1. Now read the rest of the text. Complete sentences about the text with answer a, b, or c.

1 The example of Enron illustrates that...

a all companies with values need investigating.

b having defined values doesn't guarantee that a company lives by them.

c defining company values is a waste of time.

2 The author thinks that the cynicism many people have about companies claiming t have values is ...

a out of proportion.

b the result of bad journalism.

c not surprising.

3 The author believes that Patagonia's values have contributed to its success because ...

a its activities reflect its values.

b its values are the same as its customers.

c both answers a and b.

2 Discuss these questions with you partner.

1. What do you think is the cornerstone of your company's success?

2. How well do you think your company's beliefs or values reflect those of its customers? Do you think it matters?

3. How much does your company give back to the community or into ethical projects? Can you give any examples of how it does this?

3 Work with a partner. Without looking at the text, work together to summarize the main points. You must include all the words and phrases below in your summary.

core values and beliefs Patagonia public cynicism

fraud and corruption cornerstone of success environmental projects Enron

customer values scandal

4 Complete the sentences with the correct form of the word in brackets. You will find the answers in the text.

1. Don't be so___________________ to your boss! You'll get the sack. (respect)

2. He's at the doctors having some _______________________ on his back. (treat)

3. I think there's a lot more _______________ in the world these days. People are very critical of everything. (cynic)

4. She even goes scuba-diving in the winter. She's a real________________. (enthusiasm)

5. What annoys me is the _____________of some people who say one thing but do another. (sincere)

6. When the moon is in perfect ___________ with the sun, you have a solar eclipse. (align)

7. Cynics would say that everyone is ____________ for the right amount of money. (corrupt)

TEXT 2

Read the following article on business ethics and the questions. Choose one letter A, B, C or D for the answer.

Companies turn to ethics for competitive advantage

In the old days measuring company performance was simply a case of looking at turnover, profits and dividends. However, the last few years have seen environmental and ethical issues move to the forefront of public concern and resulted in a closer scrutiny of a company's performance in terms of its business ethics. As the Government has been slow to respond to the increasing importance of ethics, companies have been forced to address the subject themselves and re-align their own management policies accordingly. These policies will determine how a company conducts all aspects of its business, from dealing with clients to reporting to shareholders.

By setting themselves up as ethical, however, companies are not so much promoting the importance of ethical conduct, the well-being of the local community or the development of society as a whole, as engaging in a powerful marketing and PR exercise to attract both discerning clients and bright young recruits. In today's markets, any company without a coherent ethics policy is in danger of surrendering a competitive advantage to its rivals.

In order to develop an ethical code of conduct, companies will have to deal with issues such as the legal implications of their disciplinary measures and the effect any new procedures will have on employees. However, new policies can only be developed once the company has identified the core values that underpin its day to day operations. Without a clear understanding of these values, it is impossible to develop a code of conduct compatible with the company's culture. An effective code will dictate how employees approach conflicts and other stressful dilemmas not covered by the normal terms and conditions of employment. It will provide employees with a clear understanding of what behaviour is expected when they find themselves confronted with such dilemmas.

Ethical procedures are particularly critical in times of crisis. Pay disputes, sexual harassment charges or cases of fraud, for example, can involve very complex issues that require careful decision-making and can have a very negative effect on staff morale. At such times it is crucial that companies act in an ethical manner. By doing so, they may not be able to avoid the potentially damaging publicity such cases inevitably attract; they will, however, be in a much stronger position to defend themselves in a court of law.

The major obstacle which companies face, having established a code of conduct, is that of ensuring that each individual member of staff follows it. Some organizations simply distribute leaflets to all staff in the hope that they will read and act on them. Other companies take a more active approach and invite management gurus to hold seminars on the subject, which, while often highly entertaining, have little long-term impact. Although some companies now include ethics as part of their standard induction programme, it is widely accepted that this is not enough. The issue of ethics in the workplace is now of such importance that it needs to be incorporated into in-company development programmes for all employees, from the shop floor to the boardroom.

With little sign of public concern abating, no organisation can afford to ignore the subject of ethics in the workplace. In order to address the issue effectively, companies need to ensure that staff at all levels feel committed to the company and its values and are motivated to transfer this commitment into ethical behaviour.

1. Business ethics are becoming more important as a result of

A consumer demands.

B shareholder concern.

C management theories.

D government legislation.

2. Why are companies promoting ethical practice?

A to develop customer awareness of social issues

B to help raise money for the local community

C to enhance the positive image of the company

D to improve the conduct of employees

3. What must companies do first to develop an ethical code?

A take appropriate legal advice

B consult employees at all levels

C establish their basic principles

D set up disciplinary procedures

4. A code of conduct helps employees

A work together more effectively.

B improve terms and conditions.

C understand their duties better.

D cope with difficult situations.

5. At times of crisis, a code of conduct reduces the

A likelihood of negative publicity.

B potential damage of legal action.

C negative effect on staff morale.

D time it takes to make decisions.

6. How can companies ensure that staff follows ethical procedures?

A by distributing detailed leaflets to employees

B by integrating ethics into training at all levels

C by arranging seminars with ethics consultants

D by including ethics in induction programmes

TEXT 3