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Ethic in Organisation

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Submitted By aqilzakwan
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Business Ethics:
What happens when business operates without ethics
In Ethics, The Heart of Leadership, Al Gini argues that ethics are an integral part of business. He employs multiple arguments to back up his claim. One such argument is that “work is how we spend our lives, and the lessons we learn there, good or bad, play a part in the development of our moral perspective and the manner in which we formulate and adjudicate ethical choices” (p. 30). In other word, as long as one values ethics in one’s personal life, they should behave ethically in both personal and professional pursuits. It is hard, if not impossible, to completely separate these two worlds. Another argument is that while economics provides a basis for action based solely on self-interest, ethics are important for operating in an environment filled with interconnected entities such as business, government, and people. After all, “no business can view itself as an isolated entity, unaffected by the demands of individuals and society” (p. 33). Gini recognizes that there is a widespread sentiment that business and ethics are mutually exclusive. It seems that “…the realm of business operates under the dictum of legal moralism: Everything is allowed that is not strictly forbidden” (p. 33). Not only does Gini disagree with that sentiment, he believes the ethics of leaders to be critical for the whole corporation. While each

individual has their own opinions and their own free will, Gini describes a trickledown relationship of ethical behavior from executive leadership down.

Management is definitely responsible for setting the ethical tone and atmosphere of an organization. Rather than approach the subject on purely theoretical terms, it may be beneficial to examine a real application of the topic. The current condition of my co-op employer, Consumers Energy, provides a good example of the effects

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