resolving the dilemmas of ethical living

Resolving the Dilemmas of Ethical LivingA Resource Portfolio for Tertiary Education Institutions

Resolving the Dilemmas of Ethical LivingA Resource Portfolio for Tertiary Education Institutions

Resolving the Dilemmas of Ethical Living - A Resource Portfolio for Tertiary Education Institutions

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Resolving the Dilemmas of Ethical Living - A Resource Portfolio for Tertiary Education InstitutionsResolving the Dilemmas of Ethical Living - A Resource Portfolio for Tertiary Education Institutions

Contents

Introduction 2

Part 1 Ethics and Preventive Education

1.1 Whatisethics? 7

1.2 CorevaluesoftheICAC 8

1.3 Fightingcorruptionwithethics 9

Part 2 Ethical Challenges

2.1 Identifyinganethicalissue 13

2.2 Typesofchallenges 13

2.3 Legalandethicaldimensionsofactions 15

2.4 Checkingyourmoralcompass 17

Part 3 Ethical Decision Making

3.1 Thedecision-makingprocess 23

3.2 Decisionmakingmodels 25

3.3 Applicationofdecisionmakingmodels 27

Part 4 Ethics in Action

4.1 Personalethicalcode 37

4.2 Standardsofbehaviourintheworkplace 40

Appendices 43

J4867/11


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Background

The Independent Commission Against Corruption (ICAC) adopts a

comprehensiveand integratedapproach to tackling theproblemofcorruption

through lawenforcement,corruptionpreventionandcommunityeducation. On

theeducation front, theCommunityRelationsDepartment (CRD)of the ICAC is

responsibleforeducatingthepublicabouttheevilsofcorruption.

The rootof corruption,asmanifested inmanycases, lies in the failure

of individuals toupholdadesirablestandardof integrity. TheCommission is

committedtoinculcatingacultureofprobity inthecommunitythroughschools,

universities,communityorganisations,businessesandprofessionalbodies.

The ICAC isparticularlykeen tocontribute to thebuildingof integrity for

tertiarystudentswhoarethecreamofthesociety. Integrity, justice,equityand

ethicalpracticesare importantvaluesandattributes that leadersof tomorrow

havetoembrace.Thesecorevalueswillenlightenthemaboutthefundamental

principlesuponwhichtheycanmakerightdecisionsintheirdailylivesandfuture

careers.

Acommitmenttohighethicalstandards isalsoessential forthemtomeet

challenges in anageof globalisation.Companies/employers havebecome

increasingly alert to the importanceof corporate ethics in enhancing their

competitiveedge,andappreciateemployeeswhocanplay the roleofethical

leaders.

Collaborative Efforts with Tertiary Institutions

The ICAChasbeencollaboratingwith tertiaryeducation institutions in

embarkingonaseriesof integrity-buildingprogrammes. Theseprogrammes

havenotonlyenhancedstudents’awarenessoftheimportanceofpersonaland

professionalethics,butalsoencouraged themto takeownership inpromoting

probitytotheirpeersandthecommunityatlarge.Intheacademicyear2010–11,

theCRDcooperatedwiththethreeconstituentcollegesoftheChineseUniversity

ofHongKong(CUHK)toincorporatelecturesonpersonalethicsintotheircredit-

bearingGeneralEducationProgrammesforYear1students.

Introduction


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Thelecturesaimedtoequipstudentswiththenecessaryskillsforhandling

ethicaldilemmasandenhance theirunderstandingofethicaldecisionmaking.

Over2,000studentshaveattendedthe lecturesand their feedbackwashighly

favourable. Someconsidered the lecturecontents thought-provokingand the

ethicalchallengestheyraisedrelevanttotheirdailylives.(Theteachingnotesare

inAppendix 1.)

The Teaching Module

The ICACbelieves that amodule on integrity education for students

wouldbewelcomedby tertiaryeducation institutions. Inaneraofglobalisation

epitomizedby rapidsocial andeconomicchanges,HongKong’suniversities

arestriving toenhance their students’moralandcivicvalues,aswellas their

leadershipcapacity,topreparethemtomeetthechallengesahead.

Thepurposeofthisportfolio istoprovideready-to-usereferencematerials

on integrity education based on ICAC’s experience in promoting ethical

leadershipandpersonal integrity forbusinessexecutivesandyoungpeople. In

developing thisportfolio, teachingmaterialsused for theCUHK lectureshave

been incorporated. Casestudies/real-lifedilemmasare included todevelop

students’ thinkingandperspectiveson resolvingethicalchallenges. Practical

suggestionsand theapplicationofdecisionmakingmodels in resolving the

dilemmasareprovided,whichstudentscanusetoguidedecisions. Videoson

handlingethicaldilemmaswillbedeveloped in2011–12tosupport theteaching

andlearningofthemodule.

Universities arewelcome to incorporate themodule into their general

education curricula or relevant programmes. The ICAC alsowelcomes

collaborationopportunitiesfortheimplementationofthemodule,forexampleby

havingseasonedICACofficersconductsessions.

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Acknowledgements

Wewould like to thank Professor LamChi-chung, Professor in the

DepartmentofCurriculumandInstructionattheHongKongInstituteofEducation

andDrAlbertChau,DeanofStudentAffairs,DirectorofGeneralEducationatthe

UniversityofHongKongforprovidingconstructivefeedbackonthemodule.

Wewouldalsoliketothankthefollowingstudentsfortheircontributionsto

thedevelopmentofcasestudies/scenariosrelatedtotheethicalchallengesfaced

bytertiarystudents,whileunderinternshipwiththeICACin2010:

CHANHoi-ching,Bianca(UniversityofHongKong)

CHENGWing-sen,Licca(ChineseUniversityofHongKong)

CHENGWui-shing,Chris(HongKongInstituteofEducation)

LIUMeng-xi,Mercy(HongKongInstituteofEducation)

Enquiries

Please feel free tocontact theYouthandMoralEducationOfficeof the

CommunityRelationsDepartmentof the ICAC for anyenquiries about this

portfolio.

Address: 8/F,303JavaRoad,NorthPoint,HongKong

Tel.No.: 28263381

FaxNo.: 25301573

Email: [email protected]

March 2011

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Part 1Ethics and Preventive Education

Thissectionprovidesaworkingdefinitionoftheconceptofethicsanddelineates

thecorevaluesoftheICAC.Italsoshowshowintegrityeducationcanhelptoprevent

corruption.

1.1 What is ethics?

Therearemanydefinitionsofwhatethicsencompasses1,viz.:

i) Decisions,choices,andactionswemakethat reflectandenact

ourvalues;

ii) Thedisciplinedealingwithwhat isgoodandbad,andwithmoral

dutyandobligation;

iii)Asetofmoralprinciplesorvalues;

iv)Atheoryorsystemofmoralvalues;and

v) Aguidingphilosophy.

The firstdefinition is very relevant to theconceptof ethicsadopted for the

developmentof thisresourceportfolio. Thekeywordshighlighted inthisdefinitionare

worthnoting.

Ethicsrelates todecision makingwhichrequiresmakingreferencetoasetof

normativerulesofconductorcodes/standards fordecidingwhat is rightandwrong.

Thedevelopmentofthesestandardsandproceduresreflectsourbeliefsorvalues.

Valuesarethecorebeliefsweembraceregardingwhat isrightandfair interms

ofouractionsandinteractionswithothers.Forexample,thevaluesof“trustworthiness,

respect, responsibility, fairness,caringandcitizenship”havebeenconsideredas

universalandcanhelpimprovethequalityofethicaldecisions2.

We translatevalues intoprinciplesso that theycanguideandmotivateethical

conduct.Ethicsisaboutputtingprinciplesintoaction.Forexample,honestyisavalue

thatgovernsbehaviour intheformofprinciplessuchas: tell thetruth,donotdeceive

1 Ethics Resource Center (2009) ‘Ethics Glossary’, <http://www.ethics.org/resource/ethics-glossary>

2 Josephson Institute of Ethics (2002) ‘Making Ethical Decisions’, <http://www.sfjohnson.com/acad/ethics/Making_Ethical_Decisions.pdf>


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anddonotcheat.Inthisway,valuesgiverisetoprinciplesintheformofspecific“dos”

and“don’ts”whichinvolveethicalchoices.Whentherearecompetingchoices,ethical

challengesarepresent.

Handlingethicalchallengesrequires frameworksandprocedures forapplyingto

problems.Decisionmakingmodelsareuseful toolsenabling individualstomakewell-

informedandeffectivedecisions. It is important foryoungpeopletoacquirerelevant

knowledgeandskillsaswellas thecapability toovercomeethicalchallengesand

committoethicalprinciplesinresolvingproblems.

1.2 Core values of the ICAC

Allalong,theICAChasplacedmuchemphasisonthepromotionofpositivevalues

inlifeasaneffectiveandlastingwaytopreventcorruptionandmalpractice.TheICAC

hasconsciouslytriedtodefinethevaluesthatshouldbeexpoundedascorevaluesfor

youtheducationprogrammes,viz.:

• aregardfortruthandhonesty;

• aregardforjusticeandfairness;

• aregardfortherightsandwell-beingofothers;

• asenseofresponsibilityandself-discipline;

• arespectfortheruleoflaw;and

• abalancedviewofwealthandmaterialpossessions.

Integrity isthequalityofbeinghonestandfirminethicalprinciples,whichcanbe

seenasanoverarchingconceptforthesecorevalues.AddressingtheYouthSummit

of the “IGeneration”Youth IntegrityProgramme3, theCommissionerof the ICAC

expoundedontheimportanceofintegrity,asfollows:

Integrity firstmeansbeing true toyourself. Withpersonal integritycomes

theknowledge thatyouarehonest, faithful,uprightand thatwillgiveyou

confidence...... Life,asyouknoworwill findout, isnotwithoutsetbacks.

Personalintegrityisalsoastoutdefenceagainstsetbacks.

Also, integrity involvesbeingtruetoothers. It is thesurest foundationfora

fairandjustsociety.Asocietythatputsintegrityfirstcantrulyclaimtobefair

andjust.

Thesecorevaluesareperennialandstandthetestof time. The ICAC,however,

reviewsconstantly themeansthroughwhichthesevaluesaredisseminated,withdue

3 Dr Timothy Tong, Commissioner, Independent Commission Against Corruption, HKSAR Welcoming Address at the “I Generation” Youth Integrity Programme.

<http://www.icac.org.hk/me/new/yintegrity/en/Appendix2.htm>


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considerationtochanges inthesocialenvironmentandpertinentvaluesandattitudes

ofyoungsters. Thesechangesaretaken intoaccountwhenformulating ICAC’swork

strategiesonyouthmoraleducation.

According to the findingsof ICAC’sannualopinionsurveys,public toleranceof

corruptioninthecivilserviceandbusinesssectorhasremainedlow.Theaveragescore

givenbyrespondentsaged15–24,however,wasnoticeablyhigher than inotherage

groups4.

Inan ICACfocusgroupstudyonpublicperceptionandtoleranceofcorruption

conducted inJuly2008, the findingsalso indicated thatsecondarystudentswere

comparativelylessconcernedabouttheproblemofcorruptionandwereunclearabout

theevilsofcorruption.Inthesamevein,tertiarystudents’senseoflawcompliancewas

relativelyweakandtheirvigilanceonconflictofinterestwasratherlow.

Theultimateobjectiveofsteppingup integrityeducation for youngpeople is

therefore toassist themtobecomerationalandresponsiblecitizenswhocanplaya

positiveroleinthecauseofprobity.

1.3 Fighting corruption with ethics

The ICACbelieves that integrityeducationcanhelp topreventcorruptionand

unethicalbehaviour. Asevident inmanycorruptioncases,therootofproblems lies in

thefailureofindividualstoupholdadesirablestandardofintegrity.

Corruptionoccurswhenan individualabuseshis/herauthority forpersonalgain

attheexpenseofotherpeople.Corruptionerodesfairnessandtheruleoflawand,in

some incidents,puts livesandpropertyatrisk. Thespiritof thePreventionofBribery

Ordinance (POBO),asenforcedby the ICAC, is tomaintaina fairand justsociety.

Aspectsof thePOBOinrelationtothepreventionofbribery in thepublicandprivate

sectorsareprovidedinAppendix 2.

Corruptioncanberegardedasanunethicalbehaviour,albeitaseriousonewith

graveconsequences. Ingeneral,corruption takesplacewhen threeessentialand

interdependentelementsexist:

(a) Motivation

Whenpeopleare facedwithatemptingoffer,be itmonetaryorsomethingmore

intangiblesuchastheperformanceofaservice,theywillweighthestakesinvolved.If

thestakesare low,theymaybe interested. Ontheotherhand, if thestakesarevery

high,theymayfeelthattherisksaretoohigh,thepenaltytoogreatandtheguiltfeelings

toostrong.Asaresult,theymaynotcommitthecrime.Theattractionlevelhastobe

4 Using a 0 to 10 rating scale (with 0 representing total rejection and 10 total tolerance), the scores registered by the age group 15–24 in 2006, 2007 and 2008 were 1.7, 1.4 and 1.4 respectively, whereas those registered by other age groups were between 0.9–1.1, 0.7–0.8 and 0.7–0.8 respectively.


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optimalandtheriskminimaltoenticeanindividualtotakepartincorruption.

(b) Rationalisation

Corruption issometimescommittedbecausepeople rationaliseanactasgood

ornecessary. Theymay justify theiractionson thepretext thatbriberyspeedsup

economicdevelopmentorthatitisthenormandeverybodyisdoingit.Variousexcuses

willbeconcoctedtolessenthesenseofguilt,eventotheextentofblamingitonhuman

nature.Veryoften,alibis,unethicalbeliefs,half-truthsandplainliesareusedtojustifya

crime.

(c) Opportunity

Corruption rears itsuglyheadwhenexternal and internal controlswithinan

organization/companyare lax– forexample,when lawsarenotenforcedeffectively

andcompanyrulesareweak,defective,notproperlyunderstoodornotgivenenough

attention.Ifthesystemcontrolissoundandproceduresaredrawnupclearly,corruption

opportunitiescanbeminimizedoreveneliminated.

Thesethreeelementsconstitutewhat iscalledthe“CorruptionTriangle”5.When

all threeelementsarepresent,calculationbegins.Theconsequencescanbestudied,

utilityestimated,andmoralprinciplesandopportunitycostsconsidered.

CorruptionTriangle

Motivation

Rationalisation

Opportunity

Insummary,thecorruptiontriangleanalysisgivesinsightintoICAC’sthree-pronged

approach to fightingcorruption. Minimizing theattraction leveland increasing the

risks (lawenforcement), improvingthesystemandprocedurestoeliminatecorruption

opportunities (prevention),andpromotingethicsandprofessionalism (education)are

importantinpreventingcorruption.

Thismoduleattempts toprovide youngpeoplewithpractical guidelines for

handlingethicalchallenges related topersonal integrityandenhance theirskills in

makingrightdecisions,especiallywhensubjecttoenticement.

5 Byars, N (2009) ‘The Corruption Triangle’, <http://www.ethicsandentrepreneurship.org/wp-content/uploads/2009/06/Byars-2009.pdf>


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ETHICALCHALLENGES


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Part 2Ethical Challenges

Beingable to recognise thevarious typesof situationswith inherentethical

challengesisapracticalstarttohandlingthem.Thispartprovidessomeperspectives

for identifyinganethical issue.ThetypologyofethicalchallengesproposedbyKidder

(2003)isoutlined,anddistinctionsbetweenethicalandlegalissuesaredrawntohelpin

assessingtheethicsofactions.Also,casestudiesareusedtoillustratetheapplication

oftheseperspectivestoanalysingethicalchallengesrelatedtopersonalintegrity.

2.1 Identifying an ethical issue

Recognisingtheexistenceofanethicalissueisalwaysthefirststepinaddressing

theinherentchallenges.Asstatedintheliteratureonpersonalethics(e.g.Howardand

Korver,2008;Kidder,2006),thefollowingperspectivesareusefulinidentifyinganethical

issue.

Anethicalissueisonewhichentailsanormativedimensionofrightorwrong.As

arguedbyHowardandKorver(2008),ourdecisionsaboutrightandwrongmustspecify

whichpeople to include,orwhichstakeholderswouldbeaffected. Inotherwords,

whetherornotadecisionisethicallysensitiveisamatterofitseffectsonothers.

Ethical issuesemergewhenacoremoralvaluehasbeenviolatedor ignored

(Kidder,2006).Forexample,ifhonestyisawell-recognisedvalue,actingdishonestlyis

unethicalasitfailstoaccordwiththevalue.

Ethicalissuesalsoarisewhentwoofourcorevaluescomeintoconflictwitheach

other.Forexample,beingloyaltofriendsandtellingthetrutharebothrightthingstodo.

Considerasituationinwhichyouneedtodecidewhethertohelpafriendbytellingalie.

Thesetwoethicalprincipleswould leadtooppositecoursesofactionandyoucannot

doboth.Insuchacase,ethicsisamatterofrightversusright(Kidder,2006).

Kidder’sscheme forcategorising typesofchallenges isuseful inanalysing the

complexitiesofethicalreasoning,andisdiscussedfurtherinthenextsection.

2.2 Types of challenges

Whileprovidingaframeworktotacklethedilemmasofethicalliving,Kidder(2003)

classifies life’sdilemmas into “rightversuswrong”and“rightversus right”choices,

referringtotheformeras“moraltemptations”andthelatteras“ethicaldilemmas”.


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Thechallengeofrightversuswrong

“Rightversuswrong”challengesare thosewithclear,ormostlyunambiguous,

ethicalimperativeswhichpointtoarightanswer,howeverdifficultorsimplethatanswer

maybe.

Kidder(2003)observesthattherearetypicallythreefacetsof“wrongs”:

• Violation of law, inwhich there is failure incomplyingwithclearly

specified laws. Failure tocomplycanariseoutof ignoranceor

deliberateintention,i.e.eitherbecausewedon’tknowthelawandits

application,orbecausewedeliberatelychoosetoviolatethelaw.

• Departure from truth,wherewedescribethingsinwayswhichdonot

accordwiththefactsasgenerallyknown.

• Deviation from moral rectitude,wherewefailtoadheretothecodeof

fundamentalvaluesthat issowidelysharedandbroadlyunderstood

that itdefines–at least forourplaceand time– thedifference

betweenrightandwrong.

Kidder (2003) considers that right versuswrong challenges are relatively

straightforwardtoresolve– theseare issuesof temptationandthereareclearethical

principles thatdirectone toa rightanswer. Peoplearecaught in theseethically

questionablesituationswhen theyaresimply tempted todosomethingwrong– for

example,cheatingonatestorlyingtoafriend.

Thechallengeofrightversusright

Incontrast,intherightversusrightsituations,competingvaluesexistonbothsides

whichare“genuinedilemmaspreciselybecauseeachsideisfirmlyrootedinoneofour

basic,corevalues”(Kidder,2003,p.18).

Rightversus rightdilemmascanbeclassified into fourdifferentparadigmsor

patterns,viz.:


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• Truth versus loyalty,whichcanbeseenashonestyorintegrityversus

commitment,responsibilityorpromise-keeping.

• Individual versus community,whichrelatestotheconflictbetweenthe

pursuitofindividualinterestsandtheclaimsofthecommunity.Itcan

berestatedas ‘usversusthem’, ‘selfversusothers’,or ‘thesmaller

versusthelargergroup’.

• Short-term versus long-term,whichreflects thedifficulties thatarise

when immediateneedsordesires runcounter to futuregoalsor

prospects.

• Justice versus mercy, which highlights the fact that fairness,

equity,andeven-handedapplicationof the lawoftenconflictwith

compassion,empathyandlove.

Insummary,understandingthedifferencesamongtypesofchallengeshelpsus

tomorereadily identifyandanalyseethicallychargedsituations.AsarguedbyKidder

(2003),thecategorisationhelpstocutthroughcomplexityandconfusion–assuringthat

“howeverelaborateandmultifaceted,dilemmasareinfactmanageableproblemswhich

canbereducedtocommonpatterns”(p.22).

2.3 Legal and ethical dimensions of actions

Thedistinctionbetween legal andethical dimensionsof actions is alsoof

importance. Ascertainingwhetheranethical issueasopposedtoa legal issue isat

stakecanhelpustobecomemoreconscientiousinhandlingthechallenges.

Agoodsystemof lawdoes incorporatemanyethicalstandardsandguidesour

behaviour. However, itwouldbemistakentoregard legalcomplianceasanadequate

meansforaddressingthefullrangeofethicalissues.AsnotedbyKidder(2003),tough

ethicaldecisions“oftenoperateinareasthatlawsandregulationsdon’treach”(p.15).

Acomplianceapproachtoethics is rooted inavoiding legalsanctions,which is

theminimal requirement. Ethicalcourage,however, requiresupholding thehighest

standardswhichgobeyondcompliancewith lawsandregulations,callingustodefine

theresponsibilityandaspirationsthatconstituteone’sethicalcompass.


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Ethics

(highestoroptimumstandard)

Legislation

(lowestorminimumstandard)

Below isacasestudywhichcanhelpstudentstoassesssituationswithethical

challengesbyapplyingtheperspectivesmentionedabove.Abriefanalysisofthecaseis

alsoprovidedforreference.

A Friendship Too Far

(CaseRef:1536)

Sally works in the Sales Department of an airline. New to the

company and under great pressure, she finds it difficult to sell air tickets,

especially during the low seasons of the year. Sally’s good friend, Pauline,

who works for a travel agency, always tries to persuade customers to buy

air tickets from Sally’s company.

One day, Sally receives a warning letter from her company on her

poor sales results. She is so upset that she goes to Pauline and cries.

While comforting Sally, Pauline receives a phone call from an insurance

company requesting 50 air tickets for a corporate trip to attend a

convention in Europe.

Pauline knows that it is a good opportunity to help Sally out of her

predicament and duly marks up other airlines’ prices in order to sell the

air tickets of Sally’s company. The client, based upon the inaccurate

information provided by Pauline, subsequently opts for Sally’s airline.

Bydeceivingherclientwith inaccurate information,Paulinehasbreached the

trustthatheremployerandherclienthaveplacedinher.Asanemployeeofthetravel

agency,Paulineshouldhavedischargedherdutydiligentlyandusedherdiscretion

ina fairandtransparentmanner. Worsestill,Paulinemighthavecommittedcriminal

offencesbyoverstatingthepricesofferedbyotherairlines.

6 The case is available in the Hong Kong Ethics Development Centre (EDC) of the ICAC <http://www.icac.org.hk/hkedc/eng/library4.asp.>. Since its establishment in 1995, the Centre has developed training materials, including case studies on ethics management, to provide practical advice on the handling of ethical issues in the day-to-day operation of various industries and professions.


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Paulinehasalso involvedherself inanethicallychargedsituation. First, the

interestsofthestakeholdershavebeenaffectedbyheractofaidingthesaleofSally’s

airlineticketsbymarkingupthepricesofotherairlines.Thisisnotonlyunfairtoother

airlines,butalsoplacesthecredibilityofheremployeratstake.

Also,bygivingherpersonal relationshipahigherpriority thanwork integrity,

Paulinehasputintoconflictsomewell-recognisedvaluessuchashonesty,andbeinga

responsibleemployee.

Abidingby the lawclearly isonebasic requirement for anemployeeorany

professions.Paulinemustalsopaycloseattentiontoethicalconcernsinordertomake

therightdecisionsinthismercurialbusinessenvironmentwheretherearemany“grey”

areas.

2.4 Checking your moral compass

Appendix 3providesaself-reflectionexerciseonscenarios in thedaily livesof

tertiarystudentswhichmightposeethicalchallenges in relation topersonal integrity.

Theexerciseaimstostimulatestudentstothinkaboutperspectivesonethicalchallenges

andtochecktheirownmoralcompass.Abriefanalysisofeachofthescenariosisalso

providedinAppendix 3forreference.

Threetypesofethicalchallengesare included in thesescenarios,which involve

deception,potential conflicts of interestand right versus right challenges.Abriefanalysis

ofeachofthesetypesofchallengeisoutlinedbelow.

Scenarioinvolvingdeception

Manipulation of project data

(Caseno.9intheexerciseinAppendix3)

George, Elaine and David are members of a group project. George is

responsible for collecting and analysing the data. Due to an unsatisfactory

response-rate, George planned to manipulate some figures and present

them in the report in order to fulfil the assignment requirements. He told

Elaine his plan and asked her not to disclose it to anyone, including David.

Elaine felt rather uneasy about this but did not stop George from doing it.

Manipulating the reportdataundermines thecredibilityofacademicworkand

breakstherulesoffairplay intheassessmentsystem,andthushasanadverseeffect

onteachers/studentsandtheinstitution.Italsoviolatesresearchethicsandisregarded

asanactofacademicdishonesty.


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Elaine isfacinganethicalchallengeassheneedstodecidewhethertocoverup

George’swrongdoing (inwhichcaseshewillsacrificeprinciplessuchashonestyand

fairness)orshowzerotolerancetoanunethicalbehaviour.

EthicaldecisionmakingwillbediscussedinPart3ofthismodule.

Scenariowhereapotentialconflictofinterestexists

Personal relationships taking a higher priority


Wayne is a member of a university social service society and his

major duty is to provide programme and administrative support to a

community centre. In organising a health promotion activity for the centre

which requires the procurement of uniforms for its participants, Wayne

recommends his uncle’s company to be the sole provider as an attractive

price is on offer. Wayne considers that the deal benefits both parties and

does not bother to source other possible suppliers. He has not disclosed

his relationship with his uncle to the centre.

Inaworkplacecontext,conflictofinterestariseswhenthepersonalinterestofan

employeeconflictswiththeemployer’s interest.Suchconflictmayleadtosplit loyalty,

whichisconducivetocorruptionandcanundermineacompany’sinterests.

Conflict of interest situations

Interest ofoneself, family and friends

Company’sinterest & your

own duties

Tertiarystudentsmayencounterconflictof interestsituationswhen theyare

involved in runningstudentsocietiesorparticipating in relatedactivities. InWayne’s

case,hehasbeenentrustedwithsourcing thebestsupplier in termsofqualityand

price,buthefailstoperformhisdutydiligently.

ThisisanethicallysensitivesituationasWayne’sdecisionmaycauseunfairnessto

othercompaniessupplyinguniformsastheyhavenotbeeninvitedtogivequotationsfor

thisexercise.Aconflictofinterestmayexistasawardingthecontracttohisunclemay

notbethebestdecisionforthecommunitycentre.


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Scenarioinvolving“rightversusright”decisions

Exercising discretion over ethical dilemmas


Linda is a committee member of the Student Hostel Association.

Her roommate Annie has asked a friend to stay overnight at the hostel,

without paying the residence fee. The committee happened to make a

snap decision to inspect the hostel that night. Annie asks Linda to help her

avoid paying the penalty but Linda declines to do so.

Lindaneedstomakeatoughdecisionwhichinvolvesarightversusrightchallenge.

Whilemaintainingloyaltyorshowingempathytoafriendisagoodthingtodo,offering

help toAnniewouldviolatestudenthostel regulationsandchallengepersonalvalues

suchashonestyandbeingresponsible.

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ETHICAL

DECISION MAKING


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Part 3Ethical Decision Making

Thispartaimstoprovidepracticalknowledgeandknow-how insupportof the

evaluationofethical issues.Thegeneralstrategy/processofdecisionmaking is first

outlined, followedbydecisionmakingmodels,namely the “ETHICSPLUS”model

developedbytheICACandKidder’sguidelinesfordecisionmaking.Allthesewillassist

in thedecision-makingprocess,andprovideguidance inresolvingethicalchallenges

inastructuredway. Finally,scenariosdiscussed inPart2areused to illustrate the

applicationofthedecisionmakingmodels.

3.1 The decision-making process

Makingsoundethicaldecisionsrequiressystematicmethods for identifying the

challengesandchoosing thecoursesofaction. Whileethical issues indaily lifeare

complexanddonothavesimplesolutions,adecision-makingprocesscanenhance

ethicalthinking.

Thethree-stepprocessproposedbyHowardandKorver(2008)includes:clarifying

the ethical challenge, generating creative alternatives and evaluating alternatives to

choose defensible and ethical responses.

Step1:Clarifyingthechallenge

Themostsignificantstepinadecision-makingprocessistodecidewhetheran

ethical issueexistsandclarify thechallenge(s) involved inthesituation. This is

criticalashowonedefinesaproblemdetermineshowonesearchesforsolutions

andalternatives.

Thefollowingtechniquesareusefulinclarifyinganethicalissue:

• Describingthesituation/ethicaltemptationaccuratelyinvalue-neutrallanguage.

• Separatinglegalandethicalconcerns.

• Framingquestions in termsof relationshipswithothers– forexample, the

individualsandgroupswhichhaveanimportantstakeintheoutcomeandthe

potentialbenefit/harmtothem.


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Step2:Creatingalternatives

Oncetheethicalquestionhasbeenestablished,onecangeneratealternatives

foraction.Severalstrategiescanhelptoidentifythechoices:

• Choosingalternativesthatcomplywithrequiredethicalstandards.

• Consideringalternativesthatarolemodelwouldprefer.

• Creatingoptionswewouldchooseforalovedone–forexample,actingaswe

wouldtowardourchild/children.

Step3:Evaluatingalternatives

Thelaststepistoevaluatethealternativesanddecideupontheoption(s)which

offerdefensibleandethicalresponses.Fourtestingstepscanbeinvolvedinthis

process:

• Evaluatealternativesagainstourcode7(Whatwouldourcodedirectustodo?)

• Evaluateagainstourethicalrolemodel(Whatwouldourrolemodeldo?)

• Testforreciprocity(Whatwouldthe‘other-shoe’testsuggestweshoulddo?)

• Testforuniversality(Whatifeverybodydoesit?)

HowardandKorver (2008)consider that this three-stepprocesscan facilitate

themakingofeffectiveethicaldecisions. Inreferringtoeffectivedecisionmaking, the

authorsmeandecisionsinwhichwehavefollowedahigh-qualityprocessandadhered

toprovenprinciples.Thisisnottobeconfusedwithhigh-qualityoutcomesand/orthe

resultsofthedecision.

7 The personal ethical code will be discussed in Part 4 of this module.


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3.2 Decision making models

Adecisionmakingmodel isasuggested thinkingprocess foruse in resolving

ethicalchallengesandreachingadecisionaboutacourseofactioninastructuredand

systematicway.

Therearevariousmodels inthe literatureofbusinessandpersonalethics.Some

modelsaredesignedtohelpmanagersaddressethicaldilemmas–forexample,ICAC’s

“ETHICS PLUS”modelandLauraNash’s“Twelve Questions” 8 forexaminingtheethics

ofabusinessdecision. Somemethodsfocusmoreongeneralstrategies inresolving

ethicalchallengesindailylife–forexample,Kidder’s guidelinesfordecisionmaking.

TheICAC’smodelandKidder’smethodareoutlinedbelow.

The“ETHICSPLUS”model

Basedonitsextensiveexperienceinpromotingethical leadershipinthebusiness

community, theHongKongEthicsDevelopmentCentre (EDC) of the ICAChas

developedamodeltohelpbusinessexecutivestoarriveatsounddecisionsintheface

ofethicaldilemmas.“ETHICSPLUS”isanacronymderivedfromsixmajorstepsinthe

thinkingprocessandfourkeyfactorsinthestandardsfordecisionmaking.

The ETHICS process – Six major steps to follow:

E stablish the relevant facts and identify the ethical issues.

T ake stock of the stakeholders or parties involved.

H ave an objective assessment of each stakeholder’s position.

I dentify viable alternatives and their effects on the stakeholders.

C ompare and evaluate the likely consequences of each alternative with reference to the standards expected (PLUS standards).

S elect the most appropriate course of action.

8 The Twelve Questions are:1 Have you defined the problem accurately?2 How would you define the problem if you stood on the other side of the fence?3 How did this situation occur in the first place?4 To whom and what do you give your loyalties as a person and as a member of the corporation?5 What is your intention in making this decision?6 How does this intention compare with the likely results?7 Whom could your decision or action injure?8 Can you engage the affected parties in a discussion of the problem before you make your decision?9 Are you confident that your position will be as valid over a long period of time as it seems now?

10 Could you disclose without qualm your decision or action to your boss, your CEO, the board of directors, your family, or society as a whole?

11 What is the symbolic potential of your action if understood? If misunderstood?12 Under what conditions would you allow exceptions to your stand?


26

The PLUS standards – Four key factors to consider:

P rofessional/trade-related/corporate code of conduct.

L egal requirements: e.g. are there any breaches of the laws?

U ncompromising self values: e.g. integrity, honesty, fairness,

trustworthiness, etc.

S unshine test: i.e. whether the issue can be discussed openly and the decision disclosed without misgivings?

Kidder’sguidelinesfordecisionmaking

ThetypologyofethicalchallengesproposedbyKidder (2003) isthefundamental

buildingblockofhisframeworkfordecisionmaking.Thestepsareoutlinedbelow.

1 Recognisethatthereisamoralissue

Drawingdistinctionsbetweenmoralquestionsand those thatmerely

involvemannersandsocialconventions.

2 Determinetheactor(s)

Identifyingtheactor(s)andconsideringthebenefitsandharmtoeachactor.

3 Gathertherelevantfacts

Fact-gathering involvesanexaminationof thewayeventshaveunfolded

andwhoisculpablyignorantorinnocentlyunaware.

4 Testforrightversuswrongissues

Consideringwhetherthecaseathandinvolveswrongdoing.

5 Testforrightversusrightparadigms

Analysing the issue in termsof theright-versus-rightparadigmstobring

sharplyintofocuswhetheritisagenuinedilemma.


27

6 Applyingtheresolutionprinciples

Theseprinciplesinclude:

• ends-basedthinking:Dowhat’sbestforthegreatestnumberofpeople.

• rule-basedthinking:Followyourhighestsenseofprinciple.

• care-basedthinking:Dowhatyouwantotherstodotoyou.

7 Investigatethe“tri-lemma”options

Exploringathirdwaythroughthisdilemmaandacreativecourseofaction.

8 Makethedecision

Thisisastepwhichrequiresmoralcourageandethicalleadership.

9 Revisitandreflectonthedecision

Seeking lessons fromthedecision-makingprocess toadjust themoral

compass.

3.3 Application of decision making models

Thesemodelsareuseful inenablingan individual tomakewell thought-out

decisions. Nosingledecisionmakingmodel issuperior totheothers. Thechoiceof

anethicaldecisionmakingmodelisdependentonanindividual’spersonalpreferences.

Also,themodelscanbemodifiedtosuitindividualneeds.

Fordemonstrationpurposes, thescenariosdiscussed inPart2areused to

illustrateeffectiveethicaldecisionmakingbyapplyingthemodelsmentionedabove.

ApplyingETHICSPLUS

Thoughthemodelwasoriginallydesignedforbusinessexecutives,itcanbeused

toresolvechallengesindailylife.Inthefollowingscenario,Elainecanapplythemodelin

resolvingtheproblem.


28

Manipulation of project data


George, Elaine and David are members of a group project. George is

responsible for collecting and analysing the data. Due to an unsatisfactory

response-rate, George planned to manipulate some figures and present

them in the report in order to fulfil the assignment requirements. He told

Elaine his plan and asked her not to disclose it to anyone, including David.

Elaine felt rather uneasy about this but did not stop George from doing it.

Step 1

Establishthe

factsandidentify

theethicalissue

inquestion.

Facts:

•Georgeplanned tomanipulateprojectdatadue toan

unsatisfactoryresponse-rate.

• GeorgeaskedElainenottodisclosehisplantoanyone,

includingDavid,anothermember.

•Manipulating project data breaks the rules in the

assessment system and is regarded as an act of

academicdishonesty.

Ethicalissue:

Should Elaine cover up George’s plan to manipulate data?

Step 2

Takestockof

thestakeholders

involved.

• Theprojectgroup(George,DavidandElaine)

• Otherstudents

• Thetutor

• Thedepartment/university


29

Step 3

Compareand

evaluateeach

alternativewith

referenceto

thefourPLUS

standards.

Theprojectgroup

George:

• Deliberatelyviolatingtheuniversity’spolicyandregulations

onacademic integrity isan irresponsibleanddishonest

behaviour.

David:

• Davidisunawareofthesituation.

Elaine(whoneedstofaceanethicalchallenge):

• CoveringupGeorge’smisconductwill causepossible

harmto/haveanegativeimpactonDavid,otherstudents,

thetutorandthedepartment/university.

• Elainehastocompromiseprinciplessuchasintegrityand

fairnessifsheturnsablindeyetoGeorge’sdishonestact.

Otherstudents

• It is unfair toother studentswhoarehonest in their

academicwork.

Thetutor

• It involves cheating the tutor and abusing the trust

betweenteachersandstudents.

Thedepartment/university

• Itbreakstherulesof fairplay intheassessmentsystem

andunderminesthecredibilityofacademicwork.

• Itdamagesthereputationofthedepartment/university


30

Step 4

Identify

alternativesand

assesstheir

effectsoneach

stakeholder.

• Option1

AgreeingtoGeorge’ssuggestioninmanipulatingdata.

• Option2

DissuadingGeorgefromtheideaandencouraginghimto

seekadvicefromthetutor.

• Option3

DecliningGeorge’ssuggestionandseekingalternative

waystoremedythesituation,suchasinvitingmoretarget

groupstotakepartinthestudyorimprovingtheresearch

design.

Step 5

Compareand

evaluateeach

alternativewith

referenceto

thefourPLUS

standards.

Professionalcodesofconductandcompanyrules

• Thisstandarddoesnotapplydirectlytothescenarioas

it isnot inaworkplacesetting. However,Elaineshould

notethatmanipulatingreportdataviolatesresearchethics

anddeviatesfromanyethicalcodes.

Legalrequirements

• Again, thisdoesnot applydirectly. However,Elaine

shouldbeawarethatdatamanipulation isconsidereda

seriousviolationoftheuniversity’sregulations.

Uncompromisingself-values

• Covering upGeorge’s dishonest behaviour is not

commensuratewithvaluessuchashonesty,responsibility

andfairness.

SunshineTest

• Elainehas toconsiderwhethershecoulddisclose the

options/decisions toher friendsand familymembers.

If suchopennessmakesher feeluncomfortable, she

shouldnotsupportGeorge’sactions.

• HavingscrutinizedOption1usingtheabovestandards,

probablyElainewould feeluneasyaboutdiscussing it

openly.


31

Step 6

Selectthe

appropriate

courseofaction.

•With reference to thePLUSstandards,Elaineshould

selectoptions2or3, i.e. topersuadeGeorge toseek

advice fromthe tutoror toseekremedialmeasures for

theproject.

ApplyingKidder’sguidelines

Let’sconsideranotherscenariowhich involves“rightversusright”decisionsby

applyingKidder’sguidelines.

Exercising discretion over ethical dilemmas


Linda is a committee member of the Student Hostel Association.

Her roommate Annie has asked a friend to stay overnight at the hostel,

without paying the residence fee. The committee happened to make a

snap decision to inspect the hostel that night. Annie asks Linda to help her

avoid paying the penalty but Linda declines to do so.

1 Recognisethatthereisamoralissue

Lindahastodecidewhethertoperformherroleasacommitteememberof

theStudentHostelAssociationdutifullyorturnablindeyetoAnnietohelp

heravoidpayingthepenalty.Thisisamoralissueasherdecisionwillhave

an impactonothersandchallengepersonalvaluessuchasresponsibility

andhonestyifsheoptstoacceptherfriend’swrongdoing.

2 Determinetheactor(s)

LindaandAnniearetheactors.FromAnnie’spointofview,shecanavoid

paying thepenalty ifLindaoffershelp. However,offeringhelp toAnnie

wouldviolatestudenthostelregulationsandencourageimproperbehaviour

amongresidents.


32

3 Gathertherelevantfacts

Therearestudenthostelregulationsgoverningtemporaryresidenceofnon-

residentialstudents.Forexample,theyareallowedtostayovernightafter

registrationandpayingthefees.

Beingacommitteememberof theStudentHostelAssociation,Lindahas

thedutytomanagethehostelandensurecompliancewiththeregulations.

4 Testforrightversuswrongissues

Inasking forLinda’shelp tocoverupawrongdoing,Anniehasdeviated

frommoral rectitudeandviolated thehostel regulations. However, from

Linda’spointofview,sheisfacingarightversusrightdilemma.

5 Testforrightversusrightparadigms

Lindaneedstomakeatoughdecisionwhich involvesarightversusright

challenge.

•Weighingtheidealofjustice(i.e.complyingwiththeprincipleoffairness

bypersuadingAnnietotellthetruth/paythefine)againstthecompeting

imperativeofmercy(i.e.respondinginacompassionateandempathetic

mannerby turningablindeyeandhelpingAnnie toavoidpaying the

penalty)and;

• Tellingthetruth(i.e.performingherroleasahostelassociationcommittee

memberinanhonestandtruthfulmanner)againstmaintainingloyalty(i.e.

faithfulnesstofriendship).

6 Applyingtheresolutionprinciples

Lindacanapplytheprincipleswhichshoulddirecthertothesamedecision

i.e.compliancewiththeregulationswouldbebestforthehostelresidents

(ends-based thinking)andbecommensuratewith thehighestsenseof

principle(rule-basedthinking).

7 Investigatethe“tri-lemma”options

Lindacanexploreathirdwaythroughthisdilemma–forexample,handling

thedilemmatactfullywhilemaintaininggood interpersonal relationships

andupholding integrity. Shecan talk toAnniewhomaybewellaware

of theethicalprinciplesbutdoesnotobserve thembecauseofother

considerations.ShecanalsoaskAnnietoputherself inherpositionand

seehowshewouldmakethedecision.


33

8 Makethedecision

Lindacan turndownAnnie’s requestas itnotonlyviolates thehostel

regulationsbut also is not compatiblewithpersonal values suchas

responsibility,honestyandintegrity.Shecanalsodiscusstheissueopenly

withAnnieandworkoutsolutionstotheproblem.

9 Revisitandreflectonthedecision

BothLinda/Anniecanseek lessonsfromthedecision-makingprocessto

adjustthemoralcompassforhandlingsimilarornewchallengesinfuture.

Makingethicaldecisionscanbeadifficult task. Theneed tobuildupskills

inexercisingsound judgement is, therefore,ofparamount importance inhandling

ethicaldilemmas. Twodecision-making frameworkshavebeendiscussedand their

applicationsillustrated.

Thescenariosprovided in thissection focusmainlyonuniversitystudent life.

However, studentscanapply thesestrategies later inhandlingmorecomplicated

challenges in theworkplace. TheHongKongEthicsDevelopmentCentre<http://

www.icac.org.hk/hkedc/eng/library4.asp.>hasdevelopedcasestudiesonethical

managementinvariousindustriesandprofessions.Somecasestudiesrelatedtoyoung

peoplehandlingethical issuesintheworkplaceareprovidedinAppendix 4.Lecturers/

instructorsmaywish touse thesecases for tutorialdiscussion toenhancestudents’

understandingofthedecision-makingprinciplesandprocess.


34


35


36


37

Part 4Ethics in Action

Havingexaminedethicalchallengesand thedecision-makingprocess in the

previoussections,thispartfeaturespracticalstrategiesforputtingethicsintoaction.

Creatingapersonalethicalcodeisconsideredaneffectivewaytoreaffirmethical

commitments.Harvard’sMBAOathisusedasanexamplefordiscussion.Also,inthe

workplaceorasaprofessional, therearesomecommonlyacceptedstandards that

anindividualneedstotakeintoaccount.Thegeneralapproachtotheformulationofa

codeofconductintheworkplaceisoutlined.AnICACsamplecodeofconductisalso

providedforreference.

4.1 Personal ethical code

Acodeofconduct is intendedtobeacentralguideandreference insupportof

day-to-daydecisionmaking. Apracticalpersonalethicalcodehelps toclarifyone’s

ethicalprinciplesandguidesdisciplineddecisionsandactions.

AccordingtoHowardandKorver (2008),writingapersonalethicalcode involves

threesteps:

Step1:Draftingstandards

Thisstepinvolvesacriticalself-reflectionprocesstoclarifyone’sethicalsenseof

rightandwrongbysettingoutthepracticalstandardsthatonetrulybelievesin.

Step2:Testingstandards

Severaltestshelptofindoutwhetherthecodeisworthwhile:

• Check the logic. Will thestandardsholduptotests forreciprocity (Would

Iwantotherpeopletoapplythesameruletome?)anduniversality (Would I

wanteveryonetofollowthis?)

• Check for focus. Hasthecode includedtoomanystatements,making it

unmanageable?

• Test-drive for usefulness.Howwelldothestandardsoperateineveryday

life?Aretheypractical?


38

Step3:Refiningthecode

This istheprocesstocheckwhetherthecodesarewrittenpreciselyand

distinctivelysothattheycanprovideunambiguousstandardsandclearguidance

forconcreteactions. Also,anethicalhierarchy isspecified incase thereare

conflictsinthestandards,i.e.whichonetakesprecedence?

Harvard’sMBAOath

TheMBAgraduatesattheHarvardBusinessSchooldevelopedanOath in2009

whichdemonstrates thecommitmentofgraduates toethicalprinciplesbydrafting

theirownethicalcodes(AndersonandEscher,2010).Thedetailsofthecampaignare

availablein“MBAOathWebsite”<http://mbaoath.org/about/the-mba-oath/>.

Whendoctors,accountantsandlawyersgraduate,theyareexpectedtofollowthe

ethicalcodesoftheirprofessions.Whyshouldgraduatebusinessstudentsnotsignup

forabusinesscodeofethics?Thelong-termgoalofthecampaignistotransformthe

fieldofmanagement intoatrueprofession,one inwhichMBAsarerespectedfortheir

integrity,professionalismandleadership.Intheevent,overhalfthegraduatingclassof

around800studentsin2009signedthepledge.

Ashighlighted in the introductoryparagraph, theMBAgraduates realise that

theirdecisionsmayhavea far-reaching impactonthewell-beingof individuals inside

andoutsidetheenterprises,todayandinthefuture.Assuch,theytrytoreconcilethe

interestsofdifferentconstituencieswhilefacingdifficultchoices.

Thereare twoversionsof theMBAOath–aShort Version, thatboils theoath

downtothekeyideas,tomakeiteasiertoremember,andaFull Version thatprovides

backgroundoneachoftheeightcommitments.Theshortoneisasfollows:


39

MBA OATH – SHORT VERSION

Asamanager, my purpose is to serve the greater good by bringing people and resources together to create value that no single individual can build alone. Therefore I will seek a course that enhances the value my enterprise can create for society over the long term. I recognize my decisions can have far-reaching consequences that affect the well-being of individuals inside and outside my enterprise, today and in the future. As I reconcile the interests of different constituencies, I will face difficult choices.

Therefore, I promise:

• Iwill act with utmost integrity and pursue my work in an ethical manner.

• Iwill safeguard the interests of my shareholders, co-workers, customers, and the society in which we operate.

• Iwill manage my enterprise in good faith, guarding against decisions and behaviour that advance my own narrow ambitions but harm the enterprise and the societies it serves.

• Iwill understand and uphold, both in letter and in spirit, the laws and contracts governing my own conduct and that of my enterprise.

• Iwill take responsibility for my actions, and I will represent the performance and risks of my enterprise accurately and honestly.

• Iwill develop both myself and other managers under my supervision so that the profession continues to grow and contribute to the well-being of society.

• Iwill strive to create sustainable economic, social, and environmental prosperity worldwide.

• Iwill be accountable to my peers and they will be accountable to me for living by this oath.

This oath I make freely, and upon my honor.


40

There has been scepticismover

theeffectivenessandpracticabilityof the

Oath. Forexample,onecriticism is that

theoath’s finewordsare toothless– it

is reallyonlyat themanagement,board

or regulatoryagency level thatonecan

ensureethicalbehaviour inbusiness (TheEconomistNewspaperandTheEconomist

Group,20099).

Your students can join thedebate andmake their own comments on the

effectivenessof theMBAOath. TheycanalsoapplyHowardandKorver’s (2008)

proposalon the formulationofpersonalethicalcodes toexamine theMBAOath, for

examplebyconsideringthefollowingquestions:

•What do you think about the details of the pledge?

•Would the various clauses be meaningful in practice?

•Which clause(s) would you suggest to be added or deleted?

•What is your opinion of the students’ pledge?

•Do you think in the long-term it will influence their business behaviour?

4.2 Standards of behaviour in the workplaceIn theworkplace, standardsofbehaviourexpectedbyanorganisationof its

managementandemployeesareusuallysetoutinthe“codeofconduct”.

Acodeofconduct ismeant toclarifyanorganisation’smission, valuesand

principles, linking themwithstandardsofprofessionalconduct. Awell-writtenand

thoughtfulcodeprovidesclearguidelinesgoverningcorporateconduct inachieving

businessgoals.

Therearecompanieswhich include in theircodesofconductadetailedsetof

operatingprinciples formanagementandstaff to follow indealingswithcustomers,

suppliers,contractors,publicofficialsandanypartieswhohavearelationshipwiththe

company.Thebroadestformsofcodecoveralloftheaboveaswellasthecompany’s

policyregardingsocialissueswhichaffectthecommunityatlarge.

9 The Economist Newspaper and The Economist Group (2009) ‘Can managers be made more ethical?’, June 8th 2009.


41

FormulationofaCodeofConduct

Itisuptoeachindividualbusinessorganisationtodeterminetheethicalstandards

ofbehaviourofitsmanagementandemployees.Thecommonapproachistotakeinto

account legal requirements,acompany'sownethicalvaluesandgeneralcommunity

expectations.

Legal requirements: Abidingby the lawhas to be themost

fundamentalconsideration inmakingethicaldecisionsandthus formsa

crucialpartofthecodeofconduct.Forexample,tohelpstaffstayaway

fromcorruptionandmalpractice,statutoryprovisions relating tobribery

offencesneedtobehighlighted.

Ethical values:Ethicalbehaviouressentiallycomesdowntohonesty,

integrity, fairnessandsocial responsibilities. Theseare thebasicvalues

forresolvingdifficultlegalandethicalmatters.Theupholdingofanethical

cultureinlinewiththesestandardsisofcriticalinteresttotheorganisation

andstakeholdersalike.

Community expectations: There already exist established

standardsof practicegoverning the conduct of specific trades and

professionsaswellasspecial typesofbusinesscorporations. These

standards shouldbewell observed indevelopingeffectivecodesof

conductfororganisations.

Itshouldbenotedthatitisnotfeasibletoprescribeexhaustiveguidelinestocover

eachandeverysingleethicalconcernthatemployeesarelikelytofaceintheirwork.In

caseofdoubt,oneshouldconsiderseriouslywhetherornotitwouldsurvivedisclosure

andcriticalpublicscrutiny. Abreachofpersonalormoralethics thusmayextend

beyondaviolationoflegalrequirements.

Foranillustrationofhowcompaniesingeneralprovideethicalguidelinesforstaff,a

samplecodeofconductdevelopedbytheICACisprovidedinAppendix 5forreference.

Thekeycontentareastobecoveredare:


42

• PreventionofBriberyOrdinance

• Acceptanceofadvantages

• Entertainment

• Conflictofinterests

• Handlingconfidentialinformation

• Compliancewiththecode

Insummary,codesofconductofferan invaluableopportunity for responsible

organisationstocreateapositivepublic identity for themselves. Theyalsoencourage

discussionofethicsandequipemployeesbetter fordealingwiththeethicaldilemmas

andgreyareasthatareencounteredineverydaywork(EthicsResourceCentre,200910).

10Ethics Resource Centre (2009) ‘Why have a code of conduct?’, <http://www.ethics.org/resource/why-have-code-conduct>


4343

45

Appendix 1 - Teaching Notes

51

(Source:TheICACCorporateWebsite‘Anti-CorruptionLaws’,http://www.icac.org.hk/en/law_enforcement/acl/index.html)

POBO - Public sectorPublicservants1includeprescribedofficersandemployeesofpublicbodies.Prescribedofficersaresubject toSections3,4,5and10ofPOBOwhileemployeesofpublicbodies(e.g.powercompany,buscompany,hospital,etc)aresubjecttoSections4and5:

Section 3 NoprescribedofficerisallowedtosolicitoracceptanyadvantagewithoutthegeneralorspecialpermissionoftheChiefExecutive.

Section 4 Anypublicservantwhosolicitsoracceptsanyadvantageasaninducement toor reward forperformingdutiesshallbeguiltyofanoffence;theofferoroftheadvantageshallalsobeguiltyofanoffence.

Section 5 Anypublicservantwhosolicitsoracceptsanyadvantageasaninducementtoorrewardforgivingassistanceorusing influenceinmattersrelatingtoacontractshallbeguiltyofanoffence;theofferoroftheadvantageshallalsobeguiltyofanoffence.

Section 10 Anyprescribedofficerwhomaintainsastandardof livingorhasassetsnotcommensuratewithhisofficialemolumentsshallbeguiltyofanoffence.

IntheOrdinance:

• “Advantage” includesmoney, gifts, loans, commissions, offices, contracts,services, favoursanddischargeof liability inwholeor inpart,butdoesnot includeentertainment.

• “Entertainment”means theprovisionof foodordrink, forconsumptionon theoccasionwhen it isprovided,andofanyotherentertainmentprovidedatthesametime, forexamplesinginganddancing. AlthoughtheacceptanceofentertainmentdoesnotbreachthePOBO,individualgovernmentdepartments/publicbodieswillstillstipulatetheconditionsforstaff’sacceptanceofentertainment.

1 For definition of “public servant”, please refer to Cap 201 s 2 of the Prevention of Bribery Ordinance <http://www.legislation.gov.hk/blis_ind.nsf/WebView?OpenAgent&vwpg=CurAllEngDoc*201*64*201.1#201.1>

Appendix 2 - Understanding the POBO

52

POBO - Private sector• Noagent (usuallyanemployee)shallsolicitoracceptanyadvantagewithout the

permissionofhisprincipalwhenconductinghisprincipal’saffairsorbusiness; theofferoroftheadvantageisalsoguiltyofanoffence.

• “Advantage” includesmoney, gifts, loans, commissions, offices, contracts,services, favoursanddischargeof liability inwholeor inpart,butdoesnot includeentertainment.

• “Entertainment”means theprovisionof foodordrink, forconsumptionon theoccasionwhen it isprovided,andofanyotherentertainmentprovidedatthesametime,forexamplesinginganddancing.

53

Making Tough ChoicesThisexercisecomprisesatotalof10itemsdepictingscenariosinthedailylivesoftertiarystudentswhichmaypresentthemwithethicalchallenges.Youareaskedtoindicatetheextenttowhichyouagreeordisagreeonhowthescenariosshouldbehandled.

Scenarios Strongly agree

AgreeNeither

disagreenor agree

Disagree Strongly disagree

1 LindaisacommitteememberoftheStudentHostelAssociation.Her roommateAnniehasaskeda friend tostayovernightat thehostel,withoutpaying the residence fee.Thecommitteehappened tomakeasnapdecision to inspect thehostel that night.AnnieasksLinda tohelpheravoidpayingthepenaltybut Lindadeclines todo so.DoyouagreewithLinda’shandlingof thesituation?

2 Carriemanagestobecomeasummerinterninacompany,asarrangedby theStudentAffairsOffice (SAO) andsheaccepts theoffer.Beforethat,shehadappliedforanothersummerjobinalistedcompanywhichoffersbettertermsandshehasreceiveditsofferofemployment recently.Carrie, though feelingit isapity,declines thisofferasshedoesnotwant tobreakherpromiseandaffectthecredibilityoftheSAO.DoyouagreewithCarrie’shandlingofthesituation?

3 Davidhasworkedovernight toprepare forhis testanddecides toskipa lecturenextmorning.However, class attendance ismandatory.Heaskshis friendJoe tosignhisattendance forhim.Thoughsomewhatreluctant,JoeagreestohelpDavid.DoyouagreewithJoe’shandlingofthesituation?

4 Wayne isamemberofauniversity socialservice societywhosemajor duties aretoprovideprogrammeandadministrativesupport to a community centre.Whileorganizingahealthpromotionactivity forthecentrewhich requires theprocurementof uniforms for its participants,Waynerecommendshisuncle’scompanytobethesoleprovidersinceanattractivepricehasbeenoffered.Wayneconsidersthatthedealbenefitsbothpartiesanddoesnotbothertosourceotherpossiblesuppliers.Hehasnotdisclosedhisrelationshipwithhisuncleto thecentre.DoyouagreewithWayne’shandlingofthesituation?

Appendix 3 - A Self-reflection Exercise

54


AgreeNeither

disagreenor agree


5 June is the chair of a Students’ Union(SU) and is seeking sponsorships fromcommercial companies to support theorganizationofSUactivities.Acompanyofferssponsorshipof$5,000,butasksJunetosolicit50validcreditcardapplicationsin return.Wishingtosecure the fundingassoonaspossible, Juneaccepts theofferwithoutmakingreferencetotheuniversity’sguidelinesonacceptingsponsorshipsbystudentsocieties.Shealsoaskscommitteemembersof theSUtosubmitapplicationsforthecreditcard.DoyouagreewithJune’shandlingofthesituation?

6 Joey is thevice-chairofastudentsocietyand is responsible for buying iPods aspresents for various competitions to beheld throughout the coming year.Whilenegotiatingtheprice,ashopoffersaspecialdiscounttoJoeyforpurchasingan iPodforherownusebutnodiscountwillbeofferedforother items.Considering that this isamatterofbusinesspromotion,Joeyacceptstheofferwithoutreportingthematter tothechairofthesociety.DoyouagreewithJoey’shandlingofthesituation?

7 TheMathematics Society has reserved$1,000fromitsannualbudgetfororganizingsocial gatherings formembers. Thomas,thechair,decides tospend themoneyona celebration partywhich involves onlycommitteemembers.Jack, thevice-chair,disagreeswithThomas’suggestionas themoneycomes largely fromthemembershipfees.DoyouagreewithThomas’handlingofthesituation?

8 Michael isgoing tosubmithis termpaperbuthe is farbehindschedule.Oneofhisclassmatestellshimaboutthe“thesis-writingservices”availableonthe Internetandsayshewillgetaqualitypaperwhichwillavoidplagiarismdetection if he pays a higherprice. Inviewof thetightschedule,Michaelplanstousetheservice.DoyouagreewithMichael’shandlingofthesituation?

55


AgreeNeither

disagreenor agree


9 George,ElaineandDavidaremembersofagroupproject.George is responsible forcollectingandanalysing thedata.Due toanunsatisfactory response-rate,Georgeplanned tomanipulate some figures andpresent them in the report inorder to fulfiltheassignmentrequirements.HetoldElainehisplanandaskedhernot todisclose it toanyone, includingDavid.Elaine felt ratheruneasyabout thisbutdidnotstopGeorgefromdoing it.DoyouagreewithElaine’shandlingofthesituation?

10 Simon recently got a part-time job at acinemaand isentitled to two free ticketseachmonthasemployeebenefits.Astherearenoregulationsgoverningthe identityofthebeneficiaryof thetickets,hethinks it isa“win-win”situationtoselltheticketstohisclassmatesata50%discount.DoyouagreewithSimon’shandlingofthesituation?

Calculation of Scores


AgreeNeither

disagreenor agree


1-2 5 4 3 2 1

3-10 1 2 3 4 5

Analysis

Thisactivityisnotapersonalitytestandtheanalysisisforgeneralreferenceonly.Theexerciseaimstostimulatestudents’ thinkingaboutperspectivesonethicalchallengesrelatedtopersonalintegrityfacedbythem.

Score

41-50 You are an upright and honest person who will not give up your principles for personal benefits. You can uphold your principles even when faced with temptations.

21-40 You are a prudent person but you may sometimes turn a blind eye to irregularities. You may not be able to always stick to your principles or follow regulations.

10-20 You are a person of loose principles. Being indecisive in making up your mind when encountering ethical dilemmas, you can only perceive the immediate consequences sometimes but fail to make proper judgment from long-term perspectives.

56

Brie

f ana

lysi

s of

the

scen

ario

s

Sce

nari

os

Per

spec

tive

s

Is it

an

ethi

cal i

ssue

?N

atur

e o

f co

ncer

n

Effectsonothers

Com

prom

iseon

personalvalues

Ethicalconcern

(Lying/deception,

personalgain,

potentialconflictof

interest,etc.)

Ethicaldilemmas

(Rightvs.Right)1

Moraltemptations

(Rightvs.W

rong)2

1.Scenariosinvolving“Rightvs.Right”decisions(Ethicaldilemmas)

1Lindaisacom

mitteemem

berof

theStudentHostelAssociation.Her

room

mateAnniehasaskedafriendto

stayovernightatthehostel,without

payingtheresidencefee.Thecom

mittee

happ

enedto

makeasnapdecision

toinspectthehostelthatnight.A

nnie

asksLindato

helpheravoidpayingthe

penaltybutLindadeclinesto

doso.D

oyouagreewithLinda’shandlingofthe

situation?

Violationofstudent

hostelregulations

andencouraging

improp

er

behaviouram

ong

residentsifLinda

offershelp.

Com

prom

ising

personalvalues

suchashonesty

andbeing

r esponsibleif

Lindaoffershelp

asshehasaduty

tomaintainhostel

regulations.

Sheltering

a friend’s

wrongdo

ingwhich

involveslyingasa

cover-up.

Fro

m L

ind

a’s

po

int

of

view

: (d

)Fr

om

Ann

ie’s

p

oin

t o

f vie

w: (

c)–

dev

iati

on

fro

m

mo

ral r

ecti

tud

e

1 R

ight

vs.

Rig

ht d

ilem

mas

(Kid

der,

2003

)

(a) T

ellin

g th

e tr

uth

vs. m

aint

aini

ng lo

yalty

(b

) Con

side

ring

the

need

s of

the

indi

vidu

al v

s. c

onsi

derin

g th

e ne

eds

of th

e co

mm

unity

(c

) Acc

ount

ing

for

shor

t-te

rm v

s. lo

ng te

rm c

onsi

dera

tions

(d

) Wei

ghin

g th

e id

eal o

f jus

tice

agai

nst t

he c

ompe

ting

impe

rativ

e of

mer

cy.

2 T

hree

way

s to

be

wro

ng (K

idde

r, 20

03)

(a

) Vio

latio

n of

law

(b

) Dep

artu

re fr

om tr

uth

(c

) Dev

iatio

n fro

m m

oral

rect

itude

57

Sce

nari

os

Per

spec

tive

s

Is it

an

ethi

cal i

ssue

?N

atur

e o

f co

ncer

n

Effectsonothers

Com

prom

iseon

personalvalues

Ethicalconcern

(Lying/deception,

personalgain,

potentialconflictof

interest,etc.)

Ethicaldilemmas

(Rightvs.Right)1

Moraltemptations

(Rightvs.W

rong)2

2Carriem

anag

estobecom

easummer

inter nin a co

mpan

y ,as arrang

edby

the Studen

t Af fairsO

f fice(SAO) an

dsheacceptstheoffer.Beforethat,she

hadappliedforano

thersum

merjo

bin

a listedcompan

y which

of fe

rsbetter

term

sandshehasreceived

itsofferof

employm

entrece

ntly.Carrie,tho

ugh

feelingitisapity,de

clinesthisofferas

she do

esnotwant tobr eakherpr omise

and affectthecr edibilityoftheSAO. Do

youagreewithCarrie’shandlingofthe

situation?

Adm

inistrative

prob

lemsforthe

companyifCarrie

gives upthe

internship.

SAOmayhave

difficultiesinliaising

withcom

panies

forinternship

arrangem

ents

infutureiftheir

candidatesarenot

r eliable.

Sacrificing

principlessuchas

trustworthiness

if theinternship

agreem

entis

breached.

Br eakinga

prom

isewhich

couldbeaform

of

deception.

[Note:Aninsincere

prom

iseisaform

ofdeception.

(How

ardand

Korver,p.20)]

(b)

Fro

m A

nnie

’s

po

int

of v

iew

: (c)

–d

evia

tio

n fr

om

m

ora

l rec

titu

de

Davidhasworkedovernighttoprepare

forhistestanddecidesto

skipa

lecturenextmorning.H

owever,class

attendanceismandatory.H

easkshis

friendJoetosignhisattendanceforhim.

Thoughsom

ewhatreluctant,Joeagrees

tohelpDavid.D

oyouagreewithJoe’s

handlingofthesituation?

Violationof

university

regulations

andprom

oting

improp

er

behaviouram

ong

students.

Com

prom

ising

personalvalues

suchashonesty

and being

responsibleas

fraudulent signing

isequivalentto

cheating.

Fraudulentsigning

ofattendancefor

anotherpersonis

atypeofacademic

dishonesty

whichinvolves

deception.

Fro

m J

oe’

s p

oin

t o

f vi

ew: (

a)Fr

om

Dav

id’s

p

oin

t o

f vie

w: (

c)–

dev

iati

on

fro

m

mo

ral r

ecti

tud

e

58

Sce

nari

os

Per

spec

tive

s

Is it

an

ethi

cal i

ssue

?N

atur

e o

f co

ncer

n

Effectsonothers

Com

prom

iseon

personalvalues

Ethicalconcern

(Lying/deception,

personalgain,

potentialconflictof

interest,etc.)

Ethicaldilemmas

(Rightvs.Right)1

Moraltemptations

(Rightvs.W

rong)2

2.Scenariosinvolving“Rightvs.W

rong”decisions(moraltemptations)

2.1Scenarioswhereapotentialconflictofinterestexists

4Wayneisamem

berofauniversity

socialservicesocietywhosemajor

dutiesaretoprovideprogram

meand

administrativesupp

orttoacommunity

centre.W

hileorganizingahealth

prom

otionactivityforthecentrewhich

requirestheprocurem

ento

funiform

sforitsparticipants,W

aynerecommends

hisuncle’scompanyto

bethesole

providersinceanattractivepricehas

beenoffered.W

ayneconsidersthat

thedealbenefitsbothpartiesanddo

es

not b

othertosourceotherpo

ssible

supp

liers.H

ehasnotd

isclosedhis

r elationshipwithhisuncleto

thecentre.

DoyouagreewithW

ayne’shandlingof

thesituation?

Unfairtoother

companies

supp

lyinguniform

sastheyhavenot

beeninvitedto

giveaquotation

forthisexercise.

Com

prom

ising

personalvalues

suchashonesty,

trustworthiness,

responsibilityand

fairness.W

ayne

hasbeenentrusted

withsourcingthe

bestsupplierin

term

sofquality

andprice,buthe

hasnotp

erform

ed

hisduty.

Aconflictof

interestmay

existasaw

arding

thecontractto

Wayne’suncle

maynotprovide

thebestbenefits

tothecentre

(Note:W

ayne

shoulddeclare

therelationship

withhisrelativein

ordertoavoidthe

potentialconflictof

interest.)

Fro

m W

ayne

’s

po

int

of

view

: (a)

vi

ola

tio

n o

f la

w

(rul

es)

Non-observance

oftheprocurem

ent

regulationsthough

Waynemaybe

ignorantofthem.

59

Sce

nari

os

Per

spec

tive

s

Is it

an

ethi

cal i

ssue

?N

atur

e o

f co

ncer

n

Effectsonothers

Com

prom

iseon

personalvalues

Ethicalconcern

(Lying/deception,

personalgain,

potentialconflictof

interest,etc.)

Ethicaldilemmas

(Rightvs.Right)1

Moraltemptations

(Rightvs.W

rong)2

5JuneisthechairofaStudents’Union

(SU)andisseekingspo

nsorshipsfrom

commercialcom

paniesto

suppo

rt

theorganizationofSUactivities.A

companyoffersspo

nsorshipof$5,000,

butasksJuneto

solicit50

validcredit

car dapp

licationsinreturn.W

ishing

tosecurethefundingassoonas

possible,Juneacceptstheofferwithout

makingreferencetotheguidelinesof

theuniversityandSUonaccepting

sponsorshipsbystudentsocieties.She

alsoaskscommitteemem

bersoftheSU

tosubmitapplicationsforthecreditcard.

DoyouagreewithJune’shandlingofthe

situation?

Improp

erhandling

ofspo

nsorship

(from

the

commercial

sector),whichmay

affecttheimageof

theSU/University.

Som

ecommittee

mem

bersmayfeel

grouppressureto

fillintheapplication

form

swhichthey

wouldnothave

doneotherwise.

Com

prom

ising

personalvalues

suchashonesty,

integrityand

trustworthiness.

Potentialriskof

deception/lying

sinceJuneneeds

tocoverupthe

sponsorship

receivedwithout

goingthroughthe

prop

erprocedure.

Fro

m J

une’

s p

oin

t o

f vi

ew: (

a)

vio

lati

on

of

law

(r

ules

)Non-com

pliance

withtheguidelines

onaccepting

sponsorshipsby

studentsocieties

oftheuniversity.

60

Sce

nar

ios

Per

spec

tive

s

Is it

an

eth

ical

issu

e?N

atu

re o

f co

nce

rn

Effectsonothers

Com

prom

iseon

personalvalues

Ethicalconcern

(Lying/deception,

personalgain,

potentialconflictof

interest,etc.)

Ethicaldilemmas

(Rightvs.Right)1

Moraltemptations

(Rightvs.W

rong)2

6Joeyisthevice-chairofastudent

societyandisresponsiblefor

buyingiPod

saspresentsforvarious

competitionsto

beheldthroughoutthe

coming year.W

hilenegotiatingtheprice,

a shop

offersaspecialdiscounttoJoey

forpurchasinganiPod

forherow

nuse

but nodiscountwillbeofferedforother

items.Consideringthatthisisamatter

ofbusinessprom

otion,Joeyaccepts

theofferwithoutreportingthematterto

thechairofthesociety.Doyouagree

withJoey’shandlingofthesituation?

Joeyhasmade

a personalgain

attheexpenseof

thesocietysince

a betterdealfor

purchasingiPod

s(as presents)

mayhavebeen

achievedthrough

further negotiation.

Com

prom

ising

personal

valuessuchas

honesty ,being

responsibleand

trustworthiness.

Aconflictof

inter estmayexist

asJoeybenefits

fromthe‘special’

discountowingto

herofficialdutyfor

procurem

ent.

Fro

m J

oey

’s

po

int

of

view

: (c)

d

evia

tio

n f

rom

m

ora

l rec

titu

de

7The MathematicsSocietyhasreserved

$1,000

from

itsannualbudgetfor

organizingsocialgatheringsfor

mem

bers. T

homas,thechair,decides

tospendthemoneyonacelebration

party whichinvolvesonlycommittee

mem

bers.Jack,thevice-chair,

disagreeswithThomas’suggestion

asthemoneycom

eslargelyfromthe

mem

bershipfees.D

oyouagreewith

Thom

as’ handlingofthesituation?

Mem

bersof

thesocietywho

havepaidthe

mem

bershipfees

will bedeprivedof

therightto

jointhe

gathering.

Com

prom

ising

personalvalues

suchasfairness,

integrityand

responsibility.

As thechairofthe

Society,Thomas

shouldensurethe

prop

eruseofits

funding.

Aconflictofinterest

mayexist.T

homas

asthechairand

hiscommittee

mem

bersenjoy

theprivilegeof

participatinginthe

celebrationactivity

attheexpense

ofthegeneral

mem

bers.

Fro

m T

ho

mas

’ p

oin

t o

f vi

ew: (

c)

dev

iati

on

fro

m

mo

ral r

ecti

tud

e

61

Sce

nari

os

Per

spec

tive

s

Is it

an

ethi

cal i

ssue

?N

atur

e o

f co

ncer

n

Effectsonothers

Com

prom

iseon

personalvalues

Ethicalconcern

(Lying/deception,

personalgain,

potentialconflictof

interest,etc.)

Ethicaldilemmas

(Rightvs.Right)1

Moraltemptations

(Rightvs.W

rong)2

2.2Scenarioswhichinvolvedeception

8Michaelisgoingto

submithisterm

paperbutheisfarbehindschedule.

Oneofhisclassmatestellshimabo

ut

the“thesis-writingservices”available

ontheInternetandsayshewillgeta

qualitypaperwhichwillavoidplagiarism

detection ifhepaysahigherprice.In

view

ofthetightschedule,Michaelplans

tousetheservice.Doyouagreewith

Michael’shandlingofthesituation?

Abusingthetrust

betweenteachers

andstudents.

Breaking the

rulesoffairplayin

theassessment

system

which

causesinjusticeto

otherstudents.

Foregoing

principlessuch

ashonesty,

trustworthiness

andfairness.

Purchasingpapers

fromtheInternet

ischeatingand

plagiarizing,a

typeofacademic

dishonestywhich

involvesdeception.

(c)

62

Sce

nari

os

Per

spec

tive

s

Is it

an

ethi

cal i

ssue

?N

atur

e o

f co

ncer

n

Effectsonothers

Com

prom

iseon

personalvalues

Ethicalconcern

(Lying/deception,

personalgain,

potentialconflict

ofinterest,etc.)

Ethicaldilemmas

(Rightvs.Right)1

Moraltemptations

(Rightvs.W

rong)2

9George,ElaineandDavidaremem

bersof

agroupproject.Georgeisresponsiblefor

collectingandanalysingthedata.D

ueto

anunsatisfactoryresponse-rate,George

plannedtomanipulatesomefiguresand

presentthemintherepo

rtinorderto

fulfil

theassignmentrequirements.H

etoldElaine

hisplanandaskedhernotto

discloseitto

anyone,includingDavid.E

lainefeltrather

uneasyabo

utthisbutdidnotstopGeorge

fr omdoingit.D

oyouagreewithElaine’s

handlingofthesituation?

Abusingthetrust

betweenteacher/

studentand

amongproject

team

mem

bers.

Breakingthe

rulesoffairplayin

theassessment

system

and

underm

ining

thecredibilityof

academ

icwork.

Sacrificing

principlessuch

ashonesty,

trustworthiness

andfairness.

Covering up

George’s

ideaabo

ut

manipulating

therepo

rtdata

violatesresearch

ethicsandis

regardedasan

acto

facademic

dishonesty.

(c)

10Simonrecentlygotapart-tim

ejobata

cinemaandisentitledto

twofreetickets

eachmonthasem

ployeebenefits.A

sthere

arenoregulationsgoverningtheidentity

ofthebeneficiaryofthetickets,hethinks

it isa“win-win”situationtosellthetickets

tohisclassmatesata50%

discount.Do

you agreewithSimon’shandlingofthe

situation?

Theinterests

andreputation

ofthecinema

willbeharmed

bythesellingof

complimentary

tickets.

Sacrificing

principlessuch

ashonestyand

trustworthiness.

Abusingthe

employeebenefits

schemewhich

mayinvolve

deception.

(c)

63

AvailableintheHongKongEthicsDevelopmentCentre,ICAC.<http://www.icac.org.hk/hkedc/eng/library4.asp.>

Case Ref: 147

Building a Problem Peter is theChiefEngineerofahotel.Recently,he takesuparenovationproject forthehotelmain lobby.Theprojectcosts fivemilliondollars.Jackson, theproprietorofaconstructionanddecorationcompany, is thecontractorof therenovationwork.Customarytothetradeatthebeginningoftheproject,a“GodWorshipping”ceremonywasheldbyJacksoninthehopethattheprojectwillbecarriedoutsmoothlyandsafely.Peterandhissubordinatesare invitedtoattendtheceremony.Duringtheceremony,JacksonoffersPeter a redpacket of $30,000as a tokenof thanks forPeter’sassistanceinawardinghimthisbigproject.Peteracceptstheoffergratefully.

Peterinspectstheprogressoftheprojectonemonthlaterandnoticesthatthequalityofmarbleusedforthelobbyissubstandardanddeviatesfromthetenderspecifications.Due to the tightscheduleandcost implications,Jackson is reluctant to replace themarble.Tocoverupthematter,Jacksonagrees to rebate2%of theprojectsumtoPeterashisrewardtoturnablindeyetothesubstandardwork.Althoughbewildered,Peter instantly agrees to thedeal verbally soasnot todestroy theharmoniousrelationshipwithJackson.

Case Analysis IfPeterdoesnothavethepermission fromhishotel toaccept theredpacket,bothPeterandJacksonareinbreachofSection9ofthePOBO.Petercommitsanoffenceofacceptingabribe forabusinghisofficialcapacity toawardrenovationprojects toJackson;andJacksoncommitsanoffenceofofferingabribe.

Althoughtheredpacket isacceptedduringthe“GodWorshipping”ceremony,Petercannotexcusehimselfbyclaimingthattheacceptance is justifiedunderthecommonpracticeof thetradebecausetradecustomwillnotbeacceptedasadefenceunderthePOBO.According toSection19of thePOBO, it isnotadefence toclaim thatanyadvantageacceptedoroffered iscustomary inanyprofession, trade,vocationorcalling.Thecourtshallmakethe judgementbasedonwhetherpermissionhasbeengivenbytherecipient’sprincipal.

Theverbalagreement reached tocoverup thesubstandardwork issufficient foracorruptioncasedespite the fact thatPeterhasnotactivelysolicited forandmayeventuallynotbeabletoreceivethecommissionfromJackson.

Appendix 4 - Case studies on ethical management

64

Case Ref: 150

A Rotten Bargain John is theheadchefof aChinese restaurant inahotel and responsible for thepurchaseoffoodtomeettherestaurant’sneeds.Inanalumnireunion,JohnmeetshisoldclassmateNelson,who isa foodsupplier tovarious foodstallsandrestaurants.BeforeChristmas,NelsonsendsJohnabighamperandindicatesthathewouldliketobeoneofthefoodsuppliersofthehotel.

Shortlyaftertheirreunion,John’shotel launchesa“ShanghaiFoodFestival”campaigntopromoteitsbusiness.Johnisbusilyengagedincontactingthesupplierstoobtainthebestpossiblepricesandqualityoffoodstuff.AspartofhisenquirieshecontactsNelsonwho,keen tosecure thebusiness,askshisold friend toprovidehimwith thecostssubmittedfromothersuppliers.Johnhesitatesbut iseventuallyconvinced,byNelson,thatthereasonfordoingsoistosimplyensurethatthehotelreceivesthebestpossibleprice.

In returnNelsonalsoprovidesJohnwithanadded incentive forhis,quiteminimal,assistance.Nelsonpromises thathewould rebate10%of the total valueof theorderanddepositdirectly toJohn’spersonalaccount.GivenJohn’sown financialpredicament,hedulyagrees.

Case Analysis BothJohnandNelsonareinbreachofSection9ofPOBO.Johncommitsanoffenceofacceptingabribewithoutthehotel’spermissionforabusinghisofficialcapacitytoleakbidders’informationtoNelsonandNelsonalsocommitsanoffenceofofferingabribe.Bidders’orclients’informationisofvaluetothehotelandanystaffshouldstrictlyfollowtheguidelineslaiddownbythehotelinprotectingconfidentialinformation.

Johnshould followthehotel’scodeofconduct inaccepting theChristmashamperduring festiveoccasion toavoidanyconflictof interest.Heshouldalsoheed thesweeteningprocess initiatedbyNelson’sofferof theChristmashamperat theonset.Acceptingsmallgiftsand favourswillput the recipient inanobligatoryposition toreciprocateandthuscompromisehisobjectivityincarryingouthisduties.

65

Case Ref: 151

A Break of Trust Nancy,asalesassistantofajewelleryshop,isgoingtomarryherfiancé,Edward,nextyear.Edward,anadventurousperson,likestryinghisluckatthestockmarket.However,hehasrecentlybeenoutof luckandnowowesa loansharka largesumofmoney.The loansharkthen introducesEdwardtoamemberofacriminalsyndicate involvedintheproductionofcounterfeitcreditcards.Inordertorepaytheloan,Edwardagreestoassist thesyndicate incollectingcreditcardholders’personaldata fromNancy’sjewelleryshop.

EdwardproposestoNancythatifsheagreestocapturethecustomers’creditcarddataattheshopbyusingaskimmerprovidedbythesyndicate,theybothwillbeofferedarewardof$500foreachsetofdata.Moreover, thesyndicatepromisesthat ifNancyfurtherhelpsthemusecounterfeitcreditcardsat theshopto“buy” jewelleryworthamilliondollars,Nancywillbepaid$50,000.

EdwardtellsNancythatthis istheonlywaythathecan“turnanewleaf”,andNancyfindsitdifficulttorefuse.

Case Analysis AlthoughEdwardneedsmoney topay thedebts,Nancyshouldhavedeclinedhissuggestion. It isanoffenceunderSection9ofPOBOforanemployeetoacceptanadvantage in relation tohisofficialdutywithouthisemployer’spermission. IfNancyaccepts thereward forassistingthesyndicate tocollectcustomers’creditcarddataorusecounterfeitcreditcardsat the jewelleryshop,shewouldhavecommitted theoffence.Shemayalsocommitanothercriminaloffenceofpossessingaskimmer formanufacturingcounterfeitcreditcards.

NancyshouldalsobeawareoftheprovisionsofthePersonalData(Privacy)Ordinancewhichdonotallowuserstousethepersonaldata incontraventionof thepurposeofcollectionwithouttheconsentofdatasubject.

Besides,occurrenceofsuch leakageofcustomers’creditcarddatawilldefinitelyunderminetheconfidenceof localcustomersandforeignvisitors,ruiningHongKong’sreputationasashoppers’paradise.

66

Case Ref: 152

Good Relations with Complications Given the increasingdemandof thehotelguests for local tourservices, thehotel’sseniormanagementhasdecidedtosetupaconsignmentcornerforatravelagencytodealwiththeserequests.Janice,thehotel’sMarketingManager,isassignedthetaskofapproachinganumberoftravelagenciestodiscussthisexcitingbusinessopportunity.

Itseemsonlynatural,therefore,forJanicetocallTommy,herbrother-in-law,toenquireastowhetherthetravelagencyheworksforwouldbeinterested.

ForTommy, thecompany’sperformance, in themidst of a recession, hasbeenparticularlypoor.AndasitsBusinessDevelopmentManager,thepressureforhimtofindasolutionhas,oflate,intensified.TheprospectofwinningtheconsignmentcomesasahugerelieftoTommyand,havingexplainedtoJanicehowmuchitmeanstothesurvivalofhisowncareer,urgesher togrant theconsignmentcontract tohis travelagency.BelievingTommy’sagencyisasgoodasanyothershehascontactedandnoonewoulddiscoverherrelationshipwithTommy,thedecisionisaneasyoneforJanicetomake.

Amonthlater,asatokenofgratitude,TommypresentsJaniceatourpackagetoHawaiiasherbirthdaypresent.

Case Analysis Janiceshouldhaveobservedhercompany’sinternalguidelinesondeclarationofconflictof interestand refrained frombeing involved in thegrantingofcontract.Conflictofinterestsituationssuchasthis,ifnotdealtwithproperly,mayeasilyleadtobribery.

UnderSection2of thePOBO,a tourpackage isanadvantage.Accepting the tourpackageforgrantingthecontractwillonlybelegalwiththepermissionofhercompany.GiventhatJanicehasalreadyassistedherbrother-in-lawinsecuringthebusinessdeal,subsequentacceptanceofthetourpackageleavesJaniceandTommyliabletoaPOBOSection9offenceastheacceptorandofferorofanillegaladvantage.

67

Case Ref: 154

A Happy Coincidence Cindy joinedagarment retailinggroupasa traineesincegraduating fromsecondaryschoolseveralyearsago.Shehasworked invariouspostsandhas recentlybeenpromotedtotherankofpersonnelmanager.

Thecompany isplanningtoexpand itsnumberofboutiquesthroughoutHongKong.Cindyandoneofhersubordinateshavebeenentrustedwiththetaskofhandlingtherecruitmentdriveforshopmanagersandsalesassistants.

Duringadayofinterviews,Cindysuddenlyrealizes,tohergreatsurprise,thatoneoftheapplicants isherrelative.Sheseesthesituationasahappycoincidenceand,withoutinforminganyonewithin thecompanyof their relationship,conducts the interviewherself.Shealsocommentsfavourablyonherrelative’sperformanceattheinterview.

Case Analysis Cindyisresponsibleforconductingtheinterviewbutgiventhatoneoftheapplicantsisherrelative,there isaconflictof interest.Cindyshouldhavedeclaredtothecompanytheirrelationshipasearlyaspossibleandobservethecompany’scodeofconductovertheissueofconflictofinterest.

EventhoughCindyacts impartiallyandherrelativeturnsouttobethebestcandidateintheselectionexercise,Cindyisstillinvolvedinaperceivedconflictofinterestsituationandmayalsobeperceivedtobeexertingherinfluenceovertheinterview.Peoplemaythink thatshe isbeingunfair to theotherapplicants.Cindyshoulddemonstrateherimpartialitybyavoidinganddeclaring theconflictof interest inaccordancewith thecompany’sguidelines.

68

(Company Name) Code of Conduct

TheCompanybelievesthathonesty,integrityandfairplayareimportantcompanyassetsinbusiness. AllstaffhavetoensurethattheCompany’sreputation isnottarnishedbydishonestyorcorruption.ThisCodesetsoutthebasicstandardofconductexpectedofall staff and thecompanypoliciesonacceptanceof advantagesanddeclarationofconflictofinterestbystaffinconnectionwiththeirofficialduties.

2. UnderSection9(1) of thePreventionofBriberyOrdinance, an employeewhosolicitsoracceptsanadvantageinconnectionwithhisworkwithoutthepermissionofhisemployermaycommit anoffence. The term “advantage” isdefined in theOrdinance and includesmoney, gift, loan, fee, reward, employment, contract,serviceandfavour.ThepersonofferingtheadvantagemayalsocommitanoffenceunderSection9(2)oftheOrdinance.

3. An employeewho,with intent todeceive his employer, falsifiesdocuments orfurnishesfalseaccountingrecordsmaybeguiltyofanoffenceunderSection9(3)oftheOrdinance.

4. It isthecompanypolicythatstaffshouldnotsolicitoracceptanyadvantagefromanypersons havingbusinessdealingswith theCompany (e.g. clients, suppliers,contractors).However,staffareallowedtoaccept(butnotsolicit)thefollowinggiftsofferedvoluntarily:

(a) advertisingorpromotionalgiftsofanominalvalue;or

(b) giftsgivenonfestiveorspecialoccasionssubjecttoamaximumlimitof$XXXinvalue.

5. Staffshoulddeclineanofferofagiftiftheacceptancecouldaffecttheirobjectivityinconductingthecompany’sbusiness,orinducethemtoactagainsttheinterestofthe company, or lead to allegationsof impropriety. If a staffmemberwishes toacceptagiftnotcoveredinparagraph4,heshouldseekpermissioninwritingfrom(nameand/orpostofaseniorstaff).

6. Asdefined inSection2of thePreventionofBriberyOrdinance, “entertainment”referstofoodordrinkprovidedforimmediateconsumptionontheoccasion,andofanyotherentertainmentprovidedatthesametime.Althoughentertainment isanacceptable formofbusinessandsocialbehaviour,staffmustnotaccept lavishorfrequent entertainment frompersonswithwhom the company hasbusinessdealings(e.g.suppliersorcontractors)toavoidplacingthemselvesinapositionofobligationtotheofferor.

7. A conflict of interest situation ariseswhen theprivate interest of a staffmembercompetesor conflictswith the interest of the company. Private interest includesboth the financial andpersonal interests of the staffmember and thoseof hisconnections. Connections include familymembers, relatives, and closepersonalfriends.

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8. Staff shouldavoidsituationswhichmay lead toanactualorperceivedconflictofinterestsituation,andshouldmakeadeclarationinwritingto(nameand/orpostofa senior staff)when sucha situation arises. Failure indoing somaygive rise tocriticismoffavouritism,abuseofauthorityorevenallegationofcorruption.

9. Somecommonexamplesofconflictofinterestinclude:

(a)Astaffmemberinvolvedintheprocurementprocessiscloselyrelatedtoorhasbeneficial interestinacompanywhichisbeingconsideredbytheCompanyintheselectionofasupplierorserviceprovider;

(b) oneof the candidates under consideration in a recruitment or promotionexercise is a familymember, a relative or a closepersonal friendof the staffmemberresponsiblefortherecruitmentorpromotion;

(c) astaffmemberinvolvedintheselectionofasupplierfortheCompanyengagesinfrequentorexcessivegamblingwithoneofthesuppliersunderconsideration;

(d) a termcontractorwhose contract is about tobe renewedgrants apersonalloantothestaffmemberresponsibleforcontractnegotiation;or

(e) astaffmember responsible forevaluating tenders isapart-timeconsultantofoneofthetenderers.

10. Allstaffareprohibitedfromdisclosinganyinformationclassifiedbythecompanytoanybodywithout authorization. Thosewhohave access to or in control of suchinformationshouldatalltimesensureitssecurityandpreventanyabuseormisuseofthe information.Examplesofmisuse includedisclosureof information inreturnformonetaryrewards,oruseofinformationforpersonalgains.

11. It is thepersonal responsibility of every staffmember to understand and complywith theCode. Managersshouldalsoensure that their subordinatesunderstandwellandcomplywiththestandardsandrequirementsstatedintheCode.

12. AnystaffmemberwhoisinbreachoftheCodewillbesubjecttodisciplinaryaction,including terminationof employment. In casesof suspected corruptionor othercriminaloffences,areportwillbemadetotheICACortheappropriateauthorities.

13. AnyenquiriesabouttheCodeorreportsofpossiblebreachesofthisCodeshouldbechanneledto(nameand/orpostofaseniorstaff)foradviceandaction.

(Name of Company)

Date:

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• Anderson, M and Escher, P (2010) The MBA Oath: Setting a Higher Standard for Business Leaders, New York : Portfolio.

• Byars, N (2009) ‘The Corruption Triangle’, <http://www.ethicsandentrepreneurship.org/wp-content/uploads/2009/06/Byars-2009.pdf>

• Ethics Resource Center (2009) ‘Ethics Glossary’, <http://www.ethics.org/resource/ethics-glossary>

• Ethics Resource Centre (2009) ‘Why have a code of conduct?’, <http://www.ethics.org/resource/why-have-code-conduct>

• Howard, R A and Korver, C D (2008) Ethics for the Real World: Creating a Personal Code to Guide Decisions in Work and Life, Boston: Harvard Business Press.

• Josephson Institute of Ethics (2002) ‘Making Ethical Decisions’, <http://www.sfjohnson.com/acad/ethics/Making_Ethical_Decisions.pdf>

• Kidder, R M (2003) How Good People Make Tough Choices: Resolving the Dilemmas of Ethical Living, New York: HarperCollins Publishers.

• Kidder, R M (2006) Moral Courage, New York: HarperCollins Publishers.

• Nash, L L (2010) Ethics Without the Sermon, Boston: Harvard Business Press.

• The Economist Newspaper and The Economist Group (2009) ‘Can managers be made more ethical?’, June 8th 2009.

Appendix 6 - References

resolving the dilemmas of ethical living

Documents