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Question
Please address the following questions:
On p. 83 Terris discusses the company’s ethics code. Why is the code considered important to the company’s ethics program?
Discuss the importance of ethics training and employee involvement. What are some of the things Lockheed does to make the training process interesting and worthwhile?
How does Lockheed measure success with respect to ethics in the workplace?
What are some of the things Lockheed does at the operational level to make their ethics program work?
Terris, Daniel. (2005) Ethics at Work: Creating Virtue at an American Corporation. Brandeis University Press. Waltham, MA. Retrieved from ProQuest ebrary.
Answer
Lockheed’s Ethics Code
Ethical sustainability goes a long way in the internal management and organization of businesses. Though initially undervalued in management and leadership, cases of severe failures and misconduct owing to poor ethics has brought down many successful companies. With the rise of the entrepreneurial era, ethics has proved to be an integral part of maintaining almost all the key areas of business management and operations.
To ensure that proper ethical standards are upheld, the code of ethics that is drafted and implemented should be in line with the company’s core values, structure, function and organization (Terris, 2005). In other words, it should be tailored to suit the needs of the company as well as aligned with core values of its brand. In this paper, focus is on the code of ethics of Lockheed Martin, a leading aerospace, security and advanced technology provider. Using the code, the company has continued to exercise high standards of ethical conduct in its goal of providing solutions to its customers’ complex challenges through continuous research technological advancement.
Importance of Code of Conduct for Lockheed Martin
Lockheed Martin has gained a wide reputation for its highly successful code of ethics. The corporation sets high standards of integrity for its employees and all the shareholders to ensure that it remains true to its vision of supporting its customers and strengthening global security while simultaneously advancing scientific discovery. Its core values are geared towards doing what is right, to accord others the respect they deserve and to undertake its activities with excellence and diligence.
Essentially, the code of conduct encompasses absolute following and respect of the laws and regulations that govern the world of business (Terris, 2005). It prescribes regulations that apply to everyone at all positions. The employees, board of directors, consultants and other participants on contract are all governed by the stipulated code. This is a beneficial move considering that in the past, many companies have experiences extreme consequences following the bias accorded to senior management and the board of directors in regards to the codes of conduct and ethics. In many cases, this has translated to unscrupulous behavior and fraud owing to abuse of power. Lockheed Martin Corporation requires no exemption from the code regardless of position and status because it is cognizant of situations where some dominant and well-established companies have collapsed in the last century because of senior management’s violation of ethical norms.
In case of any waiver of the Code for executive officers or members of the board at Lockheed Martin, only a board committee is entitled to make this decision and as such must be disclosed to the shareholders. This ensures transparency with the public as well as the stock exchange in line with the requirements set up by the Securities and Exchange Commission and the Sarbanes-Oxley Act of 2002. This approach goes a long way in promoting a feeling of equality and fairness in the corporation which further promotes trusts and communication between employees and management at both vertical and horizontal levels.
Moreover, the code of conduct is important in promoting proper and active communication that ensures the functions of the company are well-developed, demonstrated and executed. In this regard, the basic expectations in communication involve careful listening, seeking clarification, following up and proper referencing. In addition, politeness and etiquette are required when providing a response.
Besides, the code of conduct promotes human rights and ensures that everybody receives proper treatment and that their rights are protected. This requires that the working environment is strengthened and directed to create productive growth. It also entails creating a safe and healthy work environment that is free of physical, social and economic hazards. Lockheed’s code of ethics also stipulates that the use of resources should also be balanced at a sustainable level that promotes continuity at the corporation. Finally, it has created a high level of accountability of the risks and opportunities of operation thereby creating a long-term business relationship that is centered on performance and the delivery of quality products and services to customers.
Another key component of the code is its responsibility to protect each individual employee against difficulties which emerge during investigations such as retaliation. Each employee is protected by these regulations as well as by the national law in case of disclosure or provision of material that may be considered evidence against persons of mismanagement, abuse of authority or any other violations of law. It is important that employees as well as the customers understand the brand of the company as one that will put integrity above everyone and therefore offer protection to promote truth and justice for the long-term progress of the company.
Equally important, the code of conduct regulates the financial and asset aspects of the corporation fairly accurately. To this effect, the key regulations include action against falsification, mischarging, cost evaluation, financial statements and resource management. Essentially, it succinctly stipulates that the company’s resources and assets should be used for the benefit of the shareholders and the continuity of the corporation (Terris 2005). It is the company’s responsibility to protect these resources and assets that are entrusted to it by the public and shareholders. However, alongside transparency, the code also ensures privacy and protection of sensitive information.
Importance of Ethics Training and Employee Involvement
Lockheed Martin’s training and involvement imparts every employee with a sense of ownership, personal responsibility and representing the company. The employees are then educated on the core values of the business so that they do not have conflicts of interest with the corporation in regards to the tasks allocated to them. There is an entire conflict of interest policy that covers areas such as ownership or shareholding in a company that plays a competitor role, supplier or customer, family members, gifts, multiple roles, subordinates and asset regulation.
Accordingly, ethics training incorporates introduction to the ethical requirements and expectations of employees as well as consequences of non-compliance. Each employee is assigned with a personal obligation towards maintaining ethics at both personal and collective levels. The training and learning process is then made into a continuous process that is incorporated into the daily operations and functions of the corporation. Lockheed also encourages active participation and experimentation during the training to enable its employees to develop their own strategies, procedures and confidence while making the entire training process interesting and engaging.
Measures of Ethical Success and How the Ethics Program Works at the Operational Level
Lockheed understands the need to execute the code of ethics even at the operational level for full effectiveness. This requires the management to demonstrate ethical behavior through their actions and to exercise ethical leadership in all decisions. Moreover, the firm is using honest and open communication to further foster the passing down o instructions and responsibilities and to ensure that they are well-handled. Similarly, the company’s managers face the daunting task of viewing ethical challenges not as threats to their leadership positions or authority but rather, but as basic issues that can and need to be properly dealt with accordingly.
Finally, Lockheed Martin continues to directly link the success of the company to its ethical components. By building trust, credibility, communication and integrity among employees, it is able to creatively and freely work towards the advancement and fortification of the company’s products. This explains why Lockheed remains one of the leading technology and security companies particularly in terms of quality service delivery and technological innovation.
Conclusion
Amidst the ethical scandals surrounding the corporate sector, some companies have succeeded at crafting effective ethical structures and tailored them to suit their business environments even during change. Lockheed Martin provides a glittering example of such a company. Its ethical code has been customized and personalized to suit the context in which the company operates. Thus, ethical integrity will continue to be extremely important for the long-term performance and credibility of this company.
References
Terris, D. (2005). Ethics at work: Creating virtue at an American corporation. Waltham, MA: Brandeis University Press.
