The Role of Ethics and Compliance Program in the Business World

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This is a report that provides information about the role of ethics and compliance programs in the business world. This report explains the advantages of business ethics, the role of ethics in diversity and quality management, the role of compliance programs, and the benefits of managing ethics as a program. This report is useful for small businesses or other entities that want to obtain more information about ethics and how they play a role in the modern business world.

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									This is a report that provides information about the role of ethics and compliance
programs in the business world. This report explains the advantages of business ethics,
the role of ethics in diversity and quality management, the role of compliance programs,
and the benefits of managing ethics as a program. This report is useful for small
businesses or other entities that want to obtain more information about ethics and how
they play a role in the modern business world.
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The Role of Ethics and
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Compliance Program in
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the Business World
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                                                      Table of Contents

BUSINESS ETHICS: ............................................................................................................................ 4


ADVANTAGES OF ETHICS AT WORKPLACE ...................................................................................... 5


BUSINESS ETHICS HELPS IN MANAGING VALUES ASSOCIATED WITH STRATEGIC PLANNING,


DIVERSITY MANAGEMENT AND QUALITY MANAGEMENT ............................................................. 5


PROMOTING A STRONG PUBLIC IMAGE THROUGH ETHICS: ........................................................... 5


COMPLIANCE PROGRAM ................................................................................................................. 6


BENEFITS OF MANAGING ETHICS AS A PROGRAM.......................................................................... 6


References ....................................................................................................................................... 8




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BUSINESS ETHICS:

Applied ethics is considered as a form of business ethics. Which identifies the morals and
principles or ethical problem that may be raised in a business environment? In 21st
century the increasingly conscience focused marketplaces demand for extra ethical
processes of business actions which is also called as ethicism .Ethicism is increasing day
by day and pressure on the management of industries and other business centres is
applied to improve business ethics through new laws and initiatives for example United
Kingdom higher road tax for higher emission vehicles (Dobson, 1997).




Business ethics may be both, descriptive as well as normative discipline. As a career
specialization and a corporate practice, this field is primarily considered as normative.
Descriptive approaches are also taken in academia. The quality and range of ethical
issues in business shows the state to which business is perceived through its odd and
even, and sometimes non economical values of social culture.




Basically ethical values in business were accelerated in 1980's and 1990's within the
major industries and academia. For instance many of the corporate web sites pay
importance on the commitment of promoting social values which are not economically
values under a variety of headings. For example social responsibility and ethics codes, in
many cases companies have redefined their basically ethical values in terms of business
considerations for example BP which stands for "Beyond Petroleum" environment tilt.




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ADVANTAGES OF ETHICS AT WORKPLACE

There are many advantages and benefits of following the ethical code in workplace, many
people hear the moral advantage of attention to business ethics. Apart from this there are
many other advantages as well. Following is the list which will help you to manage the
ethical code in workplace:


BUSINESS ETHICS HELPS IN MANAGING VALUES ASSOCIATED WITH
STRATEGIC PLANNING, DIVERSITY MANAGEMENT AND QUALITY
MANAGEMENT



Business ethics at workplace helps identifying the proffered values and making the
organizational behaviour aligned with their values. This effort includes developing
policies, recording the values and then telling all the personnel about the procedures and
policies. This effort gives a huge impact on many different programs running within the
organization which requires correct behaviours to be synchronized with the values which
includes strategic planning, diversity management and quality management. High priority
on some operating values are included in quality management for example performance,
trust between the company and the stakeholders, reliability, feedback and measurement.
In order to manage strategic values ethic management techniques are immensely used for
example reducing cost price, expanding market share etc. In managing diversity ethics
management programmes are also highly used (Freidman, 1970). Diversity is not all
about the colour of people's skin; it acknowledges different perspectives and values.
Programs of diversity needs recognition and implementation of diverse perspectives and
values, these are the main basics of ethics management program.


PROMOTING A STRONG PUBLIC IMAGE THROUGH ETHICS:

Paying attention to the values of business ethics is also important to make strong public
relations. Ethic management should not focus just to develop public relations as there is



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allot more to it. But as a matter of fact in today's world people just focus on business
ethics to portray a strong and positive image to the public. People also develop a very
good image of such organizations that pays more attention to their values rather than just
business. Synchronizing business values with the behaviour is one critical job in order to
affect public relation programs and marketing of the company. According to a famous
business analyst, “If consistently applied, ethical values are the basic bricks in developing
a commercially and socially successful and responsible business."


COMPLIANCE PROGRAM


These days’ organizations work harder to practice high quality of business ethics it orders
to get the benefits from the employees and other business stakeholders. Organizations
develop new strategies to implement business ethics principles and often document these
principles in the form of policies and procedures so that everyone in the organization
follows them.

Despite of these documentations the strategies developed by the organizations still needs
to adhere to this policies by the employees. Everyone in the organization is supposed to
abide by these ethical policies of the company, organization at times conduct training
programs which incorporates complete framework of Business Ethics – usually known as
Ethical Compliance Program.


BENEFITS OF MANAGING ETHICS AS A PROGRAM


There are several benefits especially when organizations hold in-house training programs
based on business ethics and in formally managing ethics as a program on a long term
basis, rather than one program effort when it appears to be needed. The goal of Ethical
Compliance programs are discussed as follows



        Set an agenda for ongoing assessment of ethics needs




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        set up operating values and behaviours that are needed
        mix up organizational behaviours with operating the values
        increase awareness to ethical issues
        identify individual roles to manage ethics
        utilize ethical guidelines to decision making
        Organized procedures to resolving ethical problems
        Make ongoing evaluation and updates
        Increase attention to ethics to improve public image
        Provide a method to monitor and audit ethical practices within organization




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References

1. Dobson, J. 1997. Finance Ethics: The Rationality of Virtue. New York: Rowman &
    Littlefield Publishers, Inc.
2. Friedman, Milton, 1970. The Social Responsibility of Business is to Increase Its
    Profits. The New York Times Magazine. Retrieved March 21, 2010 from
    http://wwwrohan.sdsu.edu/faculty/dunnweb/rprnts.friedman.html.
3. Huevel, K., 2009. Meltdown: how greed and corruption shattered our financial
    system and how we can recover. New York: Nation Books.




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