CE 00317 - 2

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CE 00317 - 2

• Management and Planning
• Diane Bishton K229
• (d.k.bishton_at_staffs.ac.uk)
• Ethics and Business Responsibility

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Introduction

• In earlier discussion on Stakeholders,
• you have seen that along with major Stakeholders
  in a business, we can all - including peoples in
  other parts of the world - be thought of as at
  least minor Stakeholders.

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In this lecture

• We will
• Review major aspects of Ethics (from a business
  professionals point-of-view) consider some
  business practices considered to be unethical
• Introduce the use of Codes of Practice (examples
  from ACM/IEEE BCS included for your further
  information)
• Consider personal ethics, professional
  responsibility corporate social responsibility
• Finish with a look at a selection of contemporary
  issues

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Ethics
concerns the study of moral principles and how
individuals should conduct themselves in social
affairs Bennett R (Corporate Strategy 2e ,1999,
p151) It is concerned with - human well-being
an evaluation of morally good and bad features of
an issue Ethical standards vary over time,
between cultures, between nations Does
business competitiveness rule out ethical
business ?
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Ethics and Strategy

• How big corporations use their wealth in the
  places they operate (e.g. at its height IBM gt
  GNP Australia NZ)
• Power goes hand-in-hand with Responsibility -
  decision making affecting communities (Jaguar
  cars, Stoke pottery industry)
• Consumer judgement of worth not restricted to
  finance - includes ethical green issues
• Managers own morals - from their originating
  culture

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Unethical Business Practice

• Driving competing firms out of business by
  dumping
• Covert involvement in a countrys political
  affairs
• Law breaking -
• consumer protection
• employee health safety (including display
  screen directives)
• equal opportunities
• environmental pollution
• But Laws have to be developed, and questionable
  practice can happen for many years in the
  intervening period

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Personal Ethics

• Whistleblowing - what connotation does this
  word have ? tale telling ?
• - Illegal or questionable act
• - Firms choosing to close subsidiaries etc
  without informing workforce
• - Bribing reps to win orders (business lunch
  etc)
• (similarly to Govt or other officials -
  Olympics ?)
• - withholding product etc. information

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Codes of Practice (1)

• Government Agencies
• (e.g. guidance on Disability Discrimination Act),
• Professional Bodies
• (ACM/IEEE or BCS in computing),
• Trade Associations or other
• e.g. large organisations (Adidas- Salomon
  Standards of Engagement ETI - Ethical Trade
  Initiative (an alliance of Trades Unions,
  Companies Non-Govt Organisations see
  www.ethicaltrade.org)

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Codes of practice(2)

• Outline model procedures for good practice,
  recommendations for how things should be done,
  guidance on how to behave
• Include examples of good and bad behaviour

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Why Have Professional Codes?

• To raise the status of a profession
• To define, raise govern (enforce) standards of
  practice
• As a method of communication education
• To ensure that everyone (practitioners, clients,
  general public) knows what is expected
• To provide protection for practitioners
• Part of the move towards a formal system of
  accountability
• To put new professions on a par with older ones

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Enforcement

• Codes may be enforced by disciplinary committees
  e.g. the BMA (British Medical Association) -
  being struck off
• These are intended to apply additional,
  professional, sanctions over and above any legal
  or employment sanctions
• Enforcement is really only effective if non
  compliance involves significant penalties
• There is no licence to practice for a software
  engineer, i.e. there are no real sanctions yet in
  place within Computing

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ACM/IEEE Code of Conduct

• the code requires software engineers to use
  ethical judgment to act in a manner which is most
  consistent with the spirit of the Code of Ethics
  and Professional Practice, given the
  circumstances
• ACM/IEEE Code of Ethics Professional
  Practice, my italics See the current code at
  acm.org
• The 8 Principles within the Code are necessarily
  general
• (next 2 slides provided as supplementary material)

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ACM/IEEE Principles

• 1 PUBLIC - Software engineers shall act
  consistently with the public interest.
• 2 CLIENT AND EMPLOYER - Software engineers shall
  act in a manner that is in the best interests of
  their client and employer and that is consistent
  with the public interest.
• 3 PRODUCT - Software engineers shall ensure that
  their products and related modifications meet the
  highest professional standards possible.
• 4 JUDGMENT - Software engineers shall maintain
  integrity and independence in their professional
  judgment.

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ACM/IEEE Principles (cont.)

• 5 MANAGEMENT - Software engineering managers and
  leaders shall subscribe to and promote an ethical
  approach to the management of software
  development and maintenance.
• 6 PROFESSION - Software engineers shall advance
  the integrity and reputation of the profession
  consistent with the public interest.
• 7 COLLEAGUES - Software engineers shall be fair
  to, and supportive of their colleagues.
• 8 SELF - Software engineers shall participate
  in lifelong learning regarding the practice of
  their profession promote an ethical approach to
  the practice of the profession.

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BCS Code of Conduct

• Is the only Chartered Engineering Institution
  for Information Technology (IT). Has Members in
  over 100 countries around the world.
• The Code describes the principal duties which
  BCS members
• should endeavour to discharge in pursuing their
  professional lives BCS ( See also
  www.bcs.org.uk )
• Code does not have the same regulatory powers as
  e.g. BMA. BCS Membership is not mandatory (yet)
• (next 3 slides provided as supplementary
  material)

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BCS Duty to the Public Interest

• Safeguard public health safety the
  environment and to have respect to basic human
  rights
• Members shall have due regard to the legitimate
  rights of third parties.
• An obligation to have knowledge and understanding
  of relevant legislation, regulations and
  standards and to comply with these requirements.
  

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BCS Duty to Employers Clients

• Due care diligence
• Endeavour to complete work undertaken on time and
  to budget and shall advise their employer or
  client as soon as practicable if any overrun is
  foreseen.
• Not to take advantage of the lack of knowledge or
  experience of others
• Avoid conflict of interests
• Respect confidentiality

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BCS Duty to the Profession

• Uphold the reputation of the profession
• Behave with integrity
• Encourage and support others members of the
  profession in their professional development
• Seek to enhance public understanding and
  knowledge of computing and information systems
  and technology

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Corporate Social Responsibility

• There are no Professional Codes of Practice for
  people in general management roles, no norms of
  conduct nor recommended management principles.
• Bennett (1999) suggests a list of principles to
  govern the conduct of business affairs (p157)
• Concern for the quality of life, including job
  satisfaction
• Concern for the environment
• Fair reward for effort enterprise
• Involvement and interest in the wider community
• Absence of unfair discrimination in employment
• Following the laws customs of the community
• These tend to modify rather than drive (or govern
  ?)

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Contemporary Issues

• A selection from Bennett (1999)
• Executive Pay - excessively high ?
• Bribery - bribe or gift ?
• Disclosure - pending unemployment ?
• Insider dealing - what (via who ?) you know ?
• Consumerism - throwaway society ?

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Summary

• We have
• Reviewed major aspects of Ethics (from a business
  professionals point-of-view) consider some
  business practices considered to be unethical
• Introduced the use of Codes of Practice (examples
  from ACM/IEEE BCS included for your further
  information)
• Considered personal ethics, professional
  responsibility corporate social responsibility
• Finished with a look at a selection of
  contemporary issues

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Additional references
Bennett chapter 8 UK legislation - follow the
link! UK Information Commisioner's Office -
follow the link! NCC Guides - follow the
link! The British Computer Society, Code of
Conduct at www.bcs.org.uk Youre Nicked ! ,
Walsh A, The Computer Bulletin May 1999 Partner
in Crime, Walsh A, The Computer Bulletin May 2000