HR Support on Ensuring Workplace Ethics

Editor's Note: Promote a workplace of integrity by adopting an organizational ethics program.

Marta MoakleyOverview: Ethics focus on what should be done, in a moral sense, and not necessarily on what must be done, in a legal sense. Sometimes ethics and legal requirements coincide. However, ethical principles, especially in evolving areas of the law or industry, are not always clear. Employers that tend to push ethical boundaries may soon be faced with hefty fines and penalties from evolving case law or from emergent legislation that abruptly outlaws a morally questionable, but previously legal, practice.

The Sarbanes-Oxley Act of 2002 (SOX) grew out of just such a situation. SOX set enhanced standards for public companies, executives and accounting firms in response to the collapse of Enron and other business giants due to questionable corporate practices.

Best practices in ethics encourage employers to adopt an internal ethics program that is consistent throughout all levels of the organization. However, certain employers may be legally required to do so in order to satisfy the Federal Acquisition Regulations mandate to compete for a federal contract, or to satisfy standards under the Federal Sentencing Guidelines. Ethics programs should include a code of ethics and a communications plan, and be accompanied by adequate staff training.

Trends: Regulators have been focusing on global employers' anti-bribery compliance. In addition, various federal and state agencies have created internal Offices of the Whistleblower in order to process complaints and offer rewards. The adoption of adequate corporate ethics programs is essential to managing these organizational risks.

Author: Marta Moakley, JD, Legal Editor

Latest items in Ethics

  • Supreme Court Decision on Employee Stock Ownership Plans: Employment Law Manual Updated

    Date:
    26 June 2014
    Type:
    Editor's Choice

    The Supreme Court has issued a decision interpreting requirements regarding the administration of an employee stock ownership plan (ESOP) under the Employee Retirement Income Security Act of 1974 (ERISA). In Fifth Third Bancorp v. Dudenhoeffer, the Court eliminated the special presumption of prudence to which ESOP fiduciaries had been entitled.

  • Supreme Court Narrows ERISA Plan Fiduciaries' Defenses in Employee Class Actions

    Date:
    25 June 2014
    Type:
    News

    A unanimous Supreme Court in Fifth Third Bancorp v. Dudenhoeffer has reversed the 6th Circuit Court of Appeals - with ramifications for employers that offer a defined-contribution retirement savings plan with investment options in an "employee stock ownership plan" (ESOP). In its decision, the Supreme Court resolves a split among the federal circuits by eliminating the special presumption of prudence to which ESOP fiduciaries had been entitled.

  • How to Promote Integrity in the Workplace and Protect Whistleblowers

    Type:
    How To

    Whistleblowing is the act of informing an employer, government agency or other authority about fraud, misconduct or other illegal acts occurring in an organization. With proper procedures in place, an employer can create an environment of integrity that allows employees' concerns to be addressed, well in advance of employees reporting their concerns to an external entity. To promote integrity in the workplace and avoid the need for external whistleblowing, employers should take the steps in this How To.

  • Johnson & Johnson to Pay $2.2 Billion to Settle DOJ's False Claims, Criminal Suits

    Date:
    06 November 2013
    Type:
    News

    Pharmaceutical giant Johnson & Johnson and three of its subsidiaries have agreed to pay more than $2.2 billion in a global settlement of multiple criminal charges, civil claims and state probes relating to the false marketing of prescription drugs and the paying of kickbacks to physicians and pharmacies for prescribing and promoting the drugs.

  • Dodd-Frank Whistleblower Rules Do Not Apply Outside of US, Federal Court Rules

    Date:
    22 October 2013
    Type:
    News

    The Dodd-Frank Act's retaliation protections do not apply to activities outside of the United States, a federal district court has ruled, dismissing a case against German multinational corporation Siemens AG.

  • Windsor Same-Sex Marriage Ruling Affects Federal Ethics Compliance, Reporting Requirements

    Date:
    20 September 2013
    Type:
    News

    Employers may wish to revisit ethics and conflict of interest policies to ensure their application to all married employees in the wake of the Supreme Court's recent decision addressing same-sex marriage. In August, the US Office of Government Ethics (OGE) issued guidance regarding the effect of Windsor on the Executive Branch Ethics Program.

  • Conferences Present Opportunities, Potential Liabilities for Employers

    Date:
    09 July 2013
    Type:
    News

    Recent reports of employee misconduct at annual conferences have led to negative media reports citing employer mismanagement, compliance issues and ethics quandaries. Employers sponsoring or participating in regional and national conferences in the coming months should ensure that internal travel, attendance, ethics and discipline policies address employer concerns and further business goals.

  • Financial Services Resource Center for HR: Dodd-Frank/SOX

    Date:
    28 June 2013
    Type:
    Editor's Choice

    XpertHR's Financial Services Resource Center for HR helps financial services employers handle their most challenging employment issues by bringing relevant resources together in one place for easy access.

  • Financial Services Resource Center for HR: White Collar Crimes

    Date:
    28 June 2013
    Type:
    Editor's Choice

    XpertHR's Financial Services Resource Center for HR helps financial services employers handle their most challenging employment issues by bringing relevant resources together in one place for easy access.

  • Whistleblowers Protected Even if Employers Don't Violate Securities Laws, 3rd Circuit Says

    Date:
    12 April 2013
    Type:
    News

    An employer need not actually violate the Sarbanes-Oxley Act (SOX) for its employees to receive SOX whistleblower protections, the 3rd Circuit Court of Appeals has ruled.