| Professional Codes | established set of rules that are followed by professions and sets the standards for practitioners |
| Alternatives to ethical empowerment are not good and lead to: | - stagnation
- inefficiency
- managers are unable to exercise good judgement |
| Business Code | established set of rules that are followed by individual businesses |
| Industry Code | established set of rules that operate at an industry level and set the standards for firms and employees within the industries |
| Ethical Empowerment | the delegation of authority for ethical decision making |
| Advantage and benefits of a code of conduct | - creates uniformity
- takes the stress off of employees and helps the organization with respect to the public trust |
| Disadvantages of accountability | not able to create and nurture good judgement |
| Advantages of accountability | Allows for managers to see what employees are doing, and what they should be doing |
| Accountability | - Is related to the code of conduct
- Focuses on rules and regulations instead of judgment which responsibility does. |
| Code of ethics | a formal statement of principle that have to be interpreted and applied to particular situations |
| Code of conduct | established set of specific and enforceable prescriptions, which eliminate uncertainty, variability, and the necessity of judgment and discretion of a code of ethics |
| Any statement with "ought" or "should" is a | prescription |
| De Jure value system | is formally codified |
| A code of conduct forces us to think | about what our values are |
| "what kind of person should I be" | code of ethics |
| "what should I do" | code of conduct |
| De Facto value system | that exists in actual fact and is followed and acted upon in good faith, even if it is not officially codified |
| Why is the code of ethics important in running a good business | - way to avoid external regulation
- effective way of advertising
- gains public trust |
| How does the code of ethics bring de facto and de jure into alignment? | - creates an even playing field
- it is an instrument for accountability and responsibility |
