Bussiness Ethics

1. Integrity-based approach in ethics management emphasizes the definition of aspirational values. It focuses on results which means it focuses on what is achieved rather than how it was achieved. Also, it encourages good behavior rather than spotting errors and pushing bad behavior. Therefore, it is an approach that is highly devolved with significant autonomy, relying largely on the integrity of its participants rather than the application of extensive rules and control as in the case of compliance-based approach and the example is creating an ethical culture. 2. Compliance-based approach in ethics management focuses on strict adherence to administrative procedures and rules, which define what the staff should do and how. The emphasis is on checking out wrongdoing by means of setting minimum standards which provide a base-line for identifying error. And one of the examples of this approach is codes of conduct. It often considers the negative like what a staff should not do, and what sort of behavior they should avoid. 3. The compliance-based system uses legal terms, training, rules of conduct, and penalties for noncompliance. It is used to avoid breaking a rule or law, and see anything that has not been defined by a rule or law as right when there simply may have been no reason yet to create the rule or law.
The values-based system relies upon self-policing and motivation, rather than coercion. It is used to encourage people to think for themselves, and work towards a set of principles by using what they think is right or wrong.
Therefore, the values-based system is more effective approach to implement the ethics in a business. Since the compliance approach is good in short term at presenting to management, stakeholder, and legal agencies that adherence to laws, rules, and the intent of compliance is fulfilled but the problem in the compliance approach is its lack of long-term focus on values and integrity. However, the values-based system is using to