Establishing and Managing an Ethical Framework
An ethical framework is a combination of procedures and written guidelines that help a company to actively manage its ethical behavior, and through that behavior, its risk. It is predicated on the idea that the best way to deal with an ethical dilemma in the modern corporation is to avoid it in the ﬁrst place. To do that, a company must ensure that its employees-from the board to the shop ﬂoor-recognize when something is unethical, illegal, or potentially damaging to their corporate reputation. Beyond this, employees at all levels have to see it as their responsibility to act on these types of issues. It is critical that the company makes it as easy and effective as possible for its employees to do this.