Situation Analysis

Situation Analysis

Issue and Opportunity Identification

MFSI is facing issues necessary to correct for the survival of the company. A deficit of ethics compliance plagues the company, which can devastate a small company. Large companies are in the glare of publicity and can withstand to lose a small percentage of market shares if the company displays unethical practices. MFSI is not in the position to with stand a loss of stock, eliminating unethical behavior requires more than an implementing a code of ethics or an ethics and compliance program. For MFSI to create a culture of ethics, four elements must exist in the company for the ethical policy to be effective and supportive. The ethical values need to be embedding in the environment; a strong ethical leadership needs to be in place and effective, employees need to have a commitment to work in an ethical manner, and supervisors need to reinforcement the ethical guidelines to implement.

McBride’s management team is executing new tactical plans to re-organize the company. The vision McBride will follow is to implement a corporate strategy. As a company implements and practices good corporate governance the company is seen as rational and translucent, instead of following a corporate governance strategy, McBride creates a relationship with the board members to preserve power of the decision making. A consequence of practicing poor corporate governance is the misconduct and unacceptable behaviors that emerge without policies to follow.

Ethics codes govern the conduct of employees in all aspects of a company; helping and guiding how employees will respond when the ethics code is not observed. Ethics code helps shape how the organization will react in a situation. Ethics codes should be observed in every company and used in business decisions, in many cases referring to the ethics code is more of an afterthought, instead of referring to the ethics code as guidelines to work through issues...