1. What do you think about the notion presented by Terris that Lockheed's ethics program does little to prevent ethical breaches at the highest level of the organization?
The agreement does little to prevent ethical misconduct among top-level executives. The view is based on the tendency of the program to focus solely on employee training and general business conduct. It also prepares staff to acknowledge and respond to circumstances that may require ethical-decision making. As a result, it fails to address the ethical issues of top executives of the company. In addition, it does not offer sufficient attention to specific challenges faced by individuals with power and authority in the organization.
In the area of the responsibility of every employee, the ethics program diverts focus from the ethical responsibilities of senior managers. Further, the organization’s definition of “ethics” emphasizes on individual behavior as compared to the impact that the policies to local, national, and global communities. While the narrow focus does not diminish the program’s success within the organization, it means that it only meets only a portion of the public’s expectations as not everyone agrees to the idea that ethics should be strictly compartmentalized. The outcome of such programs may be to create ethical corporate practices at the expense of the public good as it is poorly positioned to prevent harm to the external community or world.
2. Are the efforts put forth—such as making sure higher-level executives participate in training—enough to help executives navigate what Terris calls the 'ethical minefield' faced by leadership in such an organization?
Ethics and Compliance Training Programs are not enough to help executives navigate the ethical minefield. However, training would play an important role in helping executives understand the company’s ethics program and the benefits of enforcing it. Executives should also be trained on policy as well as the need to observe the highest standards of ethics, integrity, and honesty in the workplace. To effectively navigate the ethical minefield, organizations should go further and implement other measures to promote ethical standards.
The first step towards a more ethical organization is to clarify expectations for behavior among executives. Companies often have spoken and unspoken rules about how to act when engaging with other stakeholders including employees, customers, and creditors. These may differ from organization to organization. Clearing the expectations regarding behavior can be done through implicit or explicit communication. Such measures should include the development of ethics codes and conducts and policies (Jones, 2009). Some members of the top management levels could lead the ethics and compliance training programs and other initiatives that stress the fact that employees should cultivate and adhere to the ethical conduct in the workplace (Shin, 2012). Designating managers as the role models is an effective way of promoting ethical behavior. Therefore, executives need to be chosen with due consideration. Ethical behaviors should also be reinforced. Offering opportunities for recognition can be an effective way to promote the types of ethical behavior desired in a business (Ahmad " Norhashim, 2008).
3. What are some things that could be done to address the issue related to ethics at the higher executive levels of the organization?
There are other things that could be done to address issues related to ethics at the higher executive levels of the company. The first way is through setting a framework to help managers make the right decisions when faced with ethical dilemmas. For example, the organization may adopt an integrity-based approach that combines an emphasis the responsibility of management in maintaining ethical behavior. Integrity strategies may strive to define a corporation’s guiding values, patterns of thoughts and conduct and aspirations. When integrated into the routine operations of a business, the strategies can help tap into powerful human impulses for moral actions and prevent damaging ethical lapses (Davies, 2016).
The second way is through written code of conducts. Code of conducts clearly define the ethics of a company to be maintained. The aim of writing and defining a code of conduct is to let managers know what is acceptable and what is not. Managers should be trained on adhering to the codes of conduct. In a decade when the risk of litigation and liability has increased due to new legislations, codes of conducts come in handy in preventing penalties by promoting accountability and supporting enforcement of ethics (Zablow, 2006). Codes of conducts also prevent damage to reputation and relationships arising from unethical practices (Resick et al., 2013).
The third way involves promoting a culture of accountability. Often, unethical business practice reflects the attitudes, values, beliefs, and behavioral patterns that define a corporate’s operating culture. Through this perspective, ethics can be considered an organizational issue rather than a personal issue. Additionally, the outcome of ethical lapses in the top level management can be serious and far-reaching. The company may become entangled in a web of legal proceedings. These outcomes can be alleviated by establishing and maintaining an organizational culture with a focus on ethics (Baker et al., 2006).
4. Terris points out that the company's program is overly focused on individuals and that it doesn't really address group dynamics that can impact ethical situations. For instance, there can be a tendency for groups to ‘go with the flow’ of the group decision-making process and overlook ethical issues in the process. What would you recommend that Lockheed Martin do to address this situation?
The interaction of members in a group brings an emergence of long-term correlations in individual behavior. The correlations are associated with order parameters (Forsyth, 2018). Lockheed Martin can address the situation by promoting positive interdependence that emphasizes group responsibility and individual accountability. The second way is to promote effective group leadership. Leadership is an important aspect that influences group dynamics. Hence, a thorough understanding of group dynamics may call for analysis of leadership as the relationship between leadership, and group dynamics is a reciprocal one. Promoting effective leadership involves engaging leaders who can motivate group members to deliver the organization’s vision.
References
Ahmad, Z., " Norhashim, M. (2008). The control environment, employee fraud and counterproductive workplace behaviour: An empirical analysis. Communications of the IBIMA, 3, 145-155.
Baker, T. L., Hunt, T. G., " Andrews, M. C. (2006). Promoting ethical behavior and organizational citizenship behaviors: The influence of corporate ethical values. Journal of Business Research, 59(7), 849-857.
Davies, P. W. (2016). Current issues in business ethics. Routledge.
Forsyth, D. R. (2018). Group dynamics. Cengage Learning.
Jones, D. A. (2009). A novel approach to business ethics training: Improving moral reasoning in just a few weeks. Journal of Business Ethics, 88(2), 367-379.
Resick, C. J., Hargis, M. B., Shao, P., " Dust, S. B. (2013). Ethical leadership, moral equity judgments, and discretionary workplace behavior. Human Relations, 66(7), 951-972.
Shin, Y. (2012). CEO ethical leadership, ethical climate, climate strength, and collective organizational citizenship behavior. Journal of Business Ethics, 108(3), 299-312.
Zablow, R. J. (2006). Creating and sustaining an ethical workplace. Risk Management, 53(9), 26.
