Company Ethics: US Steel Corporation Paper Example

Introduction

The United States Steel Corporation was founded in 1901 and currently has production centers in various locations in the United States and Europe. Headquartered in Pittsburg, the company produces a wide array of steel products. Their main clients include automobile manufacturers, construction and oil industries among others. A robust ethical framework is an essential success factor for a leading organization like US Steel. The paper seeks to analyze selected aspects of the company's code of ethics. Also, it provides ethical policy proposals and examines the impact of sentencing frameworks on the organization.

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Code of Ethics: Corporate Social Responsibility

Corporate social responsibility (CSR) is a mechanism through which organizations contribute to the development of social and environmental welfare of the communities where they operate their businesses. Studies show that customers are attracted to companies that take corporate social responsibility seriously. The US steel corporation has clear guidelines concerning CSR in their code of ethical business conduct.

The third principle in the organization's ethical guideline document outlines the environmentally friendly activities that the business conducts. The main objectives of the environmental stewardship efforts are to minimize emissions, promote fuel efficiency and conservation of energy. Entrenched in the document is the call to every employee to conduct their affairs in an environmentally sustainable fashion. This includes using innovative methods to minimize any negative impact on the environment. The organization and all employees are obligated to comply with the state laws, regulations and environmental policies. Failure to adhere to the stipulated laws attracts both civil and criminal punishments and may also result in disciplinary action against an employee (United States Steel Corporation, 2018).

It should be noted that corporate social responsibility has various facets. Engaging in environmentally sustainable activities is just but one of the aspects of CSR. Other avenues such as philanthropy and volunteering are lacking in the organization's code of ethics. Nonetheless, the organization has clear guidelines on how to deal with customers and suppliers. Engaging in honest and transparent transactions with the key stakeholders such as clients qualifies as responsible corporate social acts (United States Steel Corporation, 2018).

Code of Ethics: Compliance with Legal Mandates

Compliance with government laws and regulations is essential for the successful operation of businesses. The principle of lawful business conduct in the US steel code of ethics document calls every employee of the company to the duty of complying with all relevant laws. For instance, employees that deal with accounting have the responsibility to follow the US securities laws and the Sarbanes-Oxley act of 2002. Besides, there are strict guidelines regarding vices such as insider trading, bribery, and corruption. Following the evidence in the ethical code, it appears that US steel has a culture of compliance with state laws and regulations (United States Steel Corporation, 2018).

Several consequences result from noncompliance to the laws and regulations that govern the various aspects of the business. The penalties and disciplinary action may originate from the state or the company. Noncompliance to state laws is punishable by fines and even jail term depending on the magnitude of the offenses. The company can also take disciplinary action against employees that violate the various principles within the code of ethics (United States Steel Corporation, 2018).

One ethical safeguard that the organization uses is that it hires people with a proven track record as far as compliance with ethical guidelines is concerned. Doing thorough background checks on potential recruits ensures the organization employs people with the inclination to do the right thing. (United States Steel Corporation, 2018). A strategy that the organization may consider is to carry out regular internal ethical audits to guarantee that every stakeholder upholds the ethical codes of the company. Code of Ethics and Ethical Culture

Mintz (2015) identifies several strategies that organizations can use to establish a strong ethical culture in the workplace. One is to reward ethical conduct and incorporate it in the employee evaluation scheme. Second is to assign a senior officer to manage compliance and ethical issues within the company. The third is to formulate whistleblowing policies and create outlets for reporting offenses. Fourth is to develop training programs on ethical issues within the organization and the industry. From the criteria above, it is possible to deduce that US steel has strategies in place to establish an ethical culture. For instance, the organization has an established structure headed by the Chief Ethics and Compliance Officer. Further, they have a mechanism for reporting cases of violations of ethical principles. Also, the organization has training programs on a broad spectrum of ethical issues. The above factors work in synergy to promote an ethical culture in the organization (United States Steel Corporation, 2018).

Raising Ethical Concerns

Having a precise mechanism for reporting or raising ethical concerns is vital to the general management of ethical issues within an organization. Within US steel, there are provisions for reporting or communicating ethical concerns. Generally, ethical concerns should be directed to the supervisors, human resource officers, and ethics and compliance managers. Some can also be addressed to the legal department of the organization (United States Steel Corporation, 2018).

Also, employees can raise ethical concerns directly to the US steel ethics line. This is a call center where people can report suspicious activities or outright gross violation of ethical policies. There provision for anonymity which is a useful strategy to promote airing or concerns in good faith (United States Steel Corporation, 2018).

In addition to the above avenues for raising ethical concerns, the company code of ethics outlines specific procedures for communicating ethical dilemma arising from any of the principles. For instance, inquiries to seek clarity regarding lobbying activities by a company employee can be forwarded to the Government Affairs department. Having both government agencies and the company avenues for raising ethical concerns promotes compliance with the laws, regulations, and policies that govern ethical conduct (United States Steel Corporation, 2018).

Using the ethics lines would be a strategic choice because it offers the benefit of anonymity. The approach is useful especially when an individual intends to blow the whistle concerning misconduct. Other issues may be raised directly with the compliance and ethics officers or the legal department. For instance, an employee may have the desire to engage in political campaigns and lobbying activities. To ensure that there is no conflict of interest or violation of the Political and Charitable contributions policy, the employee can seek guidance from the company's Political Action Committee (United States Steel Corporation, 2018).

Whistleblower Policy

Whistleblowing is a vital component of ensuring that the businesses operate within ethical guidelines. However, there are essential factors that a whistleblower must consider before raising concerns. First, before raising the alarm, the whistleblower must ensure that they have sufficient evidence to sustain their allegations. The best sources of evidence for whistleblowing purposes include first-hand experience, observations and direct correspondence with employees or customers. As far as whistleblowing is concerned, the more information one has, the better the chances of sustaining the case (Serocold, 2016).

Secondly, a whistleblower must be conversant with the potential legal consequences they may face. For instance, it is probable that a whistleblower may suffer the same punishment as violators. Often, whistleblowers find themselves as part of the crime even though reporting the illegalities gives them the advantage of getting lighter sentences (Serocold, 2016).

Thirdly, evidence suggests that whistleblowing comes with a massive emotional cost. There have been instances of individuals who lose their jobs after reporting gross violations of ethical codes. In extreme cases, the persons are blacklisted from their industries. This action undermines their employability and increases the risk of depression and emotional breakdown. Blacklisting occurs because many companies within a given industry may be violating the same codes like the one that is exposed by the whistleblower (Serocold, 2016).

There are general guidelines that an employee should follow if they choose to report malpractices. It is important to note that variations exist with regards to the process depending on the organizations involved. For instance, there are specific procedures to be followed in whistleblowing that have financial rewards for the employees. Such cases require the employee to fill the necessary complaint forms. The documents contain statements of eligibility and allow the individual to report the alleged breach of the stipulated codes anonymously. The employee must be ready to wait because most cases can take years to resolve (Teacher, 2013).

As a general rule, the process of reporting unethical conduct begins with the collection of evidence. The evidence is then documented. Documentation involves the gathering of relevant information regarding the case and recording it with the help of an attorney. For organizations that have internal whistleblowing mechanisms, it is standard practice to follow the above procedure under the guidance of the legal department (Teacher, 2013).

Advantages and Disadvantages of Paying Whistleblowers

Whistleblowing has both advantages and disadvantages. From the Dodd-Frank, Wall Street and consumer protection act whistleblowers stand to benefit significantly from the financial payout. Also, the practice prevents the potential loss of more resources that could happen if the malpractice were not reported (Scott, 2011).

The disadvantages of whistleblowing include damage to the reputation of business especially in cases involving public exposure. Businesses that have a strong brand presence as their competitive edge suffer most from such whistleblowers. Besides, whistleblowing comes with substantial financial burdens resulting legal fees and penalties meted against culprits. Initiation of criminal proceedings against staff also affects the motivation of the employee and undermines productivity (Scott, 2011).

Impact of Sentencing Guidelines on Organizations

The federal sentencing guidelines are provisions that propagate consistent sentencing policy for offenders within the federal judicial system in the United States. The guideline allows for the standardization of sentences based on the factors of each case. The guidelines have a significant impact on an organization; that is, they give incentives to companies to eliminate criminal activities through internal mechanisms. One notable contribution of the guidelines to organizations is the development of compliance and ethics programs.

Culpability Factors

Various factors determine the fines levied against individuals or organizations under the sentencing guidelines. One element is to consider is whether the individual is a repeat offender. Repeat offenders attract higher fines compared to first offenders. Another factor that determines the fines is obstruction of justice. Organizations that impede investigations are deemed to be more culpable and are liable to heftier fines. The third factor is the number of employees in an organization. Accor...