...modern day, it has become increasingly important for Organizations to be morally correct in the way that they conduct their business and corporate activities. Companies with strong ethics programs have found that these efforts can reduce potential costly fines, decrease vulnerability, improve reputation, provide access to capital, favorably influence their bottom line, positively affect their employees' commitment to work and enhance customer loyalty (The importance of being ethical 2000). One of the most important perks of being ethically correct is the potential avoidance of fines and extra legal costs that the organizations could incur by avoiding their moral and ethical duties towards their customers and also to society at large, which along with the goodwill that comes with being an ethical company boosts the potential of profitability of the organization. Companies and their employees are required to comply with national, international, and local laws governing their operation. Failure to comply with these standards can be costly in terms of time, resources, brand image and employee and customer loyalty. In addition, the development of strong ethics initiatives can greatly reduce the chance of fines resulting from wrongful, fraudulent, discriminatory or illegal activities (The importance of being ethical 2000). Hiring ethical people is one of the most important factors involved in creating and sustaining an ethical organization, if not, the most as ethics is directly concerned...
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...Ethical Leadership in Organizations Lisa Hunsucker MGT 380 April 19,2010 Leadership is by all means a special talent that not all people possess. A leader must also have ethics to be effective for the long term in the corporate world. These leaders generally implement ethical programs in order to influence an organizations climate (Yukl, 2010). I will evaluate the importance of ethical leadership and the role it plays into today’s organizations. In addition, I will discuss the repercussions a company may have when its leadership allows and even rewards unethical business practices. Lastly, I will apply my personal leadership perspective. My perspective will include the path-goal theory and ethical practices that I find important to leadership in an organization. Ethical Leadership In the midst of making money in a business, when do ethics come into play? In any organization an effective leader must have people that will follow him or her. Generally speaking people will follow someone that is ethical and moral over a leader that is dishonest and immoral. This is just my observation through years of working. I know for me and many others the leaders I have followed, they were highly ethical in their business practices. The most effective leaders were those who empowered their employees to follow the same model of integrity. Velasquez (2006) states “when employees believe an organization is just, they are more willing to follow the organization’s managers, do what managers...
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...essay will examine and analyze whether hiring ethical people is the key factor in encouraging and producing an ethical organization. Ethics refer to the moral standards set that enables an individual to tell what is right from wrong and what is good and bad. In today’s organizations, the importance of the code of ethics is more prevalent than ever. Code of ethics consists of various factors such as being honest, building trust, and upholding the ethical standards. Organizations that exercise ethical codes not only feel that it is a way to portray a positive image to the stakeholders, but also because it highlights its own organizational virtues and values. It is believed that such culture could cultivate and encourage more ethical behavior for the employees in the organization (Stevens, 2008).Code of ethics are also used to articulate the restrictions for the organization, and to set a benchmark of what is acceptable and unacceptable, boosting responsibility, and conveying the standard expectations demanded from the employees as well as the leaders in the organization (Stevens, 2008).The ethical codes can be described as an effective tool to promote ethical behavior in the organization(Stevens, 2008).However, researchers have came up with reports that hints that the practice of ethical codes are unproductive and they have failed to create an impact in an employee’s behavior(Stevens, 2008). One of the studies suggested that ethical codes are not suitable and were ineffective especially...
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...Managing Ethical Decision Making in the Workplace James E. Gleason BUS 275-H01 Calhoun Community College Abstract Business leaders struggle to balance the desire for profit and maximum shareholder return with corporate ethics and social responsibility. Unfortunately, short-term financial bottom line has taken the place of maintaining strong moral character in today’s business practices. In the United States alone, about two-thirds of the top corporations have been guilty of some type of corporate malfeasance. In the face of both damaging and publicly embarrassing litigation, business leaders now recognize the need for sound, straightforward ethics management programs in their companies that makes ethical business practices a top priority at all times. Top executives must lead by example and actively and willingly encourage ethical behavior in their peers as well as employees. The need for stronger ethics in business has prompted business schools to critically examine their business curricula and place greater teaching emphasis on ethics and social responsibility to ensure future generations of new business graduates enter the workforce with the highest moral standards. Keywords: ethics, social responsibility, malfeasance, business schools, business curricula Managing Ethical Decision Making in the Workplace Introduction Ensuring that the necessary steps are taken to create and foster a high level of ethics in the business practices of the workplace is critically...
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...focusing on incorporating ethical principles in business transactions and decision-making. One of the factors that have caused this shift on ethical focus is the financial crisis in the corporate world. Many reputable companies, CEO’s, CFO’s, and auditors have been implicated for fraudulent business activities. It is hoped that if businesses focus on building an ethical culture in the organization this may act as a deterrent to management and employees engaging in unethical business transactions and decision-making. Schein (1985) posits that the “organization’s culture is a cognitive framework, consisting of attitudes, values, behavioral norms, and expectations shared by organization members” (as cited in Brooks & Dunn, 2012, p. 254). Organizational culture can positively or negatively affect employees’ behavior. Where there is no focus of management on ethical behavior, employees may get the wrong message about the company’s stance on ethical principles. On the other hand where management displays and discusses ethics with employees, this shows a commitment from them that the company’s values ethical principles and behaviors. Management’s commitment and support to ethical standards must be evident through their actions. Brooks & Dunn (2012) stated that “it is vital that organizations create an environment culture where appropriate shared values are created understood, fostered, and committed to by all concerned” (p. 254). Organizations are provided with many tools...
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...needs and agendas. *include at least one example of a company overstepping ethical boundaries for stakeholder agendas, and what types of preventative measures could be taken to avoid this type of situation. Solution Loss of employment and retirement funds, double bonuses, tax evasion, and the dark side of office politics are some of the challenges affecting organizations like a virus causing professionalism and efficiency to be questioned. Walker and Lanis (2009) found that an organization influences and is influenced by the society within which it operates (Cengage, 2009); therefore, an organization needs to take into consideration issues such as product safety, regulations, legal, ethical and economic responsibilities to the society within which it functions. One of the methods which could be used to do so is to integrate ethical and socially responsible techniques in an organization’s strategic plan whilst taking into consideration the needs and agendas of stakeholders. This concept is supported by Drozdenko, and Jin (2010) who suggested core values and beliefs exhibited at the strategic level influences decision making and outcomes throughout an organization. The objective of this research is to explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas, including an example of a company which overstepped ethical boundaries and preventative measures which could be taken to avoid this type of...
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...need a clear definition of business ethics and a clear explanation of the significance of ethics in relation to the position and to the business as well. It is shown to be beneficial to employees and executives to use a decision making process in the development of making important decisions; there are many approaches as well as many consequences to making ethical decisions. Good ethics start with the employer and how they handle and execute their ethics and provide a good working example for their employees. There are many viewpoints on what ethics are, especially in relation to business, “Ethical obligations are a set of “ought to” standards that define a moral course of action and draw a line between right and wrong” (Lohrey). Business ethics can be comprised of written and formal guidelines in relation to an organization’s morals. Many businesses use their code of conduct or credo as their guidelines to communicating their organizational ethics, “Business ethics manifests both as written and unwritten codes of moral standards that are critical to the current activities and future aspirations of a business organization. They can differ from one company to another because of differences in cultural perspectives, operational structures and strategic orientations” (Merchant). It is said that at times a law may not be morally right to some and at times what is morally wrong is completely legal; it is not always strictly the law to refer to when it comes to business ethics, “The...
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...company. They communicate to all members of an organization what is considered right and wrong, creating order and harmony among the workplace. These rules guide an organization. Most companies, especially the large ones, have a formal, systematic policy to promote ethical behavior. These efforts, called corporate ethics programs, are designed to make employees aware what is ethical and unethical and also to encourage them to follow the moral practices. Typically, ethical policies and procedures involve components like a code of ethics, ethics training, ethics audits, and ethics committees. (Greenberg, 2011, pp. 56-57) The integrated ethical policies and procedures can be effective; however, it is not easy. High ethical standards require both, businesses and individuals, to conform to some moral principles which often involves compromises or trade-offs (Ferrell, Fraedrich, Ferrell, 2011, p.7). Nevertheless, it has been found that in companies which have organizational policies and procedures according to ethics the employees are more likely to report the ethical misconduct to the company’s leaders, are considered as more accountable for ethical abuses and face less pressure in finding the middle ground with the standards of business conduct (Greenberg, 2011, p. 58). Likewise, another studies show also that the ethical policies are becoming very common in U.S. organizations. There is a long list of benefits of effective ethical policies and procedures. They are meant to...
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...their relation to leadership, managerial decision making, corporate social responsibility and overall corporate structure. Increased corporate scandals and the discovery of a rise in unethical business practices have thrown the topic of business ethics into the spotlight. Organizations are expected by their stakeholders to implement strong ethics within their corporate structure and culture. This expectation could be accomplished through strong ethical leadership, formal structures and regulations that place emphasis on ethics, and by making a commitment to corporate social responsibility. Using these guidelines will help organizations overcome the various challenges allowing the business to build a strong ethical foundation that will ultimately benefit the company through increased customer and employee satisfaction, which could result in increased profits, organizational sustainability and social status. The review of the literature reveals that there is still plenty of room for exploration on the topic of business ethics and particularly with the topic of ethical leadership. It is recommended that more focus be placed on understanding the influence of strong ethical leadership within an organization and how this influence flows down the organizational structure. Once this flow of influence is understood, exploration is necessary to identify the best procedures for developing and sustaining strong influential leadership ethics within the organizational structure. Organizational...
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...while enriching the crafty. Hewlett Packard demonstrated its commitment to ethical integrity under the leadership of Carly Fiorina. The former CEO of Hewlett-Packard said of her six-year tenure, “Some of the most important choices I ever made were firing people who weren't conducting themselves with integrity” (Weil, 2007). In contrast, R. J. Reynolds Tobacco Company was caught covering up knowledge about the addictiveness of nicotine. Tolerating bad behavior to improve the bottom line and justifying it as “not really illegal” creates a climate that ultimately becomes corrosive. In addition to social responsibility, there are other compelling motivations for 21st century organizations to make ethical values a priority. More than simply a legal or moral responsibility, ethics need to become an organizational priority. Organizational leaders have a lot on their minds in today’s highly competitive world. They must keep abreast of rapid technological advancements, competitor’s products and services, the effects of globalization, and opportunities and threats within their own industry, to name the most obvious. Leaders must also keep a constant eye on the mission, vision, values, culture, strategy and goals of their own organizations. In the midst of all of this complexity, it’s not easy to find room on the organizational plate for another major priority. However, to succeed in the 21st century, organizations will have to figure out how to make ethics a priority. Priorities...
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...MBA Program Essay 18 August 2014 Nowadays organizations faces a number of challenges, technological advancements, globalization, supply chain requirements, new legislations, environmental regulations, customers’ expectations and competition, just to name a few. One problem of vital importance for an organization is maximization of profit; after all, businesses are there to make money for the stockholders and shareholders. In order to remain sustainable and viable an organization must consider all the other issues aforementioned, remain in compliance while continue being ethical, transparent and responsible for not only for the organization and its investors but, for society as well. The best way for an organization to achieve profitability is by building trust, this can only be achieved by ways of open and honest communication. Media coverage has made public corporate scandals in the last few years, creating awareness of unethical practices. Issues with made up financial reports, product quality, poor customer service, out of court settlements without admission of guilt, has created skepticism amongst consumers, thus affecting profit for the organization and the overall socio-economic stability. Deceptive practices are noticed. An example of a common practice among the retail industry is price gouging. Human beings are creatures of habit; consumers like to frequent the same businesses for their own personal reasons. They become familiar with the prices and when there...
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...enriching the crafty. Hewlett Packard demonstrated its commitment to ethical integrity under the leadership of Carly Fiorina. The former CEO of Hewlett-Packard said of her six-year tenure, “Some of the most important choices I ever made were firing people who weren't conducting themselves with integrity” (Weil, 2007). In contrast, R. J. Reynolds Tobacco Company was caught covering up knowledge about the addictiveness of nicotine. Tolerating bad behavior to improve the bottom line and justifying it as “not really illegal” creates a climate that ultimately becomes corrosive. In addition to social responsibility, there are other compelling motivations for 21st century organizations to make ethical values a priority. More than simply a legal or moral responsibility, ethics need to become an organizational priority. Organizational leaders have a lot on their minds in today’s highly competitive world. They must keep abreast of rapid technological advancements, competitor’s products and services, the effects of globalization, and opportunities and threats within their own industry, to name the most obvious. Leaders must also keep a constant eye on the mission, vision, values, culture, strategy and goals of their own organizations. In the midst of all of this complexity, it’s not easy to find room on the organizational plate for another major priority. However, to succeed in the 21st century, organizations will have to figure out how to make ethics a priority. ...
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...Leadership: Trustworthiness and Ethical Stewardship MGT7019-8: Ethics in Business Northcentral University Dr. Jo Ann Davis November 12, 2012 Leadership: Trustworthiness and Ethical Stewardship The problem to be investigated is the correlation linking the components of leadership, trustworthiness, ethical stewardship, and their effects on sustainable organizational culture. This paper will identify both the similarities and differences between the practices of those who have influence over the decision making process pertaining to the ethical issues faced by their organization. In addition, this essay will present an evaluation of the measures that a business may take to meet ethical considerations relative to social performance, financial performance and reputation. Finally, the paper will provide an assessment of the degree to which social, ethical and public issues should be considered regarding both internal and external shareholder connections. Among the international business market, the significance of comprehending the associations connecting management behaviors, awareness regarding manager’s trustworthiness and the moral duties inherent in the psychological bond are becoming progressively more important (Caldwell, Hayes, & Long, 2012). It is increasingly acknowledged that one’s moral character and competence are important prerequisites of the trademarks for leading with integrity and having the ability to build trust in organizations (Harrington, 2010). Both...
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...“HORIZON” Role of HR in Fostering an Ethical Work Place by ANANDITA THAKUR SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES CONTACT DETAILS MOBILE: +91-9890074166 E Mail: anandita.thakur2012@sims.edu Role of HR in Fostering an Ethical Work Place “Corporate leaders have a duty to build and foster a values-based culture that thrives on high ethical standards. Only by instilling these values in our respective organizations will we be able to bestow a promising future to the next generation.” Sharon L. Allen Chairman of the Board Deloitte & Touche USA LLP The number and significance of challenges facing organizations are unprecedented. Growing financial pressures, rising public and payor expectations, consolidations and mergers, quality improvement issues, have placed organizations under great stress—thus potentially intensifying ethics questions and issues. Indian managers experience a clash between the values acquired from their education and professional training and those drawn from Indian culture and society. Values drawn by Indian managers from their training emphasize on western instrumental rationality and rule following, whereas the values drawn from family and community emphasize affiliation and social obligation. Western management assumes a preference for the ethical puzzle stance. Accountants, for example, have been trained to work in a rule governed manner. Within their job roles, Indian managers may express Indian social values. Inherent...
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...1 What is the difference between morals and ethics in the workplace? Might something be ethical but immoral? What about unethical but moral? Which is more important to an organization, to be ethical or moral? Why? Morals and ethics relates to individual character, ethics, and morals but also applied in business world. Ethics stresses a social systems to which application of morals that influences ethical behavior at work whereas morality consists of rules of human behavior and specifies that certain behavior or actions are wrong or immoral and others are right or moral (De George, 2010). The decision’s one makes, whether it is for personal or professional reasons falls into either an ethical or moral decision making category. Morals define personal character. Moral decisions are based upon the beliefs of the individual while ethical decisions are guidelines, standards, and laws that affect the business professional’s decision-making process. In an ethical climate, people are held accountable and decisions are made based on what is in the best interest of the company or its employees and not what nets the greater financial gain for an individual at the expense of the company’s ethical fiber. Issues that arise in business can sometimes be ethical but immoral or vice versa. Business organizations face ethical and moral decisions daily. Ethics in business are central in the organization as it provides standards that form the moral integrity of the company. Effective leaders...
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