T3 (2)

docx

School

Western Governors University *

*We aren’t endorsed by this school

Course

C206

Subject

Management

Date

Jan 9, 2024

Type

docx

Pages

Uploaded by c88bates

1 EHM2 TASK 3: Code of Ethics and Legal Responsibility Analysis Cassandra Marker Western Governors University Steven Argiento December 5, 2023

2 EHM2 TASK 3: Code of Ethics and Legal Responsibility Analysis This paper will review a company’s code of ethics, and analyze it in relation to corporate social responsibility, legal mandates, and how it develops an ethical culture within those companies. Additionally, it will review whistleblower practices and sentencing guidelines. A. Code of Ethics Analysis The company that has been chosen to analyze their code of ethics is Target. A1. Corporate Social Responsibility Target represents corporate social responsibility, CSR, throughout many areas within its code of ethics. Target is well known for its efforts towards reducing their carbon footprint, and within their code of ethics there is reference of proper waste and chemical disposal, recycling initiatives, and their attention to conserving and reusing resources. Another way Target speaks to its CSR is through its commitment to diversity and inclusion. The code of ethics outlines its promotion of equal employment opportunities, encouragement to embrace and understand different viewpoints, and the necessity of being aware of ongoing societal issues that may impact the business. The code of ethics for target covers additional areas of CSR such as respecting human rights, maintaining trust amongst business partners, working together, and fair-trade business. A2. Legal Mandate Compliance Targets code of ethics highlights legal mandates within its broken-out subcategories. Anti-discrimination laws are outlined within their diversity section, prohibiting discrimination of both employees or customers based on their age, disability, sexual orientation, religion, ethnicity, or gender. Anticorruption laws are referenced under the fair business portion of their code of ethics. The foreign corrupt practice act is detailed, and explained regarding book keeping,

3 records, and maintaining effective financial control. Target also references the respect needed for trade regulations, citing customs and international trade transactions, as well as guidelines around third party supply chain vendors still representing target. Under their safeguarding section, Target refers to the legal mandates within privacy laws of how customers and employees personal information is stored and handled. It reviews various approved methods of handling information, sharing information, security practices around it, and several Target policies are provided for reference to help support the laws. A2a. Implications of Noncompliance Noncompliance with legal mandates can have several significant ramifications. Legal ramifications can come in the form of penalties or fines due to noncompliance. Severe legal ramifications can result in lawsuits against the company itself with the intent to seek damages or force a company into compliance. The company could also suffer reputational ramifications. The image or brand of a company is essential in creating good business. A tarnished reputation can lead to an inability to retain or recruit new customers. Stakeholders can lose trust and potentially withdraw support for the company. Noncompliance can also lead to an increased scrutiny in operational practices, which can increase workloads of the employees while they address audits, corrective actions, and potential ongoing investigations. A2b. Legal or Ethical Safeguards Two policies that Target has to ensure employees behave legally and ethically are the Equal Employment Opportunity and Harassment-Free Workplace policy and the Privacy Compliance Policy. The Equal Employment opportunity policy plays an important role in helping to shape the culture within Target. It encourages fair treatment, and emphasizes the importance of treating individuals with respect and dignity. The Privacy Compliance policy

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 refers to Targets efforts to maintain data privacy for its stakeholders and customers. It allows for guidelines on how the company handles, stores, and shares sensitive information. The code of ethics helps to reinforce their commitment to respecting people’s privacy, and instilling trust within their consumers. Both of these policies encourage employees to act responsibly and be accountable for their actions. They stress the importance of adhering to relevant laws and regulations put in place to protect the rights and privacy of individuals. A3. Development of an Ethical Culture Target’s code of ethics sets the tone for a strong ethical culture. It starts with a message from their CEO that defines ethics within Target, and a commitment to building a strong ethical culture. It then transitions into their purpose, culture, and values which helps to show the culture that Target wants to embody. It continues with clearly defined sections, such as putting ethics into action, safeguarding what’s ours, caring for our world, maintaining trust, and working together. Each section outlines Targets expectations of its employees and how to navigate any issues or situations within the specific sections. Target directly provides its policies for reference within the code of ethics should there be any questions. They also provide various reporting avenues should employees have a concern they want to vocalize, to help hold each other accountable in any area. A4. Resources for raising an Ethical Concern If someone should have an ethical concern at Target there are multiple avenues they can take to report their concerns. The company has provided an email address, ethics@target.com , that they can submit concerns to. They have a website that can be clicked into directly from the code of ethics, www.targetintegrityhotline.com . They also have an anonymous hotline phone

5 number provided within the code of ethics. If I were to need to report an ethical concern, my likely choice would be to utilize the email address. By utilizing an email address, I have a documented copy of the concern I would like addressed, and can follow up with it if needed. B. Factors for Reporting Unethical Conduct Prior to reporting any ethical concerns in the workplace 3 factors an employee would or should consider would be fear of retaliation, the support of their organization, and their sense of responsibility to report it. Fear of retaliation is a natural thought when considering reporting any type of concern. The employee could be concerned about workplace harassment, demotion, or being ostracized from their coworkers if they reported something they believed to be unethical. The employee would also want to feel confident that if they came forward, their organization would support them. If the employee felt that their complaint wasn’t taken seriously, or wasn’t listened to, it could deter them from reporting the behavior. If your company has a strong ethical culture, and is transparent with their beliefs, the employee would feel empowered to report concerning behavior, because they would be representing that culture. Lastly, how much sense of duty or personal conscience do they have in the matter. If a person believes that reporting the conduct is for the well being of the organization, they will be more inclined to report it. The employee will likely review their moral compass to see how their concerns fit into the bigger picture of the company. B1. Internal Whistleblowing Process The first internal steps that an employee could take to blow the whistle on misconduct would be to report the conduct to your human resources partner. This allows them to handle the matter immediately through the onsite leadership.

6 The second step would be to call the Integrity Hotline, which can be utilized anonymously if the employee is not comfortable sharing their name. They will create a report detailing the concern and proper investigation. The third internal step to report a concern would be to write a letter to the corporate ethics and compliance department of Target. This allows the employee to report their concerns to a higher level, but still remain internal within the company. B2. External Whistleblowing Process Two possible actions an employee could take to externally blow the whistle on unethical behavior would be to seek out a lawyer and file a lawsuit against the company, or report the conduct to governing agencies. Choosing to report to a lawyer allows to employee to seek out someone who specializes in whistleblower protection or a lawyer that specializes in employment cases. Seeking out governing agencies, such as the Securities and Exchange Commission or the Federal Trade Commission could be due to any financial misconduct the employee feels is happening. C. Advantages and Disadvantages of Paying Whistleblowers One advantage of paying whistleblowers under the False Claims act is that it incentivizes individuals to come forward and report instances of fraud or misconduct against the government. It can offer the reporter a decent percentage of recovered funds for reporting the unethical conduct. The financial reward is able to offset the potential risks of reporting the behavior. One disadvantage to paying whistleblowers under the false claims act is that the financial motivation can also encourage individuals to come forward with claims that lack merit or substance. This can also mean that whistleblowers who are motivated for the financial gain of

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 reporting could embellish the details in order to increase their reward. This increases the number of baseless claims that have to be investigated and dismissed. D. Impact of U.S. Sentencing Guidelines The U.S. Sentencing Guidelines have had a significant impact on how companies approach ethics and compliance. Companies have implemented entire compliance programs that help to identify and mitigate the risk of unethical behaviors or practices. They have added educational training specific to ethical standards and legal requirements. Leadership has a higher level of accountability in regards to the ethical culture of their company, some even having ethics and compliance metrics added into their performance evaluations. Some companies have created robust investigation and remediation protocols when dealing with ethical complaints. Job positions have been created for ethics and compliance officers, to ensure the company has a solid grasp on all compliance needs. D1. Culpability Factors The U.S. Sentencing Guidelines use various culpability factors to determine fines for organizations that get convicted of federal offences. 3 specific factors are the role in the offense, the history and nature of the offense, and the programs and policies in place to prevent the offense. The company’s role in the offense considers whether the company and its leadership played a role in supporting, ordering, or encouraging the illegal conduct. Companies that actively led or encouraged illegal behavior are subject to facing much more severe fines. Guidelines will then look at the history and nature of the offense, and whether or not the company has a history of previous misconduct. Repeat offenses or patterns will land the company with substantial fines. Included in that is the severity of the current misconduct, and the

8 severity of any previous misconduct. The more egregious or harmful the conduct is, the higher culpability and fines. Lastly, the guidelines review the effectiveness of the company’s ethics and compliance programs. If they have well designed structure and accountability behind them, they will potentially see lighter fines depending on the rest of the factors. Also reviewed is the response time in reporting the misconduct, and whether or not it was self-reported. Companies that cooperate with investigations, take accountability, and implement immediate changes have a higher chance of seeing leniency in their fines.

T3 (2)

Related Documents