Principles to Establish Ethics Codes
In their work, Nickels, McHugh, and McHugh (2013) proposed six steps to adopt the ethical norms and formulate codes in the organization. The two steps that are most significant to establish the effective ethics code and the ethics-based culture in the organization are the following ones:
- the managers should develop and adopt the complex code of ethics to regulate corporate relations in terms of ethical and legal issues;
- the training should be provided to guarantee the application of ethics to practice and the decision-making process (Nickels et al., 2013).
These steps allow addressing the question of strategic diversity because they guarantee that all employees will follow the same code of ethics, all their behaviors will be regulated (Rifkin, 2014). Also, the employees will receive the necessary training to act according to the principles of corporate ethics and morality.
According to Valentine and Fleischman (2002), when codes of ethics are implemented in the organization, employees’ actions become more responsible, they follow the ethical philosophy, and managers can expect positive changes in their behaviors.
Therefore, the first step is the adoption of an effective code of ethics aimed at improving cooperation in the organization. Moreover, Valentine and Fleischman (2002) state that following ethics codes, employees become more tolerant and respectful concerning diversity in the organization. The authors also point to the necessity of the training to understand differences in employees and accept the ethical rules and norms in the company. From this point, the focus on the training for managers and employees to influence their decision-making is an important step to contribute to the strategic diversity in the organization.
Regulations for Competitive Intelligence
The idea of competitive intelligence is actively developing, as well as principles that regulate this process. The reason is that it is rather easy to violate the legal and ethical norms that are associated with searching and examining the information about the trade practices, strategies, and financial information of competitors (Trong, 2013).
The first method that can be used to improve the understanding of ethical responsibilities associated with competitive intelligence is the implementation of the awareness program. According to Fitzpatrick (2003), the effective security awareness program can contribute to the reinforcement of ethical principles significantly because persons need to know the risks that are related to crossing the ethical lines and the possible punishment that can include the termination of the job contract and legal procedures. Employees should be aware of the possibility to use only widely available sources of information about the competitors’ operations.
The second method is the provision of not only awareness program but also the actual instruction and training for employees. Fitzpatrick (2003) pays attention to the fact that employees need to be effectively educated to understand all the aspects associated with the concept of competitive intelligence and appropriate practices. The activities in the context of competitive intelligence are important for companies to improve their operations and set strategic goals regarding winning market positions (Johns & Van Doren, 2010). However, all the information obtained by the person should be ethically appropriate, and the whole procedure of gaining the information should be legal. In this case, it is possible to expect significant benefits associated with developing competitive intelligence.
References
Fitzpatrick, W. M. (2003). Uncovering trade secrets: The legal and ethical conundrum of creative competitive intelligence. Advanced Management Journal, 68(3), 4-13. Web.
Johns, P., & Van Doren, D. C. (2010). Competitive intelligence in service marketing: A new approach with practical application. Marketing Intelligence & Planning, 28(5), 551-570. Web.
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2013). Understanding business. New York, NY: McGraw-Hill. Web.
Rifkin, R. (2014). What can ethics codes accomplish? Public Administration Review, 74(1), 39-40. Web.
Trong, L. (2013). Corporate social responsibility, upward influence behavior, team processes and competitive intelligence. Team Performance Management: An International Journal, 19(1), 6-33. Web.
Valentine, S., & Fleischman, G. (2002). Ethics codes and professionals’ tolerance of societal diversity. Journal of Business Ethics, 40(4), 301-312. Web.