ARISTA TIARA MADASARI

BLEMBA 16





















MID TERM BUSINESS ETHICS
ARISTA TIARA MADASARI
BLEMBA 16


ARISTA TIARA MADASARI
BLEMBA 16
1. Identify the nuggets from the three days sessions of business ethic class and explain how
would you apply the nuggets in your work place.
Answer:
From all of the cases that had been learned at the course, here are interesting nuggets that I
summarize and how I apply in my work place:
a. Ethics is the study within right and wrong, black and white, although theres a few black
and white in a business ethic practical. Being ethical in business means doing the right
thing, because it is the right thing to do. The key to applied an ethical business is from
the business culture and the examples set by the top leaders. Ethical business that
implemented by the employees definitely would define the company behavior and
image.
In 2011 the Citibank scandal threaten Indonesia banking sector. It has a bad massive
impacts to Citibank reputation. The fraud scandals caused Citibank has to renew its
regulatory policy. The company has to freeze new application for certain credit cards
and tighten to monitor its internal control. Some parties seeing the fraud that happened
as a failure of Citibank to implement a process of employee rotation that regulators
(central bank) once recommended so that the employee would not stay for too long in
one position or area to find out the fraud hole in banks system. On the other hand, its
clear that it will be difficult to build clients trust if bank oftenly mandating employee
rotation. But it doesnt mean that fraudster would be stopped by an employee rotation.
From the explanation above, we knew that having an employee monitoring system such
as employee coaching or training is a must in a company.
Other strory, the collapsed of Enron caused by a combination of the failure of top
leadership and a corporate culture that supported unethical behavior. One of the most
important aspect of the scandal that we can learn was the fact that board of directors
seems uninterested in questioning management because profits and stocks prices were
growing up. The big ethical issue is the role of the board in controlling management.
Here, we have to look back to the company value and identity, what is the real purpose
of the company; is it profit-making machine or a stable, productive economic unit. When
company choose quick profit-making, usually those who get the benefit is just an elite
few, but business is fragile. On the other hand to keep the stability in a firm, it has to
have a basic value and a culture that will not supported any unethical behavior that had
been explained above and to have a strict management control no matter whether
company can make a big profit or not.

As a Project Manager in IT Consultant I think its important to have a routine discussion
to the team project about companys Code of Conduct, remind my team project to act
and work ethically in accordance with the CoC, inform them about the punishment
and/or penalty by act and work unethically, hopefully those ways can reduce the
tendency of violation.
Most of team projects time is spent in a clients office, we bring our company image.
Once we act or work in an unethical way, it will tarnished companys reputation.
Example of work in unethical way according to my job is stealing clients data; whether
the data important or not, big data or minor data, stealing data is not allowed.
ARISTA TIARA MADASARI
BLEMBA 16
In terms of entertainment expense, we have to be really careful not to give/accept
anykind of bribery unless the amount of entertainment budget allowed by FCPA.

b. According to Equal Employment Opportunity Commision (EEOC), sexual harassment is
any unwelcome sexual advance or conduct on the job that creates an intimidating,
hostile, or offensive working environment. Any conduct of sexual nature that makes an
employee uncomfortable has the potential to be sexual harassment.
Sample of sexual harassment:
1. A supervisor asked to an employee that the employee must sleep with him to keep
the job
2. A co-worker who regularly tell sexually explicit jokes
3. Unwanted sexual statements and unwanted personal attention that might leads to a
pressure
4. Unwanted physical or sexual advance

As an employer we have a responsibility to maintain a workplace that is free of sexual
harassment because if we allow the sexual harassment flourish in a workplace, we will
pay a high price in poor employee morale, low productivity and lawsuit. Because of
those reasons above, sexual harassment is considered as direct violation.
I would suggest to the HR in my company to conduct a sexual harassment prevention
training for both management and workers. For workers, at least once a year training
session is enough to educate them about what sexual harassment is and for
management, it is also important to know how to deal with employees complain
regarding to sexual harassment. HR also should start provide a Complaint Box as a
facility for employees.



ARISTA TIARA MADASARI
BLEMBA 16
2. What are new things you learned from the three days sessions and which one is impact you
the most (change your paradigm)?
Answer:
New things that I learned:
- To be ethical or unethical in business is about a choice. We always have to look into our
hearts and take into consideration for the impacts everytime we need to make a
decision.
- Reputation is everything
Before the course, I didnt realized that a company reputation that has been built for a
years can be destroyed overnight because of employees mistake. Now I become more
aware that upholding a company reputation by act and work following the Code of
Conduct is really important. Because if we do a crime/mistake that can caused a
companys scandal, the consequence is not only hit ourselves, but also affected
company and co-workers.
- Respect is earned, not bought
As Mr. Ucok said, once we do a bribery, our integrity ruinned and people will stop
respecting us. By act and work following CoC, we earned our integrity and respect from
others, we have to keep it that way.
- Work in open culture is good for staff, it can increase productivity and loyalty. (From
Chevron case)
- A company that known for fair and responsible practice can attract high quality
employees
- Mr. Ucok once said, in a project, always try to have project members from other division
as a control, so that there will always be a different point of view and they will correct us
if we we start toward doing an unethical things.
- The closer your relationship with your peers at work, the stricter you have to be to deal
with them to prevent fraud and as a social control.


What impact me the most (change my paradigm):
- MERCK producing medicine (Mectizan) to cure river blindness desease without any
support. They knew that Mectizan had a little chance to be profitable, but they felt they
had an ethical obligation to cure and give benefit to river blindness victims.
When ethics conflict with profits, usually as the imply, business always choose profits
over ethics. But Merck chose ethics.
It changes my paradigm and pesimistic thought about the image of a big company which
usually always focus in profit and shareholders interest over the ethic in humanity.


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