The article “Companies Add Ethics Training; Will It Work“, written by Richard B. Schmitt for the Wall Street Journal is a look at the ethics training programs in place at many large companies. Schmitt uses specific companies as examples, showing the programs they use to help keep their business practices ethical. Also discussed are companies that had ethics standards in place yet still did not comply with them, and the results of these unethical business practices. As well as what businesses are doing in order to prevent unethical practices from taking place.

The new Sarbanes-Oxley act requires companies to adopt ethics

programs, if a company has an ethics program in place and is convicted of a

crime, they are eligible for reduced sentences. Phillip Morris’s ethics officer

David Greenberg has been running their ethics program since 2001 and is

currently drafting their conduct code, he has also hired outside contractors to

train all Phillip Morris employees on ethics. After the court battles they have

fought in recent years along with bad public relations due to the health concerns

of cigarettes Mr. Greenberg would like to see Phillip Morris regain the publics

trust.

Also discussed in the article was the Enron, Arthur Anderson, and Tyco

scandals. Enron which had an ethics program in place decided to wave its

ethics code in order to create partnerships which ultimately brought the company

down. Arthur Anderson the auditing firm for Enron was convicted of obstructing

justice, by destroying documents having to do with their audits of Enron. Tyco’s

chief compliance officer was indicted on charges of falsifying records in order to

hide more than 14 million dollars.

Due to these scandals many companies are now hiring outside agencies

to train employees on ethical behaviors. One such company The Legal

Knowledge Co. provides over 150 courses online, and has contracts to train

more than 4 million people worldwide. Even with ethics programs in Place

Edward Petry the executive director of the ethics-officer group believes that

there is not much that can be done when senior officers are not willing to

comply.

I personally believe that although ethics programs can work it depends on

officials at the highest level conducting business in accordance with these

programs, In doing so they will set the pace for their entire company.

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