Operations Management Homework Help


# Description Question


Selecting an appraisal method requires an analysis of the amount and quality of input, the time available to complete the appraisal and the value the appraisal will have to the employee and the company.  

  1. Discuss the pros and cons of the following appraisal methods:
    • Supervisor conducted
    • Supervisor conducted with input from the employee
    • Consolidated peer reviews.
    • 360 degree appraisal.
  2. What factors would you take into consideration when making the determination of which method to use?  Explain your answer.



Some of the most well-known motivation theories include:

  • Maslow’s Need Hierarchy Theory
  • Douglas McGregor’s Theory X and Theory Y
  • Frederick Herzberg’s Motivation-Hygiene Theory
  1. Discuss how each of these motivation theories can be used in the performance management procedures.
  2. What are the pros and cons of performance appraisals?



  1. Discuss the different types of compensation.
  2. When designing an incentive plan, it is common to base it on the operating cash flow or EBITDA.  What are the pros and cons of using this type of metric for an incentive program?
  3. How can a compensation method be used to assist with employee retention?





  1. It is important that disciplinary rules be in writing and easily accessible to all employees.  This will minimize the misunderstanding of the standards that are expected.  Discuss what the rules should be relating to (i.e. health and safety).
  2. What is the benefit of having a rule in place for these areas?
  3. How often should the disciplinary rules be changed or updated?


Each assignment has two - three parts

You currently work as a coordinator for New City Home Care, a private home health company offering nursing care and therapy services to the elderly residents of a medium-sized Midwestern city with a population of about 55,000 people. The neighboring town, about 10 miles away, has a much smaller population, but as the population ages, this town is seeing an increase in retirees. Your manager has decided that it would be beneficial to expand into this town by opening a satellite office. She is eager to be the first home health company to open a physical office in this new territory and has tasked you with developing a marketing plan. You have been asked to provide an executive summary to the management team of the marketing plan.

The summary needs to explain how the following will used in your team's marketing plan:

  • The company’s historical resident trends and current strategic plan
  • Demographic data
  • Quality standards
  • Marketplace analysis, including competition
  • Models and best practices for reaching the target audience
  • Developing recommendations to ensure alignment with company strategy
  • Writing the plan and setting expectations
  • Implementing the plan, proven best practices for implementing
  • Tools for evaluating and adapting the plan.


6-8 pages; minimum 5 academic/professional references published in last 5 yrs


IP ASSIGNMENT --- No Abstract, Table of Content are required

CRITICAL. Use HEADINGS in every IP paper to separate discussions. Here is an example paper.

  • Introduction 
  • 5      Contemporary best practices
  • Loyalty      Repeat Customers
  • Develop and      Defend 4 recommendations
  • Initial      Training Plan for the Company
  • Conclusion 

Paper needs to be organized and written by EACH bullet point – address each point methodically (6 bullet points this week’s IP 4) Do Not Change The Wording – or make your own heading words – use those words from each bullet point in EVERY assignment. Don’t lose (- 7poins) if it is not set up showing the above headings.

You currently work as a coordinator for New City Home Care,

Deliverable Length: PP


Locate at least 4 contemporary, peer-reviewed articles or dissertation or thesis research studies that are qualitative in nature (e.g., case studies, historical) related to your topic of interest for your paper and PowerPoint presentation. 

Write a paper that contains the following sections: 

  1. Summarize the type of study and phenomenon of interest.
  2. Discuss whether the sample and population used were appropriate.
  3. Summarize results, limitations of results, conclusions, and applications.
  4. Compare the results, conclusions, and applications among all 4 studies in a summary paragraph. 

Prepare 4 PowerPoint slides that detail the most applicable results associated with each qualitative study to your topic of interest and area of application or function related to healthcare.

Paper: The student paper should address the assignment description and be a minimum of 3 full content pages, not counting the title and reference pages. The paper must be supported by a minimum of 3 references with matching citations in the body of the work. 


APA Format, Referenced, Cited

Locate at least 4 contemporary, peer-reviewed articles or dissertation or thesis research
  • Deliverable Length:  3 pages (excluding cover, abstract, and reference pages) 
  • Write a paper based on 1 of the following geriatric case management bio-psycho-social assessments:
    • Assessment and measurement of physical and functional abilities
    • Nutritional status
    • Medical history
    • Mental health status
    • Family and support systems
    • Spiritual beliefs
    • Cultural beliefs and customs
    • Financial resources
    • Insurance provisions
    • Vocational activities
    • Avocational and recreational pursuits
    • Health literacy and knowledge
    • Health status expectations
    • Readiness to change 
  • Compare and contrast the similarities and differences in traditional hospital settings versus hospice settings.
  • Summarize the unique challenges with the geriatric population including legal, social, and ethical considerations.

APA format,  Cited, Referenced

Write a paper based on 1 of the following geriatric case management bio-psycho-social assessments:

200 words on the following topic: Outsourcing and Global Sourcing

Must use resources below of scholarly resources within the last 5 years.


Gobble, M. M. (2013). Outsourcing innovation. Research Technology Management, 56(4), 64-66. Retrieved from http://ezproxy.liberty.edu/login?url=https://search-proquest-com.ezproxy.liberty.edu/docview/1458288714?accountid=12085

Nassimbeni, G., Sartor, M., Orzes, G., & Jia, F. (2017). Global sourcing strategy and structure: Towards a conceptual framework. International Journal of Operations & Production Management, 37(7), 840-864. 10.1108/IJOPM-09-2015-0549

Outsourcing. (2015, February 9). Computer Reseller News [UK], 3. Retrieved from http://link.galegroup.com.ezproxy.liberty.edu/apps/doc/A407667967/ITOF?u=vic_liberty&sid=ITOF&xid=db3f237b


Please read the project requirements such as format or word count

Presently, your multinational organization uses steel at locations across the U.S. and globally with operations in Mexico, Russia, India, and China. Your boss is tasked with developing a global Request for Proposal (RFP) for gathering and comparing steel suppliers. In preparation for his RFP, he has tasked you with building an internal data collection tool to identify key questions to include within the RFP. The purpose of your survey is to identify all key information that is needed for the RFP, and the data collection tool will be sent to managers across the U.S. and globe. The data collection tool is a survey administered through email. Furthermore, the tool must contain a maximum of 10 questions and include the following:

  • Cost
  • Volume
  • Locations
  • Safety

Your job is to develop the project plan for the execution of the data collection tool. The project plan needs to include milestones, key events associated with creating an RFP, and corresponding dates. The time allotment from start to finish for this project by your boss is three months. Additionally, standard templates need to be built that support the project plan, including an action list, meeting minutes, and a risk management tool.


The purpose of the survey is to find out their needs for the upcoming year from the steel suppliers.  Specifically you are to ask them about cost, location, volume, and safety.  

Next you are to create a Gantt chart showing the milestone of the tasks that need to be accomplished.  

You are to create a Meeting Minutes Template and then fill it in.  Your template should include status updates, action plans, responsible persons, and due dates.

You need to google or create a risk assessment template and fill it in showing items that are potential risk items, their serverity, and their probability of happening.


Differentiate the key assessment metrics in achieving an operational project plan.


  1. Differentiate behavioral traits and highly effective habits of successful operations managers.
  2. Distinguish the strategic actions that differentiate between successful domestic and international sourcing plans.
  3. Distinguish operational practices that will create an exceptional customer experience.
  4. Differentiate the key assessment metrics in achieving an operational project plan.
  5. Prioritize three quality measures used in operational design.
  6. Relate the seven key elements of designing a forecasting system.


You have been promoted to the role of senior operations manager and have been named by the VP of Operations to the organizational one-year elite onboarding program for high-potentials called Emerging Leaders.

As an Emerging Leader, you are expected, in fiscal Q1 and Q2, to develop an operations manager toolkit/project guide for the new junior operations managers you will source to this role in the next quarter. The toolkit will be used by your newly hired junior operations managers during the six-month onboarding process within your organization.

Developing an onboarding program for new junior operations managers is important because onboarding, according to the Society of Human Resources Management (2016), "is the process by which new hires get adjusted to the social and performance aspects of their jobs quickly and smoothly, and learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization (p. 1)."

In addition, sourcing, vetting, background checking, interviewing, and training a newly hired junior operations manager will cost your organization approximately $6,300.00 (per candidate).

Consequently, to assist your new junior operations managers in learning, growing, and developing into your organizational culture, you will need to provide them with the tools to succeed.

What to Submit

You are to develop an operations manager toolkit/project guide that must be inclusive of the following components: a cover page, table of contents, and a reference page supported by research from at least six scholarly sources. This toolkit, although a written assignment, is very different from you writing a traditional 10-page APA style paper, and is representative of an authentic reference tool you would use in the workplace to onboard a new junior operations manager. Both the reference page and in-text citations must be in APA format.

Your newly-hired junior operations manager will require support and your assistance to be successful; therefore, you will need to develop an operations manager toolkit/project guide which will include the following components:

  • An opening statement on the importance of operations manager leadership development
  • A comparison statement on understanding the five organizational leadership styles
  • A description of a successful domestic and international sourcing plan and analysis statement
  • A description outline of an exceptional customer experience program plan and analysis statement
  • A description of at least four internal data collection measurement tools and analysis statement
  • A description of at least three quality measures used in operational design and analysis statement
  • A description of the seven key design elements of a forecasting system and analysis statement
  • An evaluation of the components of your operations manager toolkit/project guide



Grading Rubric

FFCBA01234No PassNo PassCompetenceProficiencyMasteryNot SubmittedNo opening statement on the importance of operations manager leadership development.Opening statement on the importance of operations manager leadership development, but lacks explanation of leadership trait identifiers.Opening statement on the importance of operations manager leadership development and explanation shows signs of understanding.Thorough opening statement on the importance of operations manager leadership development fully explains leadership trait identifiers and supports stance.Not SubmittedNo comparison statement on understanding the organizational leadership styles.Comparison statement on understanding the organizational leadership styles but, lacks explanation and personal leadership examples.Comparison statement on understanding the organizational leadership styles, and provides some explanation and good personal leadership examples.Thorough comparison statement on understanding the organizational leadership styles with fully supporting personal leadership examples and explanation.Not SubmittedNo description of a successful domestic and international sourcing plan and no analysis statement.Description of a successful domestic and international sourcing plan and a minimum analysis statement.Description of a successful domestic and international sourcing plan with a relevant analysis statement.Thorough description of a successful domestic and international sourcing plan and analysis statement with supporting research.Not SubmittedNo description outline of an exceptional customer experience program plan and no analysis statement.Description outline of an exceptional customer experience program plan and analysis statement with some supporting evidence.Description outline of an exceptional customer experience program plan and analysis statement with supporting evidence.Thorough description outline of an exceptional customer experience program plan and analysis statement with strong supporting evidence.Not SubmittedNo description of internal data collection measurement tools and no analysis statement.Description of internal data collection measurement tools with analysis statement and minimal supporting information.Description of internal data collection measurement tools with analysis statement and supporting information.Description of internal data collection measurement tools with analysis statement and strong supporting evidence.Not SubmittedNo description of quality measures used in operational design and no analysis statement.Description of quality measures used in operational design, with analysis statement, but lacks explanation and personal examples.Description of quality measures used in operational design, with analysis statement and support through explanation and personal examples.Thorough description of quality measures used in operational design with analysis statement and fully supports through explanation and personal examples.Not SubmittedNo description of key design elements of a forecasting system and no analysis statement.Description of key design elements of a forecasting system, with analysis statement, but lacks explanation and personal examples.Description of key design elements of a forecasting system, with analysis statement and support through explanation and personal examples.Thorough description of key design elements of a forecasting system, with analysis statement and fully supports through explanation and personal examples.Not SubmittedNo evaluation of the components of your Emerging Leaders Onboarding Plan.Evaluation of the components of your Emerging Leaders Onboarding Plan, but lacks explanation and personal examples.Evaluation of the components of your Emerging Leaders Onboarding Plan, with support through explanation and personal examples.Evaluation of the components of your Emerging Leaders Onboarding Plan and fully supports through explanation and personal examples. 

Differentiate behavioral traits and highly effective habits

 What’s in a Name of an Ethics Code?

Read Consider: What’s in a Name of an Ethics Code? in Chapter 9, then answer these following questions from the text:

·         Describe how the title of a company’s ethics document affects your attitude about the content?. Do you find one title more attractive than another?

·         Describe  the message that the title  “code of conduct” conveys?. Does it reflect the purpose of the document to provide employee guidance on expected conduct?

·         Propose creative titles for ethics codes for a pharmaceutical company and a restaurant. (Gonzalez-Padron, 2015).

·         Identify two other company ethics documents and share the titles of their ethics documents (consider your own organization or one that you are familiar with for this question). 

Your response must be a minimum of 300 words.    




Discussion 2



 Code of Conduct in Medical Tourism 

Medical Tourism has become a growing industry, especially in developing countries. Research the topic of medical tourism, and find a scholarly or credible article for your topic.  Develop a code of conduct for medical tourism. Your code of conduct must include

·         Organizational values

·         Guidelines for acceptable behavior

·         Compliance with legislation

·         Examples of prohibited acts

Your response must be a minimum of 300 words.

Use at least one scholarly or credible source.

·         The Scholarly, Peer Reviewed, and Other Credible SourcesDescription: Preview the document table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.


Introduction Ethics Program Pays Off for Morgan Stanley

pn April 25, 2012, Garth Peterson, former managing director for Morgan Stanley's real estate business in China, pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA) and fo onspiring to evade Morgan Stanley's internal controls for meeting securities laws for invest merit advisers (United States Department of Justice, 2012). From 2004 to 2007, Petersor ultivated a relationship with a Chinese official to obtain business approvals. In 2008, execu ives at Morgan Stanley discovered the violations, reported them to the U.s. Securities ane Exchange Commission (SEC), and fired Peterson (Lucchetti & Kendall, 2012). Department 0

ustice officials declined to bring any enforcement action against Morgan Stanley because 0 ts documented ethics and compliance program, stating:

According to court documents, Morgan Stanley maintained a system of internal controls meant to ensure accountability for its assets and to prevent employ­ees from offering, promising or paying anything of value to foreign govern­ment officials. Morgan Stanley's internal policies, which were updated regu­larly to reflect regulatory developments and specific risks, prohibited bribery and addressed corruption risks associated with the giving of gifts, business entertainment, travel, lodging, meals, charitable contributions and employ­ment. Morgan Stanley frequently trained its employees on its internal policies, the FCPA and other anti-corruption laws. Between 2002 and 2008, Morgan Stanley trained various groups of Asia-based personnel on anti-corruption policies 54 times. During the same period, Morgan Stanley trained Peterson on the FCPA seven times and reminded him to comply with the FCPA at least 35 times. Morgan Stanley's compliance personnel regularly monitored transac­tions, randomly audited particular employees, transactions and business units, and tested to identify illicit payments. Moreover, Morgan Stanley conducted extensive due diligence on all new business partners and imposed stringent controls on payments made to business partners. (United States Department of Justice, 2012, para. 6)

~he experience of Morgan Stanley shows that companies with excellent ethics and compli ance programs may be protected should their employees violate standards. An excellent eth cs and compliance program meets five common elements set forth in the U.s. Federal Sen encing Guidelines for Organizations (FSGO), the FCPA, the U.K. Bribery Act 2010, and the

Organisation for Economic Co-operation and Development (OECD) Good Practice Guidance bn Internal Controls, Ethics, and Compliance. Although the language differs, each of the fou ~uidelines recommends the following steps: 1) create program structure, 2) establish corpo

ate standards, 3) educate the workforce, 4) create investigation procedures, and 5) assess program effectiveness (see Figure 9.1 for the key elements to implementing an organiza ional ethics program).


Creating a Program Structure

Section 9.1


et ICS program

n excellent ethics and compliance program meets five common elements.

· Training Plan

· Training Execution

Create Program Structure

Establish Corporate Standards

Educate the Workforce

· Ethics Officer

· Board Oversight

· Reporting Relationship

· Code of Conduct

· Global Considerations

· Implementation

• Ethical Performance

Create Investigation Procedures

Assess Program Effectiveness

· Ethical Guidance

· Reporting Mechanism

· Investigation Process


• Audit Committee

hough prescriptive in the steps needed to create an effective ethics and compliance program one of the aforementioned guidelines specifies the method to be used. Rather, each organiza ion may tailor its program to applicable industry practice or standards, the size of the orga ization, and the risk of misconduct (United States Sentencing Commission, 2013). Ethic rofessionals typically share initiatives that work for their company (best practices) so tha ther organizations can model their ethics and compliance programs on proven strategies.


his chapter presents practical steps for implementing an effective organizational ethics pro ram. The first step involves creating a structure to manage and oversee the organization' thics and compliance program. This is followed by clear communication of standards 0 cceptable behavior that address potential risks for misconduct. The third step is to educat he workforce via a training program that resonates with the audience and encourages ethica ehavior as the norm. The fourth entails creating procedures to respond to reported miscon uct through a transparent and fair investigation process. The final step involves monitorin nd assessing program effectiveness to identify any areas for improvement. The chapter pro ides best practices as a foundation for an organization to design an ethics and complianc rogram that meets its distinct requirements.

9.1 Creating a Program Structure

s demonstrated by the Morgan Stanley example, simply creating an organizational ethic rogram is not sufficient for preventing misconduct. To ensure the effective implementatio f an ethics program throughout an organization, a designated individual or group must hav he authority and responsibility to oversee it.



Creating a Program Structure

Section 9.1



ere are tree components to an e ective et ics program structure. e irst is an appointe thics officer who oversees compliance with legal and ethical standards and acts as a stew rd of the ethics and compliance program within the organization (Ethics Resource Center 007). The second component is oversight of the ethics and compliance function by the orga ization's governing body (e.g., the board of directors). The third is the relationship betwee he ethics officer and whomever he or she reports to, which can help or hinder the effective

ess of the ethics and compliance program.

pproaches to managing an organizational ethics program vary. Some companies have istinct department for managing the ethics and compliance program, such as the Corpo ate Office of Ethics and Business Conduct at Lockheed Martin (Lockheed Martin Inc., 2007) ther companies assign responsibility for ethics and compliance to existing functions, such a uman resources or legal departments. An informal survey by the Ethics & Compliance Offi er Association (ECOA) found that less than a third of the companies (31.6) had a separat unctional area for ethics, whereas almost half (47.4) included ethics as part of the legal eneral counsel function (Kane, 2014).

ompanies gain advantages by structuring ethics and compliance programs appropriatel ithin the organization. Organizations should consider the following questions when design ng an ethics and compliance program:

·         How does the ethics and compliance function relate to the business, chief executive officer (CEO), and top management?

·         How does the ethics and compliance function relate to functional departments or divisions of the company?

·         What should the ethics and compliance relationship be with external stakeholders (e.g., customers, suppliers, regulators)?


·         How does the ethics and compliance function relate to the board of directors or owners?

·         What should the ethics and compliance function report about and to whom, how, and when?


he reporting structure must allow the ethics officer to address delicate situations in whic xecutive management may be involved in wrongdoing. The OECD Good Practice Guidance 0 nternal Controls, Ethics, and Compliance recommends that senior corporate officers have uty to oversee "ethics and compliance programmes or measures regarding foreign bribery, ncluding the authority to report matters directly to independent monitoring bodies ... wit

n adequate level of autonomy from management, resources, and authority" (OECD, 2010 .3). The concept of an appropriately designed program suggests that the designated ethic fficer have sufficient authority and responsibility to perform duties to ensure compliance 0 egal and ethical standards throughout the organization.


he Role of the Ethics Officer

hat are the responsibilities of an ethics officer? The Society for Human Resource Man gement (SHRM) states that the ethics officer "serves as the organization's internal contro oint for ethics and improprieties, allegations and complaints, and conflicts of interest; an rovides cor orate leadershi and advice on cor orate overnance issues" SHRM, 2014


Creating a Program Structure

Section 9.1



ara.           is escription provi es t e purpose 0 an et ics 0 icer in genera terms, w ic

ay not reflect the breadth of responsibilities for a larger organization. The Ethics Resourc enter (2007), on the other hand, provides an example of a job description for a chief ethic nd compliance officer with responsibilities for the conduct of employees worldwide:

Corporate Officer with responsibility to provide global leadership on compli­ance and ethics; oversee all compliance and ethics programs and initiatives of the company; ensure that appropriate programs, procedures and policies are implemented to reduce the chances of illegal or unethical conduct by the company. (p. 7)


egulatory guidelines stipulate that the ethics and compliance function be led by high-leve ersonnel (United States Sentencing Commission, 2013) or top-level managers (Ministry 0 ustice, 2011). Recall in Chapter 1 that there was a shift from a solely compliance focus i he early 1990s to either a combined compliance/ethics or solely ethics focus in the 2000s he managerial level, title, and department name can reflect the organization's commitmen o the ethics program and its emphasis on ethics versus compliance. For example, the eth cs and compliance function at Cisco resides in an ethics office, whereas most ethical issue t Harley-Davidson are referred to the legal department and the chief compliance officer eneral counsel (Cisco, 2014; Harley-Davidson, n.d.). A study found that a title of chief, sue s chief ethics officer or chief compliance officer, is the most common in larger companie 28), followed by vice president (10), executive vice president or senior vice presiden 9), director (7), manager (4), and officer (3) (Weber & Wasieleski, 2013). See ample of titles for the ethics professional in the feature box Consider: What's in a Name of a thics Professional? to recognize variations in naming ethical departments and the respon ible manager.


Consider: What's in a Name of an Ethics Professional?

A review of the ECOA member listing shows some of the titles that may be used for ethics professionals:

·         Chief compliance officer

·         Chief ethics and compliance officer

·         Chief ethics officer

·         Chief risk, compliance and ethics officer

·         Vice president, corporate responsibility

·         Vice president, global compliance and ethics

·         Director of business conduct

·         Director of integrity, security and compliance

·         Director, corporate compliance and ethics

·         Director, ethics and integrity programs

·         Director, ethics and regulatory compliance

·         Senior manager, ethics and non-financial corporate policies and procedures

·         Senior manager, global ethics and compliance

·         Senior vice president, global [corporate social responsibility] and risk management

·         Manager, business integrity and compliance

·         Manager, ethics and employee issues


Creating a Program Structure

Section 9.1

Consider: What's in a Name of an Ethics Professional? (continued)

Questions to Consider


12.   Why does the ethics function vary among organizations? What company factors would lead to the wording of the ethics function?

13.   Which titles reflect a focus on compliance only? Which titles reflect a focus on ethics?

14.   Does a title provide sufficient authority to oversee an organization's ethics program?


Does the title of the ethics professional indicate a level of autonomy in addressing ethical issues?

he diverse titles of ethics professionals imply that the duties of the ethics officer vary amon rganizations. The Ethics Resource Center (2007) identifies typical responsibilities of ethic fficers:

·         Oversee assessment of organizational risk for misconduct and noncompliance;

·         Establish organizational objectives for ethics and compliance;

·         Manage the organization's entire ethics and compliance program;

·         Implement initiatives to foster an ethical culture throughout the organization;

·         Supervise ethics and compliance staff embedded throughout the organization;

·         Frequently inform the board of directors and senior management team of risks, incidents, and initiatives driven by the ethics and compliance program, and progress toward program goals;

·         Implement a program of measurement to monitor program performance; and

·         Oversee periodic measurements of program effectiveness. (p. 2)

key role of the ethics officer is to coordinate the ethics program with other company manag rs in the areas of human resources, finance, communications, risk management, and gover ance. Additionally, the ethics officer may communicate regularly with customers, suppliers nd the media on ethical issues relating to the company or industry. A survey of 800 ethic nd compliance professionals from financial service firms in 62 countries found that the typi al week of an ethics officer includes, on average, a little more than a day of addressing regu atory developments, such as tracking and analyzing regulatory developments (15 of tim

uring the workweek) and amending policies and procedures (7) (Hammond & Walshe 013). Another day involves communicating with the legal department, conducting interna udit and risk functions (16), and reporting to the board (6). During the rest of the week he ethics and compliance professionals reported focusing on compliance tasks includin

onitoring activities, training, and provision of advice and guidance (56).


he Ethics Resource Center (2007) has identified 11 qualifications expected from the desig ated lead of an ethics program. They include:

·         Substantial business experience (15 years+):

·         Ability to communicate (public speaking, professional writing, with executives, etc.);

·         Ability to develop and deliver training;

·         Familiarit with Sarbanes-Oxle Federal Sentencin Guidelines FSGO and other

relevant compliance standards;



Creating a Program Structure

Section 9.1

·         Familiarity with leading thinking and research in business ethics and compliance;

·         Understanding of the auditing process;

·         Understanding of the risk management/risk assessment process;

·         Comfort with eLearning, learning management systems, and other IT [information


·         Project management skills;

·         Substantial management experience (10 years+]: and

·         Ability to motivate and inspire people. (p. 26)

~s formal ethics and compliance education is only a recent offering in higher education, manv ethics officers come from legal, auditing, or human resources disciplines. Over half of ethics professionals in vice president or director roles have a law degree, while less than 5 of al ethics professionals are certified public accountants (Society of Corporate Compliance ane Ethtcs, 2013). To gain knowledge in ethics and compliance, professionals seek certificatior

rom the ECOA and the Society of Corporate Compliance and Ethics (SCCE). According to ar ~CCE survey, the average compensation for ethics professionals ranges from $214,118 for vice presidents to $71,894 for assistants/specialists, whereas compensation for certified profes sionals are slightly higher (Society of Corporate Compliance and Ethics, 2013). See Table 9. or more detailed information about compensation for ethics professionals.

rrable 9.1: Average compensation for ethics professionals








Vice President




Average total










Certified Compliance





& Ethics Professional





from SCCE





Other certifications*





No certification

$236,4 79




Includes industry-specific certifications in healthcare, fraud examination, internal auditing, information systems

ource: Society 0/ Corporate Compliance and Ethics. (2013).2013 cross-industry compliance & ethics staffsurvey (pp. 40). ~inneapolis, MN: Society of Corporate Compliance and Ethics.

~he relationship of the ethics officer to the governing authority of an organization shifted frorr nformal or nonexistent to a formal reporting requirement with the enactment of Sarbanes Oxley (Chapter 4) and similar legislation worldwide, which placed greater responsibility fo accurate financial reporting on the board of directors. The 2004 and 2010 amendments 0

he FSGO encourage companies to allow the chief ethics and compliance officer access to the board of directors to report on observed misconduct. To create an effective program struc ure, organizations ask, "What is the appropriate involvement of the board of directors in the ethics and compliance program and what should be the relationship between the board ane he ethics office?" The next section explores these questions.


Creating a Program Structure

Section 9.1

·         The board of directors must be knowledgeable about the organization's ethics and compliance program, including information on the compliance risks facing the firm and the programs installed to combat those risks.

·         Senior management must ensure that the organization has an effective compliance program.

·         Those individuals with day-to-day operational responsibility for ethics and compli­ance must "be given adequate resources, appropriate authority, and direct access" to the board of directors or an appropriate subgroup of the board (United States Sentencing Commission, 2013, p. 497).

Board Oversight

Oversight of the ethics program by the governing body of an organization differs from the ~aily management by the ethics officer. The role of the board of directors is to monito management practices and performance in achieving company goals, as well as to protec

he organization from reputational and financial risks resulting from ethical misconduct Board members may be responsible to stockholders for monetary damages if they fail tc set up procedures guarding against misbehavior that results in fines and penalties. Recal rom Chapter 1 how Medicare and Medicaid fraud resulted in scrutiny of the healthcare ndustry and the subsequent Caremark decision of 1996 statement that directors have c ~uty to assure that accurate information and reporting systems are in place and followee

Cohan, 2002; Robinson & Pauze, 1997). The realization that Enron's board of directors wice waived its conflict of interest policy for establishing special purpose entities with its hief financial officer increased regulatory attention to the board's responsibility to over

see the ethics program (Felo & Solieri, 2003).

~he FSGO outlines the responsibilities of the board of directors and senior management relat ng to ethics and compliance as follows:

~ board of directors faces many challenges when implementing an adequate monitoring pro ess to stop illegal and unethical behavior within the organization (Prentice, 2012). One chal enge is that company ethics may not receive attention on the board agenda. The CEO ane management team typically set the agenda for board meetings and are the primary source 0 nformation for the board members (Sharpe, 2011). Another challenge is achieving the righ

~egree of monitoring to demonstrate aggressive detection and punishment for violations 0 ethical standards without creating an atmosphere of distrust that erodes innovation (Cohan ~002). Board members must be able to ask the right questions and provide an environmen bf trust among the ethics office and the board.

trhe FSGO accepts that a board cannot manage every aspect of the ethics and compliance practices within a business, allowing for "Specific individual(s) within the organization [to be delegated day-to-day operational responsibility for the compliance and ethics program'

United States Sentencing Commission, 2013, p. 497). The board looks to the ethics office o create an ethical culture that emphasizes proper conduct, and that increases brand value and reputation, necessitating regular communication and reports between the board and the ethics officer. Table 9.2 provides sample questions that board members should ask the ethics eader of the organization.


Creating a Program Structure

Section 9.1

[fable s.z: Sample questions the board 01 directors should ask

he chief ethics officer





The Board Needs

Board Oversight Questions

Element of Ethics Program

to Ensure That ...

Do we have the right model to

Program structure

A chief ethics and compliance officer

oversee, manage, and implement


(CECa) or equivalent appointed.

the company's ethics and compli-

Executive oversight

The CEca has sufficient personnel

ance (E&C) program?


and resources commensurate with



company needs.



The CEca is sufficiently integrated



with the company's executive team.



The CEca has the ability to report



directly to the board or board com-



mittee formally or informally.

How do we assess adherence to

Code of conduct and appropriate

There is a code of conduct for all

company standards? How do we


employees, the board, senior man-

determine effectiveness?


agernent, and third parties.



The board is periodically educated



on the company's code of conduct.

How do we ensure the visibility

Code of conduct and appropriate

High-risk policies are in place.

of high-risk matters arising in the


Policies address systemic and

business units?


industry-specific risks.

How do we train our employ-

Targeted training and

Periodic training and education for

ees? How do we raise employee


all employees, management, and

awareness of the company's E&C


critical third parties takes place.



Training and code certification



process is tracked and that further



inquiries take place when issues






The company issues regular com-



munications to all employees on E&C






The board receives appropriate code



of conduct and other relevant integ-



rity education periodically.

Are we identifying and prioritizing

Periodic risk assessment

There is full understanding of the

the company's compliance risk?


company's risk profile.



Risk assessment is completed






Risk assessment and manage-



ment target high-risk areas for the






Senior management IS accountable



for risk management.



A relationship exists between E&C



risk assessments and enterprise risk








Creating a Program Structure

Section 9.1

[fable Y.:l: Sample questions the board 01 directors should ask he chief ethics officer (continued)

Board Oversight Questions

Element of Ethics Program

The Board Needs to Ensure That ...

Are we auditing for priority com­pliance risk?

Monitoring, investigating, and auditing

Periodic monitoring and auditing ofE&C program is completed with reports to the board.

Routine internal audits occur.

Key compliance indicators (fines, penalties, warning, violations) are reviewed.

An investigations protocol is in place and is followed; reports received on overall results.

Exit interviews occur.

Do we have the right systems in place to ensure observed miscon­duct is reported? Ensure employ­ees are comfortable raising issues?

Anonymous reporting and helplines

A system is in place for employees and others to report and discuss concerns without fear of retaliation. Concerns are addressed and resolved.

The board receives periodic report­ing of statistics about hotline or other reported issues, including trend lines, comparisons to peer companies, and overall business statistics.

Continual review and improve­ment ofE&C program

ources: Adaptedfrom Tables 1 & 4, pp.12, 18 in Bonime-Blanc, A., & Brevard,j.E. Ethics and the Board: Integrating Integrity into ~usiness Strategy. Council Perspective CP-013 © 2009 by The Conference Board, Inc.

~he ethics officer must be able to inform the board of directors and senior management tearr bf risks, incidents, and activities related to the ethics and compliance program without fear 0

etaliation (Ethics Resource Center, 2007). To provide regular updates to the board, the ethics program needs a system for collecting the statistics and qualitative findings of risks, prograrr effectiveness, and potential misconduct. Ethics officers should provide board members witt easy to read dashboards of quantitative information such as helpline /hotline call statistics material investigations, training completion, communications reach, code of conduct certifi rations, employee ethics culture survey results, employee turnover counts, and exit interview eedback. Oualitative information that the ethics officer should orovide includes new laws 0

How do we measure E&C program effectiveness?

Lessons are learned from mistakes; board seeks examples. Accountability for improvements is demanded from senior management. Proof of implementation of improve­ments is provided.

E&C considerations are factored into performance evaluations.

The CEca is encouraged to become a member of peer associations to access materials, benchmarking, and best practices.


Creating a Program Structure

Section 9.1



egu ations, interna au it in ings, an ris assessment reports. eporting to t e oar ca e time-consuming, as one study found that 36 of ethics professionals spent more than fou ours a week creating and amending information for the board, with more than 70 organiza ions spending more than 10 hours a week preparing information for the board (Hammon

Walshe, 2013).

eporting Relationship

he ethics officer's credibility and authority with the board and the company is heavily in flu need by whom he or she reports to within the organization. Michael Hoffman, a noted pro essor of business ethics at Bentley University, stresses that the reporting structure can affec n ethics officer's objectivity, independence, power, and influence to ensure ethical integrit hroughout the organization (Hoffman, 2010). He stated, "There are many signs that the rol fthe day-to-day ethics officer, the person who really does the ethics work, is being marginal zed rather than strengthened" (p. 744).

revifio, den Nieuwenboer, Kreiner, and Bishop (2014) recounted an example where an ethic fficer was ignored:


offman describes three ways that the reporting relationship of ethics officers influence heir objectivity, independence, power, and influence. One reason refers to the point that wa ade in the previous section on Board Oversight: if the ethics officer does not have access t he board of directors, it reduces his or her influence and power to provide accurate infor

ation on the organization's ethical program. Another reason is that a conflict of interes ccurs should ethical misconduct by the ethics officer's supervisors be observed. This conflic f interest can restrict the ethics officer's objectivity and independence when enforcing th rganization's ethical code. The final reason is that inadequate resources or authority mini

ize an ethics officer's power and influence over other departments.

n some organizations, an ethics officer reports to a senior executive in a legal, huma esources, or internal audit department. Most studies show that ethics and compliance offi ers most often report to the general counsel with increasing numbers reporting directly t he CEO (SAl Global, & Baker & McKenzie, 2013; Weber & Wasieleski, 2013). An ethics office

ay be in the tenuous position of both monitoring the ethical integrity of and reporting t enior managers who have the power to have him or her promoted or fired. Senior manag rs may recommend ignoring unethical conduct, or fail to take action on an ethics officer' ecommendation.

We had a big investigation ... that involved senior officers of an alleged ethical violation that was quite serious .... Senior management didn't take it very seriously .... A couple of years later it recurred and this time they realized the seriousness of it and responded fully .... So that was kind of a game changer ... because senior management, including the Board of Direc­tors, saw how a good ethics program identifies and can help solve problems before they get big. (p. 196)

ccording to the Ethics Resource Center (2007), the ideal reporting structure will allow th thics officer to:


Creating a Program Structure

Section 9.1

onsider how each of the reporting relationships in Figure 9.2 enhances or restricts th bjectivity, independence, and influence of the ethics officer.


igure 9.2: Progression of reporting relationship ofthe ethics officer

he reporting relationships of the ethics officer can vary by organization.

Functional Reporting

VP Finance

VP Marketing

General Counsel



Chief Financial      Chief Marketing

       Officer                    Officer



General counsel

Chief Financial      Chief Marketing

       Officer                   Officer


Developing a Code of Conduct

Section 9.2


he number of resources varies among organizations, including the dedicated staff and bud et for ethics and compliance. A 2013 study found that most companies with fewer tha ,000 employees have three or fewer ethics professionals, whereas more than half of com anies with 50,000 or more employees have more than 10 dedicated ethics staff member SAl Global, & Baker & McKenzie, 2013). A 2014 study of more than 1,000 companies foun hat 12 of firms do not have a separate budget for ethics and compliance activities, ye lmost one third estimate an annual budget of more than $1 million for their ethics progra

PWC, 2014).

e in ivi ua t at an et ics 0 icer reports to as iscretion to a ocate resources or pro

oting ethical standards, educating the workforce, monitoring compliance, and investigatin otential violations. The FSGO stipulate that organizations ensure that the individual del gated with operational responsibility of the ethics and compliance program has adequat esources to perform his or her role effectively (United States Sentencing Commission, 2013) rogram resources include dedicated personnel and a sufficient budget for salaries, training he reporting hotline, and other expenses.


he number of ethics staff and the specific budget for the ethics program vary dependin n the size of the company and whether it is part of a heavily regulated industry. How ca he board ensure that an ethics officer has adequate resources? The Ethics Resources Cente 2007) suggests that resources should include:

·         Sufficient funds and content expertise to review, refresh, and distribute the corpo­rate code of conduct to every employee and the board once a year;

·         Sufficient funds to comprehensively train every employee and the board on organi­zational standards and core compliance risks;

·         Sufficient staffing to work with management to promote the values of the organization;

·         Sufficient staffing and funds to conduct thorough compliance audits, monitoring, an risk assessments;

·         Sufficient resources to ensure the effectiveness of ethics and compliance controls;

·         Sufficient staffing to maintain an anonymous helpline (or to outsource this function) and to investigate incidents that are reported;

·         Sufficient staffing to separate the proactive communication and training functions from the receipt of calls and follow-up investigations; and


·         Sufficient staffing to serve as a resource to the board and senior management. (p.24)

ith adequate authority and resources, the ethics officer can encourage compliance wit egal and ethical standards found in the company's code of conduct.

9.2 Developing a Code of Conduct

he ethics office is typically responsible for creating the company's code of conduct, whic orms the foundation of an ethics and compliance program. Employees of companies with ormal code of conduct report greater satisfaction with outcomes of ethical dilemmas tha


Developing a Code of Conduct

Section 9.2


espite these findings, Enron's accounting scandal and Alcoa's corruption scandal occurre ith corporate ethics codes in place, which begs the question of whether a code of conduc as an impact on ethical behavior. One European study shared the following perspective 0 ormal corporate codes:

The head of sales at an investment bank explained, "It is very good that every­one has to read them, but as long as something is not illegal, people will do it anyway." Ethics activities would be empty, symbolic gestures with no inten­tion of having a practical impact. (Norberg, 2009, p. 21S)


uch research in behavioral ethics looks beyond the mere existence of a code of conduct t xplain ethical behavior in the workplace, recognizing that the quality of the content an amiliarity with the code are key factors for creating an ethical culture (Andreoli & Lefkowitz 009; Kaptein, 2011; Trevino, Weaver, Gibson, & Toffler, 1999). Individual and organizationa actors affect employee acceptance of a code of conduct (Andreoli & Lefkowitz, 2009). Fo xample, familiarity with an industry code of conduct and perceptions of usefulness lesse hen an uncertain business environment creates role ambiguity (Chonko, Wotruba, & Loe


003). Additionally, managers with a relativist ethical orientation (believing that it is impos ible to make claims of right or wrong) are less likely to consider the ethics code binding tha dealists (people who act on their moral ideals in all situations) (Chonko et al., 2003).

ven the title of the code can influence whether employees uphold the desired conduct 0 he organization (see Consider: What's in a Name of an Ethics Code?). The title should conve he purpose of the document. A rules-based code appears punitive, with a "thou shalt not' spect, and typically includes company standards and rules applicable to an issue area (Ethic nd Compliance Officer Association Foundation, 200S). Naming the document a complianc ode sends a message to the workforce that following the law is sufficient, rather than th oncept of business ethics being about choice and judgment in following company values alues-based codes like Every Day Values: The Harley Davidson's Code of Conduct connec ompany values with employee behavior (Harley-Davidson, n.d.; Martens, 2012; Trevifi tal., 1999).



ultinational companies need to consider the wording of the code's title carefully as som oncepts may present difficulties in translation. For example, the term ethics can have moral stic connotations in some regions, while compliance can evoke feelings of imposition of com any standards (Martens, 2012). A review of the 200 largest global corporations found stron ariances in the titles of codes with 36 containing the word conduct, 17 containing prin iples/quidelines, 9 containing ethics, 6 containing values, and 4 containing integrit

Kaptein, 2004).


Developing a Code of Conduct

Section 9.2

Consider: What's in a Name of an Ethics Code?

The document that summarizes the company's ethical and legal standards can go by many names, including:

·         Code of conduct;

·         Code of ethics;

·         Code of business conduct;

·         Code of ethical and legal standards;

·         Ethics guide;

·         Code of employee conduct; or

·         Standards of professional and business conduct.

The title of the document can create a brand for the company's ethics and compli­ance. The content becomes relevant to the workforce when the code ties the ethics and compliance program to the company's mission or business strategy. The title can make that connection and serve as a theme throughout the document. Consider these titles for company code of conduct documents:

·         Setting Our Sights High (Bausch & Lomb Incorporated);

·         Follow the Right Road (The Auto Club Group); and

·         Inside the Lines (N ike).

Sources: Ethics and Compliance Officer Association Foundation, 2008, p. 58; Martens, 2012. Questions to Consider


1.       How does the title of a company's ethics document affect your attitude about the content? Is one title more attractive than another?


1.       What is the overall message that the title of the code of conduct conveys? Does it reflect the purpose of the document to provide employee guidance on expected conduct?

2.       Propose creative titles for ethics codes for a pharmaceutical company and a restaurant.

mplementing an effective code of conduct is not a simple task. One study found that a cod or equal opportunity in the hiring process limits discrimination only when enforced by man gement and integrated into normal practice (Petersen & Krings, 2009). Enforcement of th ocument requires close attention to the tone and terminology, such as phrases like "rna esult in disciplinary action." The U.S. courts find that such ambiguous penalties for noncom liance negate contractual obligations to comply with a code of conduct (Kenny, 2007). Th esign of the document and the communication of the code playa critical role in embed ing the ethical standards for conduct throughout the organization (Kaptein, 2011; Verbos erard, Forshey, Harding, & Miller, 2007). The following sections outline best practices i esigning a code of conduct document.




Developing a Code of Conduct

Section 9.2

1.   An introductory letter from senior management or the CEO reinforcing top manage-

ment support for ethics and compliance in the organization;

2.    A mission statement, statement of values, and guiding principles of the company;

3.   An ethical decision-making framework to guide employees in making choices;

4.    Resources for seeking advice and reporting misconduct;

S.    Substantive rules and guidance for acceptable and unacceptable behavior for risk


6.    Disciplinary rules and enforcement procedures for unethical behavior;

7.    Protection against retaliation for reporting misconduct; and

8.    An acknowledgment or certification that employees have received and read the com­pany code of conduct.

~ode Content

Designing a code of conduct includes identifying the topics and tone that will resonate witt he workforce, as the code's purpose is to guide employee behavior. This is particularly mportant as studies have shown that employees generally have difficulty naming specific behaviors that the code requires or prohibits (Adams et al., 2001). To make the content more memorable, The Ethics and Compliance Handbook cautions against codes that are generic bland, or legalistic (Ethics and Compliance Officer Association Foundation, 2008). In reality

here is no such thing as a generic organization. Therefore, those designing the code shoulc ailor it to reflect the organization's unique culture, risks, and history, which ultimately shape he ethical issues covered by the code and the manner of conveying acceptable conduct. Con ent may vary because of the regulatory environment for the industry or geographical region

pome content is applicable to all employees, while others may be specific to a function sud ~s accounting or sales. The code of conduct should clearly address expectations on topics rel evant to the intended audience in language that is readily understood.

Recommended Elements of a Code

~iven that an organization can tailor a code of conduct to meet the needs of its workforce and industry, the elements or sections of the code will vary accordingly. As the foundation 0

he ethics and compliance program, the code of conduct should provide sufficient guidance o develop an ethical culture. The Ethics and Compliance Handbook identifies eight sections ecommended in a code of conduct (Ethics and Compliance Officer Association Foundation

~008). They include:

~he quality of the code of conduct contributes to its effectiveness in deterring misconduct ~ review of company codes in the 1970s showed limited inclusion of relevant ethical issues and few procedures for seeking advice, reporting misconduct, or taking disciplinary actions

Cressey & Moore, 1983). By sharing best practices, more companies are developing codes 0 onduct that incorporate all eight recommended sections. Ethisphere Institute has developec riteria to evaluate the quality of a code of conduct, as shown in Table 9.3. Codes of conduc

meeting these components are effective tools in setting and reinforcing expectations for ethi bal behavior.


Developing a Code of Conduct

Section 9.2

[fable 9.3: Evaluation components to benchmark the quality

pf a corporate code of conduct


Component Description

Public Availability

The code should be readily available to all stakeholders. What is the avail-


ability and ease of access to the code?

Tone from the Top

Level at which the leadership of the organization is visibly committed to


the values and topics covered in the code.

Readability and Tone

What is the style and tone of the language used in the document? Is it


easy to read and reflective of its target audience?

Non-Retaliation & Reporting

Is there a stated and explicit non-retaliation commitment and dedicated


resources available for making reports of code violations? If so, is it pre-


sented clearly?

Commitment & Values

Does the code embed corporate values or mission language? Does it


identify the ethical commitments held to its stakeholders (e.g., customers,


vendors, communities)?

Risk Topics

Does the code address all of the appropriate and key risk areas for the


company's given industry?

Comprehension Aids

Does the code provide any comprehension aids (questions and answers/


frequently asked questions, checklists, examples, case studies) to help


employees and other stakeholders understand key concepts?

Presentation and Style

How compelling (or difficult) is the code to read? This depends on layout,


fonts, pictures, taxonomy, and structure.

ources: Erwin, 2011; NYSE Governance Services, 2014.

trhe Morgan Stanley code of conduct titled "Doing the Right Thing" is an example of a docu

ment that meets the Ethisphere Institute's evaluation criteria. A common element in both ThE

Ethics and Compliance Handbook and Ethisphere Institute evaluation criteria is a demonstra

ion of top management's commitment to the ethics and compliance program. The first page

bf Morgan Stanley's code of conduct includes a statement by James P. Gorman, the chairmar

and CEO, stressing "an unwavering commitment to the highest standards of ethical conduct'

and concludes with, "Like you, I am proud to be part of a Firm that has such a distinguishec

heritage and promising future. Thank you for doing your part to uphold our greatest tradi

ion" (Morgan Stanley, 2014, p. ii).

trhe code of conduct is values-based, tying ethical behavior to Morgan Stanley's values

bf putting clients first, leading with exceptional ideas, doing the right thing, and giving

pack. Throughout the document, sections begin with the word we, denoting that the COdE

bf conduct applies to everyone. The section titled "We Make Ethical Decisions" includes

~ series of questions to assist employees in choosing the right action when faced witt

an ethical dilemma. Disciplinary procedures, resources for reporting, and non-retaliatior


Developing a Code of Conduct

Section 9.2

procedures are presented early in the document. The following are the major headings eatured in the code:

·         What This Code Means to Us;

·         We Make Ethical Decisions;

·         We Treat Others with Dignity and Respect;

·         We Support Our Communities;

·         We Protect Our Franchise and Address Conflicts of Interest;

·         We Protect and Prevent the Misuse of Confidential and Material Nonpublic


·         We Follow the Letter and the Spirit of the Laws and Regulations;

·         We Protect Our Interests;

·         We Are Honest and Fair in Our Communications with the Public;

·         We Report Information and Cooperate with Requests Relating to Litigation, Investigations, Inquiries and Complaints; and

·         Code of Conduct Acknowledgement.

~he key ethical issues and acceptable behaviors outlined in Morgan Stanley's code of con ~uct guide employees in everyday conduct through simple, concise language and concrete examples to aid in comprehension. The document specifically states, "Throughout this Code fNe include questions and answers that address situations that commonly arise and illustrate how particular policies apply in practice" (Morgan Stanley, 2014, p. 2). The code is 15 pages ong, with detailed policies and procedures for 34 ethical topics. It is unlikely that all of the ethical issues are relevant to all employees. Therefore, in addition to the full table of contents

he code of conduct provides a summary listing of the 15 ethical issues that have generatec he most questions from employees.

Focusing the Code on the Organization's Key Risk Areas

trhe focus of company codes of conduct changes over time and varies by geographicalloca ion. A review of codes of conduct in the 1970s recognized a focus on misconduct that directlv mpacts company profit, such as conflict of interest, rather than responsibilities to others Cressey & Moore, 1983). A review of global companies' codes in 2009 found that U.S. com

panies focus more on accounting fraud, conflict of interest, and insider trading, while globa ompanies tend to emphasize security, human rights, bribery, and money laundering (Shar batoghlie, Mosleh, & Shokatian, 2013). Table 9.4 lists possible topics for codes of conduc rom The Ethics and Compliance Handbook. The list is extensive and inclusion of all topics is neither practical nor necessary for most organizations.

~able 9.4: Possible topics for codes of conduct

• Anticorruption

• Gifts, entertainment, and gratuities

·      Antitrust/competitive information/unfair competition

·      Government contracting, transactions, and relationships

• Billing for services

• Government relations and lobbying

·      Books and records/financial reporting and recordkeeping

• Harassment (sexual and otherwise)



Developing a Code of Conduct

Section 9.2

[fable Y.4: Possible tOpICS tor codes ot conduct l continued]


Community or civic activities


Investigations (internal and government)


Complying with laws


Licensure and professional certifications


Confidential and proprietary information


Marketing, sales, advertising, and promotions


Conflicts of interest


Media relationships


Copyrights, patents, and intellectual property


Money laundering


Customer service and customer relations


Political contributions




Privacy and safeguarding information


Document retention




Environment, health, and safety


Professional standards, competence,




and due care


Equal employment and affirmative action


Respect and fair treatment


Expense reimbursement and time reporting


Securities trading and insider information


External inquiries/public disclosure




and reporting




Family and personal relationships


Social media


(e.g., nepotism)






Work-life balance




Workplace violence

ource: The ethics and compliance handbook: A practical guide from leading organizations. Copyright © 2008 The Ethics &

ompliance Officer Association Foundation. Reprinted with permission.


fNhen identifying key risk areas to include in a code of conduct, executives must conside

external forces, internal perceptions, and historical data. The first consideration, externa

orces, represents the legal, regulatory, and competitive environment that can elevate an iSSUE

o warrant attention in the formal code of conduct. For example, in the United States, regula

ions provide specific topics that should be addressed, including policies on conflict of inter

est, insider trading, and bribery (Ethics & Compliance Officer Association Foundation, 2008

NYSE Governance Services, 2014).



Second, internal forces such as the industry, size, or international scope of the company car

~etermine topics to emphasize in the code of conduct. For example, a company manufac

uring products in emerging markets may place more emphasis on environmental impact

human rights, and safety. Additionally, a survey of employees can reveal internal perceptions

egarding what ethical issues they consider likely to occur, providing issues to include in c

rode of conduct.



Lastly, the ethical topics that the company has struggled with in the past should be includee

n the code of conduct. Audit findings, regulatory investigations, or common employee viola

ions are sources for historical data of relevant ethical topics. It is useful to organize the kev

ssues by stakeholders, corporate values, or internal employee conduct (Kaptein, 2004).


Developing a Code of Conduct

Section 9.2


nternational companies have additional considerations when designing a code of conduc hat applies to employees in multiple countries. The first decision is whether to develop on ommon code for all countries or separate documents for each country. Some organization

ay consider one code impractical or unrealistic because of variations in legal requirements ultural norms, and languages among the countries. Benefits of a common code include ) there is only one definition of what is right or wrong, b) employees are clear on expecte ehavior no matter where they travel on business, and c) the company avoids liability associ ted with inconsistent practices. One solution is to create one common code with regional 0 ountry variations that bridge gaps between local laws or customs and company standard Martens, 2012).


ompanies that intend to implement a global code of conduct that applies across the orga ization must make careful considerations during the code drafting process. Best practice ictate that companies seek input from a legal team, managers, and workers while developin

he code. This team can help identify and address:

·         Key ethical and legal concerns;

·         Cultural or historical issues that affect business operations;

·         Workforce dynamics that could either promote or interfere with the adoption of the code of conduct in their country or region; and


·         Language or terminology issues. (Ethics & Compliance Officer Association Founda­tion, 2008, p. 62)


n effective code of conduct provides guidance for employees to manage contradiction etween individual or local norms and the company's standards. Chapter 5 described ho ultural differences influence ethical positions and increase the potential for conflicts withi

global organization. One study relates how an ethics officer investigating a report that" igh-level executive had been making sexist and ageist 'jokes' during business-related confer nee calls" discovered that the executive, who worked outside the United States, was unawar hat his remarks were offensive and potentially discriminatory because they would be accept ble in his country (LRN, 2006, p. 3).


alff (2010) found that the majority of the world's largest corporations fail to acknowledg ontradictions between local norms and corporate norms, leading to hidden and overt vio ations of the company code of conduct. Global codes that include negative language sue s "employees must never" can lead employees to feel that the company is not considerin ocal norms (Martens, 2012). Organizations that do acknowledge differences take varyin pproaches such as to seek advice, apply the stricter rule, follow local norms, or comply wit orporate code. Companies like Lockheed Martin and Cisco serve as role models for multina ional companies striving for a global code of conduct. Their codes of conduct are provided i

ultiple languages, include symbols for navigation, and provide examples relevant to divers mployees. Global companies can follow practices suggested for a suitable global code of con uct such as:

First acknowledge that sets of norms might contradict, second give clear priority to one set of norms (local or corporate) and thirdly provide specific instances and/or examples of how and when to apply the priority rule. They


Developing a Code of Conduct

Section 9.2

Equal employment opportunity

Replacement Term

are particularly precise about gitt-giving, tacilitating payments, employment of relatives, and the entertainment of public servants. (Halff, 2010, p. 364)

mobal companies should avoid region- or country-specific terms or phrases when drafting

he code for an international audience. For example, a Il.Si-based firm should not refer tc ~ non-U.S. government employee in anti-bribery sections as a foreign government official ~he local employees would not consider their government officials, customs agents, or pub ic employees as foreign. Some terms in codes of conduct relate to country regulation, sud ~s affirmative action or equal employment opportunity in the United States. Use of country specific terms fails to convey the ethical standard of nondiscrimination to workers in othe

ountries. Table 9.S provides suggestions for replacement terms to make culturally-specific erminology more global.

~able 9.5: Replacement terms for culturally-specific language



Fair hiring practices/no discrimination

United States-centric


United States-centric

Fair competition


United Kingdom-centric


United Kingdom and Europe

Harassment, disrespectful treatment


United Kingdom

Improper payments


United States

ource: L. T. Martens, 2012, Globalising a Business Ethics Programme, p. 25. Copyright 2012 by the Institute of Business Ethics.

Irhe graphic design of the document should reflect cultural sensitivity through the use 0 olor, symbols, and photos (Martens, 200S). For example, red print may trigger negative feel ngs of forced compliance in Western countries where red is used as the symbol for danger llniversal symbols are preferable, although not always practical when a standard or example

equires a currency amount. For example, a reference to accepting or giving gifts over $2: should include the equivalent amount in euros or yen. Photos should represent the interna ional character of the company and not be offensive in any part of the world. A global code 0 onduct should be a useful guide to appropriate behavior for all employees .

• mplementation of a Code of Conduct

Iro implement a code of conduct, organizations must formulate a plan to ensure that workers

eceive the code and understand its purpose. The plan should include distributing the docu rnent to all employees, providing tools to help them apply the code in their daily activities and recording their acceptance of it. All communication surrounding the code is vital to its success, Employees become more familiar with and supportive of a code of conduct wher senior management demonstrates support for the code and employs diverse communicatior ~ctivities for educating workers on the content and application of the code (Kaptein, 2011).


Developing a Code of Conduct

Section 9.2

Distribution ot the code can take various torms, but it should remain easily accessible tc employees and available to all stakeholders (NYSE Governance Services, 2014). Every new employee should receive a printed copy upon hiring and during orientation. Current employ ees could receive copies through the company mail or e-mail communications periodically 0 ~hen the code has been revised. Companies often create websites to communicate informa

ion regarding the ethics program and code of conduct. Some companies require an online ourse to introduce the policies and procedures contained within the code of conduct.

~o increase accessibility and use of the code of conduct, many companies have begun offer ng an electronic version. More than just a PDF, an electronic code provides employees witt an interactive tool for finding specific information, links to resources, and a variety of learn ng scenarios (NYSE Governance Services, 2014). Morgan Stanley includes a statement in its ode of conduct that says "The electronic version of this Code includes links to policies ane

procedures" (Morgan Stanley, 2014, p. i). See Business Best: Cisco eBook Code of Conduct for ar example of a company that delivers the code electronically to a global audience.

Business Best: Cisco eBook Code of Conduct

In 2012, Cisco released an interactive eBook version of the company code of business con­duct (CGBC) to its mobile, global workforce. The online interactive CGBC is able to reach the 85 of Cisco employees working from home or traveling (World Watch, 2013). The CGBC eBook provides many tools to make it easier for employees to find information on ethical issues, such as pop-up frequently asked questions, links to other Cisco tools and resources, an "Ask/Report" list of ways to obtain help on any topic, embedded videos, and pop-up defi­nitions (Cisco, 2014). Cisco's 2013 Corporate Social Responsibility Report states:

Our Code of Business Conduct sets out our expectation for everyone at Cisco to behave ethically in everything they do. Through regular training and a new interactive eBook version of the Code, we equip employees with the knowledge and skills to make the right decisions if they are ever con­fronted with an ethical dilemma. (Cisco, 2013, p. B2)

The eBook is easy to navigate and includes universal symbols for interactive functions. See Figure 9.3 for a snapshot of the instructions for the user on the first screen. Though the inter­active eBook is only available in English, an introductory video features employees from all countries stating, "I know the code" in their native languages. Translations of the Cisco CGBC are available on the Ethics@Cisco website page as a PDF with hyperlinks.



Developing a Code of Conduct

Section 9.2

Business Best: Cisco eBook Code of Conduct (continued)

Figure 9.3: Instructions for navigating Cisco's COBC eBook

Cisco's CDBC eBook contains universal symbols for the interactive functions.

Source: Reprinted with permission from Cisco. (2014). Code of Business Conduct.

Following the launch of the eBook, an employee survey showed improvement in almost all measures regarding the ethical culture (Cisco, 2013). More than 92 of employees in 2013 felt that Cisco was taking ethical business concerns seriously (up from 90 in 2011). In just two years' time, the percentage of employees who agreed with the statement, "The manage­ment team sets a good example of company values, culture, and the Code of Business Con­duct" increased from 81  to 89. Finally, by 2013, 89 of employees knew where to report an ethics question or concern compared to 83 in 2011.



Educating the Workforce

Section 9.3

Business Best: Cisco eBook Code of Conduct (continued)

Questions to Consider

1.       What are the advantages and disadvantages of an interactive online code of conduct?

Why should printed or PDF formats continue to be offered, even when there is an online version?

2.       Does an electronic format provide advantages in Cisco's ability to make further improvements to its code over time?

3.       Access the eBook to view the table of contents and a few pages. Would the eBook meet Ethisphere Institute's evaluation criteria for an effective code of conduct?

Many organizations require employees and management to sign a statement certifying tha hey have received and read the code of conduct. Certification statements are one way a com pany can demonstrate to regulators that it is committed to the ethics and compliance pro ~ram (NYSE Governance Services, 2014). These statements allow companies to:

·         Confirm receipt of the code of conduct;

·         Obtain acknowledgement from employees that they have read and understood the

code of conduct;

·         Establish that employee abides by, or will abide by the code of conduct;

·         Obtain confirmation that employees reported any breaches of the code;

·         Confirm that management has discussed the code with their team. (IBE, 2012)

Code certification holds employees accountable for their actions. In a study by the Institute 0 Buslness Ethics, about half of the companies referred to code certification statements during ~isciplinary decisions involving code of conduct violations (IBE, 2012). Whether a company

an obligate an employee to sign an acknowledgement form may depend on local labor laws IBE, 2012). Should an employee refuse to sign, additional ethics training or discussions witt he employee's manager may occur.

~s the foundation of the ethics and compliance program, companies recognize the impor ance in thoroughly educating the workforce on the content and use of the code of conduct Code certifications do not ensure that the employees have read and understood the content 0 he code of conduct, and explaining the code of conduct only when employees are first hirec pr when the codes are first distributed is no longer a sufficient way to show a good faith effor o educate employees on ethics and compliance.

9.3 Educating the Workforce

prganizations that invest in educating the workforce to comply with legal and ethical stan ~ards expect their employees to apply what they have learned consistently over time. How ever, ethics training tends to have a similar effect on people as when they witness a traffic accident=-they slow down and drive carefully for a week or so, then gradually fall back intc

heir old driving habits. Research has shown that one-time ethics training can have transien


Educating the Workforce

Section 9.3



ettects it organizations do not provide ongoing, interactive training and otter organizationa support (Martin, 2010; Richards, 1999; Warren, Gaspar, & Laufer, 2014). In order for employ ees to fully learn concepts, their formal training should include a period during which thev

an practice applying ethics in the workplace. A well-planned ethics training program car esult in the establishment of a culture of ethics and compliance (Ethics Resource Center ~013b; Valentine & Fleischman, 2004). In a study of bank employees before and after the ntroduction of formal ethics training, Warren et a1. (2014) found that participants displayec sustained, positive effects in identifying unethical behavior, intentions to behave ethically, and perceptions of organizational efficacy in managing ethics.

Developing a Training Plan

~he objective of ethics training is to help employees make decisions that are consistent witt he organization's values. Training should provide methods for employees to manage con radictions between individual values and the company's ethical standards. To address the specific challenges in ethics training, Knouse and Giacalone (1996) outline the major com ponents of ethical education in business that remain relevant today (see Table 9.6). Thev ecommend providing employees with a foundation in how ethical orientations affect ethica

~ecision making, as well as offering opportunities to practice applying the company's ethica standards,

Ethics training should align with company values and connect ethical concepts to dailv actions, To make that connection, some organizations are adopting a giving voice to values GVV) approach to their business ethics training. Based on Mary Gentile's (2010a) book, Giv 'ng Voice To Values, regarding how individuals address values conflicts in the workplace, the ~VV approach has seven foundational pillars that correlate to the components for ethica

raining in Table 9.6: 1) values; 2) choice; 3) normality; 4) purpose; 5) self-knowledge, self mage, and alignment; 6) voice; and 7) reason and rationalization. Incorporating GVV in ar brganizational ethics program can help employees develop methods to voice their concerns trhe program appears to address employee apathy and indifference to potential and existing ethical issues.

~able 9.6: Components of ethics training in business


Acknowledging shared values Choosing to act

Provide trainees with an under­standing of ethical judgment philosophies and heuristics for making ethical judgments.

Seek common ethical values among employees and with the organization.

Encourage actions consistent with employee values and those of the organization.

Use critical thinking strategies that include questions for ethical decision making.

Provide industry- /profession­specific areas of ethical concern.

Address ethical issues particular to employee positions, profes­sions, or industry.

Normalizing values conflicts



Educating the Workforce

Section 9.3

rrable 9.6: Components of ethics training in business (continued)




Provide trainees with organiza­tion's ethical expectations and rules.

Provide trainees with an under­standing of their own ethical tendencies.

Take a realistic view; elaborate on the issues that can hamper ethical decisions.

Encourage compliance with ethical expectations contained in employee handbooks, codes of conduct, and training.

Recognize that individual dif­ferences and personality traits impact ethical actions.

Understand traps for ethical misconduct to avoid falling into them.

Become more effective in responding to others' rationalizations.

Purpose as an employee

Understanding one's self

Anticipating reasons and ra ti 0 naliza ti 0 ns

Have the trainees practice and apply in the workplace.

ource: Gonzalez-Padron, T, Ferrel/, 0., Ferrel/, L., & Smith, 1. (2012). A critique of giving voice to values approach to business ethic ducation. J ournal of Academic Ethics, 1-19.

Iro develop the most effective training, companies need to tailor the program to the targe audience by identifying and prioritizing key risks by employee segment. For example, train ng on data privacy and security are relevant to employee groups that use computers. Training n the proper use of company resources should consider the functions most likely to commi bccupational fraud-individuals working in accounting, operations, sales, customer service

and purchasing (Association of Certified Fraud Examiners, 2012). Training on bribery i~ most relevant to executives and sales staff working in international markets. Managers ane supervisors would most benefit from hiring policies regarding discrimination. All employees should receive training on reporting misconduct, social media use, and harassment.

Irhe training plan should identify the frequency and depth for each key issue. The frequency bf training then depends on the level oflikelihood that an ethical issue will occur. Determining how much detail and attention the training requires depends on whether the target group car

reate, identify, or simply understand the risk. For example, discrimination is a key issue fo many companies. Managers or supervisors with responsibilities to hire, promote, evaluate and terminate employees have the potential to put a company at risk of lawsuits. Therefore heir training requires in-depth and possibly frequent instruction on policies and procedures o demonstrate nondiscriminatory practices. Training of all employees should focus on iden ifying and reporting discriminatory practices. The training plan for discrimination requires

awareness training supplemented with a communication program that provides regula eminders to all employees through e-mails, newsletter articles, and posters that help therr o recognize discrimination in the workplace.

Apply concepts in daily work life. Encourage discussion, sharing, and feedback on ethical actions.

Using one's voice


Educating the Workforce

Section 9.3


i e et ics training 0 ten invo ves as ing emp oyees to watc orma presentations, it i erhaps even more important for those conducting the training to listen to employees an ngage them in dialogue. The workforce consists primarily of adults with a great deal of expe ience and knowledge that contributes to the learning process (Bixby, 2011). Telling some on ot to cheat on an expense report is not as effective as addressing rationales for the miscon uct. In order to design a training program that fits the needs of the workforce, ethics trainer

ust listen to the concerns and questions raised by employees about ethical issues or com any practices. Listening is a powerful communication tool that requires being present in th ialogue without multitasking or succumbing to distractions (Schloss, 2012). See Consider ctive Listening for an exercise to develop active listening skills.

Consider: Active Listening

Active listening requires paying attention to the content of what someone is saying. Too often people focus on how to respond to someone talking before the end of the conversation. Prac­tice listening to all of what someone is saying with this exercise.

1.       First, find a partner.

2.       Then designate one person to initiate speaking (Person A).


1.       Person A will begin a brief conversation of a few sentences. This could relate to the weather, common interests, or what he or she did last weekend.

2.       When Person A stops talking, Person B must begin a conversation using the LAST word that Person A spoke as the FIRST word of the first sentence. For example, if Person A stops speaking with the phrase, "I ate so much;' Person B could begin with "Much of my time is spent ... "

3.       Similarly, when Person B stops talking, Person A must begin a conversation using the LAST word that Person B spoke.

4.       Repeat Steps 4 and 5 for about 10 minutes.

Questions to Consider


1.       How well did each of you listen to what the other was saying? Were you able to catch the other speaker's last word each time?


1.       Did you strive to make the exercise easy for your partner or difficult? For example, ending a conversation with an adjective may be more difficult to start another conversation, such as "I was so hungry."

raining Delivery


o ensure that each member of the workforce receives and engages with the ethics train ng materials, organizations can incorporate a wide variety of training and communicatio ethods that accommodate diverse learning styles, varying risk levels of misconduct, an dispersed workforce. These methods include lectures and presentations, case studies an cenarios, role-playing, videos, and various e-learning platforms. Table 9.7 outlines the pro

nd cons of each.




Educating the Workforce

Section 9.3



[fable 9.7: Pros and cons oftraining methods


Reach a large number of people, quick to implement

Trainees are passive and do not experience multiple viewpoints

Lectures and presentations

Case studies and scenarios

Generate discussion and participation

Can have focus that is too narrow in the issues addressed


Highly interactive and insightful

Some people may be unwilling to participate



Too specific and not participative

E-learning (online or computer training)

Easy to implement and highly flexible

Limited opportunity for discus­sion and interaction

Duree: Ferrell & Ferrel/, 2009, p. 50.

~dvances in technology offer innovative approaches to engaging employees in ethics training ~wareness training can include short, targeted messages on common ethical issues. Lock heed Martin periodically distributes its Integrity Minute series to employees. The series fea

ures short soap opera style videos that highlight key ethics topics of relevance to employees ~he videos reinforce company policies and generate dialogue among the workforce. If timec correctly such as just before employees submit expense reports, travel to high-corruptior ocations, or meet with government officials, these types of videos can be particularly effec ive. Customizable video clips on ethical issues are available from ethics and compliance sys em vendors such as Corpedia and NAVE X Global. Corpedia offers a series of RealBiz Shorts eaturing Second City Communications actors in funny video clips of consequences for failing o follow ethical policies. NAVEX offers Burst Learning videos, which feature engaging stree nterviews and humorous scenarios in which characters address ethical dilemmas.

nformal training can occur through social media, company discussion boards, or regula unch and learn sessions. Formal training sessions can be online, face-to-face, or as a hybric program (French, 2006). Classroom training can be time-consuming for employees, increase

ravel expenses, slow the delivery time of course material, and result in inconsistent content n-person training is preferable for executives who must delve into high-risk areas, or fo opics that require interaction such as interview tactics for investigations of ethics violations

Deloitte Touche Tohmatsu Limited offers blended learning, which requires completion of ar pnline training of procedures prior to meeting in person (Sweeney, 2007). For example, train ng on harassment policies is online, while role-playing and discussions take place during live sessions in a classroom setting. Challenges in adopting online learning in business include:

·         Resistance to change and cultural resistance to learning online, more often from senior and middle management;

·         Cultural acceptance of online learning delivery in international training; and

·         Insufficient bandwidth on Web-based systems, hindering the ability to provide quick and effective interactive learning packages. (Macpherson, Elliot, Harris, & Homan, 2004)

For routine training, online instruction can be more effective than classroom instructior "Sirzmarm Kr;:JiP"f'r_ Stewart 8"Wisher. 200f)1 Advantacns of onlinfl traininc include less trave


Reporting Misconduct

Section 9.4


n contro over timing or comp etion 0 t e course. nine training a ows users to searc or supplemental information easily and avoid distracting classmates (Sweeney, 2007). Thi raining may be more expensive to design, but offers cost savings and the ability to trac ompletion rates through automated systems. Regardless of the method used, frequent ethic raining and regular communications can empower employees to make ethical decisions an dentify misconduct.

9.4 Reporting Misconduct


o support a culture that encourages ethical behavior, it is crucial that employees feel com ortable seeking advice on ethical concerns and reporting misconduct. A simple approac s to establish an open door policy through which employees may seek counsel from an


anager. IBM began implementing this approach during the early years of their ethics pro ram (Carroll, 1991). In the United States, Sarbanes-Oxley and the 2004 amendments to th SGO require that an organization create and publicize a system to address and respond t mployee inquiries about ethics and compliance issues (Sarbanes-Oxley Act of 2002; Unite tates Sentencing Commission, 2013). The U.K. Bribery Act 2010 includes a provision fo

'the reporting of bribery including 'speak up' or 'whistle blowing' procedures" (Ministr f Justice, 2011, p. 22). Compliance with regulation appears to be driving company invest ents in formal reporting systems for ethics and compliance violations. A review of U.S. eth cs and compliance programs has shown that more than half (55) of the surveyed compa

ies created internal reporting mechanisms after the Sarbanes-Oxley requirement (Weber asieleski,2013).


eveloping a Reporting Mechanism and Providing Ethical Advice

esigning an advisory and reporting mechanism entails decisions on a number of details tha ontribute to a successful implementation. These include:

·         What will the service be called? How will it be branded?

·         How will the service be communicated to employees?

·         What types of calls will not be handled by ethics and compliance (e.g., payroll questions will be directed to human resources)?

·         What types of reporting formats will be utilized: phone, Internet, e-mail, fax,

text message?

·         Will "24/7" advice and reporting be available?

·         What languages need to be supported?

·         Is reporting unethical or illegal activities mandatory or encouraged? (Ethics & Compliance Officer Association Foundation, 2008)


system that employees are comfortable using requires providing for anonymous inqui ies, protecting confidentiality, preventing retaliation, and disclosing investigation of report here possible.

mployees may fear that an inquiry will lead to an investigation, retaliation by coworkers r scrutin of their own actions. Labels for those who ex ose misconduct include tattletale


Reporting Misconduct

Section 9.4


nitc , in ormant, an rat, or in erman, pitze snitc or spy ie . 0 overcom arriers for speaking up, organizations need to provide a variety of channels for obtainin thical advice to allow inquiries to occur in the manner most comfortable for the employee


ethods should be easily accessible, simple to use, and facilitate reporting suspicious activity or example, Cisco provides an ethical decision tree to help employees find information abou n ethical concern, has a "Sharing Ethical Concerns" link on the Ethics@Cisco website, and th ompany's interactive code of business conduct eBook has a link on each page to ask ques ions or report misconduct (Cisco, 2014). Mechanisms for advice and reporting can include:

·         A dedicated telephone helpline (where technology protects anonymity);

·         A dedicated fax number;

·         A dedicated Web-portal or e-mail inbox;

·         A dedicated postal address;

·         Personal phone call or meeting with members of the ethics and compliance team;

·         An organizational ombudsman;

·         Specific members of the human resources team;

·         Direct supervisors and managers;

·         Specific members of the general counsel's office;

·         Internal or external auditors; and

·         Designated members of the audit committee of the board of directors. (Ethics & Compliance Officer Association Foundation, 2008, p. 81)

he name of a reporting system can affect whether employees consider it an appropriat venue for their ethical concern. When they see the word hotline, workers may assume tha heir concern needs to be urgent or a significant violation to warrant reporting. Over the pas o years, there has been a marked increase in the number of companies that have switche

rom calling their telephone reporting systems hotlines to calling them helplines (Weaver revillo, & Cochran, 1999; Weber & Wasieleski, 2013). Other names that organizations use fo elephone reporting systems include ethics advice line, share concerns, ethics connect, ethic ine, and integrity line (Ethics & Compliance Officer Association Foundation, 2008).


onfidential, Neutral, and Independent


t is vitally important that employees can make inquiries that are confidential and receiv dvice from a neutral and independent source. When reporting is confidential, employe dentities are protected and names are not revealed. Having the option to remain anonymou rovides the workforce with a sense of trust in the company's ability to maintain confidenti

lity. Some companies assign a tracking number to anonymous reports so the employee ca eceive an update on his or her report or query (Riebl, 2004). United Technologies (2014 ecommends that employees not use company computers for communications to thei DIALOG ethics advice and reporting program in order to protect confidentiality.


eutral advice refers to clear and understandable guidance that does not advocate a spe ific party. In order for employees to receive independent advice, the telephone reportin ystem must operate separately from management. When implementing a reporting sys em, companies can adopt one of three models-in-house, outsourced, and hybrid-all 0

hich influence workers' perceptions of independence (Riebl, 2004). In 1994, the majorit f U.S. organizations managed a telephone reporting system with internal staff (Weaver e




Reporting Misconduct

Section 9.4



ot ines, wit on y           0 0 t e organizations assigning t eir own emp oyees to an e a ca

Weber & Wasieleski, 2013). The use of outside vendors guarantees employees the assuranc f anonymity. Hybrid models share the duties for processing inquiries and reports betwee n-house staff and outside vendors, where inquiries seeking guidance on company-specifi olicies require internal staff expertise.

espite company efforts to offer confidential reporting via a neutral and independent system mployees still struggle with using these methods to report misconduct. In the 2013 Nationa usiness Ethics Survey", the Ethics Resource Center found that u.s. employees preferred t pproach a supervisor regarding ethical concerns, with only 16 of those reporting mis onduct using anonymous hotlines. In continental Europe, the use of anonymous reportin

echanisms is low, with one third of employees saying that their organization has an anony ous speak up mechanism (Basran, 2012). Due to French privacy laws, employees located i ranee have restrictions on matters that are eligible for anonymous reporting.


mployees of multinational companies tend to perceive that advice and reporting mecha isms are only for workers in the country where headquarters is located (Riebl, 2004). Cal enters that provide translation services or have native language abilities can accommodat mployees worldwide. Even with native language resources, a survey by the ECOA found tha nly 36 of the companies with international employees felt that employees outside of th orne country were comfortable using the resources (Riebl, 2004). The feature, Reputatio uin: Olympus Hotline brings attention to many of the barriers for reporting misconduct.


Reputation Risk: Olympus Hotline

Olympus Corporation is a Japanese manufacturer of endoscopic medical devices as well as cameras and other imaging devices, microscopes, and information and communications equipment. For the fiscal year ending in March 2011, Olympus reported sales of $10.6 bil­lion. In the same year, Michael Woodford became CEO and discovered dubious accounting


at Olympus. He shared his concerns with the board of directors and was subsequently fired. Because of Woodford's suspicions and dismissal, an independent special committee panel exposed hidden investment losses of 117.7 billion yen ($1.5 billion) dating back to the 1990s (Verschoor, 2012).


Woodford is the most visible whistle-blower in the company scandal, but he is not the only one to experience retaliation for speaking up. Masaharu Hamada, a salesperson for Olympus, alleged being demoted and harassed after making a report to the hotline in 2007. Hamada was concerned that his boss was poaching employees from a client, which would harm


the client relationship and was contrary to ethical standards of the industry. Following his report, the hotline office informed Hamada's boss of the complaint, which then led to retali­ation for reporting the unethical activity. According to the independent panel report, at least one employee reported an accounting problem involving fake vouchers to the hotline but withdrew the report when asked to provide his or her name (Osawa, 2012).


According to The Wall Street Journal investigation, Olympus launched a compliance hotline in 2005 following the enactment of the whistle-blower protection laws of 2004. The special committee found that employees attempting to make anonymous reports of misconduct to the compliance hotline were encouraged to disclose their identity or told the allegations would not be investigated. In Japan, a tradition of lifetime employment and a strict seniority


Reporting Misconduct

Section 9.4

Reputation Risk: Olympus Hotline (continued)

system dictates that employees show unbounded loyalty to their coworkers. Few reports made it to the hotline for fear of retaliation from coworkers. Designers of the hotline recom­mended that external parties handle employee inquiries to overcome fears of retaliation. The corporate auditor, Hideo Yamada, opposed having a third party manage the reporting mecha­nism, instead electing to manage the hotline with his staff. As a result, the special committee described the culture at Olympus as "a stuffy atmosphere that prevented people from speak­ing freely" (Osawa, 2012, para. 8).


Since the scandal, Olympus has suffered from a damaged reputation and a volatile stock price. Tsuyoshi Kikukawa, chairman and former CEO; Hisashi Mori, director and executive vice presi­dent; and Yamada resigned and were subsequently convicted in a Tokyo court for their roles in the cover-up of investment losses. The costs relating to the 13-year fraud was 700 million yen ($7 million) in fines, a 10 million pound (1.2 billion yen, $15.4 million) settlement to Woodford for unlawful dismissal and discrimination, 17 billion yen ($166.49 million) in lawsuit damages by 2014, and a pending lawsuit seeking 27.9 billion yen ($272 million) (Knight, 2014). In addi­tion, Hamada won Japan's first whistle-blower case, and received 2 million yen ($20,000) in damages from Olympus (Kageyama, 2013).

Questions to Consider


1.       Evaluate the Olympus reporting mechanism for confidential, neutral, and independent characteristics. What should Olympus do to improve ethics reporting in the organization?

2.       How does the Japanese culture impede the effectiveness of an ethics reporting system?

3.       What steps could Olympus take to demonstrate a commitment to ethics and compliance?


eceiving Reports


egardless of the preferred method for providing guidance on ethics and compliance issues mployees expect a response that is timely, credible, and trusted. Therefore, supervisors nee raining on how to handle inquiries regarding potential violations of ethical standards. Activ istening is critical, as employees may not be able to clearly articulate their ethical concerns orne companies provide employees with a list of questions that helps organize their thought efore filing a report. The ethics professionals who receive the reports can use checklists t ather sufficient information to determine the appropriate response and action. All inquirie eed to be documented for tracking purposes without compromising confidentiality.

t is crucial that employees do not fear becoming the subject of the investigation when report ng a violation. However, they need to be aware that false accusations are subject to disciplin ry action. The Ethics and Compliance Handbook provides a list of red flags that could indicat hat the motive for reporting influences the accuracy of the claims, including if the employee ) makes frequent allegations, b) is involved in a work or personal dispute with the subjec f the report, or c) is facing disciplinary action or poor performance evaluation (Ethics ompliance Officer Association Foundation, 2008). The process for receiving reports mus revent dismissing an allegation as false because of a perceived motive of the accuser. Deter

inin the validi of the re ort is art of the investi ation rocess.




Reporting Misconduct


Section 9.4


nvestigation of an allegation of unethical or illegal behavior involves establishing exactl hat happened and what the organization can learn about preventing future misconduct. N ingle investigative process can meet the needs of all organizations. A large organization wit

dispersed workforce may require additional coordination among regional management. mall organization may have an accelerated process. Some allegations will move through a nvestigative process quickly, while others may require extensive resources and time to com lete. The four steps to investigating a report of unethical or illegal activity (shown in Fig re 9.4) are: 1) determine the nature of the allegation, 2) make a plan, 3) develop the facts nd 4) document the investigation.


igure 9.4: Steps for investigating a report of unethical activity

he four steps to investigate a report of unethical or illegal activity are the same for large and small ompanies.

Incoming Report

1.Determine nature of the allegation

2. Make a plan

3. Develop the facts

4.Document the investigation

Close the investigation

· Document report

· Assign identifying code

· Assess urgency

· Screen for scope

· Assess seriousness

· Assign investigator

· Identify questions

· Decide method

· Develop timeline

· Assemble documents

· Notify interviewees

· Conduct interviews

· Prepare documentation

· Reach a conclusion

· Deliver findings

· Disclose results

· Reinforce confidentiality and retaliation policy

ource: Tracy Gonzalez-Padron, representation of material in jones, E., O'Neill, K., & Winter, G. (2013). Conducting lawful and effective lobal investigations. Paper presented at the ECOA 21st Annual Ethics & Compliance Conference, Chicago.


Reporting Misconduct

Section 9.4

·         What specific misconduct or actions have been reported or alleged?

·         Who is the source of the allegation, if known?

·         Does the allegation seem to be a plausible and legitimate concern?

·         What are the initial facts?

·         Are there any inconsistencies in the initial facts?

·         What evidence suggests that the misconduct did not occur?

·         Are there any mitigating circumstances?

·         How serious does the potential violation appear to be?

·         Is the scope broad enough to enable the company to take appropriate remedial action, including determining the extent to which internal processes should be modified?

·         Will the investigation findings likely be reported to third parties such as law enforce ment or regulators (Jones, O'Neill, & Winter, 2013)?

n most companies, the ethics and compliance statt are responsible tor investigating aile ~ations. Small companies that do not have dedicated ethics professionals may rely on lega counsel or human resources to conduct investigations. The investigation process is triggeree by the documentation of the allegation, which may originate from an external helpline, the ethics office, or a functional supervisor. The individual receiving the report must make ar mmediate assessment to determine if the alleged conduct endangers life or property ane

equires immediate attention. It is important that all points of reporting know when calling

~11 or notifying security is necessary.

Determining the nature of the allegation includes identifying the scope and seriousness of the ssue, which can establish who should be involved in the investigation. It should first be deter mined whether the ethics and compliance function should conduct the investigation. Some

eports are handled more efficiently at a functional level, such as a production safety issue ir ~hich an employee is not following scheduled equipment checks. The person conducting the nvestigation should have skills that match the type of misconduct. Questions to ask during his stage in the process include:

Irhe next step is to develop a plan that outlines the parameters to guide the investigation. ThE plan builds from the analysis in Step 1 to address the questions that must be answered bv he investigation. Once the investigator has the information, he or she must determine wha nformation is missing. A detailed plan should answer the following questions:

·         "Who will be interviewed as witnesses and in what order?"

·         What topics will be addressed in witness interviews?

·         "Which documents will be examined?"

·         Which documents will be shared with witnesses?

·         "At what stage of the process will the subject( s) of the allegation be told what she or he is, or they are, being accused of?"

·         "Beyond interviewees, who will be notified of the investigation?" (Ethics & Compli­ance Officer Association Foundation, 2008, p. 100)

mplementation of the investigation plan involves gathering the facts of the case through vari pus methods. The first task is to identify and review the policies, procedures, regulations and ethical codes that relate to the alleged misconduct. The second task is to assemble rel evant documents such as personnel files, e-mails, security video, and business records. ThE


Monitoring and Assessing Progress

Section 9.5



ir tas is to prepare questions or interviewing witnesses an sc e u e a equate time t eet with each witness. Investigators should explain to witnesses that they are only gath ring information at this time and that witnesses should not discuss their interviews wit oworkers. During the interview, active listening must be used to obtain a witness's full story n approach to interviewing known as the funnel technique can be helpful, which begins wit pen-ended questions to encourage the witness to talk, prompting with questions to gathe II information possible. Once the witness feels that all the facts have been conveyed, he 0 he should be asked for specific details to clarify the story. The interview should end with th uestion "is there anything else?" to confirm that all information has been exhausted.

he final step is to document the investigation to deliver to management. The facts shoul e stated clearly, and supported by documentation and interview notes. Investigators shoul void making conclusions or inserting personal opinions. They must consult with manage

ent to determine if sufficient evidence is available to reach a conclusion and determine i isciplinary action will occur. Once the document step is completed, the investigation can b losed. Disclosing the results of an investigation demonstrates a commitment to enforce ethi al standards. At a minimum, it is important to inform the person who made the initial report f confidentiality can be maintained, the results may be disclosed to the supervisor of th ubject of the investigation. The results of ethics investigations may be reported to the boar f directors. Another way of disclosing the results of ethics investigations is to present the

s learning cases during training, even if disguising the subjects to maintain confidentiality.

9.5 Monitoring and Assessing Progress


he FSGO require a regular review of a company's ethics and compliance program to "ensur hat the organization's compliance and ethics program is followed, including monitorin nd auditing to detect criminal conduct; and to evaluate periodically the effectiveness of th rganization's compliance and ethics program" (United States Sentencing Commission, 2013 .498). After the Olympus scandal, Japanese companies are feeling pressure to instill a cul ure of ethics and compliance within their organizations (McNulty, 2011; Verschoor, 2012).

ompanies should not wait for a crisis to assess their ethics and compliance program. Cor orate controllers and the board of directors want to see a return on their investment i thics training, communication, investigations, and program management. Regulators wan ompanies to monitor for compliance to ensure that policies and procedures are followed

2013 survey found that "81  of organizations can demonstrate the effectiveness of thei

ode of conduct," 77 assess training programs positively, and 72 can show consistent us f policies and procedures (SAl Global, & Baker & McKenzie, 2013, p. 12). However, the tru mpact of the ethics and compliance program is measured by how well the efforts modi mployee awareness of ethical issues and policies, attitudes toward ethics and compliance nd behaviors.


easuring Ethical Performance

easuring program effectiveness entails asking, "What has the program achieved, an here are 0 ortunities for im rovement?" Periodic ro ram evaluations rovide a bette


Monitoring and Assessing Progress

Section 9.5

understanding ot employee knowledge and perceptions ot the ethics and compliance cut

ure. Insights gained can inform senior management of compliance trends that may require program adjustments. There are two approaches for measuring a program's effectiveness measuring activity and measuring outcomes. Table 9.8 lists common metrics for measuring ethics and compliance programs. Many companies rely on activity metrics, as they are easie

o track, rather than measuring behaviors. These metrics focus on the number of transactions ~ith each program element, often relating to the number of people that the program touches purveys of ethics officers have found that over half of the companies rely on audit results raining completion rates, and number of hotline /helpline calls (PWC, 2014; SAl Global, 8.

Baker & McKenzie, 2013). Outcome metrics seek to quantify the impact that the program has pn changing behaviors, focusing on reducing misconduct.

rrable 9.8: Common metrics for measuring ethics and compliance programs

Ethics and Compliance Program Component

Measuring Activity

Measuring Outcomes

Overall ethical culture

Employee questionnaire and culture surveys

Exit interviews

Supplier surveys

Customer surveys

Web content

Press coverage

Code of conduct

Number of code of conduct certifications

Number and type of substan­tiated violations of code of conduct


Number of training courses completed

Percent participation

Employee surveys

Number and type of ethical violations

Advice and reporting mechanisms

Number of hotline/help line calls Number of reports of misconduct

Anonymous vs. identified callers (percentage of employees fearing retaliation)

Number of reports leading to investigation


Number of completed investigations

Number of disciplinary actions Number of revised policies, pro­cedures, and program elements

Monitoring and auditing

Number of audits completed

ources: PWC, 2014; SAl Global & Baker & Mckenzie, 2013.

~here are multiple methods for measuring the impact of the ethics and compliance program Employee surveys can assess awareness of the program, relevant policies and procedures, ane onfidence in acting ethically. Similar surveys of suppliers can uncover risks of noncompliance

Benchmarking to best practices Number of issues addressed


Monitoring and Assessing Progress

Section 9.5



it company stan ar s. urveys, owever, can e expensive, an emp oyees may not trust t ompany to maintain confidentiality (Edwards, 2010). An underutilized method to gain insigh nto the ethical culture of the organization is exit interviews. Only one third of companies us xit interview information and miss an opportunity to uncover issues that prompt employees t eave the company (PWC, 2014; SAl Global, & Baker & McKenzie, 2013). Another source for per eptions of a company's ethics are expressions of company stakeholders on social media. Price


aterhouseCoopers recommends that companies consider emerging data-driven measure uch as analyzing the Web content of customers, employees, investors, and other stakeholders

Social expressions regarding customer satisfaction, perceptions of fair deal­ing and integrity and/or a sense of trust, pride or loyalty by employees, cus­tomers and investors can provide insight into elements relevant to the overall objectives of an ethics and compliance program. (PWC, 2014, p. 20)


valuating perceptions of all stakeholders, not just employees, can provide valuable insight n how the ethics program influences behaviors. Yet less than 20 of companies monito ress and public statements as a measurement of public trust in the company's ethics (PWC 014). For a comprehensive assessment of an organization's ethics and compliance program ompanies should seek input from all stakeholders, including top management and the boar f directors.


onitoring and Auditing the Ethics Program


onitoring and auditing the ethics and compliance program differs from assessment. Wherea ssessment focuses on the program's achievements and areas for improvement, the function f monitoring and auditing focus on whether the process is effective. Monitoring refers to " ystem of activities that provide an organization with a self-appraisal of its control system' erforrnance" (Hedley, & Ben-Chorin, 2011, p. 69). Monitoring an ethics program involve etting controls for compliance and early identification of noncompliance. Examples of ongo ng monitoring activities include reviewing and approving travel expenses, utilizing a qualit ssurance checklist, listening to customer service calls, and surveying company e-mail.Th egree of monitoring for compliance varies by organization, but excessive controls can giv mployees the impression that the company does not trust them, reducing their commitmen o the organization.

·         Does the company have all of the necessary standards and procedures in place, give the applicable legal and regulatory framework?

·         Has the company appropriately distributed those written standards and procedures, including its code of conduct?



uditing involves a periodic review of company compliance with ethical and legal standard o determine whether all the elements of an effective ethics and compliance exist. For publi ompanies, the audit committee of the board of directors is responsible for overseeing th thics and compliance program. In the United States, the Sarbanes-Oxley Act of 2002 require he audit committee to select external auditors and to establish reporting mechanisms t eceive and act on anonymous concerns regarding accounting, internal control, and auditin Felo & Solieri, 2003). The types of questions that an auditor might ask include:


Summary & Resources

          as t e company provi e ongoing training programs to e ucate its emp oyees,

officers, and (where appropriate) agents and contractors?

·         Has the company devoted adequate resources to the operations of its compliance program, and does the compliance officer have sufficient authority within the organization?

·         Are employees actually following the company program?


·         Have there been any internal investigations of alleged noncompliance with the pro­gram? If so, what were the results?

·         If internal investigations have taken place, were the proper procedures for investiga­tions followed?

·         Were remedial actions taken upon discovery of wrongdoing? (Gordon, 2013, pp.58-59)

hrough formal audits, ongoing monitoring efforts, and periodic evaluations of the ethics an ompliance program, a company can continuously improve the ethical environment of th rganization. Sharing best practices allows all organizations to learn from the successes an ailures of others. No two ethics and compliance programs are identical. The size, industry, ocation, and company history can influence the implementation of each component of th thics program.



Summary & Resources

hapter Summary


n ethics and compliance program should be developed to meet the needs of the organi ation. Implementing an effective organizational ethics program consists of five steps. First esigners must create a structure to manage and oversee the ethics and compliance progra ithin an organization. An ethics officer is a steward of this program within the organization

nd should be given sufficient authority and resources to encourage compliance with lega nd ethical standards.


econd, the ethics and compliance program must communicate clear standards of acceptabl ehavior that address the organization's risks, typically in a code of conduct. The individu Is designing the code should tailor it to reflect the organization's unique culture, risks, an istory. Content may vary due to the regulatory environment of the industry or geographica

hird, the organization needs to educate the workforce via a training program that reso ates with its audience and encourages ethical behavior as a norm. Educating the workforc nvolves ongoing and interactive training, regular communications, and follow-up support b anagement. The objective of ethics training is to help employees make decisions that ar onsistent with company values. Organizations should consider a wide array of training an

ommunication methods, including classroom and online learning.

ourth, procedures should be put in place to respond to reported misconduct through a trans arent and fair investigation process. A system that employees are comfortable using require roviding for anonymous inquiries, protecting confidentiality, preventing retaliation, an


Summary & Resources


he final step in developing an ethics program involves monitoring and assessing progra ffectiveness to identify areas for improvement. Monitoring of the ethics program involves set ing controls for compliance and early identification of noncompliance. The two approache sed to determine the effectiveness of an ethics and compliance program are measuring activ


ty and measuring outcomes. Activity metrics focus on the number of transactions with eac rogram element, often relating to the number of people that the program touches. Outcom

etrics seek to quantify the impact that the program has on changing behaviors, focusing 0 educing misconduct. The auditing function involves a periodic review of company compli nee with ethical and legal standards to determine whether all the elements of an effectiv thics and compliance exist.

thics officer A steward of the ethics and             values-based code A code of conduct

ompliance program within an organization. connecting company values with employee behavior.

ules-based code An enumerated list of ssue areas along with the company stan­ards applicable to that issue area.

ritical Thinking and Discussion Questions

1.      How could a company of 75 employees implement an ethics program with limited resources?

2.      Choose an organization that you work for or are interested in working for. Locate

its code of conduct (or code of ethics/code of business standards). Score the code of conduct using Ethisphere Institute's benchmarking criteria. How does this organiza­tion compare to similar firms in the industry? Write a code of conduct for a small fictitious business.

3.      How can a company determine if ethical training is effective other than showing completion of online courses or attendance?

4.      Should reporting of observed misconduct be mandatory? If so, how could the policy be communicated and enforced? What are the unintended consequences of potential disciplinary action if an employee does not speak up?

5.      Why would questions on the ethical culture of an organization be valuable during an exit interview? What questions would you ask?


uggested Resources

isco Code of Business Conduct


Summary & Resources

~thICS &. Compnance Utncer ASSocIatIOn Pttp://www.theecoa.org

Ethics Resource Center rttp://www.ethics.org

~thisphere Institute rttp://www.ethisphere.com

Federal Sentencing Guidelines

http.j' /www.ussc.gov/guidelines-manualf2014/2014-ussc-guidelines-manual

What’s in a Name of an Ethics Code?

This assignment will provide you with an opportunity to write a second critique of a journal article. This time, instead of a common article, you will select one of the articles that you located  Make sure you identify your choice as a clear quantitative or qualitative empirical study containing the five basic parts of a research article

Read and develop  a critique. Your critique of the journal article should reflect all the salient points. 

article will be messaged!


Make sure you identify your choice as a clear quantitative or qualitative empirical study containing the five basic parts of a research article 


apa  as always and keep plagiarism at zero


Teaching in Higher Education, Vol. 7, No.3, 2002

• Carfax Publishing

~/I/I Taylor & Francis Group

Reflecting on Practice: usmg learning journals In higher and continuing education


Teachers College, Columbia University in the City of New York, 203 Lewisohn Hall, Mail Code 4114, 2970 Broadway, New York, NY 10027, USA

ABSTRACT The purpose of this study is to report on the use of learning journals as vehicles for encouraging critical reflection among non-traditional students and to compare variances with studies among traditional students. An objective of the study was to understand how adult students in a 'technical' computer class responded to the requirement for learning journals. Qualitative research focused on whether learning journals prove to be an effective teaching tool in science-based, adult learning. The study was conducted at Columbia University's Computer Technology programme in Continuing Education. Results suggest that non-traditional students are more skeptical than traditional students about using learning journals and more likely to use them as study tools. An implication of this study is that student perception and skepticism of the assignment can affect the objective of developing reflective thinking. This implication stresses the need to account for student perception in studies on learning journals and critical reflection.


The use of learning journals as a method for engaging traditional students in critical reflection has been widely discussed in the literature. However, their use in assisting adult non-traditional students, particularly those who are engaged in profession-ori­entated educational programmes of continuing higher education has received com­paratively little attention. This paper focuses on the question of how the use of journals impacted the learning process of adult students of the latter category and how this impact compared to that of students of the former category. Specifically, the study focused on students attending a computer technology class. The class, Computer Architecture, is a required course in an I8-month computer technology certification programme at Columbia University. The courses in this certification programme are designed for adult students interested in changing their careers. The curriculum focuses on real-world topics that are essential to the effective technology practitioner in the workplace. The instructor for the course required the submission of a weekly learning journal from each student during the IS-week course. Students were asked to be reflective about new career opportunities and how to apply technology to the workplace.

ISSN 1356-2517 (print)/ISSN 1470-1294 (online)/02/030337-15 © 2002 Taylor & Francis Ltd DOl: 10.1080113562510220144824


338 A. M. Langer

For the purposes of the study, a select number of journals were reviewed from three successive semesters of the same class; each had over 100 students. Sub­sequent to the class, students were interviewed to provide further elucidation of the data supplied in the journals. The purpose of the study was to understand the immediate and extended impact of journals as a learning tool for working with adult students, and for promoting critical reflection. The findings of this study raise questions about the pedagogical assumption, expressed in the literature, that jour­nals provide a tool for learning (e.g. DeAcosta, 1995) and that critical reflection can be assessed in student journals independently of non-reflective considerations or factors (i.e. Kember et al., 1999). An implication that follows from this study stresses the need to check theoretical frameworks, built around such pedagogical assumptions, against actual student responses: in this case, against the impact of the journal-writing requirement.

The Concept of Reflection in Learning

The use of journals as a learning tool in the development of critical reflection poses a basic question about the role of reflection in learning. Reflection has received a number of definitions from different sources in the literature. Depending on the emphasis on theory or practice, literature definitions vary from philosophical articu­lation, as in John Dewey and Jurgen Habermas, to formulations from practice-based perspectives, such as the research-in-action constructs developed by Schon (1983), or Kolb's (1984) use of reflection in the experiential learning cycle. With specific respect to teacher training, Morrison (1996) referred to reflection as a 'conceptual and methodological portmanteau'. According to Morrison, the manner in which reflection is commonly used has shuttled between the process of learning and the representation of that learning.

With respect to the process of learning, Moon (2000) suggested that individuals reflect on something in order to consider it in more detail. Dewey (1933) and Hullfish & Smith (1978) suggested that the use of reflection supports an implied purpose: individuals reflect for a purpose that leads to the processing of a useful outcome. With respect to the role of reflection in learning, therefore, ability and process are also individual. While many people reflect, it is in being reflective that people bring about 'an orientation to their everyday lives. For others reflection comes about when conditions in the learning environment are appropriate' (Moon, 2000, p. 186). Engendering the appropriate learning environment is the pedagogical task. Journal writing represents a formal tool for developing reflective thinking. Holly (1989) referred to the metacognitive effect of journal writing, and its ability to enable self-enquiry and facilitate critical consciousness. Indeed, the literature offers evidence that students, regardless of the course topic, improve their learning by keeping journals. Abbas & Gilmer (1997) explored the use of learning journals as an interaction between student and instructor, designed to stimulate active learning. Their research promoted the role of the instructor as active facilitator in the journal-writing process. Taggart & Wilson (1998) expanded this concept by suggest­ing strategies to enhance a student's reflective capabilities while writing journals.


Reflecting on Practice 339

Verifying reflective thinking in journal writing became the subsequent question to consider, one taken up by Kember et al. (1999). Their study adapted Mezirow's (1991) categorisation scheme for codifying evidence of reflective thinking in journal writing. The current study engages, directly and by implication, some of the above-mentioned pedagogical practices and assumptions surrounding critical reflection and its relation to the use of learning journals.

The Use of Learning Journals

This section provides an analysis of the existing literature on learning journals in higher education and summarises common themes about their use as learning tools. This section also focuses on the three major areas of research on learning journals that form a basis for the current study. They are:

·   the value that journals bring to the student learning process and the concern for how journals can be used by instructors to facilitate student cognitive develop­ment in the fields of science, engineering, and mathematics;

·   learning journals and the transition from theory to practice;

·   the various types of learning journals that have been used to facilitate critical reflection in student learning.

The Value of Learning Journals in Science, Engineering and Mathematics

A review of how learning journals have been applied in the fields of science, engineering, and mathematics is important in the context of the current study in a computer technology curriculum. This group of fields may not, at first, appear to provide an applicable environment to support journal writing because of its special­ized set of knowledge criteria: knowledge based on axioms and demonstrable proof. However, Moon (2000) suggested that while there are relatively few accounts in the literature, there are clear indications of the manner in which learning journals have been used to facilitate learning in these disciplines. For example, in the field of science research it has been shown that learning journals force students to replicate ideas and facts (Powell, 1997; Chatel, 1997; Meese, 1987). Harmelink (1998) found that science students who kept journals improved their learning and communication skills. Perhaps the most significant research, done by Selfe et al. (1986), has been on the question of how journal writing assisted mathematics students. Their study showed that while learning journals did not necessarily assist students with earning higher grades on tests, journals did assist students in developing abstract thinking that in turn allowed them to better conceptualise the meaning of technical definitions. In addition, students appeared to develop better strategies in problem solving through writing as compared to just memorising calculations. Their findings are further supported by research from BeMiller (1987). Selfe & Arbabi (1986) studied responses to journal writing among physics students, requiring them to write at least one page each week on their experiments. Although most students initially responded negatively to the exercise, 90 of them eventually admitted that the


340 A. M. Langer

journals helped them clarify their ideas and thoughts. Grumbacher (1987) examined physics students and found that through the use of journals they were better able to synthesise their knowledge, and reflect upon its impact on their learning and personal experiences. Significantly, and corroborated by the current study, the research on learning journals in these 'technical' disciplines appears also to suggest that students do not initially understand how and why journals can help them. This suggestion was especially evident in the initially negative responses that students reported in the Selfe and Arbabi study.

Learning Journals and the Transition from Theory to Practice

This section focuses on how learning journals can be used to relate classroom theory to situations of practice outside the classroom. The importance of moving from theory to practice is relevant to the current study in that its subjects are adult students seeking new careers. Indeed, the process of taking material learned in the classroom and understanding its application in the workplace is significant for student success in their new careers.

Dart et al. (1998) conducted a study on how graduate teachers in training used journals to relate theory to practice. These researchers found that students were better able to link theory to practice and vice versa in the latter parts of the course, thus supporting their claim that the use of journals provided a new method of learning and reflection. In the field of nursing, Johns (1994) discusses 'influencing factors' in reflective writing and how they can guide learning from experience. Heath (1998) used 'double entry' journals, which require secondary (subsequent) reflection on initial entries, to provide guidance for students in understanding how to link theory to practice and back to theory. Morrison (1996) based his research on Schon's (1983) concepts of 'reflection-in-action' and 'reflection-on-action'; like Heath, he posed questions to students that required them to consider relationships among personal, academic, and professional activities, thus expanding their vision and developing reflective activity.

Also linked to adult education theory is the challenge that learners face when attempting to overcome their biases (Mezirow, 1990); Rainer (1978) used journal activities to enhance a sense of perspective that over time affected student attitudes and behavior. With respect to personal experience, a useful section in a journal can be the 'period log', in which a period of life is reviewed and a common theme or direction is considered.

Types of Learning Journals

Journals can be created in different shapes, sizes and forms. However, whether a journal is recorded in an audio, video or word processing medium, the significant organizing concept is in its design and structure. Listed below are three types and formats that have been used.

An unstructured journal allows students to produce their own format. Using their own design, students tend to use a free writing format, open to a range of content


Reflecting on Practice 341

and structure of design. Unstructured journals often resemble a diary format. Unfortunately, the unstructured nature of this type of journal makes it difficult to compare with other formats used by students in the same class, and thus makes it difficult to ascertain how students are reflecting and learning as a group.

A structured journal carries an imposed form of constraint regarding the manner in which it is written. Its purpose is to benefit both instructor and student. The instructor obtains value by receiving information in a specific format or range of formats. This allows the instructor to compare student responses and reflections and obtain feedback on specific discussions and lectures. Students, for their part, are able to follow a template, which serves to provide guidance to students on approach­ing and developing journals (johns, 1994).

The development of dialogue journals, which can be used methodologically to train student expression and reflection, was explored by Garmon (1998) and Peyton (1993). Peyton's model resembled a mentor/mentee relationship requiring a consist­ent one-on-one interface and a dialogue journal as the vehicle for communication. Staton et al. (1988) defined dialogue journals as a method to encourage the exchange and development of ideas between two or more writers. Lukinsky (1990) provided guidance to instructors on the development and use of different types of learning journals, and discussed the benefits of each type for the distinct purpose of increasing reflective capacity in student writing. Thus, the literature suggests that students benefit more from the guidance and formal instruction of a teacher in developing self-reflective critical thinking than without this guidance.

In summary, the existing literature on the use of learning journals in higher education indicates that it can be an effective learning instrument. Students initially tend to find the use of journals uncomfortable or have difficulty understanding why it is being requested. There is evidence that the use of learning journals facilitates critical reflection, particularly as it assists students in conceptualising abstract meaning and relating it to practice. Research on the use of learning journals in technology fields in higher education among non-traditional students, however, is lacking.

Research Methods

A review of the literature on learning journals for students in higher education, as summarised above, provides theoretical and contextual grounding for the current study and informs its two principle modes of inquiry:

·    an evaluative review of the learning journals submitted by students; and

·    an interview of selected students who completed the course.

Review of Learning Journals Submitted by Students

Students were required to submit learning journals each week referencing the prior week's lecture. The format used varied from student to student; however, the instructor provided sample formats so that students would receive guidance on what


342 A. M. Langer

a journal could look like. Students were required to submit two copies of their journals: one copy was returned to the student the following week with comments from the instructor; the second copy was kept for analysis. Thus, the instructor used a dialogue journal format to facilitate critical reflection. Learning journals from 20 students were selected for study. There were three components to the selection process:

·    equal representation by student gender;

·    10 students from each of the two sessions of the course;

·    an equal distribution of students from the three different departments of study (or study major).