Introduction
Modern business conduct must be centered around many aspects to be successful. Compliance with ethical standards and the requirements of the public is an essential element necessary to create sustainable, robust, and stable development for the company. In addition, an essential aspect is corporate social responsibility and the ethical behavior of all employees. In this case, the organization will achieve its goals more efficiently and faster. Using the example of Target Corporation, it is possible to analyze the code of ethics to find out how it is consistent with the law and ensures the ethical behavior of employees.
Analysis of Target’s Code of Ethics
Corporate Social Responsibility (CSR)
One of the critical elements of a code of ethics should be compliance with corporate social responsibility goals. After analyzing the ethical code of Target Corporation, we can identify the main aspects that correspond to the concepts of corporate social responsibility. First, this emphasizes sustainable development, demonstrated by the core ethical values in the organization’s ethical code. This can be seen in the principles of public relations, sustainability in the use of environmental resources, waste minimization, and the use of renewable energy sources (Target Corporation, 2021). It is also essential for the company to embody inclusiveness and diversity in its team for the comfortable cooperation of all employees (Target Corporation, 2021). This ensures correct ethical relations within the company and its correct interaction with society, which reflects corporate social responsibility.
Compliance with Legal Mandates
Overview of Legal Compliance in Target’s Code
The topic of legal compliance is also an important aspect of an organization that seeks to achieve more significant development. Code of Ethics Target Corporation places great emphasis on ethically conducting business while respecting the moral values of society and the rule of law. Ethical issues overlap with legal ones, as the code contains information on combating corruption and bribery in the organization (Target Corporation, 2021). In addition, fair competition is another aspect that the company focuses on. In this way, a bad image can be prevented, and legal values can be preserved while avoiding unethical behavior.
Ramifications of Noncompliance
For a global corporation, compliance with legal regulations is vital since otherwise, it may have inevitable consequences. Some of these include economic sanctions that government authorities can impose on a company (Lehman et al., 2020). In addition, the consequences can also include significant damage to reputation, which can harm future development due to customer churn. Litigation and investigations by regulators, as well as the opening of a criminal case, can become even more severe and lead to financial losses and losses of strategic focus.
Policies Ensuring Legal and Ethical Behavior
Compliance with ethical behavior among employees is essential for the successful development of any organization. The selected company has some policies that oppose the violation of ethical behavior. One of them is the focus on respecting customers’ and employees’ privacy and personal information (Target Corporation, 2021). This is important because allowing such data to leak can have significant consequences that affect the organization’s future performance. The second policy of the company is to encourage employees to report known violations that have committed wrongdoing (Target Corporation, 2021). This can provide a sufficient level of protection against violations in the anonymity of whistleblowers.
Developing an Ethical Culture
The development of an ethical culture is an aspect that companies must enhance through their activities. The Target Corporation Code of Ethics has precise requirements for employees, the tools by which regulatory operations can be carried out, and essential recommendations are followed. Respect for employees, integrity, and honesty are vital norms that are put forward to employees (Target Corporation, 2021). Accordingly, by putting forward specific recommendations, the organization contributes to forming and developing an ethical culture within and in society.
Resources for Raising Ethical Concerns
Target Corporation provides its employees with many tools that can be used to discuss ethical issues. One of the primary resources in this regard is the hotline, which employees can contact to report violations or consult on controversial issues in their activities (Target Corporation, 2021). The internal reporting system also provides specific ways to introduce topics for discussion, which may include ethical issues (Target Corporation, 2021). In addition, the ability to have direct access to superiors to discuss ethical concerns in the organization can also be a helpful communication resource. I prefer using the hotline resource, as it provides the most opportunities for a detailed discussion of a topic that concerns me.
Factors in Reporting Unethical Conduct
Considerations Before Reporting
Before reporting unethical behavior in the workplace, people should consider several factors. One of the main reasons for such a situation is the scale of the violation since it is necessary to understand what consequences can potentially appear (Gopalakrishna et al., 2022). Assessing how significant the risk of misconduct may be to the company is crucial since the more serious the misconduct, the more likely employees are to report it.
The next aspect that is considered before the message is the fear of retribution from the offender. The report may result in a loss of reputation among colleagues for the informer or revenge from the one who violated the rules (Gopalakrishna et al., 2022). This, in turn, will negatively affect the team’s overall morale and can lead to negative consequences in productivity. The third factor that employees can pay attention to is personal moral values. If, from the point of view of the ethical principles of a particular person, their colleague has not done anything reprehensible, then the likelihood of reporting on them can be significantly reduced. However, in some cases, people will prefer to adhere to the norms of the organization instead of personal principles.
Internal Steps to Report Misconduct
When reporting a violation of the Code of Ethics, an employee may first consult with a company ethics expert. In this way, they can be sure that they are acting correctly if the misconduct of a colleague can lead to significant negative consequences for the firm and the team (Kaptein, 2022). This will allow the company to solve the ethical problem without resorting to external advice.
Another way is to use internal reporting channels. This may mean that a person may use a hotline or ethical conduct documentation to report a violation. This method helps employees to maintain confidentiality while avoiding certain risks described above. The last option is to follow the instructions for unethical incidents provided by the company. Depending on the critical body designated in them, the employee can apply to the relevant department.
External Actions for Reporting
Several external actions can be taken to report unethical behavior. One option is contacting regulatory agencies such as the Occupational Safety and Health Administration (OSHA) (Judge, 2020). This can lead to severe consequences in litigation and loss of the company’s reputation. The following tool is to appeal to the media to highlight the existing problem of an ethical nature. Attracting public attention can create the necessary resonance to resolve the issue. This, in turn, can pressure the audience and force the management to take specific actions.
Analysis of Whistleblower Payments
Advantages of Paying Whistleblowers
Paying whistleblowers can carry several distinct advantages and disadvantages that need to be considered. Under the False Claims Act, a whistleblower may be entitled to report critical information (West, 2021). In addition, considering the norms prescribed in the Dodd-Frank Wall Street and Consumer Protection Act, this law does not prohibit firms from issuing rewards for reporting (Hogan, 2023). Thus, the main advantage of paying for such activities is to increase the employee’s motivation to commit a denunciation.
Disadvantages of Paying Whistleblowers
Monetary rewards can play a key role in increasing the rate of truthful denunciations since people will want to earn in this way. However, one drawback of such payment comes from this, which concerns the increase in the number of denunciations for the sake of profit. This can create many ethical issues and negatively affect the capture of real code breakers.
Changes Based on U.S. Sentencing Guidelines
Organizational Changes and Compliance
The U.S. The Sentencing Guidelines have provided companies with a basis for making appropriate internal changes. This can significantly contribute to creating policies and programs aimed at strengthening companies’ ethics. Most organizations have used these tools and changed formal internal compliance (Christina & Fort, 2020). Such comprehensive policies included gender, diversity, and monitoring tools to ensure adherence to ethical programs. This positively affected organizational activities, as it created more efficient conditions for many employees.
In addition, some companies such as General Electric, Johnson & Johnson, and Walmart have introduced dedicated departments to oversee employee compliance with applied changes (Ferrell et al., 2020). Compliance officers can positively influence the ability of companies to implement ethical standards in organizations.
Culpability Factors in Determining Fines
To determine guilt and impose appropriate penalties under U.S. Sentencing Guidelines, criteria such as the level of management involvement, the effectiveness of the compliance program, and collaboration may be used. The first aspect reflects the extent to which the company directors’ behavior could contribute to the emergence of unethical behavior among employees. Lack of slashing attempts in such cases can be considered a severe offense and punished more severely than usual (Barkow, 2020).
The extent to which the compliance program has influenced the organization should also be evaluated. This means the company had to provide employees with training, reporting, and monitoring tools to implement ethical norms (Barkow, 2020). In the absence of these elements, the U.S. The Sentencing Guidelines may view superiors’ behavior as negligent, resulting in more substantial punishment. Collaboration may include actions the organization must take after pointing out existing deficiencies. In the case of cooperation with the authorities, when violations are detected, it can ease the amount of fines, which will have less impact on the organization’s resources.
Conclusion
In conclusion, the ethical code of companies is an essential element for modern business. It can regulate employee relations to normalize them and increase motivation and satisfaction. Thus, polite communication with colleagues and clients can improve productivity and greater returns. Target Corporation has embodied many of the critical principles of the modern company in its code that helps employees achieve better results. Organizations should implement robust ethics enforcement mechanisms and monitoring groups for this purpose. Codes of ethics are integral to companies that govern important interpersonal relationships.
References
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Gopalakrishna, G., Ter Riet, G., Vink, G., Stoop, I., Wicherts, J. M., & Bouter, L. M. (2022). Prevalence of questionable research practices, research misconduct and their potential explanatory factors: A survey among academic researchers in The Netherlands. PloS one, 17(2). Web.
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Judge, K. (2020). Goal Setting and Unethical Behavior: Implications for Occupational Safety and Health and the Safety Incentive Program. East Carolina University.
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Target Corporation. (2021). Ethics always true to Target.
West, S. (2021). Proof of Objective Falsehood: Liability under the False Claims Act for Hospice Providers. U. Cin. L. Rev., 90, 328. Web.