MP 5a Ethics Responsibility

							    CE 00317 - 2

    Management and Planning

    Diane Bishton – K229
    (d.k.bishton@staffs.ac.uk)

    Ethics and Business Responsibility

1
     Introduction
    In earlier discussion on Stakeholders,

    you have seen that along with major Stakeholders
      in a business, we can all - including peoples in
      other parts of the world - be thought of as at least
      minor Stakeholders.




2
     In this lecture
    We will
    Review major aspects of Ethics (from a business &
      professional’s point-of-view) & consider some
      business practices considered to be ‘unethical’
    Introduce the use of Codes of Practice ( examples
      from ACM/IEEE & BCS included for your further
      information)
    Consider personal ethics, professional
      responsibility & corporate social responsibility
    Finish with a look at a selection of contemporary
      issues

3
                   Ethics
“concerns the study of moral principles and how individuals
should conduct themselves in social affairs”
Bennett R (Corporate Strategy 2e ,1999, p151)

It is concerned with - human well-being
& an evaluation of morally good and bad features of an
issue

Ethical ‘standards’ vary over time, between cultures,
between
nations
Does business competitiveness rule out ethical business ?

4
           Ethics and Strategy
How big corporations use their wealth in the places
  they operate (e.g. at its height IBM $ > GNP
  Australia + NZ)
Power goes hand-in-hand with Responsibility -
  decision making affecting communities (Jaguar
  cars, Stoke pottery industry)
Consumer judgement of ‘worth’ not restricted to
  finance - includes ethical & ‘green’ issues
Managers’ own morals - from their originating culture


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      Unethical Business Practice
    Driving competing firms out of business by “dumping”
    Covert involvement in a country’s political affairs
    Law breaking -
           consumer protection
           employee health & safety (including display screen
           directives)
           equal opportunities
           environmental pollution
          But Laws have to be developed, and questionable
          practice can happen for many years in the
          intervening period


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     Personal Ethics
    ‘Whistleblowing’ - what connotation does this
      word have ? ‘tale telling’ ?
    - Illegal or questionable act
    - Firms choosing to close subsidiaries etc
      without informing workforce
    - Bribing reps to win orders (‘business lunch’
      etc)
      (similarly to Govt or other officials - Olympics
      ?)
    - withholding product etc. information

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        Codes of Practice (1)
    Government Agencies
    (e.g. guidance on Disability Discrimination Act),


    Professional Bodies
    (ACM/IEEE or BCS in computing),


    Trade Associations or other
    e.g. large organisations (Adidas- Salomon “Standards of
      Engagement” & ETI - Ethical Trade Initiative (an alliance
     of Trades Unions, Companies & Non-Govt Organisations see
     www.ethicaltrade.org)
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    Codes of practice(2)

      Outline ‘model’ procedures for good practice,
        recommendations for how things should be
        done, guidance on how to behave
      Include examples of ‘good’ and ‘bad’
        behaviour




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    Why Have ‘Professional’ Codes?
    To raise the status of a profession
    To define, raise & govern (enforce) standards of
     practice
    As a method of communication & education
    To ensure that everyone (practitioners, clients,
     general public) knows what is expected
    To provide protection for practitioners
    Part of the move towards a formal system of
     accountability
    To put new professions on a par with older ones
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     Enforcement
    Codes may be enforced by disciplinary
     committees e.g. the BMA (British Medical
     Association) - being ‘struck off’
    These are intended to apply additional,
     professional, sanctions over and above any
     legal or employment sanctions
    Enforcement is really only effective if non
     compliance involves significant penalties
    There is no ‘licence to practice’ for a software
     engineer, i.e. there are no real sanctions yet in
     place within Computing
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ACM/IEEE Code of Conduct

  “[the code requires software engineers] to use ethical
  judgment to act in a manner which is most consistent with
  the spirit of the Code of Ethics and Professional Practice,
  given the circumstances”
  [ACM/IEEE Code of Ethics & Professional Practice, my
  italics] See the current code at acm.org
The 8 Principles within the Code are necessarily general:
(next 2 slides provided as supplementary material)




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             ACM/IEEE Principles
     1 PUBLIC - Software engineers shall act consistently with
       the public interest.
     2 CLIENT AND EMPLOYER - Software engineers shall
       act in a manner that is in the best interests of their
       client and employer and that is consistent with the
       public interest.
     3 PRODUCT - Software engineers shall ensure that their
       products and related modifications meet the highest
       professional standards possible.
     4 JUDGMENT - Software engineers shall maintain
       integrity and independence in their professional
       judgment.
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          ACM/IEEE Principles (cont.)
      5 MANAGEMENT - Software engineering managers
        and leaders shall subscribe to and promote an ethical
        approach to the management of software
        development and maintenance.
      6 PROFESSION - Software engineers shall advance
        the integrity and reputation of the profession
        consistent with the public interest.
      7 COLLEAGUES - Software engineers shall be fair to,
        and supportive of their colleagues.
      8 SELF - Software engineers shall participate in lifelong
         learning regarding the practice of their profession &
         promote an ethical approach to the practice of the
     profession.
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     BCS – Code of Conduct
Is the only Chartered Engineering Institution for Information
Technology (IT). Has Members in over 100 countries
around the world.
The Code describes the principal duties which BCS
members

“should endeavour to discharge in pursuing their
professional lives” [BCS] ( See also www.bcs.org.uk )

Code does not have the same regulatory powers as e.g.
BMA. BCS Membership is not mandatory (yet)
(next 3 slides provided as supplementary material)

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       BCS – Duty to the Public
       Interest
    Safeguard public health & safety & the
     environment and to have respect to basic
     human rights
    Members shall have due regard to the
     legitimate rights of third parties.
    An obligation to have knowledge and
     understanding of relevant legislation,
     regulations and standards and to comply with
     these requirements.


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          BCS – Duty to Employers & Clients

        Due care & diligence
        Endeavour to complete work undertaken on
         time and to budget and shall advise their
         employer or client as soon as practicable if
         any overrun is foreseen.
        Not to take advantage of the lack of
         knowledge or experience of others
        Avoid conflict of interests
        Respect confidentiality

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          BCS – Duty to the Profession
        Uphold the reputation of the profession

        Behave with integrity

        Encourage and support others members of
         the profession in their professional
         development

        Seek to enhance public understanding and
         knowledge of computing and information
         systems and technology
18
     Corporate Social Responsibility
     There are no Professional Codes of Practice for people in
      general management roles, no norms of conduct nor
      recommended management principles.
     Bennett (1999) suggests a list of principles to “govern the
      conduct of business affairs” (p157) :
        Concern for the quality of life, including job satisfaction
        Concern for the environment
        Fair reward for effort & enterprise
        Involvement and interest in the wider community
        Absence of unfair discrimination in employment
        Following the laws & customs of the community
     These tend to modify rather than drive (or govern ?)

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     Contemporary Issues

A selection from Bennett (1999)

Executive Pay - excessively high ?
Bribery - bribe or gift ?
Disclosure - pending unemployment ?
Insider dealing - what (via who ?) you know ?
Consumerism - throwaway society ?


20
     Summary
 We have
 Reviewed major aspects of Ethics (from a business
   & professional’s point-of-view) & consider some
   business practices considered to be ‘unethical’
 Introduced the use of Codes of Practice ( examples
     from ACM/IEEE & BCS included for your further
     information)
 Considered personal ethics, professional
   responsibility & corporate social responsibility
 Finished with a look at a selection of contemporary
   issues

21
            Additional references
     Bennett chapter 8
     UK legislation - follow the link!
     UK Information Commisioner's Office - follow the
     link!
     NCC Guides - follow the link!
     The British Computer Society, Code of Conduct
     at www.bcs.org.uk
     “You’re Nicked ! ”, Walsh A, The Computer Bulletin May 1999
     “Partner in Crime”, Walsh A, The Computer Bulletin May 2000


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