool Students in Free Enterprise as Experiential Learning The Role of Computer Models in Wargames: A Practitioner's view Using Focus Groups as a Tool to Research Learning: A Demonstration and a Discussion Using Medical Simulations to Teach Multi-Cultural Diversity Using the World Game to Internationalize International Exchange Game Community Services Needs Assessment: An Innovative Approach Introducing Students to Potential Total Quality Management Ethical Dilemmas Privacy in the Workplace: A Situational Analysis Antecedents of Learning in Simulations Demonstrating the Learning Effectiveness of Simulation: Where we are and Where we need to go The Use of Computer Simulations as a Pedagogical Aid in Teaching Management Information Systems Evaluating Simulation Learning in a Distant Learning Instructional Model Financial Engineering of Global Investments The Labor History Game: Playing with the Past Perks Participation Assessing Negotiator's Proficiency with a Negotiation role-play The Art of Negotiating Enhancing Learning and Employee Development through the Assessment of Learning Pedagogy Preferences across selected Dimensions of Culture: A Preliminary Investigation Cooperative Learning: What are we Learning? Effective Use of Mastery Based Experiential learning in a Project Course to improve skills in system analysis and Design Simulations and Learning: Can we prove a relationship? (Seminar) Predicting and Reviewing NYSE Stock Prices by use of Basic Statistical Analysis and Logic Toy Car Depreciation Exercise ABSEL as Home Community: An Interactive Exploration Service Learning: Linking Academic Study to Community Development and Business Enhancement Ability of Efficient Evaluation of Knowledge-Based Management Strategies Corporate Ethics Training Programs Modeling Attributes in Demand Functions of Computerized Business Simulations: An Extension of Teach's Gravity Flow Algorithm Expert Systems Combined with Neutral Networks: Tools to Benefit the Marketing Researcher Computer Game Design: New Directions for Intercultural Simulation Game Designers Consistency in Simulation Performance over Time and Across Simulation Games The Impact of an Artificial Market Leader on Simulation Competitor's Strategies Business Plans, Case Studies, and Total Enterprise Simulations: A Natural Co-existence An Exploration into the Non-Use of Business Simulations The Market Game: Interactive Learning Through Market Simulation Plotting Brand Trajectories with the COMPLETE PPM package: A Market Segmentation Analysis and Positioning Tool Me and Mine Inc: An Exercise in Management Theory Learning to Differentiate Leadership from Managerial Position Business Ethics Survey: A Perspective from the Retail Industry Experiential Learning in Demand Analysis for an Agricultural Commodity Marketing on the Internet: A Pedagogical Exercise College Students Need Simple Computer Simulations, Especially for International Business Courses An Analysis of Student Attitudes, Performance, and Strategies in a Simulation Competition Based on a Controlled Product-Market-Entry Game Structure The Crystal Enterprise: Application of a Non-Computerized Simulation Model in a Process of Organizational Change Threshold: A Windows-Based Behaviorally Oriented Total Enterprise Simulation Coaching Business Game Teams Using a Decision Variable Optimizer Rock and Roll is here to Stay: Enhancing Experiential Pedagogy with Musical Exercises An Example of Business Process Analysis Simulation for Customer Software Support The Use of Business Gaming in Hong Kong Academic Institutions Using the Integrative International Simulation INTOPIA Mark 2000 in a Concentrated MBA Curriculum A Group Experience as an Integrated Part of the Core Management Course Empowered Learning in the Classroom The Inter-Group Interaction: An Innovative Approach to Cooperative Learning Courses that Utilize Student Team: An Approach to enhancing their Effectiveness Thoughts about the Measurement of Learning: The Case for Guided Learning and Associated Measurement Issues Measuring Student Learning Using Business Simulations: A Theory Based Perspective On the Use of PC Fingame in an Undergraduate Finance Course How Managers get Things Done: A Virtual Soundbite Internet Experiential learning in the Principals of Marketing Classroom: A Pedagogical Approach Current Student Perceptions Relative to Business Simulations Beyond Capitalism: Designing Business Policy and Social Justice The Use of Boards of Directors to Evaluate Reports and Presentations in an Undergraduate Business Policy Course Beacon Lumber: An Experiential Introduction to Financial Accounting The Application of Organizational Motivation Principles: The Experiential Business Simulation Motus Manufacturing Avoiding a Bogey: Grading Case Discussions Scientifically Communicating Consumer Behavior II: A Modified Exercise Using Personal Consumption Journals in Condensed Courses Designing Instruments for Assessing the Effectiveness of Simulations, (Seminar) 360º Performance Feedback: Appraisal vs. Assessment The Cafeteria Approach to Managing an Academic Career: Remaining Non-Perishable while Doing Your Own Thing An Experiential Exercise Related to Person-Organization Fit and it's Consequences For Today's Dynamic and Changing World, Business Simulations need to be expanded to encompass Much Greater Complexity: A Demonstration The Incident Process: A Case in Reverse Contextually-Anchored Business Simulations The Energy Factor: Building Motivation in the Simulation Gaming Environment The Design of an Internet Game