Term Paper of Ethics

7/31/2019 Term Paper of Ethics

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WHAT IS ETHICAL BANK?

An ethical bank, also known as a social, alternative, civic, or sustainable

bank, is a bank concerned with the social and environmental impacts of

its investments and loans. Ethical banks are part of a larger societalmovement toward more social and environmental responsibility in the

financial sector. This movement includes: ethical investment, socially

responsible investment, corporate social responsibility, and is also

related to such movements as the fair trade movement, ethical

consumerism, boycotting, etc. Ethical banking is a juvenile sector within

this movement. Other areas, such as fair trade, have comprehensive

codes and regulations to which all industries that wish to be certified as

fair trade must adhere. Ethical banking has not developed to this point;

because of this it is difficult to create a concrete definition distinguishing

exactly what it is that sets an ethical bank apart from conventional

banks. Ethical banks are regulated by the same authorities as

traditional banks and have to abide by the same rules. While there are

differences between ethical banks, they do share a common set of

principles, the most prominent being transparency and social and/or

environmental aims of the projects they finance. Ethical banks

sometimes work with narrower profit margins than traditional ones,

and therefore they may have few offices and operate mostly by phone,

Internet, or mail.

In general all banks play an intermediary role in the economy; becauseof this the possibility for banks to contribute to sustainable development

is potentially profound. Banks have extensive and efficient credit

approval systems, which gives them a comparative advantage in

knowledge (regarding sector-specific information, legislation and

market developments).Banks are well seasoned and well equipped to

weigh risks and attach a price to these risks; because of this banks can

fulfill an important role in reducing the information asymmetry

between market parties, for example between the business and

consumers. This is important not just to consumers but also to

depositors. When depositors allow a bank to invest for them they are

able to assume that the bank will know which investments will maximize

their returns. Conventional banks are legally bound to maximize return

for their clients. If clients are concerned with more than simple return

(i.e. the costs of the return on other areas such as society and the

environment) then they may need to turn to an ethical bank to find


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ways in which they can garner return while keeping to their own moral

concerns

Internal vs. external banking ethics

Conventional banks deal with mostly internal ethics, ethical banks add

to internal concerns by applying external ethics.

Internal ethics: processes in banks

changes are not based on moral concern but on cost efficiency. Internal

ethics are concerned with the well being of employees, employee and

customer satisfaction, benefits, wages, unionization, fair sex and race

representation, and the banks environmental standing. Environmentally

the potential combined effect of banks switching to moreenvironmentally friendly practices (i.e. less paper use, less electrical use,

solar power, energy efficient light bulbs, more conscientious employee

travel policies with concern to commuting and air travel) is huge.

However when compared with many other sectors of the economy

banks do not incur the same burden of energy, water and paper . Many

times such energy efficient

External ethics: products of the banks

relationships/productsExternal ethics are concerned with the wider ramifications of banks

actions. External ethics looks at the impacts that their business

practices, such as who they loan to or invest in, will have on society and

the environment. In applying external ethics, one looks at how the

products of banks can be used unethically, for example how borrowers

use the money that is lent out by the bank.

Discussion

In general banks are reluctant to broaden the scope of their external

ethics policies because it would require that the bank interfere with the

activities of its clients and/or screen its potential clients. External ethics

can be seen as much more important than internal ethics because the

potential that the bank has internally to cause huge societal or

environmental damage is minimal whereas many companies that banks
http://en.wikipedia.org/wiki/Unionizationhttp://en.wikipedia.org/wiki/Unionization


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fund have great potential to cause widespread damage. Internal ethics,

such as switching to energy efficient light bulbs, are relatively

insignificant if the bank is, for example, simultaneously funding the

unsustainable harvest of natural resources.

Ethical banking is a relatively new sector; along with this fact come

problems. These problems fall under two categories; the first concerns

depositors, and the second concerns ethical banks.

In the first category lies the problem of really knowing how ethical

banks measure or qualify their ethical policies. For example when

Vancity/Citizen Bank states we seek to work with organizations that

demonstrate a commitment to ethical business practices, the depositor

is unable to understand what seek means. These statements sound nice

but they do not tell potential depositors how the bank evaluates or usesthese statements. This is insufficient. Even when given the opportunity

to view an accountability report it is difficult to truly understand what

their screening processes are.

H.S.B.C. BANKS CODE OF ETHICS.

It is the responsibility of each staff member to be familiar with the

Bank's Code of Personal and Business Ethics. Supervising officers are

expected to make every reasonable effort to ensure that their staff

continues to comply with the provisions of the Code.

a. Interpretation: The Board of Directors shall determine matters of

interpretation and coordination. The continued implementation of

the Code shall be accomplished by audit, examination and human

resource procedures.

b. Changes: Executive management shall determine matters of

interpretation and coordinate periodic changes


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C. Applicability: Staff members are to seek the advice of the

appropriate supervisor of the applicability of the provisions of the

Code to a particular situation.

d. Signature: All non-officers shall sign a written acknowledgement of

receipt of the Bank Employee Handbook, which contains a summary

of a Code of Conduct.

e. Agreement: All employees must sign the Code of Ethics Certificate

agreeing to adhere to the Bank's Code of Ethics.

f. New staff: All new staff members receive a Bank Employee

Handbook during employment orientation.

g. Dismissal: Directors, executive officers and staff members who

violate the provisions of the Code of Ethics may be subject to

dismissal.

Definitions: A conflict of interest (COI) occurs when H.S.B.C. is involved in

multiple interests, one of which could possibly corrupt the motivation

for an act in the other. A conflict of interest can only exist if a person or

testimony is entrusted with some impartiality; a modicum of trust is

necessary to create it. The presence of a conflict of interest is

independent from the execution of impropriety

2. Political Contributions:

H.S.B.C. Bank to strictly comply with all applicable federal and state

political campaign laws.

a. Under law, Bank is prohibited from making a contribution or

expenditure in connection with any election to any political office.

b. In accordance with law, no staff member shall make any direct or

indirect contribution of funds or other property of Bank in connection

with the election of a candidate to any public office.


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c. Loans to a candidate for political office or to a political committee

are not prohibited so long as the loan is made in the ordinary course of

business and meets Bank's usual credit criteria and approval

procedures for the particular type of loan.

d. The Bank's policy regarding corporate political contributions is not

intended to discourage staff members from making personal

contributions to candidates or political parties of their choice.

3. outside Activities:

a. The H.S.B.C. BANK discourages staff members from holding outside

employment. In those instances where it is justified, written approval

from the Human Resource Department is required

b. Bank encourages individual participation in civic activities.

Normally, voluntary efforts must take place outside of regular business

hours. If voluntary efforts require business time, the staff member

should obtain prior approval.

c. Staff members are not to act, without prior written approval of

management, as executor, administrator, trustee, guardian or

conservator, or in any other fiduciary capacity, whether or not it is

related to the business of Bank.

. Personal Investment Activity:

No staff member enters into investment transactions which would

create, or give the appearance of creating, a conflict of interest between

the staff member and Bank or between Bank and any customer.


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Use of Bank Property:

a. No director, officer or employee shall use Bank space, personal

property, telecommunication equipment, transportation, or other

facility of the Bank for activities or business in his/her personal interest

or the personal interest of another. Except under lease, contract,

concession, or authorization in writing, pursuant to agreements and

negotiations authorized in writing, setting forth the terms and

conditions of such use.

b. Official Bank stationary shall not be used for personal

communication or for communication on controversial public matters

expressing opinions that do not represent official views of the H.S.B.C.

BANK.

Lending Practices:

a. It is the policy of H.S.B.C. Bank to maintain prudent lending services

to adequately supply the credit needs of its customers. Any rate

concessions shall be based solely upon a borrower's creditworthiness

and overall business relationship with Bank.

b. Staff members are not in any way to represent or exercise authority

on behalf of Bank, grant direct or indirect accommodations or make

credit recommendations with respect to: members of their families; any

individual or organization to which the staff member or his or her

immediate family is indebted; or any organization to which the staff

member, or his or her immediate family, is associated or in which a

material financial interest is held.

Confidentiality is an ethical principle associated with

H.S.B.C BANK


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1. Customer Information:

a. It is the policy of Bank that such confidential information acquired by

a staff member through his or her employment must be held in the

strictest confidence. Such information is to be held for Bank purposes

and not as a basis for personal gain by any staff member.

b. Confidential customer information should never be discussed with

anyone outside Bank, and only with those within Bank who have a

legitimate business need to know.

c. Confidential customer information should never be discussed in

public places, even within the Bank's offices. Staff members should be

sensitive to the risk of inadvertent disclosure resulting from open doors,

speakerphones, and cellular phones and when transmitting

confidential information by fax or other electronic media.

2. Bank Information:

a. Financial or other information regarding the Bank is not to be

released to any outside person or organization unless it has been

published in reports to shareholders, or otherwise made available to the

public through authorized news releases.

b. All news media inquiries must be referred to the President/CEO or

the Senior Vice President of Marketing of the Bank

3. Material Inside Information:

a. The disclosure of "material inside information" subjects staff

members, Bank and third parties to whom the information is

communicated to severe penalties as per securities laws.


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b. Information is "material" when there is a significant likelihood that a

reasonable investor would think the information is important in making

an investment decision.

c. Information is "inside" when it has not been disseminated to the

public at large. Any staff member possessing such material inside

information must not trade in or recommend the purchase or sale of the

securities involved until the information is actually disseminated to the

public.

d. Employees shall not use or disclose confidential information

regarding employees, customers, or Bank internal information without

the prior written consent of the Bank except as otherwise authorized.

Failure to maintain such confidentiality may subject employees to the

Bank's corrective action policies up to and including termination of

employment if employed or legal action if post employment.

Privacy is the ability of H.S.B.C. BANK to seclude them or

information about themselves and thereby reveal them

selectively

a. In order to assure access at all times to Bank property, and because

employees may not always be available to produce various documents,

records, files or other items in their possession in the ordinary course of

business.


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b. Routine searches and inspections may include an employee's office,

desk, file cabinets, closet, locker, computer files, whether contained on a

hard drive or floppy disk, including past and present e-mail

communications, and similar places where Bank property may be

located, whether or not such places are locked. All system pass codes

must be available to the Bank at all times.

c. Employees are prohibited from the using the code of another

employee to gain access to that individual's e-mail, voice mail or

computer system. Employees are also prohibited from using the Bank's

information systems in any way that might be considered disruptive or

offensive to others, including customers and vendors.

d. Personal or inappropriate use of the Bank's information systems may

result in disciplinary action, up to and including termination.

Inappropriate transmission includes, but is not limited to, sexually

explicit messages, offensive language and ethnic, racial and gender

specific slurs.

INTERNATE POLICY:

a. H.S.B.C. Bank reserves the right to review all electronic files and

messages and to monitor usage to the extent necessary to ensure that

online services are used in compliance with the law and with the Bank's

policy.

b. Employees must respect the confidentiality of all on-line service

communications and may not read, revise or monitor the


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communications of other employees or third parties, including

customers, except with the approval of management.

c. Employees are prohibited from using Bank's on-line services in any

way that might be considered disruptive or offensive to others,

including customers and vendors.

In all its endeavors, it is the policy of HSBC North America Holdings

Inc. and each of its subsidiaries (collectively referred to herein as the

"Corporation") to act honestly and fairly at all times. It is the

Corporation's policy to comply with the spirit as well as the letter of all

applicable laws and regulations in all that it does. Each employee of the

Corporation is expected to do the same.

Violations of this policy and failures to report known violations will

subject the employee to disciplinary procedures, which may include

termination of employment. In addition, employees who should have,

through the exercise of reasonable diligence, discovered violations ofthis policy, but who fail to do so, may be subject to discipline, including

termination of employment.

In dealing with employees, customers and suppliers, the Corporation

makes decisions without regard to race, ancestry, color, religion,

national origin, citizenship, marital status, veteran's status, gender,

gender identity, sexual orientation, age or disability that can be

reasonably accommodated. All employees are responsible for ensuring

that the working environment is free of any form of harassment,

discrimination or inappropriate behavior.

With regard to employees, the Corporation is committed to diversity

and equal opportunity. Supervisory personnel are reminded to hire,

assess and reward employees strictly on the merit of qualifications and

job performance. Because the Corporation respects each employee's

private life, social conscience and personal beliefs, supervisory


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personnel may not require employees to perform personal tasks nor

attempt to coerce employees into supporting any particular public issue,

social cause or political candidate. An employee's decision whether to

support such issues, causes or candidates is entirely voluntary and will

have no effect on his or her employment relationship with the

Corporation.

In dealing with customers, the Corporation is dedicated to offering top

quality products and services and to supplying only honest information

about them. The Corporation will offer products and services on a

competitive basis and will not tolerate the use or attempted use ofimproper incentives to obtain business. With regard to suppliers, the

selection of products and services by employees with purchasing duties

for the Corporation is based solely on quality, price and service.

Corporate SustainabilityOur goal is to be one of the world's leading brands in corporate

sustainability. This is not solely an environmental or social agenda, nor

is it confined to governance and ethics. Sustainability is about bringing

all of these issues together into our business model, and about

maintaining the long-term growth of a successful business for the

benefit of our stakeholders. For HSBC, sustainability is about making

decisions that maintain the right balance between the environment,

society and the economy to ensure long-term business success.

We believe that it is our duty to our customers, investors and employees

to foster an ethical, responsible and sustainable corporate philosophy.

While our biggest contribution to society is the responsible provision of

financial services, we have also long sought to strengthen our ties with

local communities through philanthropic partnerships. Education

continues to be the primary focus for our corporate giving. The second

philanthropic area we support is the environment.


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UNETHICAL CONDUCT OF H.S.B.C.

BANK.

1. Acceptance of Gifts FROM CUSTOMERS:

SOMETIMES banks officer or employee from other except for

approved charity drives such as the Human Race or gifts of nominal

value traditionally exchanged among business associates as part of

acceptable social amenities. Specific exceptions to this prohibition are

made if there appears to be no, reasonable likelihood of improper

influence in the staff member's performance of duties on behalf of

Bank.

The personal benefit, however, must be one of the following:

a. Normal business courtesies, such as a meal, refreshment or

entertainment of reasonable value, involving no more than ordinary

amenities, in the course of a meeting or other occasion, the purpose of

which is to hold bona fide business discussions.

b. Non-cash gifts of reasonable value (under $100.00) such as received at

holiday time or special occasions, such as a new job, promotion,

wedding, or retirement that represents expression of friendship.

c. Gifts based upon obvious family or personal relationships when the

circumstances make

it clear that it is those relationships, rather than the business of Bank,

which are the motivating factors.

d. Unsolicited advertising and promotional material of nominal value,

such as pens, pencils, note pads, key chains and calendars.


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e. Awards given by charitable, educational, civic, or religious

organizations for meritorious contributions or service.

f. Loans from other banks or financial institutions on customary terms

to finance proper and usual activities, such as home mortgage loans,

except where prohibited by law.

g. Discounts or rebates on merchandise or services that do not exceed

those available to other customers. Any personal benefit received, other

than the exceptions noted above, is to be reported by the staff member

to his or her supervisor and forwarded to Bank's Human Resource

Department. The supervisor will review the situation and instruct the

staff member as to the appropriate action. The Bank Human Resource

Department retains written records of all such disclosures.

However, the recent amendment to this federal bribery statute

eliminates the necessity of showing that the staff member received the

payment in exchange for making a loan. The penalty for violating this

law is a fine, imprisonment, or both. Any offer of such an improper

payment should be immediately reported to the staff member's

supervisor.

2. Political Contributions WITH PEOPLE:

It is the policy of Bank to strictly comply with all applicable federal and

state political campaign laws.

a. Under law, Bank is prohibited from making a contribution or

expenditure in connection with any election to any political office.

b. In accordance with law, no staff member shall make any direct or

indirect contribution of funds or other property of Bank in connection

with the election of a candidate to any public office.


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c. Loans to a candidate for political office or to a political committee

are not prohibited so long as the loan is made in the ordinary course of

business and meets Bank's usual credit criteria and approval

procedures for the particular type of loan.

d. The Bank's policy regarding corporate political contributions is not

intended to discourage staff members from making personal

contributions to candidates or political parties of their choice.

e. No employee shall take an active part or issue public statements

relating to the nomination or candidacy of any person for national or

statewide elective office.

f. No officer, employee or agent of Bank shall hold a public office, or be a

candidate for such office, unless Bank has determined that such

candidacy or holding of public office would not bring justified criticism

on the grounds of political activities.

Personal Finances FOR THEIR RELATIVES:

a. Staff members and their immediate families should borrow only

from reputable organizations, which regularly lend money, and such

borrowings should carry the prevailing rate of interest and not involve

favored treatment of any kind.

b. Borrowing from relatives is not subject to restriction.

c. Staff members are not permitted to borrow money from their

coworkers, but should discuss any financial emergency with the

Human Resource Department.

d. Staff members should not sign on customers' accounts, act as deputy

or co-renter of customers' safe deposit boxes, or otherwise represent


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customers. This does not include customers related to the staff member

by blood or marriage.

Use of Bank Property:

a. No director, officer or employee shall use Bank space, personal

property, telecommunication equipment, transportation, or other

facility of the Bank for activities or business in his/her personal interest

or the personal interest of another. Except under lease, contract,

concession, or authorization in writing, pursuant to agreements and

negotiations authorized in writing, setting forth the terms and

conditions of such use.

b. Official Bank stationary shall not be used for personal

communication or for communication on controversial public matters

expressing opinions that do not represent official views of the Bank.

Lending Practices WITHOUT MAITINING THE POLICY:

a. It is the policy of Bank to maintain prudent lending services to

adequately supply the credit needs of its customers. Any rate

concessions shall be based solely upon a borrower's creditworthiness

and overall business relationship with Bank.

b. Staff members are not in any way to represent or exercise authority

on behalf of Bank, grant direct or indirect accommodations or make

credit recommendations with respect to: members of their families; any

individual or organization to which the staff member or his or her

immediate family is indebted; or any organization to which the staff

member, or his or her immediate family, is associated or in which a

material financial interest is held.


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c. Law prohibits any director, officer or employee of Bank from

granting any loan or gratuity to any public bank examiner who

examines the Bank or has authority to examine H.S.B.C. Bank.


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CODE OF ETHICS OF NANDAN (AN

ORGANIZATION OF SUPER MALL)

WHAT IS ETHICAL ORGANIZATION?

The ethical organization list is heavy with nonprofits that raise money

or provide services to help people in need. Rarely do for-profit

businesses make the ethical list, unless the companies have a track

record of supporting the public interest.

. Each group nominates an organization in each category, ethical and

unethical, and they list reasons to support their nominations. Aspokesperson from each group then presents its nominees. As

moderator, I post the names and the reasons on the whiteboard.

Over the years, the Ethical Organization exercise has produced a list of

usual suspects on both sides of the discussion.

The list of unethical organizations is populated with companies that

have abused their relationships with one or more key publics.

Sometimes this abuse involves deceit and deception, but other times

companies become villains because of poor quality and service. Banks

are favorite whipping boys in the exercise, owing to complex fee

structures and inflexible customer service policies. (Wonder how theyll

fare after the mortgage mess?) One or two major retailers are singled

out for mistreatment of employees, abuse of customers and lack of

community conscience. And you know, almost no one likes their cell-

phone service provider.

The imperatives of day-to-day NANDAN performance are so

compelling that there is little time or inclination to divert attention tothe moral content of NANDANS decision-making. Morality appears to

be so esoteric and qualitative in nature that it lacks substantive relation

to objective and quantitative performance. An effective organizational

culture should encourage ethical behavior and discourage unethical

behavior. Admittedly, ethical behavior may cost the NANDAN. Even

though ethical problems in NANDAN continue to greatly concern


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society, organizations and individuals, the potential impact that culture

can have on ethical behavior has not really been explored. What is

needed in today's complicated times is for more NANDAN to step

forward and operate with more positive and ethical cultures.

It has often been said that the only constant in life is change, and

nowhere is this more true than in the workplace. As one recent survey

concluded, " As the twenty-first century approaches, companies face a

variety of changes and challenges that will have a profound impact on

organizational dynamics and performance. In many ways, these changes

will decide who will survive and prosper into the next century and who

will not. Among these challenges are the following:

(1) The challenge of international competition.

(2) The challenge of new technologies.

(3) The challenge of increased quality.

(4) The challenge of employee motivation and commitment.

(5) The challenge of managing a diverse workforce.

(6) The challenge of ethical behavior.

While these challenges must all be met by organizations and managers

concerned about survival and competitiveness in the future, this paper

will focus on the challenge of ethical behavior. More specifically, this

paper will (1) discuss some reasons' unethical behavior occurs in

organizations, (2) highlight the importance of organizational culture in

establishing an ethical climate within the organization, and finally, (3)

present some suggestions for creating and maintaining an ethically-

oriented culture.

ETHICS AND THE CHALLENGE OF ETHICAL BEHAVIOR

The imperatives of day-to-day NANDANS performance are so

compelling that there is little time or inclination to divert attention to

the moral content of organizational decision-making. Morality appears


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to be so esoteric and qualitative in nature that it lacks substantive

relation to objective and quantitative performance.

The companys executives, administrators, and social scientists see

unethical behavior as a cancer working on the fabric of society in too

many of today and beyond. Many are concerned that we face a crisis of

ethics in the West that is undermining our competitive strength. This

crisis involves business-people, government officials, customers, and

employees. Especially worrisome is unethical behavior among

employees at all levels of the organization. For example, a recent study

found that employees accounted for a higher percentage of retail thefts

than did customers .

In addition, we hear about illegal and unethical behavior on NANDAN,

pension scandals in which disreputable executives gamble on riskybusiness ventures with employees' retirement funds, companies that

expose their workers to hazardous working conditions, and blatant

favoritism in hiring and promotion practices. Although such practices

occur throughout the world, their presence nonetheless serves to remind

us of the challenge facing organizations.

This challenge is especially difficult because standards for what

constitutes ethical behavior lie in a "grey zone" where clear-cut right-

versus wrong answers may not always exist. As a result, sometimes

unethical behavior is forced on COMPANY by the environment inwhich it exists. The effective management of ethical issues requires that

organizations ensure that their managers and employees know how to

deal with ethical issues in their everyday work lives. Therefore,

organizational members must first understand some of the underlying

reasons for the occurrence of unethical practices.

UNETHICAL BEHAVIOR: WHY DOES IT OCCUR IN

ORGANIZATIONS?

The potential for individuals and organizations to behave unethically is

limitless. Unfortunately, this potential is too frequently realized.

Consider, for example, how greed overtook concerns about human

welfare when the Manville Corporation suppressed evidence that

asbestos inhalation was killing its employees, or when Ford failed to

correct a known defect that made its Pinto vulnerable to gas tank


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explosions following low speed rear-end collisions . Companies that

dump dangerous medical waste materials into our rivers and oceans

also appear to favor their own interests over public safety and welfare.

Although these examples are better known than many others, they do

not appear to be unusual. In fact, the story they tell may be far more

typical than we would like, as one expert estimates that about two-thirds

of the 500 largest American corporations have been involved in one

form of illegal behavior or another.

Unfortunately, unethical organizational practices are embarrassingly

commonplace. It is easy to define such practices as dumping polluted

chemical wastes into rivers, insider trading on Wall Street,

overcharging the government for Medicaid services, and institutions

like Stanford University inappropriately using taxpayer money to buy a

yacht or to enlarge their President's bed in his home as morally wrong.Yet these and many other unethical practices go on almost routinely in

many organizations

Although both cases appear to be instances of illegal corporate

behavior, there is an important distinction between them. In the first

case, Allegheny's executives knew or should have known the firm's

activities were illegal; price fixing is a clear violation of antitrust law.

Further, the courts ruled that evidence indicated the firm had engaged

in the illegal act.

CULTURE AND ETHICAL BEHAVIOR

"Do organizations vary in the 'ethical climates' they establish for their

FUND? The answer to the question is yes, and it is increasingly clear

that the ethical tone or climate of organizations is set at the top. What

top managers do, and the culture they establish and reinforce, makes a

big difference in the way lower-level employees act and in the way the

organization as a whole acts when ethical dilemmas are faced .The

ethical climate of organization is the shared set of understandings about

what is correct behavior and how ethical issues will be handled.

* Personal self-interest

* Company profit

* Operating efficiency


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* Individual friendships

* Team interests

* Social responsibility

* Personal morality

As suggested by the prior list, the ethical climate of NANDAN can

emphasize different things. The ethical climate supported doing the

right thing due to social responsibility--regardless of the cost. In other

organizations--perhaps too many--concerns for operating efficiency may

outweigh social considerations when similarly difficult decisions are

faced

NANDAN should also provide more ethics training to strengthen their

employees' personal ethical framework. That is, organizations must

devote more resources to ethics training programs to help its members

clarify their ethical frameworks and practice self-discipline when

making ethical decisions in difficult circumstances (1) Recognize and

clarify the dilemma.

(2) Get all the possible facts.

(3) List your options--all of them.

(4) Test each option by asking: "Is it legal? Is it right? Is it beneficial?"

(5) Make your decision.

(6) Double check your decision by asking: "How would I feel if my

family found out about this? How would I feel if my decision was

printed in the local newspaper?"

(7) Take action.

Although much remains to be learned about why ethical behavior

occurs in organizations and creating and maintaining organizational

cultures that encourage ethical behavior, organizations can benefit from

the following suggestions:

.


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** Encourage input throughout the organization regarding appropriate

values and practices for implementing the cultures. Choose values that

represent the views of employees at all levels of the organization.

** Do not automatically opt for a "strong" culture. Explore methods to

provide for diversity and dissent, such as grievance or complaint

mechanisms or other internal review procedures.

** Insure that a whistle-blowing and/or ethical concerns procedure is

established for internal problem-solving (Harrington, 1991).

** Provide ethics training programs for all employees

Conclusion

It is the responsibility of each staff member to be familiar with the

H.S.B.C. Bank's Code of Personal and Business Ethics. Supervising

officers are expected to make every reasonable effort to ensure that

their staff continues to comply with the provisions of the Code.

Even though ethical problems in organizations continue to greatly

concern society, organizations, and individuals, the potential impact

that organizational culture can have on ethical behavior has not really

been explored. The challenge of ethical behavior must be met by

organizations if they are truly concerned about survival and

competitiveness. What is needed in today's complicated times is for

more organizations to step forward and operate with strong, positive,

and ethical cultures. Organizations have to ensure that their employees

know how to deal with ethical issues in their everyday work lives. As a

result, when the ethical climate is clear and positive, everyone will know

what is expected of them when inevitable ethical dilemmas occur. Thiscan give employees the confidence to be on the lookout for unethical

behavior and act with the understanding that what they are doing is

considered correct and will be supported by top management and the

entire organization.


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Documents

Term Paper of Ethics