the 3rd International Symposium "The Formation of
Ethics Crossroads and the Construction of Scienceand Engineering Ethics: Research Outcomes"

Business Ethics Program Model
November 20th, 2007
OBA, Kyoko
Applied Ethics Center for Engineering and Science
Kanazawa Institute of Technology

1corporate scandal in JAPAN（１）１９９１ stock trading illegality (compensation for damage )１９９２ paying off corporate extortionist (Ito-Yokado Co.)
１９９３ paying off corporate extortionist (Takashimaya Co.)
paying off corporate extortionist (Kirin Brewery Co.)
corporate corruption (major general contractors)
１９９５ Illegal trade of US Treasury (Daiwa bank)
１９９６ paying off corporate extortionist (Ito-Yokado Co.)
corporate corruption (major general contractors)
paying off corporate extortionist (Takashimaya Co.)illicit trade in copper (Sumitomo Co.)
１９９７

paying off corporate extortionist (４ leading securities companies, Dai-ichi
Kangyo Bank, ,AJINOMOTO, Mitsubishi Estate, Mitsubishi Electric, etc.)

１９９８ bill-padding scandal (NEC)2corporate scandal in JAPAN（2）
１９９９
２０００

criticality-caused nuclear accident （ＪＣＯ）
food-poisoning （ Snow Brand Milk (Yukijirushi)
recall coverup （Mitsubishi Motors）

２００１

violation of the Securities and Exchange Law (Kokusai
Securities)
camouflage of origin of frozen octpus and tax evasio (Maruha)
beef-mislabeling (Snow Brand Food, Nippon Ham, Nippon
Food)

２００２

System trouble (Mizuho bank)contain a banned additive (Duskin, Kowakouryokagaku)
payoff scandal of ODA (Mitsui)serve the expired food etc. (ＵＳＪ)
concealment of nuclear plant faults (TEPCO, etc.)
money skimming (Toyota)
paying off corporate extortionist (Nippon Shinpan)
insider deal (Daiwa Securities)
3

The demand to a company fromsociety
It relates to the technology which involved incommunity at large.

Frequent occurrence ofan accident or a scandal.

The demand which asks for "safety" and "relief" isbecoming stronger to the company which
returns a technical result to society.

4Engineering educator
engineering society

workplacecollege
5JABEE; Japan Accreditation Board for Engineering Education

Established on November 19, 1999, theJapan Accreditation Board for Engineering
Education (JABEE) is a nongovernmentalorganization that examines and accredits
programs in engineering education in close
cooperation with engineering associations
and societies.
6

Criteria for Accrediting JapaneseEngineering Education Programs
Applicable in the year 2004-2007
Criterion 1: Establishment and Disclosure of
Learning and Educational Objectives•

For the purpose of fostering self-reliant engineers the
program must establish specific learning andeducational objectives that concretize the contents ofknowledge and abilities described in items (a) – (h)below. The learning and educational objectives must
be disclosed widely on and off campus and must be
known to the faculty members and students involved in
the program.
7

Criterion 1 -（1）
a.

b.
c.
d.
e.
f.
g.
h.

An ability and intellectual foundation to consider issues from a
global and multilateral viewpoint.
Understanding of the effects and impact of engineering on society
and nature, and of engineers’ social responsibility (engineering
ethics).
Knowledge of mathematics, natural sciences and information
technology and an ability to apply such knowledge.
Specialized engineering knowledge in each applicable field, and an
ability to apply such knowledge to provide solutions to actual
problems.
Design abilities to organize comprehensive solutions to societal
needs by exploiting various disciplines of science, engineering andinformation.
Japanese language communication skills including methodical
writing, verbal presentation and debate abilities as well as basic
skills for international communication.
An ability to carry on learning on an independent and sustainablebasis.
An ability to implement and organize works systematically under
8
given constraints.

Engineering educator
engineering society

workplacecollege9Japanese Engineering and Technology Society,
Code of Conduct Established year
1938 Japan Society of Civil Engineers Beliefs and Principles of Practice for Civil
1996
1997
1998
1999

2000
2001
2002

2003
2005

Engineers
Information Processing Society of Japan Code of Ethics of the Information
Processing Society of JapanThe Institute of Electrical Engineers of Japan Code of Ethics
The Institute of Electronics Information and Communication Engineers
IEICE Charter of Ethics
Japan Society of Civil Engineers Code of Ethics for Civil Engineers
Architectural Institute of Japan Code of Ethics (Fundamental
Principle/Fundamental Canons of Behavior )The Japan Society of Mechanical Engineers
The Chemical Society of Japan
Atomic Energy Society of Japan Code of Ethics of the Atomic Energy
Society of JapanThe Institute of Image Information and Television Engineers Code of Ethics
The Society of Chemical Engineers，JapanThe Japan Society of Applied Physics
The Japanese Geotechnical Society
Atomic Energy Society of Japan
Atomic Energy Society of Japan (Revised)10Code of Ethics of the Atomic
Energy Society of Japan
Fundamental Canons
1.We shall restrict the use of atomic energy to peaceful purposes while endeavoring to solve theproblems confronting humans.
2.We shall hold the safety of the public paramount in the performance of our professional duties
and through our conduct strive to obtain the public trust.
3.We shall strive to improve our own professional competence and simultaneously to improve theprofessional competence of persons involved.
4.We shall make every effort to be fully aware of our own professional capabilities. If a job
requires an extraordinary proficiency beyond our capability, we shall pursue a course that will
not cause serious damage to society.
5.We shall strive to assure that all information we utilize is accurate and fulfill the obligation todisclose all information to the public in order to obtain the public trust.
6.We shall respect truth and make our own judgments with fairness, justice, and impartiality.
7.To the extent that contract clauses do not conflict with the provisions of all the laws as well as
the norms in society, we shall seriously consider and faithfully fulfill the contracts related to ourwork.
8.We shall conduct our work related to atomic energy with pride, and make sincere efforts toincrease the esteem of that work.
We would like to thank Dr. Scott Clark for his suggestions in the translation of this Code of Ethicsof AESJ.
11

Engineering educator
engineering society

workplacecollege
12

Business Ethics in JAPAN••Japanese Business Federation– September 14, 1991 Establishment of actions of JBF →Revised in 1996, 2002, and 2004.
– Questionnaire enforcement to top management people– A business ethics monthly (October)– The check of observation the Charter for Good Corporate
Behavior at the time of new admission
Each Company– Establishment of a code of ethics– Designated ethics official• As a part of CSR program

The viewpoint of risk management

13

The Formation of Ethics
Crossroads and the Construction of
Science and Engineering Ethics• Global Code of Ethics• Ethics Across the Curriculum• Introduction of an E-learning system, “Agora”• Assessment and Evaluation of Ethical
Reasoning Skills• Business Ethics Program Model• Research Ethics Program Model
14

Project Members• OBA, Kyoko (research fellow)• OKITA, Yuji (visiting professor／coordinator of JABEE)• HAYASE, Kenichi (part-time researcher／research Scientist of CRIEPI)• MOTOKI, Ayako (research assistant)• OKABE, Yukinori (associate professor)
15

The purpose of business ethics
programming model construction of KIT• Realization of the business ethics program
including active conduct of business– In particular, the program is targeted to thecompany where technology is an important
constituent factor of enterprise deployment.
" Ethics is the science of conduct "which accelerate an action based on
the value to which a company attaches
16
importanceThe systematic measure forbusiness ethics• Systems approach– In a company, a management system is necessary(financial affairs, quality, ethics, ...).
– Process approach is effective in operating a system.

• Program– Typical process approach, PDCA (Plan, Do, Check,Act)– What clarified the means for operating a management
system.
– An ethics program is required also for an ethics
management system.

• Offer of the business ethics program model forturning a PDCA cycle
17Key Ethics Program Components
ERC

EOA

BERC

The Ethics Resource Center

The Ethics Officer Association

Business Ethics Research Center

Ethical leadership

Demonstrated commitment from executive andsenior management

Code of Ethics

Vision statement

Designation of a high-level person responsible for
ethics, compliance・・・

Leadership

Values statement

Codes of conduct and ethics and compliancepolicies and procedures

Designated ethics official

Code of Ethics

Training on policies,・・・ethical decision making

Communication

Designated ethics official

Comprehensive communication on program

Ethical education and training

Ethics taskforce or committee

Help lines

Help lines

Ethics communication strategy

Risk assessment and self-assessment

Periodical monitoring

Ethics training

Monitoring and auditing

Business ethics and public information

Ethics help line

Investigations of alleged misconduct

Response system investigations,rewards and sanctions

Preventive and corrective action

Comprehensive system to monitor andtrack ethics data

Enforcement of standards, including disciplinary
measures

Periodical evaluation of ethics efforts
and data

Regular reporting to and review by senior
management and board of directors
Measuring performance and effectivenessBenchmarking and sharing of best practices
Continual improvement

18Key Ethics Program Components(BERC)
1. Code of Ethics
2. Leadership
3. Designated ethics official
4. Communication
5. Ethical education and training
6. Help lines
7. Periodical monitoring
8. Business ethics and public information
19

ＰＤＣＡ cycle of Business Ethics
Code of Ethics
Designated ethics official
Help lines (establish)

improvement

Act

Check
Periodical monitoring

Plan

Do Leadership
Ethics official （operation）
Communication
Ethical education and training
Help lines （operation）
20

ＰＤＣＡ cycle of Code of Ethics〔establishment 〕
・ value・ priority of value
・ stakeholder[revision ]

Act

Plan

Check

Do

[Periodical monitoring][permeation ]・ ethical education and training

awareness measurement
e.t.c・ leadership・ Business ethics and public
information
21

Presentation of an attainment target:
EAB• EAB：Ethics Across the Business– Everyday practice of business ethics
activity of all the offices, levels of acompany.

22

Presentation of an attainment target: EAB•

EAB：Ethics Across the Business– Everyday practice of business ethics activity of all the posts, classes of acompany.

•

Development of a questionnaire to perceive the actual condition for EAB realization– Employee questionnaire (objective: each employee)• To investigate whether each employee can practice ethics.

– An organization system and measures check sheet (objective: one's post for businessethics of the whole company)• Is the important measure implemented for ethics promotion?
• Is it a measure which can respond to the request from various stakeholders?
• Can various measures in corporate activity take an ethical measure and compatibility (sense ofvalues etc.)?
• Ethics activity is involved in active business development (Can EAB be accomplished)?

•

Program for business ethics is proposed from the arrangement of EAB realization
viewpoint based on the result of literature and document survey, interview ofadvanced companies.
23

procedural step ofbusiness ethics program model• Step 1:selection of good practices from advanced
companies– bibliographical survey– interview• Step 2:grasp of actual condition– employee questionnaire– an organization system and a measure check sheet• Step ３：develop a business ethics program model– guidebook of questionnaire and check sheet– business ethics program model24

Step 1:selection of good practices
from advanced companies• bibliographical survey– Code of Ethics– Leadership– Designated ethics official– Communication– Ethical education andtraining– Helpline• interview– Code of ethics (revisionetc.)– Leadership– Designated ethics official– Communication– Ethical education andtraining– change in corporate culture– Periodical monitoring

25

Step 2: grasp of actual condition• It is important for a company which promotes abusiness ethics program to understand where astrong point and weak point of the PDCA cycleof company.
• It is effective to perceive actual condition fromthe following two points.
– employee questionnaire : whether each employee (amember of an organization) can practice ethics.
– an organization system and measures check sheet:
whether the ethics promotion program is effective.
26

Requests from stakeholder

society Organizationconsistency

laws and regulations

Consistency

Consistency

ns
Co
cy
en
ist

Engineering Society

Co
ns
ist
en
cy

Consistency

Engineers
Consistency

Section27

Requests from stakeholder

society Organizationconsistency

laws and regulations

Consistency
Consistency

ns
Co
cy
en
ist

Engineering Society

Co
ns
ist
en
cy

Consistency

Engineers
Consistency

Section28

Research on actual-condition
grasp: the Employee Questionnaire•

Development of the employee questionnaire– The questionnaire proposal was created based on the codes of
ethics of academic societies and companies, the precedence
research and the interview investigation to the company ofadvanced business ethics.
– The researchers of corporate ethics, and the persons in charge ofbusiness ethics promotion section reviewed and improved thequestionnaire proposal.
– “The questionnaire about business ethics and engineering
ethics“ was completed.

•

The questionnaire consists of 3 groups of questions.
A) Individual consciousness/actionB) System/measure of organizationC) Organizational climate•

Each question was constituted after developing each 3
groups of questions into the 5-6 subgroup.
29

Making of the Questionnaire (1)Individual Consciousness/Action(A),Organizational climate (C)Individual consciousness/action (A)•••The factors were extracted which are common in the codes of ethicsof the company of advanced business ethics which we interviewed,
and in the code of ethics of 11 academic societies belonging to theJapan Federation of Engineering Society. Questions for each factor
were constituted.
When questions were made, the knowledge acquired by interview
investigation was also reflected.
Questions about consciousness/action were constituted as a pair ofquestion.

Organizational climate (C)•Questions were constituted as the form of asking everybody's actionin the workplace, in every question contents about individual
consciousness/action.
30

The example of questions of A and C
Questions about individual
consciousness/action are asked by apair.

A. Individual Consciousness/Action
A1. Consciousness/Action to law and contract, etc. observance
Q01a
・・・

Q04a I think that I must not skip the defined procedure in order toadvance business efficiently.
Q04b I don’t skip the defined procedure in order to advancebusiness efficiently.
A2. Consciousness/Action to the safety/the health/the welfare of society
B. System/measure of organization
B1. Recognition to the osmosis of ethics policies
B2. Recognition to the consistency between policies and activities
・・・

C. Organizational climate
C1. Situation recognition to law and contract, etc. observanceThe same
content ofquestion is
asked witheverybody's
action in theworkplace.

Q67 Everybody in my workplace doesn’t skip the defined procedurein order to advance business efficiently.
C2. Situation recognition to the safety/the health/the welfare of society・・・

31Making of the Questionnaire (2)System/Measure of Organization (B)System/measure of organization (B)• The factors pointed out by the precedence research etc.
as the elements which should be contained in businessethics program, were extracted.
• The questions were constituted corresponding to eachfactor.
• When questions were made, the knowledge acquired byinterview investigation was also reflected.

32

The example of a question of B
B. System/measure of organization
B1. Recognition of the osmosis of ethics policies.

Q36 In my workplace, the judgment ofoccupational cases is made based on thevalues shown by the management philosophy,
the code of ethics, the code of conduct, theCSR charter, etc.
B2. Recognition of the consistency between policies andactivities.
・・・
33

The Composition of the
Employee Questionnaire
Contents

IndividualConsciousness/
ActionSystem/Measur
e ofOrganization

Organizational
Climate

A1
A2
A3
A4
A5
A6
B1
B2
B3
B4
B5
C1
C2
C3
C4
C5

Consciousness/Action to law and contract, etc. observance
Consciousness/Action to the safety/the health/the welfare of society
Consciousness/Action to objective/autonomous judgment
Consciousness/Action to communication
Consciousness/Action to special capability improvement/education/training
Pride/morale to work
Recognition to the osmosis of ethics policies
Recognition to the consistency between policies and activities
Recognition to the commitment of the organizational top
Recognition to the systematic measure for ethics communication
Recognition to the promotion system of ethics activities
Situation recognition to law and contract, etc. observance
Situation recognition to the safety/the health/the welfare of society
Situation recognition to objective/autonomous judgment
Situation recognition to communication
Situation recognition to special capability improvement/education/training
OthersThe numberof questions
7（※）
3
6
7
4
2
4
6
6
5
7
7（※）
3
6
7
4
7

（※）The number of questions which is constituted as a pair of A1 and C1 is five.
34

The survey by the Employee Questionnaire
Positioning of the WEB survey and the X
company survey• The WEB survey– Acquisition of the reference data of theemployee questionnaire• The survey to 3 sections of the X company– Trial survey of the employee questionnaire in acompany

35

The viewpoint of evaluation, the viewpoint ofanalysis of the feature
The viewpoint of evaluation• Comparison with the average value of WEB
survey• The gap between consciousness and action

The viewpoint of analysis of the feature• Analysis of the standard deviation• Analysis of the gap between individual action
and organizational climate (recognition of
everybody's action in the workplace)36Comparison of average value with the
manufacturing industry data of the WEB survey

IndividualConsciousness/
Action

A1
A2
A3
A4
A5
A6

Consciousness/Action to law and contract, etc. observance
Consciousness/Action to the safety/the health/the welfare of society
Consciousness/Action to objective/autonomous judgment
Consciousness/Action to communication
Consciousness/Action to special capability improvement/education/training
Pride/morale to work

(Evaluation Example) 3 section of the X company

Individual consciousness/action
6.00

6.00

[X社]意識[X company] Consciousness

4.00[X [X社]意識
company] Consciousness

4.00[X company] Action[X社]行動[X[X社]行動
company] Action[Design] Consciousness[設計]意識[Manufacture] Consciousness[製造]意識[Design] Action[設計]行動Design[Manufacture][製造]行動 Action

Manufacture[WEB]意識[WEB] Consciousness[WEB]意識[WEB]
Consciousness[WEB] Action[WEB]行動

2.00

[WEB]
Action[WEB]行動

2.00

A1

A2

A3

A4

A5

A6

A1

A2

A3

A4

A5

A6

6.00

[X社]意識[X company] Consciousness

4.00[X company] Action[X社]行動Guaranteeof quality[Guarantee of quality] Consciousness[品質保証]意識[Guarantee of quality] Action[品質保証]行動[WEB]意識[WEB] Consciousness[WEB] Action[WEB]行動

2.00

A1

A2

A3

A4

A5

A6

37

Comparison of average value with the
manufacturing industry data of the WEB survey

System/Measur
e ofOrganization

B1
B2
B3
B4
B5

Recognition to the osmosis of ethics policies.
Recognition to the consistency between policies and activities.
Recognition to the commitment of the organizational top
Recognition to the systematic measure for ethics communication
Recognition to the promotion system of ethics activities(Evaluation Example) 3 section of the X company

System/measure of organization[X company] Recognition[X社]認識[Design] Recognition[設計]認識[WEB] Recognition[WEB]認識6.00[X[X社]認識
company]Recognition[Manufacture][製造]認識 Recognition[WEB] Recognition[WEB]認識

6.00

4.00
4.00

DesignManufacture

2.00

B1

B2

B3

B4

2.00

B5

B1

B2

B3

B4

B5

[X company] Recognition[X社]認識[Guaranteeof quality] Recognition[品質保証]認識[WEB] Recognition[WEB]認識

6.00

4.00

Guaranteeof quality
38

2.00

B1

B2

B3

B4

B5

Comparison of average value with the
manufacturing industry data of the WEB survey

Organizational
Climate

C1
C2
C3
C4
C5

Situation recognition to law and contract, etc. observance
Situation recognition to the safety/the health/the welfare of society
Situation recognition to objective/autonomous judgment
Situation recognition to communication
Situation recognition to special capability improvement/education/training(Evaluation Example) 3 section of the X company

Organizational climate
6.00

6.00

4.00

4.00
[X company] Recognition[X社]認識[Design] Recognition[設計]認識[WEB] Recognition[WEB]認識

Design[X社]認識[X company] Recognition[Manufacture] Recognition[製造]認識[WEB] Recognition[WEB]認識

Manufacture

2.00

2.00

C1

C2

C3

C4

C5

C1

C2

C3

C4

C5

6.00

4.00

2.00

[X company] Recognition[X社]認識[Guarantee of quality] Recognition[品質保証]認識[WEB] Recognition[WEB]認識

Guaranteeof quality
C1

C2

39
C3

C4

C5

Requests from stakeholder

society Organizationconsistency

laws and regulations

Consistency

Consistency

ns
Co
cy
en
ist

Engineering Society

Co
ns
ist
en
cy

Consistency

Engineers
Consistency

Section40

•an organization system andmeasureｓ check sheet(1)Build process– Key Ethics Program Components– PDCA-cycle– Good Practices– questionnairemade out from Project member•

12batches of questions (total:89)
1.

2.
3.
4.
5.

Execution plan of business ethics（5）Designated ethics official（10）Leadership （6）Communication （6）Code of Ethics（12）6. Business ethics andpublic information （6）※(n)= number questions

7.

Ethical education and training（15）8.

Help lines（7）9.

Trouble administration （3）10. Periodical monitoring （8）11. Compensation system etc.（3）12. Continual Improvement （8）41Result of Company X
system and measures check sheet
0%

20%

40%

60%

80%

100%

Code of ethics (12)Execution plan of business ethics(5)Designated ethics official(10)Leadership(6)Communication(6)Public information(6)Education and training(15)Help lines(7)Trouble administration(1)Periodical monitoring(8)Compensation system(3)Continual improvement(8)(n) Number of questions42

an organization system and ameasures check sheet(2)• You try a check sheet proposal in your post for businessethics promotion of the whole company, and I received
the comment of an improvement etc.
[The point which was shown in obtaining a comment]– The appropriateness of ○&× and three-step evaluation– About the well-qualified person of a check sheet reply– Interest to feedback of evaluation by the viewpoint of EAB– Relation to good practice etc.
– Appropriateness of category etc.
43

Toward the construction of thebusiness ethics program model
realizing the EAB by KIT.
• The improvement of the system and measures
check sheet of an organization• Prepare a guidebook of questionnaire and check
sheet• Seek consistency with a company and anengineering society

44Requests from stakeholder

society Organizationconsistency

laws and regulations

Consistency
Consistency

ns
Co
cy
en
ist

Engineering Society

Co
ns
ist
en
cy

Consistency

Engineers
Consistency

Section45

A quota of a company and anengineering society
Large Purpose: Effective ethics activity is carried out
in many companies.
Small purpose: We want to raise the cost performancedue to substantial ethics activity.
Method: A company and an engineering society
recognize the difference in each ethics activity(viewpoint),① A company does what a company should do.
② An engineering society does what an academic
society should do.
– Based on ①, ②, complement to be carried out or
wants to be carried out is implemented.
46

Toward the construction of thebusiness ethics program model
realizing the EAB by KIT.
• The improvement of the system and measures checksheet of an organization• Prepare a guidebook of questionnaire and check
sheet• Seek consistency with a company and an engineeringsociety• Arrangement the item included in an effective
business ethics program through implementation of a
PDCA cycle
47