This paper examines the design and rationale behind Conoco's international ethics award program. It discusses the award's dual internal and external purposes, the criteria for selecting the first recipient, and the structural challenges — including shareholder duties and geographically dispersed operations — that impede ethical conduct in a multinational firm. The paper also outlines several quantitative and qualitative measures for evaluating the program's effectiveness, and addresses questions of award structure, such as limiting winners to one per cycle. Together, these elements form a practical framework for reinforcing and communicating corporate ethical standards across Conoco's global operations.
The award serves a dual purpose. Its external purpose is to promote Conoco's ethics beyond the company. Internally, the award serves as a benchmark for all Conoco employees — recipients are role models to whom all employees can look up. At its core, the award is a tool to reinforce the company's code of ethics. It is more critical that employees and external stakeholders are aware of corporate ethical codes than to simply have them (Barnett, 2003).
The term "extraordinarily" can be defined in one of two ways. It can be taken to mean that the firm's ethical standards are upheld in unusually difficult circumstances. Alternatively, it can mean that the employee raises the bar on ethical standards for everyone around him or her.
Given the purpose of the award, the first recipient should be a true benchmark-setter. In this case, the first award should go to Raymond Marchand. He has actively promoted Conoco's ethics even in the most difficult of circumstances, including operating in some of the world's most corrupt countries (BBC, 2000). Furthermore, he has done so consistently over the course of his entire career.
One major structural feature blocking ethical action is managers' duty to shareholders. In many nations, unethical activity does not directly harm profit, so adherence to the profit motive can result in unethical behavior if a manager believes greater profit opportunities will follow. Another structural issue for a firm like Conoco is the far-flung nature of its operations. It is difficult for managers at head offices to monitor the behavior of employees in the remotest corners of the world.
These remote locations also necessitate the hiring of thousands of local employees, many of whom have no prior experience with Western business ethical culture. This further compounds the challenge of maintaining a consistent ethical standard across the organization.
"Quantitative and qualitative program effectiveness measures"
"Single-winner policy and low-participation contingency plan"
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