Values and Ethical Decision Making
MGT/521
September 10, 2012
Value Systems and Ethical Decision Making Ethical systems combine different values, morals, and principals. Values are character traits that define individual behavior. Morals are the ideals that separate right from wrong. Principals are ideals that put values and morals into action. Together each of these components influences decisions on a business and personal level. Companies use codes of ethics to dictate employee behavior when dealing with customers, vendors, investors, and coworkers. Codes of ethics incorporate characteristics of individual value systems, including honesty, integrity, trust, and fairness. The four-step process that governs ethical behavior includes character, obligation, results, and equity; these four traits also known as CORE. The Williams Institute Ethics Awareness Inventory provides insight into individual value systems. An analysis of each individual value system provides confirmation that personal values are often the foundation for establishing organizational values. A clear understanding of these values makes ethical reasoning more effective. During the hiring process personal perspectives and preferences often go unchecked. A balanced approach is necessary when seeking to fill a vacant position. Although an individual’s ethical perspective weighs heavily to one of the four traits, evaluation of the remaining three perspectives is mandatory when making a decision.
Wells Fargo’s Approach CORE principals are found throughout the code of ethics for Wells Fargo. The company has adopted a strong code of ethics that establish guidelines for employees. The code of ethics is composed of core personal values that dictate how the individuals associated with the company operate. A few of the areas covered in the company code of conduct include acting honestly, maintaining accurate records, undue influence, and preserving confidentiality. These attributes in addition to the regulatory bodies that govern business units’ helps guide the decision-making processes.
Hiring the Right Person Samuel Hernandez is of Mexican American decent. Samuel has decided to leave the company in the midst of a critical project focusing on Mexican American homeownership. Wells Fargo needs to replace Samuel with someone who can continue the project without impeding progress. Jennifer has been selected to find a replacement. The project manager is specific about replacing Samuel with another male, minority candidate. Jennifer has found a suitable candidate who is not a minority.
Personal Values Prior to accepting employment with a new employer, one must perform a certain amount of due diligence to ensure that personal values are aligned with organizational values. The expectations of employers must be viewed to ensure fairness and equal treatment is upheld. A company must allow their employees to achieve goals in a manner that balances interests realistically with the company’s stakeholders and societal expectations. A company must also remain in compliance with any regulatory bodies to protect assets and avoiding unnecessary penalties. Personal values are an important characteristic of individuality. The ability to acknowledge, understand, and define one’s personal values is important in decision making. The ability to align corporate values with personal values influences job performance, loyalty, and adherence to policy. As a result, when an individual realizes authentic and significant alignment between his or her personal values with those of his or her employer creates a strong bond. This bond establishes numerous opportunities for growth within the company and productivity (www.valuesbasedleadershipjournal.com, 2012). When personal values are not aligned with the company decisions are without boundaries. This is especially true when hiring employees. Wells Fargo has a strong diversity policy. Employees who work for Wells Fargo “should expect to work in an environment where each person feels valued for their culture, skills, and talents, and to know they can fulfill their career goals and help our company succeed” (Wells Fargo, 2012 ). When emphasis is placed on one CORE value over another the result will be a decision that does not support the company’s vision. Jennifer’s CORE value system places emphasis on results. The project manager’s preference is not aligned with the company policy or Jennifer’s ethical perspective. According to the Ethics Awareness Inventory, the results-oriented person believes that “conduct should be directed toward promoting the greatest good for the greatest number of persons” (Ethics Awareness Inventory, 2012). To make the right decision, Jennifer would review the job requirements against candidate skill-sets. She will select the candidate who best benefits the company and customers versus the project manager’s preference.
Wells Fargo Values Wells Fargo believes in each of their employees. The company holds every employee to the same standards of values from the new hire to the CEO. Currently, Wells Fargo employs more than 275,000 employees (Wells Fargo, 2012). This is a large number of employees to manage, and Wells Fargo must have some organizational value guidelines for each employee. When looking at Wells Fargo’s organizational values, they include the following (Wells Fargo, 2012): • Holding ourselves personally accountable for results. • Taking prudent risks. • Leading by example. • Leading by having the courage to speak what they believe is the truth. • Making decisions locally; close to the customer. • Knowing their numbers. • Caring about each other and showing it.
In addition to the above values, Wells Fargo expects honesty, trust, and integrity from each employee. Wells Fargo believes this is essential for meeting the highest standards of corporate governance. Looking at Wells Fargo’s ethical guidelines, the following are a few of Wells Fargo expectations of employees (Wells Fargo, 2012): • Value and reward open, honest, two-way communication. • Hold themselves accountable for and are proud of their decisions and conduct. • Only make promises they intend to keep—do what the company says they will do. If things change, let people know. • Share information with our colleagues that they need, and let them know if things change. • Avoid any perceived conflict of interest. • Comply with the letter and the spirit of the law. • Acknowledge and apologize for our mistakes, and learn from errors to prevent them from happening again in the future. Wells Fargo is in the financial industry, there are many laws and regulations monitored by government agencies they must follow. Wells Fargo has to remain in compliance with these laws and regulations to avoid any fines. Therefore, it is essential Wells Fargo set the highest standards for employees because each employee is a representative of Wells Fargo.
Ethical Decision Making Every business is expected to act in an ethical manner when dealing with their employees and customers. Decisions must be made according to the company’s guidelines and following the ethical standards set forth by the policies and regulatory bodies that govern conduct. However, because there is such diversity in every organization each individual has different principles and work ethic. Organizations expect to ensure that there is non-discrimination in hiring based on race, age, sex, or religion; the decision to hire or not hire based on one of those factors is highly unethical. When a position becomes open at Wells Fargo, the candidate considered should possess the necessary qualifications and experience. If a decision is made because of the need to conform to the equal opportunity laws the core values of Wells Fargo has been compromised. Based on the outcome of the Williams Institute Ethics Awareness Inventory Assessment, Jennifer’s values do not align with the decision of to hire a Hispanic individual rather than an individual who is more qualified. The project manager has made a decision that was unethical and is tantamount to a management group that reeks of a lack of integrity and character. Without a doubt the ethical decision in a scenario, such as this would be to report such actions to the HR/Security or Ethics hotline so they can start an investigation. Acceptance and tolerance of such behavior is damaging to every facet of the organization.
Conclusion
Ethical behavior is closely associated with societal views. When individuals give prominence to personal perspectives without evaluating resources the affect, without question, is detrimental to an organization. Organizations use rules, regulations, and policy to control employee behavior. Competitive pressures should not dictate ethical behavior. Hiring practices must create opportunity without adversely affecting one or more ethnic groups. Confidential hotlines are fundamental to organizations ability to monitor and correct behavior that contradicts policy. Ethical conduct should not be compromised if the business will be a sustainable enterprise.
References
Wells Fargo. (2012). Our Values: What we stand for. Retrieved September 8, 2012, from https://www.wellsfargo.com/invest_relations/vision_values/6 Www.valuesbasedleadershipjournal.com (2012). Retrieved from http://www.valuesbasedleadershipjournal.com/issues/vol1issue1/dean.php Yukl, G. (2010). Leadership in Organizations (7th ed.). Upper Saddle River, NJ: Prentice Hall.
EAI Values and Perspectives, The Williams Institute, University of Phoenix, Retrieved from www.ecampus.phoenix.edu