Up until recently, Enron and WorldCom were some of the best examples of the worst lapses in corporate ethics. But recent events on Wall Street and the subprime mortgage crisis have outed other companies with apparent ethical breaches and bad judgments about other peoples' money—and the aftermath is far-reaching.
These kinds of corporate ethical lapses are what Eastern Michigan University (EMU) is hoping to prevent with a new online corporate ethics training program. The training modules are designed to help people make the right business decisions based on self-knowledge, an understanding of company standards and expectations, and regulations like the Sarbanes-Oxley Act of 2002.
The training modules also include what-if scenarios, real-world case studies, interactive presentations, and self-tests that help participants determine what they would do from an ethical standpoint in certain business situations, said David E. Mielke, dean of EMU's College of Business. Participants take tests throughout the modules to determine their understanding of the material, and then take an overall test at the end of the training. If participants pass with at least a 90 percent score, they receive a completion certificate; otherwise they have to take a different version of the test over again.
The modules were built on the theory that it is possible to change and influence a company's ethical culture, he said.
“We talk about converting one person at a time. One person at a time can have an influence,” he said. “I really hope that it raises awareness. It provides a foundation for ethical business practices within the organization.”
General Motors, DTE, Whirlpool of Benton Harbor, and Masco in Taylor will be the first to pilot the training program, he said. The pilot also will include members of the college's 11 advisory boards, made up of professionals from various industries.
The advantage of the online training modules is that employees can register anytime and complete the modules at their own pace, Mielke said. Each of the modules takes about an hour to an hour and a half to complete. The cost of the three available modules is $159, with corporate and EMU College of Business alumni discounts available.
Eventually, EMU officials also hope to create additional modules tailored to specific fields to help business professionals stay current and up-to-date in their fields, said Sandra Defebaugh, co-author of the existing modules and associate professor of legal subjects. Completion of the modules would then allow business professionals to obtain continuing education credits in their fields. EMU also hopes to provide certification to companies that have a significant number of employees complete the training modules, Mielke said.
Sam Abdelnour, Whirlpool's vice president of sales for the North American region, said his company may end up using the modules as part of its training program for new hires. The company already has an Internet-based program to help train employees about the company's products and processes. And depending on what they discover during the pilot, there may be some way to incorporate the online ethics training into their existing program.
Whirlpool already has a culture known for its ethical standards, he said. In fact this year, Whirlpool was named one of the world's Most Ethical Companies by Ethisphere and Forbes magazines, and was named one of the Top 50 Most Respected U.S. Companies by the Reputation Institute and Forbes magazine. Even so, repetition of the company's ethical standards could be beneficial to employees, he said.
The training modules are a great idea, Abdelnour said. “And we think there's opportunity more than ever for ethics in the business environment.”
Written by Jenny Cromie, certified human resources specialist (CHRS)
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