The Importance of Ethics Policies, Training & Reporting Programs in the Workplace

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  • 0:01 Ethical Safeguard
  • 1:01 Ethical Policies
  • 2:05 Ethics Training Programs
  • 3:36 Ethics Reporting
  • 4:50 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
In this lesson, you will learn the importance of ethics policies, training and reporting programs in the workplace that help provide safeguards to maintain an ethical environment.

Ethical Safeguard

Have you ever heard of the term whistleblower? Did you think the term referred to a referee in a sporting event or a kind of lollipop? In this lesson, you will learn about the role a whistleblower can have in providing ethical reporting. You will also learn the importance of creating effective ethics policies, ethics training programs and ethics reporting mechanisms.

Let's start with an ethical situation at a company and see what safeguards should be in place to avoid an ethical catastrophe. Crazi Toys is ready to launch a new rocking horse for toddlers. It seems that early reports from consumers show that some toddlers are able to rock the horse so aggressively that it has flipped over and injured some kids. How do effective ethical safeguards, or ethical plans of action and enforcement, help remedy this situation?

Ethical Policies

The foundation of any ethical plan is the establishment of ethical policies within an organization. Crazi Toys refers to them as the core values that represent the company and the steps employees need to follow to act in an ethical manner. Crazi Toys has basic values in their ethical policy, such as to uphold customer safety and protect the environment. The steps within the policy further explain what employees need to do in order to support the company values.

For example, Crazi Toys' value to uphold customer safety is further dissected with specific steps, such as asking employees to report any product issues to a superior immediately. The issue with the toy horse resulted in hotline workers receiving customer complaints. The workers then forwarded the problem through the correct channels. The ethical policy safeguard worked because the company had trained every employee on the steps to take when a problem arises.

Ethics Training Programs

The second safeguard Crazi Toys installed in their organization is the creation of an ethics training program. This program consists of the training of ethical policies as a foundation and then fosters a supportive environment through a few different ways. The first part of the training program is to ensure that every single employee is educated on the ethics policy and procedures.

In addition, upper management should always act as role models by adopting ethical behavior. Crazi Toys rewards ethical behavior in its employees by linking good behavior to the job review and incentive program. The company also has a written report that details punishments for unethical behavior. Lastly, the company uses role play to analyze case studies to determine if employees can identify and respond correctly to ethical situations.

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