Organizational Ethics

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1. What are the most important differences between an "integrity organization" and a "compliance organization" in a firm's approach to organizational ethics?

First, the five different approaches to organizational ethics are listed and it points out the one primary difference between the integrity and compliance approaches. Next, we look at the historical events that lead to the shift toward the integrity approach. An example of a compliance organization shows that integrity is also part of their organizational ethics. Finally, through looking at the main characteristics of the integrity organization, a comparison is made with the compliance approach to more fully delineate the differences between the two.

There are the five primary approaches to organizational ethics:
1. An organizational integrity approach, which advocates a morally correct environment.
2. A human resource approach, which advocates organizational ethics as a means to the fullest development of human resources.
3. A loss prevention approach, which advocates organizational ethics as a deterrent to wrongdoing.
4. A legal compliance approach, which advocates organizational ethics as a means to satisfying legal requirements.
5. A social responsibility approach, which advocates organizational ethics as an integral approach to regulating operations so as to be consistent with the organization's responsibilities to society. (http://www.ethicaledge.com/assessment%20framework.htm).

Moving from a Compliance Approach toward Integrity-based Approach

In the early 1990's, a position known as the ethics officer emerged in corporate America. The position was created to insure personnel compliance with company standards and procedures as specified in the U.S. Federal Sentencing Guidelines. Under these guidelines, the ethics officer is recognized to be a high-level administrator responsible for ...