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Significance of ethical leadership in the organization
Ethics in the workplace
Ethical issues in business
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There is no surprise when we hear about countless scandals of business leaders failing to be ethical in the organizations they serve. Some resign, are fired, imprisoned, or in worst case- scenarios commit suicide, all because their unethical ways are exposed for the world to see. When we really face ethical problems in business, it is fair to say the ethical flaws come from the lack of personal character. (Scott, R. and Wong, K., p.449) Ethics has to do with an business’s leadership, structures, culture as well an individual’s character. Organizations can either inspire or discourage their employees from following their ethical structures or programs. Nothing is worst than working in a business that stifles your growth, challenges …show more content…
The third item to include is on-going. The company must have on-going discussions with their employees, especially in regard to ne ethical issues that emerge. You must have an ethics statement to convey consistently to your organization. (Ruddell, L.p.105) Integrity shows honesty, and believers should honor God in all that we do. The bible tells us, “Whoever walks in integrity will be delivered, be he who is crooked in his ways will suddenly fall.” (Proverbs 28:18) The last item to incorporate is leadership development. The leadership development process should always include the company’s ethics. Training should be on-going to ensure you are developing leaders that create more quality and production. Implementing ethics effectively requires telling each person what they can and cannot do, telling them the consequences for doing wrong, and making sure to enforce them. (Ruddell, L., p.106) We should develop leaders, and lead people like Jesus did. Jesus met people where they were in life, encouraged and taught them through God’s word and His actions. Love, honesty and humility was the core of Jesus actions, and if we can immulate Jesus in all that we do, others can witness us beeing ethical on and off
Effective organizations are able to clearly define their ethical expectations by setting high moral standards, writing codes of conduct, and utilizing mentoring programs. “Masters provide your servants with what is right and fair, because you know that you also have a Master in heaven” (Col. 4:1). When organizations clearly define their ethical expectations to their subordinates, they are much more likely to treat their customers fairly. Customers who are treated fairly are much more likely to be loyal consumers of the products or services that the company provides. This helps to establish a loyal customer base that a business can depend upon, thus providing a predictable source of annual revenue. If an employer treats their employees with respect, honesty, and with candor they’ll give the customer 110% (Rion, 2001).
After spending your entire working life in one giant corporation that went down overnight; investing most of your retirement in stock options that plummet to zero; you are suddenly jobless and your retirement money is gone. Yet, perhaps even more threatening; our skilled and managerial jobs are steadily going abroad, due to poor corporate ethics. The crisis of poor ethics has jeopardized public trust, caused an erosion of organizational cultures, created human suffering, caused unemployment, and profit losses. Poor ethics in organizations are often the result of unethical leadership behaviors among several people that have rationalized their values, which ended with disastrous results. What will happen to you and your family?
...sues with stakeholders and customers. When a major company such as Enron, was structured their approach to ethics on the outside appeared to be against ongoing modernization. The policies and ethics programs were set up to protect the company and its shareholders. According to author Berenbeim, the Enron Company had a detailed code of ethics it was not enough the organization needed to incorporate ethics and integrity throughout their corporate culture. Enron had to pay close attention to the business ethics issues inquired by the conduct of the Enron’s directors, officers, lawyers and accountants ( Berenbeim,2002).
throngs of people to seek a friendship with their surrounding world. He had a way
Moral and ethical leaders are essential for any successful business because these leaders are the essential links between the organization’s objectives and its stakeholders. Leaders are the face of any organization, and their actions reflect the values and the ethics the organization they represent. Therefore, if a leader’s action and decision is ethical, the stakeholders and other organizations will respect the leader and the organization. Recent history has shown that ethical behaviors are important in sustaining businesses; large corporations such as Enron, Chevron, and Worldcom, destroyed people’s lives through unethical business behaviors (Josephson, M., 2013). If these corporations and its executives have operated morally and ethically, they would have been able to avoid bankruptcy and escaped going to prison (The Economist, 2002). Having ethical leadership in organizations will help to eliminate the negative impact executive’s gre...
Every individual has certain values and ethics that he/she stands by. Values give us a sense of what is important while ethics gives us a sense of what is right and wrong. Together, these qualities help guide us through our everyday life: what actions to take and what decision to make. Sticking to ethical standards allows you to stay clear of trouble; therefore, strengthening people’s trust in you. In return, this leads to gaining people’s respect and cooperation, which may result in leadership responsibilities. Therefore, we believe that personal values and ethics will affect a person’s career success. However, there are times where individuals will make unethical choices--some situations might question your resolve. This can be caused by
his life around. We all must do this if we want to be followers of
In many circumstances, employees’ behaviors are likely to follow their leader. Enron’s leadership has been extremely influential due to exemplified charismatic. For example, Heffrey Skilling and Kenneth Lay, CFO and one of executive member in Enron, greatly encourage employees to follow their lead. Their incompetence accounting profession directly affects lover level of employees. Eventually, those manipulating accounting activities affect company collapse. Once leadership has done unethical professional accounting behaviors, unethical acts become accepted. Employees have many reasons for remaining quiet. While Enron still have ethical internal rules, when leadership in Enron did not abide and did not provide corresponding example of employees to follow (Prentice 2003, p. 417). Which eventually make Enron’s become one of the largest corporate scandal frauds.
There's no one to blame but there are a million or so of us to take responsibility, to fix it from within, and that is the hallmark of a nation and a people. That's leadership, management, tradition and spirituality. Granted, the solutions don't come easy. I know that from my personal experience, just as we know that it's the willingness to struggle towards the ideal that elevates us as individuals, communities and societies. Therefore, leadership plays a very important role in our lives. The ethics of leadership rests upon three pillars: (1) the moral character of the leader; (2) the ethical legitimacy of the values embedded in the leaders vision, articulation, and program which followers either embrace or reject; and (3) the morality of the processes of social ethical choice and action that leaders and followers engage in and collectively pursue. Such ethical characteristics of leadership have been widely acknowledged (Wren, 1998). Transformational leaders set examples to be emulated by their followers. And as suggested by Stevens et al., (1998) and demonstrated by Conger & Kanungo (1998) when leaders are more morally mature, those they lead display higher moral reasoning. But not all leadership fits the same pattern and ethical analysis shifts with varying leadership modalities. In the societies of the western world the subject of responsibility is increasing in importance. (Moran, 1996) Issues of responsibility arise in small social units as well as in global societal structures. Responsibility establishes a connection between person and society. Mothers and fathers who care for their children or a person who warns his colleague about taking up business with a questionable partner are examples of responsibility within small so...
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
Ethics is the responsibility of each individual person, but starts with the CEO and the Board of Directors, setting the right tone at the top and moves down through the organization, including setting the tone in the middle. A company’s culture and ethic standards start at the top, not from the bottom. Employees will almost always behave in the manner that they think management expects them, and it is foolish for management to pretend otherwise (Scudder). One of the CEO’s most important jobs is to create, foster, and communicate the culture of the organization. Wrongdoings or improper behavior rarely occurs in a void, leaders typically know when someone is compromising the company
went to him. "Jesus said to them, come with me, and I will teach you
“Ethical leaders within an organization cannot make every ethical decision by themselves” (Ferrell, 2015). In centralized management, the top people make all of the decisions. There are still however many opportunities for lower level employees to make unethical decisions. Management can promote ethical behavior at every level by being a good example and following its own code of conduct. The ethical environment should also be closely monitored. When someone makes a really great ethical decision, that person should be recognized. By rewarding good behavior, others will naturally want to receive these rewards as
Business ethics are a set of moral rules that govern how a business operates, how people should be treated within an organization, and how business decisions are made. They are a crucial part of employment and in managing a sustainable business, mainly because of the serious consequences that can result from decisions made with a lack of regard to ethics. Even if you don’t believe that good ethics don’t contribute to profit levels, you should realize those poor ethics have a negative effect on your bottom line in the long-run. Every business in every industry has certain guidelines to which its employees must stick to, and regularly outline such aspects in employee handbooks.