¶ … Ethics Program
Imagine company Toyota ethics program effective program . The Federal Sentencing Guidelines Organizations encourages firm set ethics programs. Review Website, located http://www.ussc.gov/guidelines, prior assignment.
Toyota Corporation is a multinational automaker in japan and is the world's largest automobile manufacturer. The company employs a large number of employees in different departments with different key objectives in order to achieve the organizations different objectives. Toyota Corporation has a corporate philosophy that is well communicated to the employees and facilitates the achievement of their goals. The managers of the organization view employees as the most important factors who contribute towards the achievement of set objectives. An ethics program is a systematic approach to raising ethical awareness of employees, providing education and guides on ethics.
Companies' focus of writing codes of conduct is transforming from writing the rules to regulate conduct to leveraging value-based codes that inspire principled performance among executives, management and employees. Business ethics refers to behavior that a business organization adheres to in its daily operations with its surroundings Ferrell, Fraedrich, & Ferrell, 2012.
These behaviors can be diverse in that business ethics can be practiced to avoid consequences that may result in civil law suits against the organization, to avoid breaking the law during organizations operations and to avoid actions that promote a bad image for the company applying internationally or with dealings with a single customer. It is through an effective ethics program that an organization will be able to practice good business ethics.
Code of conduct used by other auto mobile corporations and their criticism
The components of an ethics program include an audit and investigation system, a reporting mechanism, code of ethics, ethics training for employees and a means of communicating with employees. It is important to note that not all ethics programs will consist on all mentioned components and different corporations will have varied emphasis on each component. The compliance strategy in an effective ethics program is necessary as it tries to prevent violation of government regulations, self- interested behavior by employees and criminal conduct. The compliance strategy also tries to compel acceptable behavior and impose standards of conduct and final the strategy relies more on compliance officers and corporation lawyers.
The integrity strategy in the ethics program communicates the vision and values of the organization, seeks to create conditions that support right action, aligns the standards of the employees with those of the organization and does not only rely on the compliance and law personnel but also the whole management team. Toyota Corporation is to adopt corporate codes of ethics in order to discover core principles, the codes can also act as communication tools, to enhance employees commitment to company ethical conduct, help achieve consensus on ethical conduct and to be able to generate discussion of what is ethical conduct. Having codes of conduct in a corporation is also disadvantageous when the corporation put so much emphasis on the rules at the expense of judgment, for example, employees assuming that anything not forbidden can be pursued. Another disadvantage is that too much emphasis on actions that harm the organization may lead to skepticism about the role of the code. To overcome the identified disadvantages, organizations can focus on strong corporate culture and leadership as opposed to the written codes and relying upon internal auditing and extensive government regulation. An effective ethics program is beneficial to the Toyota Corporation because firstly, relations with the organizations stakeholder are effectively managed for example stakeholders are reassured of the company's intentions and suppliers are also informed of the company's standards. An effective ethic program also enables the organization adapt to rapid change for example in mergers and acquisitions, global competition and regulatory changes that may require new ways of doing business and finally an ethics program prevents ethical misconduct that could lead to loss of an organization's reputation or monetary losses. The formulation of corporate codes of ethics follows three approaches. The managerial team should ensure the codes of ethics include statement of specific standards or business standards, statement of core values or mission statement and statement of corporate philosophy that describes the beliefs guiding the organization. The process of writing codes of ethic is consultative in order to come up with best codes that will remain relevant in the future. The participants in the process include the general counsel, chief executive officer, senior human resource executives, the chairman, senior financial executives, employee representatives and consultants Hill & Jones, 2010()
Ethical challenges
Currently, it is a very competitive world for business organizations and companies are paying less attention to the issue...
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