Ethical Behavior Overview

Questions and Answers

What is ethical behavior?

Ethical behavior is when an individual's actions align with their ethical principles, which are based on their core values about right and wrong.

Which of the following traits are typically exhibited by a person practicing ethical behavior? (Select all that apply)

Dishonesty

Trustworthiness (correct)

Irresponsibility

Caring (correct)

What do moral values guide?

Moral values guide how we ought to behave.

A written Code of Ethics guarantees appropriate employee behavior.

False Signup and view all the answers

What are the core elements for an effective Corporate Compliance and Ethics Program according to the Federal Sentencing Guidelines?

Standard procedures to prevent criminal conduct, oversight responsibility, due care in delegation, employee training and education, monitoring, and discipline. Signup and view all the answers

What should organizations establish to monitor compliance with standards and procedures of the ethics program?

An ethics committee. Signup and view all the answers

What should the Board of Directors do regarding the Code of Ethics?

Implement a system for oversight and encourage employee compliance with training and education. Signup and view all the answers

Organizations should conduct reasonable methods to check for illegal activities before delegating authority.

True Signup and view all the answers

What should organizations establish to train and familiarize employees with ethical standards?

Communication, training, and education. Signup and view all the answers

What must organizations ensure about their disciplinary measures?

That they are uniform and adequate for the violations. Signup and view all the answers

What actions should organizations take to ensure consistency in compliance?

Examine the effectiveness of internal controls and existing standards regularly. Signup and view all the answers

Study Notes

Ethical Behavior

Ethical behavior is guided by standards of conduct and principles that shape individual decision-making.
Aligning actions with personal ethical principles demonstrates ethical behavior.

Traits of Ethical Behavior

Trustworthiness: Making ethical choices without external oversight.
Respect: Interacting with kindness and consideration towards others.
Responsibility: Fulfilling commitments and promises.
Fairness: Applying rules and logic consistently.
Caring: Exhibiting empathy and concern for others.
Citizenship: Fulfilling societal or group responsibilities.

Moral Values and Ethical Principles

Core moral values such as respect, honesty, fairness, and responsibility form the basis for ethical behavior.
Ethical individuals accept accountability for the consequences of their actions despite potential conflicting choices.

Role of Code of Ethics

A written Code of Ethics acts as a guide for appropriate action in ambiguous situations, though it doesn't guarantee ethical behavior.

Federal Sentencing Guidelines

Established by the United States Sentencing Commission for organizational compliance with ethics standards.
Core elements include:
- Preventative and detective measures against criminal conduct.
- Compliance oversight responsibility.
- Due diligence in delegation of authority.
- Education and training for employees.
- Monitoring and auditing processes.
- Confidential reporting systems.
- Consistent enforcement of ethical violations.

Organizational Compliance

Organizations must implement conduct standards and internal controls to prevent criminal activity.
An ethics committee should monitor and audit compliance with ethical standards.

Role of the Board of Directors

Responsible for ensuring employee compliance with the Code of Ethics.
Should provide training, financial support, and protection for whistleblowers.
Annual reviews of the Code of Ethics and training materials are essential for updates.

Delegation of Authority

Organizations must vet individuals for any history of illegal behavior before granting them authority.

Employee Communication and Training

Comprehensive communication, training, and education on ethical standards are crucial.
Training methods should be selected wisely, with schedules accommodating both organizational and employee needs.

Enforcement of Ethical Standards

Uniform disciplinary measures must be enforced to treat all employees equally regarding violations.
Disciplinary actions should correspond appropriately to the severity of violations.

Consistency in Compliance

Regular assessments of internal controls and guidelines are necessary for effectiveness and clarity.
Regular updates should be made to ensure that standards are actionable and comprehensible.

Description

This quiz explores the concept of ethical behavior, outlining the standards of conduct that guide individual actions and decision-making. Participants will learn about the relationship between core values and ethical principles. Understanding these foundational concepts is essential for evaluating choices in personal and professional contexts.