Corporate Ethics Business - Or Term Paper

Develop metrics. -- put tangible ethics measures in place and consider connecting compensation to ethical principles.

3. Create a cross-functional team. - include an HR professional in auditing team as well as an ethics and compliance manager and internal auditor and legal managers.

4. Audit efficiently. -- Audits frequently disrupt regular business schedule. Krell recommends conducting audit in such a way that it will limit disruption as much as possible.

5. Look for other issues. -- conducting the audit may reveal needs for improvement in other ethical-related matters. Share these with relevant sources.

6. Respond consistently and communicate. -- adhere consistently to ethical requirements and penalize ethical violations when they occur.

In short, Krelll believes that an ethics code can build a true corporate ethics and that HR professional have a core role to play in building this ethics.

(Krell, E. (2010) How to Conduct an Ethics Audit SHRM, Vol. 55 No. 4 )

No:

Ethics codes cannot build a true corporate ethics

A corporate ethical environment cannot be created via the Sarbanes-Oxley and like policies and regulations. The best way that one can be created is via ERM (Enterprise Resource Management). In fact, The Enterprise Risk Management -- Integrated Framework and guidelines from the Committee of Sponsoring Organizations of the Treadway Commission (COSO) is fast becoming the standards for best practices in organizations.

Young and Hasleer drive their essay through three stages in order to argue their point:

1. They show how the IMA Statement of Ethical Professional Practice best suggests a process and scope of ethical conduct and principles

2. They account for reasons that enterprises negotiate on ethics

3. They describe a method that integrates ethics with the COSO ERM components. This framework they suggest would best drive companies to practice ethical principles and thereby build their reputation in this regard.

A company will only and more solidly conduct itself according to ethical principles if it realizes the extent to which ethical principles direct its reputation and if it realizes corporate results form the venture:

A reputation for poor ethics can lead to costs of replacing lost partners or going it alone. Labor, operating, and overhead costs may increase if the enterprise is perceived to be so unprincipled in its conduct toward employees that its recruiting and retention of skilled personnel are at risk. Similarly, purchasing, logistics, and overhead costs may increase if suppliers judge the enterprise to be unfair or dishonest. (p.38)

Seeing ethics in terms of the various legal instruments (such as the SOX) that have been created to promote it not only distorts people's understanding on the matter but also makes them see the principals in negative way. What ERM does, however, is that it presents the principles in a positive way whilst enabling managers to recognize their advantage. This leads to corporations more likely accepting and implementing ethical…