resolving the dilemmas of ethical living
TRANSCRIPT
Resolving the Dilemmas of Ethical LivingA Resource Portfolio for Tertiary Education Institutions
Resolving the Dilemmas of Ethical LivingA Resource Portfolio for Tertiary Education Institutions
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Resolving the Dilemmas of Ethical Living - A Resource Portfolio for Tertiary Education InstitutionsResolving the Dilemmas of Ethical Living - A Resource Portfolio for Tertiary Education Institutions
Contents
Introduction 2
Part 1 Ethics and Preventive Education
1.1 Whatisethics? 7
1.2 CorevaluesoftheICAC 8
1.3 Fightingcorruptionwithethics 9
Part 2 Ethical Challenges
2.1 Identifyinganethicalissue 13
2.2 Typesofchallenges 13
2.3 Legalandethicaldimensionsofactions 15
2.4 Checkingyourmoralcompass 17
Part 3 Ethical Decision Making
3.1 Thedecision-makingprocess 23
3.2 Decisionmakingmodels 25
3.3 Applicationofdecisionmakingmodels 27
Part 4 Ethics in Action
4.1 Personalethicalcode 37
4.2 Standardsofbehaviourintheworkplace 40
Appendices 43
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Background
The Independent Commission Against Corruption (ICAC) adopts a
comprehensiveand integratedapproach to tackling theproblemofcorruption
through lawenforcement,corruptionpreventionandcommunityeducation. On
theeducation front, theCommunityRelationsDepartment (CRD)of the ICAC is
responsibleforeducatingthepublicabouttheevilsofcorruption.
The rootof corruption,asmanifested inmanycases, lies in the failure
of individuals toupholdadesirablestandardof integrity. TheCommission is
committedtoinculcatingacultureofprobity inthecommunitythroughschools,
universities,communityorganisations,businessesandprofessionalbodies.
The ICAC isparticularlykeen tocontribute to thebuildingof integrity for
tertiarystudentswhoarethecreamofthesociety. Integrity, justice,equityand
ethicalpracticesare importantvaluesandattributes that leadersof tomorrow
havetoembrace.Thesecorevalueswillenlightenthemaboutthefundamental
principlesuponwhichtheycanmakerightdecisionsintheirdailylivesandfuture
careers.
Acommitmenttohighethicalstandards isalsoessential forthemtomeet
challenges in anageof globalisation.Companies/employers havebecome
increasingly alert to the importanceof corporate ethics in enhancing their
competitiveedge,andappreciateemployeeswhocanplay the roleofethical
leaders.
Collaborative Efforts with Tertiary Institutions
The ICAChasbeencollaboratingwith tertiaryeducation institutions in
embarkingonaseriesof integrity-buildingprogrammes. Theseprogrammes
havenotonlyenhancedstudents’awarenessoftheimportanceofpersonaland
professionalethics,butalsoencouraged themto takeownership inpromoting
probitytotheirpeersandthecommunityatlarge.Intheacademicyear2010–11,
theCRDcooperatedwiththethreeconstituentcollegesoftheChineseUniversity
ofHongKong(CUHK)toincorporatelecturesonpersonalethicsintotheircredit-
bearingGeneralEducationProgrammesforYear1students.
Introduction
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Thelecturesaimedtoequipstudentswiththenecessaryskillsforhandling
ethicaldilemmasandenhance theirunderstandingofethicaldecisionmaking.
Over2,000studentshaveattendedthe lecturesand their feedbackwashighly
favourable. Someconsidered the lecturecontents thought-provokingand the
ethicalchallengestheyraisedrelevanttotheirdailylives.(Theteachingnotesare
inAppendix 1.)
The Teaching Module
The ICACbelieves that amodule on integrity education for students
wouldbewelcomedby tertiaryeducation institutions. Inaneraofglobalisation
epitomizedby rapidsocial andeconomicchanges,HongKong’suniversities
arestriving toenhance their students’moralandcivicvalues,aswellas their
leadershipcapacity,topreparethemtomeetthechallengesahead.
Thepurposeofthisportfolio istoprovideready-to-usereferencematerials
on integrity education based on ICAC’s experience in promoting ethical
leadershipandpersonal integrity forbusinessexecutivesandyoungpeople. In
developing thisportfolio, teachingmaterialsused for theCUHK lectureshave
been incorporated. Casestudies/real-lifedilemmasare included todevelop
students’ thinkingandperspectiveson resolvingethicalchallenges. Practical
suggestionsand theapplicationofdecisionmakingmodels in resolving the
dilemmasareprovided,whichstudentscanusetoguidedecisions. Videoson
handlingethicaldilemmaswillbedeveloped in2011–12tosupport theteaching
andlearningofthemodule.
Universities arewelcome to incorporate themodule into their general
education curricula or relevant programmes. The ICAC alsowelcomes
collaborationopportunitiesfortheimplementationofthemodule,forexampleby
havingseasonedICACofficersconductsessions.
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Resolving the Dilemmas of Ethical Living - A Resource Portfolio for Tertiary Education Institutions
Acknowledgements
Wewould like to thank Professor LamChi-chung, Professor in the
DepartmentofCurriculumandInstructionattheHongKongInstituteofEducation
andDrAlbertChau,DeanofStudentAffairs,DirectorofGeneralEducationatthe
UniversityofHongKongforprovidingconstructivefeedbackonthemodule.
Wewouldalsoliketothankthefollowingstudentsfortheircontributionsto
thedevelopmentofcasestudies/scenariosrelatedtotheethicalchallengesfaced
bytertiarystudents,whileunderinternshipwiththeICACin2010:
CHANHoi-ching,Bianca(UniversityofHongKong)
CHENGWing-sen,Licca(ChineseUniversityofHongKong)
CHENGWui-shing,Chris(HongKongInstituteofEducation)
LIUMeng-xi,Mercy(HongKongInstituteofEducation)
Enquiries
Please feel free tocontact theYouthandMoralEducationOfficeof the
CommunityRelationsDepartmentof the ICAC for anyenquiries about this
portfolio.
Address: 8/F,303JavaRoad,NorthPoint,HongKong
Tel.No.: 28263381
FaxNo.: 25301573
Email: [email protected]
March 2011
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Part 1Ethics and Preventive Education
Thissectionprovidesaworkingdefinitionoftheconceptofethicsanddelineates
thecorevaluesoftheICAC.Italsoshowshowintegrityeducationcanhelptoprevent
corruption.
1.1 What is ethics?
Therearemanydefinitionsofwhatethicsencompasses1,viz.:
i) Decisions,choices,andactionswemakethat reflectandenact
ourvalues;
ii) Thedisciplinedealingwithwhat isgoodandbad,andwithmoral
dutyandobligation;
iii)Asetofmoralprinciplesorvalues;
iv)Atheoryorsystemofmoralvalues;and
v) Aguidingphilosophy.
The firstdefinition is very relevant to theconceptof ethicsadopted for the
developmentof thisresourceportfolio. Thekeywordshighlighted inthisdefinitionare
worthnoting.
Ethicsrelates todecision makingwhichrequiresmakingreferencetoasetof
normativerulesofconductorcodes/standards fordecidingwhat is rightandwrong.
Thedevelopmentofthesestandardsandproceduresreflectsourbeliefsorvalues.
Valuesarethecorebeliefsweembraceregardingwhat isrightandfair interms
ofouractionsandinteractionswithothers.Forexample,thevaluesof“trustworthiness,
respect, responsibility, fairness,caringandcitizenship”havebeenconsideredas
universalandcanhelpimprovethequalityofethicaldecisions2.
We translatevalues intoprinciplesso that theycanguideandmotivateethical
conduct.Ethicsisaboutputtingprinciplesintoaction.Forexample,honestyisavalue
thatgovernsbehaviour intheformofprinciplessuchas: tell thetruth,donotdeceive
1 Ethics Resource Center (2009) ‘Ethics Glossary’, <http://www.ethics.org/resource/ethics-glossary>
2 Josephson Institute of Ethics (2002) ‘Making Ethical Decisions’, <http://www.sfjohnson.com/acad/ethics/Making_Ethical_Decisions.pdf>
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anddonotcheat.Inthisway,valuesgiverisetoprinciplesintheformofspecific“dos”
and“don’ts”whichinvolveethicalchoices.Whentherearecompetingchoices,ethical
challengesarepresent.
Handlingethicalchallengesrequires frameworksandprocedures forapplyingto
problems.Decisionmakingmodelsareuseful toolsenabling individualstomakewell-
informedandeffectivedecisions. It is important foryoungpeopletoacquirerelevant
knowledgeandskillsaswellas thecapability toovercomeethicalchallengesand
committoethicalprinciplesinresolvingproblems.
1.2 Core values of the ICAC
Allalong,theICAChasplacedmuchemphasisonthepromotionofpositivevalues
inlifeasaneffectiveandlastingwaytopreventcorruptionandmalpractice.TheICAC
hasconsciouslytriedtodefinethevaluesthatshouldbeexpoundedascorevaluesfor
youtheducationprogrammes,viz.:
• aregardfortruthandhonesty;
• aregardforjusticeandfairness;
• aregardfortherightsandwell-beingofothers;
• asenseofresponsibilityandself-discipline;
• arespectfortheruleoflaw;and
• abalancedviewofwealthandmaterialpossessions.
Integrity isthequalityofbeinghonestandfirminethicalprinciples,whichcanbe
seenasanoverarchingconceptforthesecorevalues.AddressingtheYouthSummit
of the “IGeneration”Youth IntegrityProgramme3, theCommissionerof the ICAC
expoundedontheimportanceofintegrity,asfollows:
Integrity firstmeansbeing true toyourself. Withpersonal integritycomes
theknowledge thatyouarehonest, faithful,uprightand thatwillgiveyou
confidence...... Life,asyouknoworwill findout, isnotwithoutsetbacks.
Personalintegrityisalsoastoutdefenceagainstsetbacks.
Also, integrity involvesbeingtruetoothers. It is thesurest foundationfora
fairandjustsociety.Asocietythatputsintegrityfirstcantrulyclaimtobefair
andjust.
Thesecorevaluesareperennialandstandthetestof time. The ICAC,however,
reviewsconstantly themeansthroughwhichthesevaluesaredisseminated,withdue
3 Dr Timothy Tong, Commissioner, Independent Commission Against Corruption, HKSAR Welcoming Address at the “I Generation” Youth Integrity Programme.
<http://www.icac.org.hk/me/new/yintegrity/en/Appendix2.htm>
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considerationtochanges inthesocialenvironmentandpertinentvaluesandattitudes
ofyoungsters. Thesechangesaretaken intoaccountwhenformulating ICAC’swork
strategiesonyouthmoraleducation.
According to the findingsof ICAC’sannualopinionsurveys,public toleranceof
corruptioninthecivilserviceandbusinesssectorhasremainedlow.Theaveragescore
givenbyrespondentsaged15–24,however,wasnoticeablyhigher than inotherage
groups4.
Inan ICACfocusgroupstudyonpublicperceptionandtoleranceofcorruption
conducted inJuly2008, the findingsalso indicated thatsecondarystudentswere
comparativelylessconcernedabouttheproblemofcorruptionandwereunclearabout
theevilsofcorruption.Inthesamevein,tertiarystudents’senseoflawcompliancewas
relativelyweakandtheirvigilanceonconflictofinterestwasratherlow.
Theultimateobjectiveofsteppingup integrityeducation for youngpeople is
therefore toassist themtobecomerationalandresponsiblecitizenswhocanplaya
positiveroleinthecauseofprobity.
1.3 Fighting corruption with ethics
The ICACbelieves that integrityeducationcanhelp topreventcorruptionand
unethicalbehaviour. Asevident inmanycorruptioncases,therootofproblems lies in
thefailureofindividualstoupholdadesirablestandardofintegrity.
Corruptionoccurswhenan individualabuseshis/herauthority forpersonalgain
attheexpenseofotherpeople.Corruptionerodesfairnessandtheruleoflawand,in
some incidents,puts livesandpropertyatrisk. Thespiritof thePreventionofBribery
Ordinance (POBO),asenforcedby the ICAC, is tomaintaina fairand justsociety.
Aspectsof thePOBOinrelationtothepreventionofbribery in thepublicandprivate
sectorsareprovidedinAppendix 2.
Corruptioncanberegardedasanunethicalbehaviour,albeitaseriousonewith
graveconsequences. Ingeneral,corruption takesplacewhen threeessentialand
interdependentelementsexist:
(a) Motivation
Whenpeopleare facedwithatemptingoffer,be itmonetaryorsomethingmore
intangiblesuchastheperformanceofaservice,theywillweighthestakesinvolved.If
thestakesare low,theymaybe interested. Ontheotherhand, if thestakesarevery
high,theymayfeelthattherisksaretoohigh,thepenaltytoogreatandtheguiltfeelings
toostrong.Asaresult,theymaynotcommitthecrime.Theattractionlevelhastobe
4 Using a 0 to 10 rating scale (with 0 representing total rejection and 10 total tolerance), the scores registered by the age group 15–24 in 2006, 2007 and 2008 were 1.7, 1.4 and 1.4 respectively, whereas those registered by other age groups were between 0.9–1.1, 0.7–0.8 and 0.7–0.8 respectively.
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optimalandtheriskminimaltoenticeanindividualtotakepartincorruption.
(b) Rationalisation
Corruption issometimescommittedbecausepeople rationaliseanactasgood
ornecessary. Theymay justify theiractionson thepretext thatbriberyspeedsup
economicdevelopmentorthatitisthenormandeverybodyisdoingit.Variousexcuses
willbeconcoctedtolessenthesenseofguilt,eventotheextentofblamingitonhuman
nature.Veryoften,alibis,unethicalbeliefs,half-truthsandplainliesareusedtojustifya
crime.
(c) Opportunity
Corruption rears itsuglyheadwhenexternal and internal controlswithinan
organization/companyare lax– forexample,when lawsarenotenforcedeffectively
andcompanyrulesareweak,defective,notproperlyunderstoodornotgivenenough
attention.Ifthesystemcontrolissoundandproceduresaredrawnupclearly,corruption
opportunitiescanbeminimizedoreveneliminated.
Thesethreeelementsconstitutewhat iscalledthe“CorruptionTriangle”5.When
all threeelementsarepresent,calculationbegins.Theconsequencescanbestudied,
utilityestimated,andmoralprinciplesandopportunitycostsconsidered.
CorruptionTriangle
Motivation
Rationalisation
Opportunity
Insummary,thecorruptiontriangleanalysisgivesinsightintoICAC’sthree-pronged
approach to fightingcorruption. Minimizing theattraction leveland increasing the
risks (lawenforcement), improvingthesystemandprocedurestoeliminatecorruption
opportunities (prevention),andpromotingethicsandprofessionalism (education)are
importantinpreventingcorruption.
Thismoduleattempts toprovide youngpeoplewithpractical guidelines for
handlingethicalchallenges related topersonal integrityandenhance theirskills in
makingrightdecisions,especiallywhensubjecttoenticement.
5 Byars, N (2009) ‘The Corruption Triangle’, <http://www.ethicsandentrepreneurship.org/wp-content/uploads/2009/06/Byars-2009.pdf>
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ETHICALCHALLENGES
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Part 2Ethical Challenges
Beingable to recognise thevarious typesof situationswith inherentethical
challengesisapracticalstarttohandlingthem.Thispartprovidessomeperspectives
for identifyinganethical issue.ThetypologyofethicalchallengesproposedbyKidder
(2003)isoutlined,anddistinctionsbetweenethicalandlegalissuesaredrawntohelpin
assessingtheethicsofactions.Also,casestudiesareusedtoillustratetheapplication
oftheseperspectivestoanalysingethicalchallengesrelatedtopersonalintegrity.
2.1 Identifying an ethical issue
Recognisingtheexistenceofanethicalissueisalwaysthefirststepinaddressing
theinherentchallenges.Asstatedintheliteratureonpersonalethics(e.g.Howardand
Korver,2008;Kidder,2006),thefollowingperspectivesareusefulinidentifyinganethical
issue.
Anethicalissueisonewhichentailsanormativedimensionofrightorwrong.As
arguedbyHowardandKorver(2008),ourdecisionsaboutrightandwrongmustspecify
whichpeople to include,orwhichstakeholderswouldbeaffected. Inotherwords,
whetherornotadecisionisethicallysensitiveisamatterofitseffectsonothers.
Ethical issuesemergewhenacoremoralvaluehasbeenviolatedor ignored
(Kidder,2006).Forexample,ifhonestyisawell-recognisedvalue,actingdishonestlyis
unethicalasitfailstoaccordwiththevalue.
Ethicalissuesalsoarisewhentwoofourcorevaluescomeintoconflictwitheach
other.Forexample,beingloyaltofriendsandtellingthetrutharebothrightthingstodo.
Considerasituationinwhichyouneedtodecidewhethertohelpafriendbytellingalie.
Thesetwoethicalprincipleswould leadtooppositecoursesofactionandyoucannot
doboth.Insuchacase,ethicsisamatterofrightversusright(Kidder,2006).
Kidder’sscheme forcategorising typesofchallenges isuseful inanalysing the
complexitiesofethicalreasoning,andisdiscussedfurtherinthenextsection.
2.2 Types of challenges
Whileprovidingaframeworktotacklethedilemmasofethicalliving,Kidder(2003)
classifies life’sdilemmas into “rightversuswrong”and“rightversus right”choices,
referringtotheformeras“moraltemptations”andthelatteras“ethicaldilemmas”.
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Thechallengeofrightversuswrong
“Rightversuswrong”challengesare thosewithclear,ormostlyunambiguous,
ethicalimperativeswhichpointtoarightanswer,howeverdifficultorsimplethatanswer
maybe.
Kidder(2003)observesthattherearetypicallythreefacetsof“wrongs”:
• Violation of law, inwhich there is failure incomplyingwithclearly
specified laws. Failure tocomplycanariseoutof ignoranceor
deliberateintention,i.e.eitherbecausewedon’tknowthelawandits
application,orbecausewedeliberatelychoosetoviolatethelaw.
• Departure from truth,wherewedescribethingsinwayswhichdonot
accordwiththefactsasgenerallyknown.
• Deviation from moral rectitude,wherewefailtoadheretothecodeof
fundamentalvaluesthat issowidelysharedandbroadlyunderstood
that itdefines–at least forourplaceand time– thedifference
betweenrightandwrong.
Kidder (2003) considers that right versuswrong challenges are relatively
straightforwardtoresolve– theseare issuesof temptationandthereareclearethical
principles thatdirectone toa rightanswer. Peoplearecaught in theseethically
questionablesituationswhen theyaresimply tempted todosomethingwrong– for
example,cheatingonatestorlyingtoafriend.
Thechallengeofrightversusright
Incontrast,intherightversusrightsituations,competingvaluesexistonbothsides
whichare“genuinedilemmaspreciselybecauseeachsideisfirmlyrootedinoneofour
basic,corevalues”(Kidder,2003,p.18).
Rightversus rightdilemmascanbeclassified into fourdifferentparadigmsor
patterns,viz.:
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• Truth versus loyalty,whichcanbeseenashonestyorintegrityversus
commitment,responsibilityorpromise-keeping.
• Individual versus community,whichrelatestotheconflictbetweenthe
pursuitofindividualinterestsandtheclaimsofthecommunity.Itcan
berestatedas ‘usversusthem’, ‘selfversusothers’,or ‘thesmaller
versusthelargergroup’.
• Short-term versus long-term,whichreflects thedifficulties thatarise
when immediateneedsordesires runcounter to futuregoalsor
prospects.
• Justice versus mercy, which highlights the fact that fairness,
equity,andeven-handedapplicationof the lawoftenconflictwith
compassion,empathyandlove.
Insummary,understandingthedifferencesamongtypesofchallengeshelpsus
tomorereadily identifyandanalyseethicallychargedsituations.AsarguedbyKidder
(2003),thecategorisationhelpstocutthroughcomplexityandconfusion–assuringthat
“howeverelaborateandmultifaceted,dilemmasareinfactmanageableproblemswhich
canbereducedtocommonpatterns”(p.22).
2.3 Legal and ethical dimensions of actions
Thedistinctionbetween legal andethical dimensionsof actions is alsoof
importance. Ascertainingwhetheranethical issueasopposedtoa legal issue isat
stakecanhelpustobecomemoreconscientiousinhandlingthechallenges.
Agoodsystemof lawdoes incorporatemanyethicalstandardsandguidesour
behaviour. However, itwouldbemistakentoregard legalcomplianceasanadequate
meansforaddressingthefullrangeofethicalissues.AsnotedbyKidder(2003),tough
ethicaldecisions“oftenoperateinareasthatlawsandregulationsdon’treach”(p.15).
Acomplianceapproachtoethics is rooted inavoiding legalsanctions,which is
theminimal requirement. Ethicalcourage,however, requiresupholding thehighest
standardswhichgobeyondcompliancewith lawsandregulations,callingustodefine
theresponsibilityandaspirationsthatconstituteone’sethicalcompass.
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Ethics
(highestoroptimumstandard)
Legislation
(lowestorminimumstandard)
Below isacasestudywhichcanhelpstudentstoassesssituationswithethical
challengesbyapplyingtheperspectivesmentionedabove.Abriefanalysisofthecaseis
alsoprovidedforreference.
A Friendship Too Far
(CaseRef:1536)
Sally works in the Sales Department of an airline. New to the
company and under great pressure, she finds it difficult to sell air tickets,
especially during the low seasons of the year. Sally’s good friend, Pauline,
who works for a travel agency, always tries to persuade customers to buy
air tickets from Sally’s company.
One day, Sally receives a warning letter from her company on her
poor sales results. She is so upset that she goes to Pauline and cries.
While comforting Sally, Pauline receives a phone call from an insurance
company requesting 50 air tickets for a corporate trip to attend a
convention in Europe.
Pauline knows that it is a good opportunity to help Sally out of her
predicament and duly marks up other airlines’ prices in order to sell the
air tickets of Sally’s company. The client, based upon the inaccurate
information provided by Pauline, subsequently opts for Sally’s airline.
Bydeceivingherclientwith inaccurate information,Paulinehasbreached the
trustthatheremployerandherclienthaveplacedinher.Asanemployeeofthetravel
agency,Paulineshouldhavedischargedherdutydiligentlyandusedherdiscretion
ina fairandtransparentmanner. Worsestill,Paulinemighthavecommittedcriminal
offencesbyoverstatingthepricesofferedbyotherairlines.
6 The case is available in the Hong Kong Ethics Development Centre (EDC) of the ICAC <http://www.icac.org.hk/hkedc/eng/library4.asp.>. Since its establishment in 1995, the Centre has developed training materials, including case studies on ethics management, to provide practical advice on the handling of ethical issues in the day-to-day operation of various industries and professions.
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Paulinehasalso involvedherself inanethicallychargedsituation. First, the
interestsofthestakeholdershavebeenaffectedbyheractofaidingthesaleofSally’s
airlineticketsbymarkingupthepricesofotherairlines.Thisisnotonlyunfairtoother
airlines,butalsoplacesthecredibilityofheremployeratstake.
Also,bygivingherpersonal relationshipahigherpriority thanwork integrity,
Paulinehasputintoconflictsomewell-recognisedvaluessuchashonesty,andbeinga
responsibleemployee.
Abidingby the lawclearly isonebasic requirement for anemployeeorany
professions.Paulinemustalsopaycloseattentiontoethicalconcernsinordertomake
therightdecisionsinthismercurialbusinessenvironmentwheretherearemany“grey”
areas.
2.4 Checking your moral compass
Appendix 3providesaself-reflectionexerciseonscenarios in thedaily livesof
tertiarystudentswhichmightposeethicalchallenges in relation topersonal integrity.
Theexerciseaimstostimulatestudentstothinkaboutperspectivesonethicalchallenges
andtochecktheirownmoralcompass.Abriefanalysisofeachofthescenariosisalso
providedinAppendix 3forreference.
Threetypesofethicalchallengesare included in thesescenarios,which involve
deception,potential conflicts of interestand right versus right challenges.Abriefanalysis
ofeachofthesetypesofchallengeisoutlinedbelow.
Scenarioinvolvingdeception
Manipulation of project data
(Caseno.9intheexerciseinAppendix3)
George, Elaine and David are members of a group project. George is
responsible for collecting and analysing the data. Due to an unsatisfactory
response-rate, George planned to manipulate some figures and present
them in the report in order to fulfil the assignment requirements. He told
Elaine his plan and asked her not to disclose it to anyone, including David.
Elaine felt rather uneasy about this but did not stop George from doing it.
Manipulating the reportdataundermines thecredibilityofacademicworkand
breakstherulesoffairplay intheassessmentsystem,andthushasanadverseeffect
onteachers/studentsandtheinstitution.Italsoviolatesresearchethicsandisregarded
asanactofacademicdishonesty.
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Elaine isfacinganethicalchallengeassheneedstodecidewhethertocoverup
George’swrongdoing (inwhichcaseshewillsacrificeprinciplessuchashonestyand
fairness)orshowzerotolerancetoanunethicalbehaviour.
EthicaldecisionmakingwillbediscussedinPart3ofthismodule.
Scenariowhereapotentialconflictofinterestexists
Personal relationships taking a higher priority
(Caseno.4intheexerciseinAppendix3)
Wayne is a member of a university social service society and his
major duty is to provide programme and administrative support to a
community centre. In organising a health promotion activity for the centre
which requires the procurement of uniforms for its participants, Wayne
recommends his uncle’s company to be the sole provider as an attractive
price is on offer. Wayne considers that the deal benefits both parties and
does not bother to source other possible suppliers. He has not disclosed
his relationship with his uncle to the centre.
Inaworkplacecontext,conflictofinterestariseswhenthepersonalinterestofan
employeeconflictswiththeemployer’s interest.Suchconflictmayleadtosplit loyalty,
whichisconducivetocorruptionandcanundermineacompany’sinterests.
Conflict of interest situations
Interest ofoneself, family and friends
Company’sinterest & your
own duties
Tertiarystudentsmayencounterconflictof interestsituationswhen theyare
involved in runningstudentsocietiesorparticipating in relatedactivities. InWayne’s
case,hehasbeenentrustedwithsourcing thebestsupplier in termsofqualityand
price,buthefailstoperformhisdutydiligently.
ThisisanethicallysensitivesituationasWayne’sdecisionmaycauseunfairnessto
othercompaniessupplyinguniformsastheyhavenotbeeninvitedtogivequotationsfor
thisexercise.Aconflictofinterestmayexistasawardingthecontracttohisunclemay
notbethebestdecisionforthecommunitycentre.
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Scenarioinvolving“rightversusright”decisions
Exercising discretion over ethical dilemmas
(Caseno.1intheexerciseinAppendix3)
Linda is a committee member of the Student Hostel Association.
Her roommate Annie has asked a friend to stay overnight at the hostel,
without paying the residence fee. The committee happened to make a
snap decision to inspect the hostel that night. Annie asks Linda to help her
avoid paying the penalty but Linda declines to do so.
Lindaneedstomakeatoughdecisionwhichinvolvesarightversusrightchallenge.
Whilemaintainingloyaltyorshowingempathytoafriendisagoodthingtodo,offering
help toAnniewouldviolatestudenthostel regulationsandchallengepersonalvalues
suchashonestyandbeingresponsible.
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ETHICAL
DECISION MAKING
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Part 3Ethical Decision Making
Thispartaimstoprovidepracticalknowledgeandknow-how insupportof the
evaluationofethical issues.Thegeneralstrategy/processofdecisionmaking is first
outlined, followedbydecisionmakingmodels,namely the “ETHICSPLUS”model
developedbytheICACandKidder’sguidelinesfordecisionmaking.Allthesewillassist
in thedecision-makingprocess,andprovideguidance inresolvingethicalchallenges
inastructuredway. Finally,scenariosdiscussed inPart2areused to illustrate the
applicationofthedecisionmakingmodels.
3.1 The decision-making process
Makingsoundethicaldecisionsrequiressystematicmethods for identifying the
challengesandchoosing thecoursesofaction. Whileethical issues indaily lifeare
complexanddonothavesimplesolutions,adecision-makingprocesscanenhance
ethicalthinking.
Thethree-stepprocessproposedbyHowardandKorver(2008)includes:clarifying
the ethical challenge, generating creative alternatives and evaluating alternatives to
choose defensible and ethical responses.
Step1:Clarifyingthechallenge
Themostsignificantstepinadecision-makingprocessistodecidewhetheran
ethical issueexistsandclarify thechallenge(s) involved inthesituation. This is
criticalashowonedefinesaproblemdetermineshowonesearchesforsolutions
andalternatives.
Thefollowingtechniquesareusefulinclarifyinganethicalissue:
• Describingthesituation/ethicaltemptationaccuratelyinvalue-neutrallanguage.
• Separatinglegalandethicalconcerns.
• Framingquestions in termsof relationshipswithothers– forexample, the
individualsandgroupswhichhaveanimportantstakeintheoutcomeandthe
potentialbenefit/harmtothem.
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Step2:Creatingalternatives
Oncetheethicalquestionhasbeenestablished,onecangeneratealternatives
foraction.Severalstrategiescanhelptoidentifythechoices:
• Choosingalternativesthatcomplywithrequiredethicalstandards.
• Consideringalternativesthatarolemodelwouldprefer.
• Creatingoptionswewouldchooseforalovedone–forexample,actingaswe
wouldtowardourchild/children.
Step3:Evaluatingalternatives
Thelaststepistoevaluatethealternativesanddecideupontheoption(s)which
offerdefensibleandethicalresponses.Fourtestingstepscanbeinvolvedinthis
process:
• Evaluatealternativesagainstourcode7(Whatwouldourcodedirectustodo?)
• Evaluateagainstourethicalrolemodel(Whatwouldourrolemodeldo?)
• Testforreciprocity(Whatwouldthe‘other-shoe’testsuggestweshoulddo?)
• Testforuniversality(Whatifeverybodydoesit?)
HowardandKorver (2008)consider that this three-stepprocesscan facilitate
themakingofeffectiveethicaldecisions. Inreferringtoeffectivedecisionmaking, the
authorsmeandecisionsinwhichwehavefollowedahigh-qualityprocessandadhered
toprovenprinciples.Thisisnottobeconfusedwithhigh-qualityoutcomesand/orthe
resultsofthedecision.
7 The personal ethical code will be discussed in Part 4 of this module.
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3.2 Decision making models
Adecisionmakingmodel isasuggested thinkingprocess foruse in resolving
ethicalchallengesandreachingadecisionaboutacourseofactioninastructuredand
systematicway.
Therearevariousmodels inthe literatureofbusinessandpersonalethics.Some
modelsaredesignedtohelpmanagersaddressethicaldilemmas–forexample,ICAC’s
“ETHICS PLUS”modelandLauraNash’s“Twelve Questions” 8 forexaminingtheethics
ofabusinessdecision. Somemethodsfocusmoreongeneralstrategies inresolving
ethicalchallengesindailylife–forexample,Kidder’s guidelinesfordecisionmaking.
TheICAC’smodelandKidder’smethodareoutlinedbelow.
The“ETHICSPLUS”model
Basedonitsextensiveexperienceinpromotingethical leadershipinthebusiness
community, theHongKongEthicsDevelopmentCentre (EDC) of the ICAChas
developedamodeltohelpbusinessexecutivestoarriveatsounddecisionsintheface
ofethicaldilemmas.“ETHICSPLUS”isanacronymderivedfromsixmajorstepsinthe
thinkingprocessandfourkeyfactorsinthestandardsfordecisionmaking.
The ETHICS process – Six major steps to follow:
E stablish the relevant facts and identify the ethical issues.
T ake stock of the stakeholders or parties involved.
H ave an objective assessment of each stakeholder’s position.
I dentify viable alternatives and their effects on the stakeholders.
C ompare and evaluate the likely consequences of each alternative with reference to the standards expected (PLUS standards).
S elect the most appropriate course of action.
8 The Twelve Questions are:1 Have you defined the problem accurately?2 How would you define the problem if you stood on the other side of the fence?3 How did this situation occur in the first place?4 To whom and what do you give your loyalties as a person and as a member of the corporation?5 What is your intention in making this decision?6 How does this intention compare with the likely results?7 Whom could your decision or action injure?8 Can you engage the affected parties in a discussion of the problem before you make your decision?9 Are you confident that your position will be as valid over a long period of time as it seems now?
10 Could you disclose without qualm your decision or action to your boss, your CEO, the board of directors, your family, or society as a whole?
11 What is the symbolic potential of your action if understood? If misunderstood?12 Under what conditions would you allow exceptions to your stand?
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The PLUS standards – Four key factors to consider:
P rofessional/trade-related/corporate code of conduct.
L egal requirements: e.g. are there any breaches of the laws?
U ncompromising self values: e.g. integrity, honesty, fairness,
trustworthiness, etc.
S unshine test: i.e. whether the issue can be discussed openly and the decision disclosed without misgivings?
Kidder’sguidelinesfordecisionmaking
ThetypologyofethicalchallengesproposedbyKidder (2003) isthefundamental
buildingblockofhisframeworkfordecisionmaking.Thestepsareoutlinedbelow.
1 Recognisethatthereisamoralissue
Drawingdistinctionsbetweenmoralquestionsand those thatmerely
involvemannersandsocialconventions.
2 Determinetheactor(s)
Identifyingtheactor(s)andconsideringthebenefitsandharmtoeachactor.
3 Gathertherelevantfacts
Fact-gathering involvesanexaminationof thewayeventshaveunfolded
andwhoisculpablyignorantorinnocentlyunaware.
4 Testforrightversuswrongissues
Consideringwhetherthecaseathandinvolveswrongdoing.
5 Testforrightversusrightparadigms
Analysing the issue in termsof theright-versus-rightparadigmstobring
sharplyintofocuswhetheritisagenuinedilemma.
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6 Applyingtheresolutionprinciples
Theseprinciplesinclude:
• ends-basedthinking:Dowhat’sbestforthegreatestnumberofpeople.
• rule-basedthinking:Followyourhighestsenseofprinciple.
• care-basedthinking:Dowhatyouwantotherstodotoyou.
7 Investigatethe“tri-lemma”options
Exploringathirdwaythroughthisdilemmaandacreativecourseofaction.
8 Makethedecision
Thisisastepwhichrequiresmoralcourageandethicalleadership.
9 Revisitandreflectonthedecision
Seeking lessons fromthedecision-makingprocess toadjust themoral
compass.
3.3 Application of decision making models
Thesemodelsareuseful inenablingan individual tomakewell thought-out
decisions. Nosingledecisionmakingmodel issuperior totheothers. Thechoiceof
anethicaldecisionmakingmodelisdependentonanindividual’spersonalpreferences.
Also,themodelscanbemodifiedtosuitindividualneeds.
Fordemonstrationpurposes, thescenariosdiscussed inPart2areused to
illustrateeffectiveethicaldecisionmakingbyapplyingthemodelsmentionedabove.
ApplyingETHICSPLUS
Thoughthemodelwasoriginallydesignedforbusinessexecutives,itcanbeused
toresolvechallengesindailylife.Inthefollowingscenario,Elainecanapplythemodelin
resolvingtheproblem.
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Manipulation of project data
(Caseno.9intheexerciseinAppendix3)
George, Elaine and David are members of a group project. George is
responsible for collecting and analysing the data. Due to an unsatisfactory
response-rate, George planned to manipulate some figures and present
them in the report in order to fulfil the assignment requirements. He told
Elaine his plan and asked her not to disclose it to anyone, including David.
Elaine felt rather uneasy about this but did not stop George from doing it.
Step 1
Establishthe
factsandidentify
theethicalissue
inquestion.
Facts:
•Georgeplanned tomanipulateprojectdatadue toan
unsatisfactoryresponse-rate.
• GeorgeaskedElainenottodisclosehisplantoanyone,
includingDavid,anothermember.
•Manipulating project data breaks the rules in the
assessment system and is regarded as an act of
academicdishonesty.
Ethicalissue:
Should Elaine cover up George’s plan to manipulate data?
Step 2
Takestockof
thestakeholders
involved.
• Theprojectgroup(George,DavidandElaine)
• Otherstudents
• Thetutor
• Thedepartment/university
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Step 3
Compareand
evaluateeach
alternativewith
referenceto
thefourPLUS
standards.
Theprojectgroup
George:
• Deliberatelyviolatingtheuniversity’spolicyandregulations
onacademic integrity isan irresponsibleanddishonest
behaviour.
David:
• Davidisunawareofthesituation.
Elaine(whoneedstofaceanethicalchallenge):
• CoveringupGeorge’smisconductwill causepossible
harmto/haveanegativeimpactonDavid,otherstudents,
thetutorandthedepartment/university.
• Elainehastocompromiseprinciplessuchasintegrityand
fairnessifsheturnsablindeyetoGeorge’sdishonestact.
Otherstudents
• It is unfair toother studentswhoarehonest in their
academicwork.
Thetutor
• It involves cheating the tutor and abusing the trust
betweenteachersandstudents.
Thedepartment/university
• Itbreakstherulesof fairplay intheassessmentsystem
andunderminesthecredibilityofacademicwork.
• Itdamagesthereputationofthedepartment/university
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Step 4
Identify
alternativesand
assesstheir
effectsoneach
stakeholder.
• Option1
AgreeingtoGeorge’ssuggestioninmanipulatingdata.
• Option2
DissuadingGeorgefromtheideaandencouraginghimto
seekadvicefromthetutor.
• Option3
DecliningGeorge’ssuggestionandseekingalternative
waystoremedythesituation,suchasinvitingmoretarget
groupstotakepartinthestudyorimprovingtheresearch
design.
Step 5
Compareand
evaluateeach
alternativewith
referenceto
thefourPLUS
standards.
Professionalcodesofconductandcompanyrules
• Thisstandarddoesnotapplydirectlytothescenarioas
it isnot inaworkplacesetting. However,Elaineshould
notethatmanipulatingreportdataviolatesresearchethics
anddeviatesfromanyethicalcodes.
Legalrequirements
• Again, thisdoesnot applydirectly. However,Elaine
shouldbeawarethatdatamanipulation isconsidereda
seriousviolationoftheuniversity’sregulations.
Uncompromisingself-values
• Covering upGeorge’s dishonest behaviour is not
commensuratewithvaluessuchashonesty,responsibility
andfairness.
SunshineTest
• Elainehas toconsiderwhethershecoulddisclose the
options/decisions toher friendsand familymembers.
If suchopennessmakesher feeluncomfortable, she
shouldnotsupportGeorge’sactions.
• HavingscrutinizedOption1usingtheabovestandards,
probablyElainewould feeluneasyaboutdiscussing it
openly.
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Step 6
Selectthe
appropriate
courseofaction.
•With reference to thePLUSstandards,Elaineshould
selectoptions2or3, i.e. topersuadeGeorge toseek
advice fromthe tutoror toseekremedialmeasures for
theproject.
ApplyingKidder’sguidelines
Let’sconsideranotherscenariowhich involves“rightversusright”decisionsby
applyingKidder’sguidelines.
Exercising discretion over ethical dilemmas
(Caseno.1intheexerciseinAppendix3)
Linda is a committee member of the Student Hostel Association.
Her roommate Annie has asked a friend to stay overnight at the hostel,
without paying the residence fee. The committee happened to make a
snap decision to inspect the hostel that night. Annie asks Linda to help her
avoid paying the penalty but Linda declines to do so.
1 Recognisethatthereisamoralissue
Lindahastodecidewhethertoperformherroleasacommitteememberof
theStudentHostelAssociationdutifullyorturnablindeyetoAnnietohelp
heravoidpayingthepenalty.Thisisamoralissueasherdecisionwillhave
an impactonothersandchallengepersonalvaluessuchasresponsibility
andhonestyifsheoptstoacceptherfriend’swrongdoing.
2 Determinetheactor(s)
LindaandAnniearetheactors.FromAnnie’spointofview,shecanavoid
paying thepenalty ifLindaoffershelp. However,offeringhelp toAnnie
wouldviolatestudenthostelregulationsandencourageimproperbehaviour
amongresidents.
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3 Gathertherelevantfacts
Therearestudenthostelregulationsgoverningtemporaryresidenceofnon-
residentialstudents.Forexample,theyareallowedtostayovernightafter
registrationandpayingthefees.
Beingacommitteememberof theStudentHostelAssociation,Lindahas
thedutytomanagethehostelandensurecompliancewiththeregulations.
4 Testforrightversuswrongissues
Inasking forLinda’shelp tocoverupawrongdoing,Anniehasdeviated
frommoral rectitudeandviolated thehostel regulations. However, from
Linda’spointofview,sheisfacingarightversusrightdilemma.
5 Testforrightversusrightparadigms
Lindaneedstomakeatoughdecisionwhich involvesarightversusright
challenge.
•Weighingtheidealofjustice(i.e.complyingwiththeprincipleoffairness
bypersuadingAnnietotellthetruth/paythefine)againstthecompeting
imperativeofmercy(i.e.respondinginacompassionateandempathetic
mannerby turningablindeyeandhelpingAnnie toavoidpaying the
penalty)and;
• Tellingthetruth(i.e.performingherroleasahostelassociationcommittee
memberinanhonestandtruthfulmanner)againstmaintainingloyalty(i.e.
faithfulnesstofriendship).
6 Applyingtheresolutionprinciples
Lindacanapplytheprincipleswhichshoulddirecthertothesamedecision
i.e.compliancewiththeregulationswouldbebestforthehostelresidents
(ends-based thinking)andbecommensuratewith thehighestsenseof
principle(rule-basedthinking).
7 Investigatethe“tri-lemma”options
Lindacanexploreathirdwaythroughthisdilemma–forexample,handling
thedilemmatactfullywhilemaintaininggood interpersonal relationships
andupholding integrity. Shecan talk toAnniewhomaybewellaware
of theethicalprinciplesbutdoesnotobserve thembecauseofother
considerations.ShecanalsoaskAnnietoputherself inherpositionand
seehowshewouldmakethedecision.
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8 Makethedecision
Lindacan turndownAnnie’s requestas itnotonlyviolates thehostel
regulationsbut also is not compatiblewithpersonal values suchas
responsibility,honestyandintegrity.Shecanalsodiscusstheissueopenly
withAnnieandworkoutsolutionstotheproblem.
9 Revisitandreflectonthedecision
BothLinda/Anniecanseek lessonsfromthedecision-makingprocessto
adjustthemoralcompassforhandlingsimilarornewchallengesinfuture.
Makingethicaldecisionscanbeadifficult task. Theneed tobuildupskills
inexercisingsound judgement is, therefore,ofparamount importance inhandling
ethicaldilemmas. Twodecision-making frameworkshavebeendiscussedand their
applicationsillustrated.
Thescenariosprovided in thissection focusmainlyonuniversitystudent life.
However, studentscanapply thesestrategies later inhandlingmorecomplicated
challenges in theworkplace. TheHongKongEthicsDevelopmentCentre<http://
www.icac.org.hk/hkedc/eng/library4.asp.>hasdevelopedcasestudiesonethical
managementinvariousindustriesandprofessions.Somecasestudiesrelatedtoyoung
peoplehandlingethical issuesintheworkplaceareprovidedinAppendix 4.Lecturers/
instructorsmaywish touse thesecases for tutorialdiscussion toenhancestudents’
understandingofthedecision-makingprinciplesandprocess.
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Part 4Ethics in Action
Havingexaminedethicalchallengesand thedecision-makingprocess in the
previoussections,thispartfeaturespracticalstrategiesforputtingethicsintoaction.
Creatingapersonalethicalcodeisconsideredaneffectivewaytoreaffirmethical
commitments.Harvard’sMBAOathisusedasanexamplefordiscussion.Also,inthe
workplaceorasaprofessional, therearesomecommonlyacceptedstandards that
anindividualneedstotakeintoaccount.Thegeneralapproachtotheformulationofa
codeofconductintheworkplaceisoutlined.AnICACsamplecodeofconductisalso
providedforreference.
4.1 Personal ethical code
Acodeofconduct is intendedtobeacentralguideandreference insupportof
day-to-daydecisionmaking. Apracticalpersonalethicalcodehelps toclarifyone’s
ethicalprinciplesandguidesdisciplineddecisionsandactions.
AccordingtoHowardandKorver (2008),writingapersonalethicalcode involves
threesteps:
Step1:Draftingstandards
Thisstepinvolvesacriticalself-reflectionprocesstoclarifyone’sethicalsenseof
rightandwrongbysettingoutthepracticalstandardsthatonetrulybelievesin.
Step2:Testingstandards
Severaltestshelptofindoutwhetherthecodeisworthwhile:
• Check the logic. Will thestandardsholduptotests forreciprocity (Would
Iwantotherpeopletoapplythesameruletome?)anduniversality (Would I
wanteveryonetofollowthis?)
• Check for focus. Hasthecode includedtoomanystatements,making it
unmanageable?
• Test-drive for usefulness.Howwelldothestandardsoperateineveryday
life?Aretheypractical?
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Step3:Refiningthecode
This istheprocesstocheckwhetherthecodesarewrittenpreciselyand
distinctivelysothattheycanprovideunambiguousstandardsandclearguidance
forconcreteactions. Also,anethicalhierarchy isspecified incase thereare
conflictsinthestandards,i.e.whichonetakesprecedence?
Harvard’sMBAOath
TheMBAgraduatesattheHarvardBusinessSchooldevelopedanOath in2009
whichdemonstrates thecommitmentofgraduates toethicalprinciplesbydrafting
theirownethicalcodes(AndersonandEscher,2010).Thedetailsofthecampaignare
availablein“MBAOathWebsite”<http://mbaoath.org/about/the-mba-oath/>.
Whendoctors,accountantsandlawyersgraduate,theyareexpectedtofollowthe
ethicalcodesoftheirprofessions.Whyshouldgraduatebusinessstudentsnotsignup
forabusinesscodeofethics?Thelong-termgoalofthecampaignistotransformthe
fieldofmanagement intoatrueprofession,one inwhichMBAsarerespectedfortheir
integrity,professionalismandleadership.Intheevent,overhalfthegraduatingclassof
around800studentsin2009signedthepledge.
Ashighlighted in the introductoryparagraph, theMBAgraduates realise that
theirdecisionsmayhavea far-reaching impactonthewell-beingof individuals inside
andoutsidetheenterprises,todayandinthefuture.Assuch,theytrytoreconcilethe
interestsofdifferentconstituencieswhilefacingdifficultchoices.
Thereare twoversionsof theMBAOath–aShort Version, thatboils theoath
downtothekeyideas,tomakeiteasiertoremember,andaFull Version thatprovides
backgroundoneachoftheeightcommitments.Theshortoneisasfollows:
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MBA OATH – SHORT VERSION
Asamanager, my purpose is to serve the greater good by bringing people and resources together to create value that no single individual can build alone. Therefore I will seek a course that enhances the value my enterprise can create for society over the long term. I recognize my decisions can have far-reaching consequences that affect the well-being of individuals inside and outside my enterprise, today and in the future. As I reconcile the interests of different constituencies, I will face difficult choices.
Therefore, I promise:
• Iwill act with utmost integrity and pursue my work in an ethical manner.
• Iwill safeguard the interests of my shareholders, co-workers, customers, and the society in which we operate.
• Iwill manage my enterprise in good faith, guarding against decisions and behaviour that advance my own narrow ambitions but harm the enterprise and the societies it serves.
• Iwill understand and uphold, both in letter and in spirit, the laws and contracts governing my own conduct and that of my enterprise.
• Iwill take responsibility for my actions, and I will represent the performance and risks of my enterprise accurately and honestly.
• Iwill develop both myself and other managers under my supervision so that the profession continues to grow and contribute to the well-being of society.
• Iwill strive to create sustainable economic, social, and environmental prosperity worldwide.
• Iwill be accountable to my peers and they will be accountable to me for living by this oath.
This oath I make freely, and upon my honor.
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There has been scepticismover
theeffectivenessandpracticabilityof the
Oath. Forexample,onecriticism is that
theoath’s finewordsare toothless– it
is reallyonlyat themanagement,board
or regulatoryagency level thatonecan
ensureethicalbehaviour inbusiness (TheEconomistNewspaperandTheEconomist
Group,20099).
Your students can join thedebate andmake their own comments on the
effectivenessof theMBAOath. TheycanalsoapplyHowardandKorver’s (2008)
proposalon the formulationofpersonalethicalcodes toexamine theMBAOath, for
examplebyconsideringthefollowingquestions:
•What do you think about the details of the pledge?
•Would the various clauses be meaningful in practice?
•Which clause(s) would you suggest to be added or deleted?
•What is your opinion of the students’ pledge?
•Do you think in the long-term it will influence their business behaviour?
4.2 Standards of behaviour in the workplaceIn theworkplace, standardsofbehaviourexpectedbyanorganisationof its
managementandemployeesareusuallysetoutinthe“codeofconduct”.
Acodeofconduct ismeant toclarifyanorganisation’smission, valuesand
principles, linking themwithstandardsofprofessionalconduct. Awell-writtenand
thoughtfulcodeprovidesclearguidelinesgoverningcorporateconduct inachieving
businessgoals.
Therearecompanieswhich include in theircodesofconductadetailedsetof
operatingprinciples formanagementandstaff to follow indealingswithcustomers,
suppliers,contractors,publicofficialsandanypartieswhohavearelationshipwiththe
company.Thebroadestformsofcodecoveralloftheaboveaswellasthecompany’s
policyregardingsocialissueswhichaffectthecommunityatlarge.
9 The Economist Newspaper and The Economist Group (2009) ‘Can managers be made more ethical?’, June 8th 2009.
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FormulationofaCodeofConduct
Itisuptoeachindividualbusinessorganisationtodeterminetheethicalstandards
ofbehaviourofitsmanagementandemployees.Thecommonapproachistotakeinto
account legal requirements,acompany'sownethicalvaluesandgeneralcommunity
expectations.
Legal requirements: Abidingby the lawhas to be themost
fundamentalconsideration inmakingethicaldecisionsandthus formsa
crucialpartofthecodeofconduct.Forexample,tohelpstaffstayaway
fromcorruptionandmalpractice,statutoryprovisions relating tobribery
offencesneedtobehighlighted.
Ethical values:Ethicalbehaviouressentiallycomesdowntohonesty,
integrity, fairnessandsocial responsibilities. Theseare thebasicvalues
forresolvingdifficultlegalandethicalmatters.Theupholdingofanethical
cultureinlinewiththesestandardsisofcriticalinteresttotheorganisation
andstakeholdersalike.
Community expectations: There already exist established
standardsof practicegoverning the conduct of specific trades and
professionsaswellasspecial typesofbusinesscorporations. These
standards shouldbewell observed indevelopingeffectivecodesof
conductfororganisations.
Itshouldbenotedthatitisnotfeasibletoprescribeexhaustiveguidelinestocover
eachandeverysingleethicalconcernthatemployeesarelikelytofaceintheirwork.In
caseofdoubt,oneshouldconsiderseriouslywhetherornotitwouldsurvivedisclosure
andcriticalpublicscrutiny. Abreachofpersonalormoralethics thusmayextend
beyondaviolationoflegalrequirements.
Foranillustrationofhowcompaniesingeneralprovideethicalguidelinesforstaff,a
samplecodeofconductdevelopedbytheICACisprovidedinAppendix 5forreference.
Thekeycontentareastobecoveredare:
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• PreventionofBriberyOrdinance
• Acceptanceofadvantages
• Entertainment
• Conflictofinterests
• Handlingconfidentialinformation
• Compliancewiththecode
Insummary,codesofconductofferan invaluableopportunity for responsible
organisationstocreateapositivepublic identity for themselves. Theyalsoencourage
discussionofethicsandequipemployeesbetter fordealingwiththeethicaldilemmas
andgreyareasthatareencounteredineverydaywork(EthicsResourceCentre,200910).
10Ethics Resource Centre (2009) ‘Why have a code of conduct?’, <http://www.ethics.org/resource/why-have-code-conduct>
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51
(Source:TheICACCorporateWebsite‘Anti-CorruptionLaws’,http://www.icac.org.hk/en/law_enforcement/acl/index.html)
POBO - Public sectorPublicservants1includeprescribedofficersandemployeesofpublicbodies.Prescribedofficersaresubject toSections3,4,5and10ofPOBOwhileemployeesofpublicbodies(e.g.powercompany,buscompany,hospital,etc)aresubjecttoSections4and5:
Section 3 NoprescribedofficerisallowedtosolicitoracceptanyadvantagewithoutthegeneralorspecialpermissionoftheChiefExecutive.
Section 4 Anypublicservantwhosolicitsoracceptsanyadvantageasaninducement toor reward forperformingdutiesshallbeguiltyofanoffence;theofferoroftheadvantageshallalsobeguiltyofanoffence.
Section 5 Anypublicservantwhosolicitsoracceptsanyadvantageasaninducementtoorrewardforgivingassistanceorusing influenceinmattersrelatingtoacontractshallbeguiltyofanoffence;theofferoroftheadvantageshallalsobeguiltyofanoffence.
Section 10 Anyprescribedofficerwhomaintainsastandardof livingorhasassetsnotcommensuratewithhisofficialemolumentsshallbeguiltyofanoffence.
IntheOrdinance:
• “Advantage” includesmoney, gifts, loans, commissions, offices, contracts,services, favoursanddischargeof liability inwholeor inpart,butdoesnot includeentertainment.
• “Entertainment”means theprovisionof foodordrink, forconsumptionon theoccasionwhen it isprovided,andofanyotherentertainmentprovidedatthesametime, forexamplesinginganddancing. AlthoughtheacceptanceofentertainmentdoesnotbreachthePOBO,individualgovernmentdepartments/publicbodieswillstillstipulatetheconditionsforstaff’sacceptanceofentertainment.
1 For definition of “public servant”, please refer to Cap 201 s 2 of the Prevention of Bribery Ordinance <http://www.legislation.gov.hk/blis_ind.nsf/WebView?OpenAgent&vwpg=CurAllEngDoc*201*64*201.1#201.1>
Appendix 2 - Understanding the POBO
52
POBO - Private sector• Noagent (usuallyanemployee)shallsolicitoracceptanyadvantagewithout the
permissionofhisprincipalwhenconductinghisprincipal’saffairsorbusiness; theofferoroftheadvantageisalsoguiltyofanoffence.
• “Advantage” includesmoney, gifts, loans, commissions, offices, contracts,services, favoursanddischargeof liability inwholeor inpart,butdoesnot includeentertainment.
• “Entertainment”means theprovisionof foodordrink, forconsumptionon theoccasionwhen it isprovided,andofanyotherentertainmentprovidedatthesametime,forexamplesinginganddancing.
53
Making Tough ChoicesThisexercisecomprisesatotalof10itemsdepictingscenariosinthedailylivesoftertiarystudentswhichmaypresentthemwithethicalchallenges.Youareaskedtoindicatetheextenttowhichyouagreeordisagreeonhowthescenariosshouldbehandled.
Scenarios Strongly agree
AgreeNeither
disagreenor agree
Disagree Strongly disagree
1 LindaisacommitteememberoftheStudentHostelAssociation.Her roommateAnniehasaskeda friend tostayovernightat thehostel,withoutpaying the residence fee.Thecommitteehappened tomakeasnapdecision to inspect thehostel that night.AnnieasksLinda tohelpheravoidpayingthepenaltybut Lindadeclines todo so.DoyouagreewithLinda’shandlingof thesituation?
2 Carriemanagestobecomeasummerinterninacompany,asarrangedby theStudentAffairsOffice (SAO) andsheaccepts theoffer.Beforethat,shehadappliedforanothersummerjobinalistedcompanywhichoffersbettertermsandshehasreceiveditsofferofemployment recently.Carrie, though feelingit isapity,declines thisofferasshedoesnotwant tobreakherpromiseandaffectthecredibilityoftheSAO.DoyouagreewithCarrie’shandlingofthesituation?
3 Davidhasworkedovernight toprepare forhis testanddecides toskipa lecturenextmorning.However, class attendance ismandatory.Heaskshis friendJoe tosignhisattendance forhim.Thoughsomewhatreluctant,JoeagreestohelpDavid.DoyouagreewithJoe’shandlingofthesituation?
4 Wayne isamemberofauniversity socialservice societywhosemajor duties aretoprovideprogrammeandadministrativesupport to a community centre.Whileorganizingahealthpromotionactivity forthecentrewhich requires theprocurementof uniforms for its participants,Waynerecommendshisuncle’scompanytobethesoleprovidersinceanattractivepricehasbeenoffered.Wayneconsidersthatthedealbenefitsbothpartiesanddoesnotbothertosourceotherpossiblesuppliers.Hehasnotdisclosedhisrelationshipwithhisuncleto thecentre.DoyouagreewithWayne’shandlingofthesituation?
Appendix 3 - A Self-reflection Exercise
54
Scenarios Strongly agree
AgreeNeither
disagreenor agree
Disagree Strongly disagree
5 June is the chair of a Students’ Union(SU) and is seeking sponsorships fromcommercial companies to support theorganizationofSUactivities.Acompanyofferssponsorshipof$5,000,butasksJunetosolicit50validcreditcardapplicationsin return.Wishingtosecure the fundingassoonaspossible, Juneaccepts theofferwithoutmakingreferencetotheuniversity’sguidelinesonacceptingsponsorshipsbystudentsocieties.Shealsoaskscommitteemembersof theSUtosubmitapplicationsforthecreditcard.DoyouagreewithJune’shandlingofthesituation?
6 Joey is thevice-chairofastudentsocietyand is responsible for buying iPods aspresents for various competitions to beheld throughout the coming year.Whilenegotiatingtheprice,ashopoffersaspecialdiscounttoJoeyforpurchasingan iPodforherownusebutnodiscountwillbeofferedforother items.Considering that this isamatterofbusinesspromotion,Joeyacceptstheofferwithoutreportingthematter tothechairofthesociety.DoyouagreewithJoey’shandlingofthesituation?
7 TheMathematics Society has reserved$1,000fromitsannualbudgetfororganizingsocial gatherings formembers. Thomas,thechair,decides tospend themoneyona celebration partywhich involves onlycommitteemembers.Jack, thevice-chair,disagreeswithThomas’suggestionas themoneycomes largely fromthemembershipfees.DoyouagreewithThomas’handlingofthesituation?
8 Michael isgoing tosubmithis termpaperbuthe is farbehindschedule.Oneofhisclassmatestellshimaboutthe“thesis-writingservices”availableonthe Internetandsayshewillgetaqualitypaperwhichwillavoidplagiarismdetection if he pays a higherprice. Inviewof thetightschedule,Michaelplanstousetheservice.DoyouagreewithMichael’shandlingofthesituation?
55
Scenarios Strongly agree
AgreeNeither
disagreenor agree
Disagree Strongly disagree
9 George,ElaineandDavidaremembersofagroupproject.George is responsible forcollectingandanalysing thedata.Due toanunsatisfactory response-rate,Georgeplanned tomanipulate some figures andpresent them in the report inorder to fulfiltheassignmentrequirements.HetoldElainehisplanandaskedhernot todisclose it toanyone, includingDavid.Elaine felt ratheruneasyabout thisbutdidnotstopGeorgefromdoing it.DoyouagreewithElaine’shandlingofthesituation?
10 Simon recently got a part-time job at acinemaand isentitled to two free ticketseachmonthasemployeebenefits.Astherearenoregulationsgoverningthe identityofthebeneficiaryof thetickets,hethinks it isa“win-win”situationtoselltheticketstohisclassmatesata50%discount.DoyouagreewithSimon’shandlingofthesituation?
Calculation of Scores
Scenarios Strongly agree
AgreeNeither
disagreenor agree
Disagree Strongly disagree
1-2 5 4 3 2 1
3-10 1 2 3 4 5
Analysis
Thisactivityisnotapersonalitytestandtheanalysisisforgeneralreferenceonly.Theexerciseaimstostimulatestudents’ thinkingaboutperspectivesonethicalchallengesrelatedtopersonalintegrityfacedbythem.
Score
41-50 You are an upright and honest person who will not give up your principles for personal benefits. You can uphold your principles even when faced with temptations.
21-40 You are a prudent person but you may sometimes turn a blind eye to irregularities. You may not be able to always stick to your principles or follow regulations.
10-20 You are a person of loose principles. Being indecisive in making up your mind when encountering ethical dilemmas, you can only perceive the immediate consequences sometimes but fail to make proper judgment from long-term perspectives.
56
Brie
f ana
lysi
s of
the
scen
ario
s
Sce
nari
os
Per
spec
tive
s
Is it
an
ethi
cal i
ssue
?N
atur
e o
f co
ncer
n
Effectsonothers
Com
prom
iseon
personalvalues
Ethicalconcern
(Lying/deception,
personalgain,
potentialconflictof
interest,etc.)
Ethicaldilemmas
(Rightvs.Right)1
Moraltemptations
(Rightvs.W
rong)2
1.Scenariosinvolving“Rightvs.Right”decisions(Ethicaldilemmas)
1Lindaisacom
mitteemem
berof
theStudentHostelAssociation.Her
room
mateAnniehasaskedafriendto
stayovernightatthehostel,without
payingtheresidencefee.Thecom
mittee
happ
enedto
makeasnapdecision
toinspectthehostelthatnight.A
nnie
asksLindato
helpheravoidpayingthe
penaltybutLindadeclinesto
doso.D
oyouagreewithLinda’shandlingofthe
situation?
Violationofstudent
hostelregulations
andencouraging
improp
er
behaviouram
ong
residentsifLinda
offershelp.
Com
prom
ising
personalvalues
suchashonesty
andbeing
r esponsibleif
Lindaoffershelp
asshehasaduty
tomaintainhostel
regulations.
Sheltering
a friend’s
wrongdo
ingwhich
involveslyingasa
cover-up.
Fro
m L
ind
a’s
po
int
of
view
: (d
)Fr
om
Ann
ie’s
p
oin
t o
f vie
w: (
c)–
dev
iati
on
fro
m
mo
ral r
ecti
tud
e
1 R
ight
vs.
Rig
ht d
ilem
mas
(Kid
der,
2003
)
(a) T
ellin
g th
e tr
uth
vs. m
aint
aini
ng lo
yalty
(b
) Con
side
ring
the
need
s of
the
indi
vidu
al v
s. c
onsi
derin
g th
e ne
eds
of th
e co
mm
unity
(c
) Acc
ount
ing
for
shor
t-te
rm v
s. lo
ng te
rm c
onsi
dera
tions
(d
) Wei
ghin
g th
e id
eal o
f jus
tice
agai
nst t
he c
ompe
ting
impe
rativ
e of
mer
cy.
2 T
hree
way
s to
be
wro
ng (K
idde
r, 20
03)
(a
) Vio
latio
n of
law
(b
) Dep
artu
re fr
om tr
uth
(c
) Dev
iatio
n fro
m m
oral
rect
itude
57
Sce
nari
os
Per
spec
tive
s
Is it
an
ethi
cal i
ssue
?N
atur
e o
f co
ncer
n
Effectsonothers
Com
prom
iseon
personalvalues
Ethicalconcern
(Lying/deception,
personalgain,
potentialconflictof
interest,etc.)
Ethicaldilemmas
(Rightvs.Right)1
Moraltemptations
(Rightvs.W
rong)2
2Carriem
anag
estobecom
easummer
inter nin a co
mpan
y ,as arrang
edby
the Studen
t Af fairsO
f fice(SAO) an
dsheacceptstheoffer.Beforethat,she
hadappliedforano
thersum
merjo
bin
a listedcompan
y which
of fe
rsbetter
term
sandshehasreceived
itsofferof
employm
entrece
ntly.Carrie,tho
ugh
feelingitisapity,de
clinesthisofferas
she do
esnotwant tobr eakherpr omise
and affectthecr edibilityoftheSAO. Do
youagreewithCarrie’shandlingofthe
situation?
Adm
inistrative
prob
lemsforthe
companyifCarrie
gives upthe
internship.
SAOmayhave
difficultiesinliaising
withcom
panies
forinternship
arrangem
ents
infutureiftheir
candidatesarenot
r eliable.
Sacrificing
principlessuchas
trustworthiness
if theinternship
agreem
entis
breached.
Br eakinga
prom
isewhich
couldbeaform
of
deception.
[Note:Aninsincere
prom
iseisaform
ofdeception.
(How
ardand
Korver,p.20)]
(b)
Fro
m A
nnie
’s
po
int
of v
iew
: (c)
–d
evia
tio
n fr
om
m
ora
l rec
titu
de
Davidhasworkedovernighttoprepare
forhistestanddecidesto
skipa
lecturenextmorning.H
owever,class
attendanceismandatory.H
easkshis
friendJoetosignhisattendanceforhim.
Thoughsom
ewhatreluctant,Joeagrees
tohelpDavid.D
oyouagreewithJoe’s
handlingofthesituation?
Violationof
university
regulations
andprom
oting
improp
er
behaviouram
ong
students.
Com
prom
ising
personalvalues
suchashonesty
and being
responsibleas
fraudulent signing
isequivalentto
cheating.
Fraudulentsigning
ofattendancefor
anotherpersonis
atypeofacademic
dishonesty
whichinvolves
deception.
Fro
m J
oe’
s p
oin
t o
f vi
ew: (
a)Fr
om
Dav
id’s
p
oin
t o
f vie
w: (
c)–
dev
iati
on
fro
m
mo
ral r
ecti
tud
e
58
Sce
nari
os
Per
spec
tive
s
Is it
an
ethi
cal i
ssue
?N
atur
e o
f co
ncer
n
Effectsonothers
Com
prom
iseon
personalvalues
Ethicalconcern
(Lying/deception,
personalgain,
potentialconflictof
interest,etc.)
Ethicaldilemmas
(Rightvs.Right)1
Moraltemptations
(Rightvs.W
rong)2
2.Scenariosinvolving“Rightvs.W
rong”decisions(moraltemptations)
2.1Scenarioswhereapotentialconflictofinterestexists
4Wayneisamem
berofauniversity
socialservicesocietywhosemajor
dutiesaretoprovideprogram
meand
administrativesupp
orttoacommunity
centre.W
hileorganizingahealth
prom
otionactivityforthecentrewhich
requirestheprocurem
ento
funiform
sforitsparticipants,W
aynerecommends
hisuncle’scompanyto
bethesole
providersinceanattractivepricehas
beenoffered.W
ayneconsidersthat
thedealbenefitsbothpartiesanddo
es
not b
othertosourceotherpo
ssible
supp
liers.H
ehasnotd
isclosedhis
r elationshipwithhisuncleto
thecentre.
DoyouagreewithW
ayne’shandlingof
thesituation?
Unfairtoother
companies
supp
lyinguniform
sastheyhavenot
beeninvitedto
giveaquotation
forthisexercise.
Com
prom
ising
personalvalues
suchashonesty,
trustworthiness,
responsibilityand
fairness.W
ayne
hasbeenentrusted
withsourcingthe
bestsupplierin
term
sofquality
andprice,buthe
hasnotp
erform
ed
hisduty.
Aconflictof
interestmay
existasaw
arding
thecontractto
Wayne’suncle
maynotprovide
thebestbenefits
tothecentre
(Note:W
ayne
shoulddeclare
therelationship
withhisrelativein
ordertoavoidthe
potentialconflictof
interest.)
Fro
m W
ayne
’s
po
int
of
view
: (a)
vi
ola
tio
n o
f la
w
(rul
es)
Non-observance
oftheprocurem
ent
regulationsthough
Waynemaybe
ignorantofthem.
59
Sce
nari
os
Per
spec
tive
s
Is it
an
ethi
cal i
ssue
?N
atur
e o
f co
ncer
n
Effectsonothers
Com
prom
iseon
personalvalues
Ethicalconcern
(Lying/deception,
personalgain,
potentialconflictof
interest,etc.)
Ethicaldilemmas
(Rightvs.Right)1
Moraltemptations
(Rightvs.W
rong)2
5JuneisthechairofaStudents’Union
(SU)andisseekingspo
nsorshipsfrom
commercialcom
paniesto
suppo
rt
theorganizationofSUactivities.A
companyoffersspo
nsorshipof$5,000,
butasksJuneto
solicit50
validcredit
car dapp
licationsinreturn.W
ishing
tosecurethefundingassoonas
possible,Juneacceptstheofferwithout
makingreferencetotheguidelinesof
theuniversityandSUonaccepting
sponsorshipsbystudentsocieties.She
alsoaskscommitteemem
bersoftheSU
tosubmitapplicationsforthecreditcard.
DoyouagreewithJune’shandlingofthe
situation?
Improp
erhandling
ofspo
nsorship
(from
the
commercial
sector),whichmay
affecttheimageof
theSU/University.
Som
ecommittee
mem
bersmayfeel
grouppressureto
fillintheapplication
form
swhichthey
wouldnothave
doneotherwise.
Com
prom
ising
personalvalues
suchashonesty,
integrityand
trustworthiness.
Potentialriskof
deception/lying
sinceJuneneeds
tocoverupthe
sponsorship
receivedwithout
goingthroughthe
prop
erprocedure.
Fro
m J
une’
s p
oin
t o
f vi
ew: (
a)
vio
lati
on
of
law
(r
ules
)Non-com
pliance
withtheguidelines
onaccepting
sponsorshipsby
studentsocieties
oftheuniversity.
60
Sce
nar
ios
Per
spec
tive
s
Is it
an
eth
ical
issu
e?N
atu
re o
f co
nce
rn
Effectsonothers
Com
prom
iseon
personalvalues
Ethicalconcern
(Lying/deception,
personalgain,
potentialconflictof
interest,etc.)
Ethicaldilemmas
(Rightvs.Right)1
Moraltemptations
(Rightvs.W
rong)2
6Joeyisthevice-chairofastudent
societyandisresponsiblefor
buyingiPod
saspresentsforvarious
competitionsto
beheldthroughoutthe
coming year.W
hilenegotiatingtheprice,
a shop
offersaspecialdiscounttoJoey
forpurchasinganiPod
forherow
nuse
but nodiscountwillbeofferedforother
items.Consideringthatthisisamatter
ofbusinessprom
otion,Joeyaccepts
theofferwithoutreportingthematterto
thechairofthesociety.Doyouagree
withJoey’shandlingofthesituation?
Joeyhasmade
a personalgain
attheexpenseof
thesocietysince
a betterdealfor
purchasingiPod
s(as presents)
mayhavebeen
achievedthrough
further negotiation.
Com
prom
ising
personal
valuessuchas
honesty ,being
responsibleand
trustworthiness.
Aconflictof
inter estmayexist
asJoeybenefits
fromthe‘special’
discountowingto
herofficialdutyfor
procurem
ent.
Fro
m J
oey
’s
po
int
of
view
: (c)
d
evia
tio
n f
rom
m
ora
l rec
titu
de
7The MathematicsSocietyhasreserved
$1,000
from
itsannualbudgetfor
organizingsocialgatheringsfor
mem
bers. T
homas,thechair,decides
tospendthemoneyonacelebration
party whichinvolvesonlycommittee
mem
bers.Jack,thevice-chair,
disagreeswithThomas’suggestion
asthemoneycom
eslargelyfromthe
mem
bershipfees.D
oyouagreewith
Thom
as’ handlingofthesituation?
Mem
bersof
thesocietywho
havepaidthe
mem
bershipfees
will bedeprivedof
therightto
jointhe
gathering.
Com
prom
ising
personalvalues
suchasfairness,
integrityand
responsibility.
As thechairofthe
Society,Thomas
shouldensurethe
prop
eruseofits
funding.
Aconflictofinterest
mayexist.T
homas
asthechairand
hiscommittee
mem
bersenjoy
theprivilegeof
participatinginthe
celebrationactivity
attheexpense
ofthegeneral
mem
bers.
Fro
m T
ho
mas
’ p
oin
t o
f vi
ew: (
c)
dev
iati
on
fro
m
mo
ral r
ecti
tud
e
61
Sce
nari
os
Per
spec
tive
s
Is it
an
ethi
cal i
ssue
?N
atur
e o
f co
ncer
n
Effectsonothers
Com
prom
iseon
personalvalues
Ethicalconcern
(Lying/deception,
personalgain,
potentialconflictof
interest,etc.)
Ethicaldilemmas
(Rightvs.Right)1
Moraltemptations
(Rightvs.W
rong)2
2.2Scenarioswhichinvolvedeception
8Michaelisgoingto
submithisterm
paperbutheisfarbehindschedule.
Oneofhisclassmatestellshimabo
ut
the“thesis-writingservices”available
ontheInternetandsayshewillgeta
qualitypaperwhichwillavoidplagiarism
detection ifhepaysahigherprice.In
view
ofthetightschedule,Michaelplans
tousetheservice.Doyouagreewith
Michael’shandlingofthesituation?
Abusingthetrust
betweenteachers
andstudents.
Breaking the
rulesoffairplayin
theassessment
system
which
causesinjusticeto
otherstudents.
Foregoing
principlessuch
ashonesty,
trustworthiness
andfairness.
Purchasingpapers
fromtheInternet
ischeatingand
plagiarizing,a
typeofacademic
dishonestywhich
involvesdeception.
(c)
62
Sce
nari
os
Per
spec
tive
s
Is it
an
ethi
cal i
ssue
?N
atur
e o
f co
ncer
n
Effectsonothers
Com
prom
iseon
personalvalues
Ethicalconcern
(Lying/deception,
personalgain,
potentialconflict
ofinterest,etc.)
Ethicaldilemmas
(Rightvs.Right)1
Moraltemptations
(Rightvs.W
rong)2
9George,ElaineandDavidaremem
bersof
agroupproject.Georgeisresponsiblefor
collectingandanalysingthedata.D
ueto
anunsatisfactoryresponse-rate,George
plannedtomanipulatesomefiguresand
presentthemintherepo
rtinorderto
fulfil
theassignmentrequirements.H
etoldElaine
hisplanandaskedhernotto
discloseitto
anyone,includingDavid.E
lainefeltrather
uneasyabo
utthisbutdidnotstopGeorge
fr omdoingit.D
oyouagreewithElaine’s
handlingofthesituation?
Abusingthetrust
betweenteacher/
studentand
amongproject
team
mem
bers.
Breakingthe
rulesoffairplayin
theassessment
system
and
underm
ining
thecredibilityof
academ
icwork.
Sacrificing
principlessuch
ashonesty,
trustworthiness
andfairness.
Covering up
George’s
ideaabo
ut
manipulating
therepo
rtdata
violatesresearch
ethicsandis
regardedasan
acto
facademic
dishonesty.
(c)
10Simonrecentlygotapart-tim
ejobata
cinemaandisentitledto
twofreetickets
eachmonthasem
ployeebenefits.A
sthere
arenoregulationsgoverningtheidentity
ofthebeneficiaryofthetickets,hethinks
it isa“win-win”situationtosellthetickets
tohisclassmatesata50%
discount.Do
you agreewithSimon’shandlingofthe
situation?
Theinterests
andreputation
ofthecinema
willbeharmed
bythesellingof
complimentary
tickets.
Sacrificing
principlessuch
ashonestyand
trustworthiness.
Abusingthe
employeebenefits
schemewhich
mayinvolve
deception.
(c)
63
AvailableintheHongKongEthicsDevelopmentCentre,ICAC.<http://www.icac.org.hk/hkedc/eng/library4.asp.>
Case Ref: 147
Building a Problem Peter is theChiefEngineerofahotel.Recently,he takesuparenovationproject forthehotelmain lobby.Theprojectcosts fivemilliondollars.Jackson, theproprietorofaconstructionanddecorationcompany, is thecontractorof therenovationwork.Customarytothetradeatthebeginningoftheproject,a“GodWorshipping”ceremonywasheldbyJacksoninthehopethattheprojectwillbecarriedoutsmoothlyandsafely.Peterandhissubordinatesare invitedtoattendtheceremony.Duringtheceremony,JacksonoffersPeter a redpacket of $30,000as a tokenof thanks forPeter’sassistanceinawardinghimthisbigproject.Peteracceptstheoffergratefully.
Peterinspectstheprogressoftheprojectonemonthlaterandnoticesthatthequalityofmarbleusedforthelobbyissubstandardanddeviatesfromthetenderspecifications.Due to the tightscheduleandcost implications,Jackson is reluctant to replace themarble.Tocoverupthematter,Jacksonagrees to rebate2%of theprojectsumtoPeterashisrewardtoturnablindeyetothesubstandardwork.Althoughbewildered,Peter instantly agrees to thedeal verbally soasnot todestroy theharmoniousrelationshipwithJackson.
Case Analysis IfPeterdoesnothavethepermission fromhishotel toaccept theredpacket,bothPeterandJacksonareinbreachofSection9ofthePOBO.Petercommitsanoffenceofacceptingabribe forabusinghisofficialcapacity toawardrenovationprojects toJackson;andJacksoncommitsanoffenceofofferingabribe.
Althoughtheredpacket isacceptedduringthe“GodWorshipping”ceremony,Petercannotexcusehimselfbyclaimingthattheacceptance is justifiedunderthecommonpracticeof thetradebecausetradecustomwillnotbeacceptedasadefenceunderthePOBO.According toSection19of thePOBO, it isnotadefence toclaim thatanyadvantageacceptedoroffered iscustomary inanyprofession, trade,vocationorcalling.Thecourtshallmakethe judgementbasedonwhetherpermissionhasbeengivenbytherecipient’sprincipal.
Theverbalagreement reached tocoverup thesubstandardwork issufficient foracorruptioncasedespite the fact thatPeterhasnotactivelysolicited forandmayeventuallynotbeabletoreceivethecommissionfromJackson.
Appendix 4 - Case studies on ethical management
64
Case Ref: 150
A Rotten Bargain John is theheadchefof aChinese restaurant inahotel and responsible for thepurchaseoffoodtomeettherestaurant’sneeds.Inanalumnireunion,JohnmeetshisoldclassmateNelson,who isa foodsupplier tovarious foodstallsandrestaurants.BeforeChristmas,NelsonsendsJohnabighamperandindicatesthathewouldliketobeoneofthefoodsuppliersofthehotel.
Shortlyaftertheirreunion,John’shotel launchesa“ShanghaiFoodFestival”campaigntopromoteitsbusiness.Johnisbusilyengagedincontactingthesupplierstoobtainthebestpossiblepricesandqualityoffoodstuff.AspartofhisenquirieshecontactsNelsonwho,keen tosecure thebusiness,askshisold friend toprovidehimwith thecostssubmittedfromothersuppliers.Johnhesitatesbut iseventuallyconvinced,byNelson,thatthereasonfordoingsoistosimplyensurethatthehotelreceivesthebestpossibleprice.
In returnNelsonalsoprovidesJohnwithanadded incentive forhis,quiteminimal,assistance.Nelsonpromises thathewould rebate10%of the total valueof theorderanddepositdirectly toJohn’spersonalaccount.GivenJohn’sown financialpredicament,hedulyagrees.
Case Analysis BothJohnandNelsonareinbreachofSection9ofPOBO.Johncommitsanoffenceofacceptingabribewithoutthehotel’spermissionforabusinghisofficialcapacitytoleakbidders’informationtoNelsonandNelsonalsocommitsanoffenceofofferingabribe.Bidders’orclients’informationisofvaluetothehotelandanystaffshouldstrictlyfollowtheguidelineslaiddownbythehotelinprotectingconfidentialinformation.
Johnshould followthehotel’scodeofconduct inaccepting theChristmashamperduring festiveoccasion toavoidanyconflictof interest.Heshouldalsoheed thesweeteningprocess initiatedbyNelson’sofferof theChristmashamperat theonset.Acceptingsmallgiftsand favourswillput the recipient inanobligatoryposition toreciprocateandthuscompromisehisobjectivityincarryingouthisduties.
65
Case Ref: 151
A Break of Trust Nancy,asalesassistantofajewelleryshop,isgoingtomarryherfiancé,Edward,nextyear.Edward,anadventurousperson,likestryinghisluckatthestockmarket.However,hehasrecentlybeenoutof luckandnowowesa loansharka largesumofmoney.The loansharkthen introducesEdwardtoamemberofacriminalsyndicate involvedintheproductionofcounterfeitcreditcards.Inordertorepaytheloan,Edwardagreestoassist thesyndicate incollectingcreditcardholders’personaldata fromNancy’sjewelleryshop.
EdwardproposestoNancythatifsheagreestocapturethecustomers’creditcarddataattheshopbyusingaskimmerprovidedbythesyndicate,theybothwillbeofferedarewardof$500foreachsetofdata.Moreover, thesyndicatepromisesthat ifNancyfurtherhelpsthemusecounterfeitcreditcardsat theshopto“buy” jewelleryworthamilliondollars,Nancywillbepaid$50,000.
EdwardtellsNancythatthis istheonlywaythathecan“turnanewleaf”,andNancyfindsitdifficulttorefuse.
Case Analysis AlthoughEdwardneedsmoney topay thedebts,Nancyshouldhavedeclinedhissuggestion. It isanoffenceunderSection9ofPOBOforanemployeetoacceptanadvantage in relation tohisofficialdutywithouthisemployer’spermission. IfNancyaccepts thereward forassistingthesyndicate tocollectcustomers’creditcarddataorusecounterfeitcreditcardsat the jewelleryshop,shewouldhavecommitted theoffence.Shemayalsocommitanothercriminaloffenceofpossessingaskimmer formanufacturingcounterfeitcreditcards.
NancyshouldalsobeawareoftheprovisionsofthePersonalData(Privacy)Ordinancewhichdonotallowuserstousethepersonaldata incontraventionof thepurposeofcollectionwithouttheconsentofdatasubject.
Besides,occurrenceofsuch leakageofcustomers’creditcarddatawilldefinitelyunderminetheconfidenceof localcustomersandforeignvisitors,ruiningHongKong’sreputationasashoppers’paradise.
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Case Ref: 152
Good Relations with Complications Given the increasingdemandof thehotelguests for local tourservices, thehotel’sseniormanagementhasdecidedtosetupaconsignmentcornerforatravelagencytodealwiththeserequests.Janice,thehotel’sMarketingManager,isassignedthetaskofapproachinganumberoftravelagenciestodiscussthisexcitingbusinessopportunity.
Itseemsonlynatural,therefore,forJanicetocallTommy,herbrother-in-law,toenquireastowhetherthetravelagencyheworksforwouldbeinterested.
ForTommy, thecompany’sperformance, in themidst of a recession, hasbeenparticularlypoor.AndasitsBusinessDevelopmentManager,thepressureforhimtofindasolutionhas,oflate,intensified.TheprospectofwinningtheconsignmentcomesasahugerelieftoTommyand,havingexplainedtoJanicehowmuchitmeanstothesurvivalofhisowncareer,urgesher togrant theconsignmentcontract tohis travelagency.BelievingTommy’sagencyisasgoodasanyothershehascontactedandnoonewoulddiscoverherrelationshipwithTommy,thedecisionisaneasyoneforJanicetomake.
Amonthlater,asatokenofgratitude,TommypresentsJaniceatourpackagetoHawaiiasherbirthdaypresent.
Case Analysis Janiceshouldhaveobservedhercompany’sinternalguidelinesondeclarationofconflictof interestand refrained frombeing involved in thegrantingofcontract.Conflictofinterestsituationssuchasthis,ifnotdealtwithproperly,mayeasilyleadtobribery.
UnderSection2of thePOBO,a tourpackage isanadvantage.Accepting the tourpackageforgrantingthecontractwillonlybelegalwiththepermissionofhercompany.GiventhatJanicehasalreadyassistedherbrother-in-lawinsecuringthebusinessdeal,subsequentacceptanceofthetourpackageleavesJaniceandTommyliabletoaPOBOSection9offenceastheacceptorandofferorofanillegaladvantage.
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Case Ref: 154
A Happy Coincidence Cindy joinedagarment retailinggroupasa traineesincegraduating fromsecondaryschoolseveralyearsago.Shehasworked invariouspostsandhas recentlybeenpromotedtotherankofpersonnelmanager.
Thecompany isplanningtoexpand itsnumberofboutiquesthroughoutHongKong.Cindyandoneofhersubordinateshavebeenentrustedwiththetaskofhandlingtherecruitmentdriveforshopmanagersandsalesassistants.
Duringadayofinterviews,Cindysuddenlyrealizes,tohergreatsurprise,thatoneoftheapplicants isherrelative.Sheseesthesituationasahappycoincidenceand,withoutinforminganyonewithin thecompanyof their relationship,conducts the interviewherself.Shealsocommentsfavourablyonherrelative’sperformanceattheinterview.
Case Analysis Cindyisresponsibleforconductingtheinterviewbutgiventhatoneoftheapplicantsisherrelative,there isaconflictof interest.Cindyshouldhavedeclaredtothecompanytheirrelationshipasearlyaspossibleandobservethecompany’scodeofconductovertheissueofconflictofinterest.
EventhoughCindyacts impartiallyandherrelativeturnsouttobethebestcandidateintheselectionexercise,Cindyisstillinvolvedinaperceivedconflictofinterestsituationandmayalsobeperceivedtobeexertingherinfluenceovertheinterview.Peoplemaythink thatshe isbeingunfair to theotherapplicants.Cindyshoulddemonstrateherimpartialitybyavoidinganddeclaring theconflictof interest inaccordancewith thecompany’sguidelines.
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(Company Name) Code of Conduct
TheCompanybelievesthathonesty,integrityandfairplayareimportantcompanyassetsinbusiness. AllstaffhavetoensurethattheCompany’sreputation isnottarnishedbydishonestyorcorruption.ThisCodesetsoutthebasicstandardofconductexpectedofall staff and thecompanypoliciesonacceptanceof advantagesanddeclarationofconflictofinterestbystaffinconnectionwiththeirofficialduties.
2. UnderSection9(1) of thePreventionofBriberyOrdinance, an employeewhosolicitsoracceptsanadvantageinconnectionwithhisworkwithoutthepermissionofhisemployermaycommit anoffence. The term “advantage” isdefined in theOrdinance and includesmoney, gift, loan, fee, reward, employment, contract,serviceandfavour.ThepersonofferingtheadvantagemayalsocommitanoffenceunderSection9(2)oftheOrdinance.
3. An employeewho,with intent todeceive his employer, falsifiesdocuments orfurnishesfalseaccountingrecordsmaybeguiltyofanoffenceunderSection9(3)oftheOrdinance.
4. It isthecompanypolicythatstaffshouldnotsolicitoracceptanyadvantagefromanypersons havingbusinessdealingswith theCompany (e.g. clients, suppliers,contractors).However,staffareallowedtoaccept(butnotsolicit)thefollowinggiftsofferedvoluntarily:
(a) advertisingorpromotionalgiftsofanominalvalue;or
(b) giftsgivenonfestiveorspecialoccasionssubjecttoamaximumlimitof$XXXinvalue.
5. Staffshoulddeclineanofferofagiftiftheacceptancecouldaffecttheirobjectivityinconductingthecompany’sbusiness,orinducethemtoactagainsttheinterestofthe company, or lead to allegationsof impropriety. If a staffmemberwishes toacceptagiftnotcoveredinparagraph4,heshouldseekpermissioninwritingfrom(nameand/orpostofaseniorstaff).
6. Asdefined inSection2of thePreventionofBriberyOrdinance, “entertainment”referstofoodordrinkprovidedforimmediateconsumptionontheoccasion,andofanyotherentertainmentprovidedatthesametime.Althoughentertainment isanacceptable formofbusinessandsocialbehaviour,staffmustnotaccept lavishorfrequent entertainment frompersonswithwhom the company hasbusinessdealings(e.g.suppliersorcontractors)toavoidplacingthemselvesinapositionofobligationtotheofferor.
7. A conflict of interest situation ariseswhen theprivate interest of a staffmembercompetesor conflictswith the interest of the company. Private interest includesboth the financial andpersonal interests of the staffmember and thoseof hisconnections. Connections include familymembers, relatives, and closepersonalfriends.
Appendix 5 - Sample Code of Conduct
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8. Staff shouldavoidsituationswhichmay lead toanactualorperceivedconflictofinterestsituation,andshouldmakeadeclarationinwritingto(nameand/orpostofa senior staff)when sucha situation arises. Failure indoing somaygive rise tocriticismoffavouritism,abuseofauthorityorevenallegationofcorruption.
9. Somecommonexamplesofconflictofinterestinclude:
(a)Astaffmemberinvolvedintheprocurementprocessiscloselyrelatedtoorhasbeneficial interestinacompanywhichisbeingconsideredbytheCompanyintheselectionofasupplierorserviceprovider;
(b) oneof the candidates under consideration in a recruitment or promotionexercise is a familymember, a relative or a closepersonal friendof the staffmemberresponsiblefortherecruitmentorpromotion;
(c) astaffmemberinvolvedintheselectionofasupplierfortheCompanyengagesinfrequentorexcessivegamblingwithoneofthesuppliersunderconsideration;
(d) a termcontractorwhose contract is about tobe renewedgrants apersonalloantothestaffmemberresponsibleforcontractnegotiation;or
(e) astaffmember responsible forevaluating tenders isapart-timeconsultantofoneofthetenderers.
10. Allstaffareprohibitedfromdisclosinganyinformationclassifiedbythecompanytoanybodywithout authorization. Thosewhohave access to or in control of suchinformationshouldatalltimesensureitssecurityandpreventanyabuseormisuseofthe information.Examplesofmisuse includedisclosureof information inreturnformonetaryrewards,oruseofinformationforpersonalgains.
11. It is thepersonal responsibility of every staffmember to understand and complywith theCode. Managersshouldalsoensure that their subordinatesunderstandwellandcomplywiththestandardsandrequirementsstatedintheCode.
12. AnystaffmemberwhoisinbreachoftheCodewillbesubjecttodisciplinaryaction,including terminationof employment. In casesof suspected corruptionor othercriminaloffences,areportwillbemadetotheICACortheappropriateauthorities.
13. AnyenquiriesabouttheCodeorreportsofpossiblebreachesofthisCodeshouldbechanneledto(nameand/orpostofaseniorstaff)foradviceandaction.
(Name of Company)
Date:
Appendix 5 - Sample Code of Conduct
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• Anderson, M and Escher, P (2010) The MBA Oath: Setting a Higher Standard for Business Leaders, New York : Portfolio.
• Byars, N (2009) ‘The Corruption Triangle’, <http://www.ethicsandentrepreneurship.org/wp-content/uploads/2009/06/Byars-2009.pdf>
• Ethics Resource Center (2009) ‘Ethics Glossary’, <http://www.ethics.org/resource/ethics-glossary>
• Ethics Resource Centre (2009) ‘Why have a code of conduct?’, <http://www.ethics.org/resource/why-have-code-conduct>
• Howard, R A and Korver, C D (2008) Ethics for the Real World: Creating a Personal Code to Guide Decisions in Work and Life, Boston: Harvard Business Press.
• Josephson Institute of Ethics (2002) ‘Making Ethical Decisions’, <http://www.sfjohnson.com/acad/ethics/Making_Ethical_Decisions.pdf>
• Kidder, R M (2003) How Good People Make Tough Choices: Resolving the Dilemmas of Ethical Living, New York: HarperCollins Publishers.
• Kidder, R M (2006) Moral Courage, New York: HarperCollins Publishers.
• Nash, L L (2010) Ethics Without the Sermon, Boston: Harvard Business Press.
• The Economist Newspaper and The Economist Group (2009) ‘Can managers be made more ethical?’, June 8th 2009.
Appendix 6 - References