• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17
  18. 18
    18

Ethics in Management - Organizational Analysis - Bank of Montreal Financial Group.

Extracts from this document...

Introduction

McGILL UNIVERSITY Faculty of Management MGPO 450 - Ethics in Management Organizational Analysis Bank of Montreal Financial Group TABLE OF CONTENTS 1.0 Introduction 3 2.0 BMO's Code of Ethics: First Principles 4 2.1 The development of the Code 4 2.2 Analysis of the Code 5 3.0 Training, Communication and Control 8 3.1 Training 8 3.2 Communication 8 3.3 Control 9 4.0 Evaluation of BMO's Ethics Program 10 4.1 Values or compliance 10 4.2 Trends and Challenges: 11 5.0 Recommendations 13 5.1 Formal and specific ethics training 13 5.2 Despite industry shift to compliance, remain values-based 14 5.3 Introduce employees to the corporate compliance office 14 5.4 Exchange of information 15 6.0 Conclusion 16 Bibliography 17 Appendix A: The Bank of Montreal Financial Group 18 1.0 Introduction Ethics has recently become an important topic of discussion amongst directors across North America's boardrooms. Whether this is a response mainly to prevent their company from being involved in the next 'scandal' or whether it is driven by changing societal values and increased competition, there is no doubt that today ethics are a more important factor in business decision making. Many companies have implemented or revised codes of ethics, and the Bank of Montreal (BMO) is no different. Operating in a number of markets around the world offering personal, corporate and commercial financial services across a variety of business units (see Appendix A), BMO is one of the hundreds of financial institutions in North America that society relies on to protect their life savings. Thus, BMO has many stakeholders and like the majority of its competitors, has a code of ethics in place to try and prevent employees acting unethically and harming those stakeholders. While in the financial sector there is a wide array of rules that must be complied with, BMO has taken a surprisingly values-based approach to its code of ethics, with the corporation trusting its employees' judgments in taking the best decision when faced with an ethical issue. ...read more.

Middle

Thus, there is organization-wide communication that ethics is important at BMO. The catchphrase 'Is it fair? Is it right? Is it legal?' is also important in communicating to employees the approach taken by BMO with regard to ethics. By providing this guideline within the primary communication tool regarding ethics (that is, the First Principles document), employees understand how the company tackles ethical decision-making at a practical level. The code of ethics also has references to other company documents and policies which outline in greater detail expected levels of conduct and expand on particular issues and discuss issues that go beyond ethics - for example norms of service, legislative requirements and so on. In total, the effect of all this communication is that employees realize that ethics is a serious concern for BMO, and the commitment to ethical behavior starts at the top of the organization, and is expected from all employees. 3.3 Control Organizational structure plays an important part in reinforcing the ethical behavior of employees (James, 2000). While the Bank of Montreal emphasizes the promotion of its employees' good judgment, control plays an important part within the organization, and the creation of a specific department that deals with Corporate Compliance, and in particular ethics, again communicates to employees that ethics is given more than just lip service across the organization. Thus, BMO uses its organizational structure to have a great influence in developing a culture of ethical behavior within the firm. In terms of reporting ethical breaches and how they are dealt with, BMO has a strategy that ensures fairness and equity. When a breach is filed, two lines of reporting become active - one progresses up the chain of management, whilst another heads out to the Corporate Compliance Department. In this way, the compliance department can monitor the progression of the report up the hierarchy, and has wide ranging powers to reopen a file, encourage both sides of the issue to be heard, and act in the best interests of all parties to ensure that ethical breaches are dealt with in a fair yet confidential manner. ...read more.

Conclusion

This idea would also contribute to the corporate culture of ethical behavior that BMO are trying to engender amongst their employees. The chat facility could be anonymous if need be, and it could also be monitored by the corporate compliance office if the company thought that this was appropriate. 6.0 Conclusion Throughout this presentation, the ethics program at the Bank of Montreal has been discussed. By examining the code of ethics, identifying the training, communication and control initiatives of the bank, evaluating the ethics program, and presenting recommendations for the improvement of the program, we have observed that the values-based approach to ethics at BMO is successful, but could be improved. The success of the program is based on good communication - it is evident from the first page of the code of ethics that the higher levels of management see ethics as an integral factor in the company's success, with the Chairman and CEO setting the standard. The 'is it fair? Is it right? Is it legal?' catchphrase is successful in encouraging employees to think before they act, whilst the six First Principles show employees the standards that are expected of them. Furthermore, by implementing ethics into standard training, and providing open yet fair control systems, and encouraging a corporate culture of sound ethical behavior, employees' are trusted to make sound judgments when it comes to making ethical decisions in order to minimize the harm to stakeholders. However, it must be kept in mind that there are still external regulations that must be abided with, and that employees must also be educated about these within the framework of a values-based approach to ethics. Although the values-based approach towards ethics at BMO is successful, there is room for improvement. By offering more specific ethics training, resisting the trend away from a values-based strategy towards compliance, introducing employees to the corporate compliance office, and encouraging the exchange of information, BMO can increase the awareness of ethical issues across the organization, and further encourage employees to exemplify and uphold the core standard of integrity within the organization. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Marked by a teacher

    Kraft Foods - Report on Ethical Stance

    3 star(s)

    and to its full capability, leading to a bad reputation and negative consumer view. They strive to earn that trust every day by doing what they say they we will do and holding themselves accountable, even on the occasions when they fall short.

  2. General Management - organisation, leadership and theories.

    Those who think of themselves as artists in the conventional sense of the word for example, painters, sculptors, musicians, writers, architects, photographers, and some athletes and gardeners may pick up the metaphor with ready enthusiasm, recognizing that incorporating their artist-self into their practice of leadership opens into a horizon of powerful possibilities.

  1. Innovation For Business Success. It is possible to be innovative in both large ...

    "We go to all new media, attached to our traditional 'main machine' of book development and production, and it doesn't always work as effectively and quickly as we would like" (Gus Balbontin). How Lonely Planet goes about developing new internet based services is currently adapted from how it develops new

  2. Nursery Business Plan. I intend to employ on 3 to 4 employees along ...

    Therefore we can see that the business is doing well and can over its costs. Unlike the current ratio equation above shows that the business is holding on too much stock. The Gearing Ratio- shows where the business raises its capital from and how it's funded.

  1. Zara Case Analysis

    There are usually longer lead times and schedules of shipments that are used in these sectors. Many 3PLs and 4PLs would not be able to handle the variability that Zara's strategy requires. Most companies can no longer be vertically integrated in today's competitive market.

  2. The impact of organizational structure and culture on management and business performance at Paramount ...

    Asia Pacific department would pay more attention on matching the behavior of Asian people's diet behavior. For example, there will be regionalized foodstuff made of rice or noodles. Similarly, EMEA (European, Middle East and Africa) department, Latin America department and North America department are respectively focused on their relevant regions

  1. E-Business Evaluation of Tesco.com

    As in the shopping site of Tesco, Tesco has also made age aware to the customer. ________________ 5 Conclusion In recent, Tescoâs e-business has being the UKâs leading internet market and its web site âTesco.comâ is now renowned as the fourth largest grocery store in the world behind Amazon, Dell and Argos.

  2. The Financial Crisis, Ethical Issues and HSBC

    Maxim 3: Act only so that the will through its maxims could regard itself at the same time so universally lawgiving (Crane and Matten, 2007: 98). In this point, the motive for bank managers is âdesireâ and so triggers them to exaggerate their lending which causes the increase in value of homes.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work