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The importance of ethics in a business
The importance of ethics in a business
The importance of ethics in a business
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Decisions are made every day in the workplace that may have ethical implications. It is important to conduct business in an ethical way because those decisions may have an impact on their companies, employees, shareholders, customers, and possibly on society. As organizations integrate ethical values into their corporate culture, they will have an engaged workforce that will have higher morale, higher employee retention, and higher production. “American Management Association (AMA) executive members completed an online corporate values survey. Ethics and integrity were listed among 76% of the respondents’ company corporate values and 72% said that they were practiced most or all of the time. Yet respondents had seen unethical behaviors: micromanagement (70%), hidden agendas (56%), dissension in senior management ranks (58%), and failure to give proper credit (59%)” (Plunkett, Attner, & Allen, 2008, p. 66). The corporate environment has placed a great deal stress on their employees, both executives as well as the line workers. Without questioning the competence in their function and assuming that it is adequate, many employees are experiencing dissatisfaction and frustration in their positions. They feel that their professional goals are set either to be unchallenging or unrealistic and they experience stress that can adversely affect their performance. Conflicting responsibilities for their work, family, friends, and for themselves give the workforce a sense of confusion. This personal confusion and conflict has a negative impact in their thought pattern and their personal well being and much of the stress exists from the difference between what people think "is" happening and they think "should" be happening in their l...
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...hat employees treat their customers. Some of the best traits that a leader can possess are personal ethics and person responsibility. The leaders of the scandalous companies of the 2000s failed in their personal ethics, which had a negative impact on their companies, employees, shareholders, and communities. Organizations that are unethical can cause an individual to behave unethically. An organization can cause unethical behavior in employees in several ways: offering unusually high rewards, threatening unusually severe punishments and an over emphasize on results (Plunkett, Attner, & Allen, 2008, p. 68). Leaders have a great due of influence on their subordinates. Leaders teach more to their employees about ethics through their actions and example that by the organization’s code of ethics. Unethical employee behavior is also related to corporate culture.
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).
Their organizational initiatives are often self-serving; however, the emerging workforce isn’t motivated by selfish managers. This selfish behavior often turns into unethical conduct. Unethical dealings in the workplace are always wrong. It is crucial to promote ethical behavior. Everyone must understand that once caught, unethical behavior is not just a problem for those directly involved, it is everyone’s problem.
I certainly agree to the author and McNerney that the unethical dysfunctional company norm is the root cause of the ethical issue. It is this norm created by the predecessors who never set good ethical examples that influences the employees. They believed the politically safest way of executing tasks would be mimicking how their superiors get their jobs done.
An organization that lacks a true culture of ethical compliance can create problems with integrity issues with stakeholders and customers. When a major company such as Enron, was structured their approach to ethics on the surface appeared to oppose progressive innovation. 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 focus on business ethics issues raised by the conduct of the company’s directors, officers, accounts and lawyers (Berenbeim, 2002).
Where the articles differ is how these play into ethics in an organization. The Organizational Determinants of Ethical Dysfunctionality article points to the vertical hierarchy as the main driver for unethical behavior. The larger the workplace and the further ethic safety nets are from the wrong doers offers opportunity for unethical behavior. Also, the more dysfunctional the organization, the more prevelant the unethical behavior within the organization. Additionally, the article suggests that unethical behavior has a contagion factor as well, spreading to other organizations within the same geographic area. This article differs for the Virtuous Persons and Virtuous Actions as the structure of the organization and not the individual is the true culprit of ethical choices. The Virtuous Persons and Virtuous Actions article takes a more philosophical approach to ethics pointing to the individual and his or her virtues (gratitude for
Thus make being an ethical leader slightly harder than a normal ethical person. So, we must take a deep interest in this topic. Having to know the traits that describe ethical or unethical leadership will make us more careful in acting as a leader, or choosing someone as a leader. Of course we don’t want an unethical leadership or being an unethical leadership. Because the effects or consequences is not only on us, but to others, especially those who work under the
For this paper Washington Mutual has been selected to show how the ethical decision making process can be achieve. When it comes to business ethics in the workplace Washington Mutual has designed what can be considered a well balanced workplace with behaviors that are aligned with their moral values and business ethics. Business ethics are sometimes depicted as resolving conflicts where one option can appear to be the correct choice. There are many different ethical dilemmas that are faced by managers and leaders everyday that are highly complex and have no clear choice or guidelines to assist in making the choices for resolution. There are times when an employee has to decide whether or not to cheat, lie, steal, or break their contract. These ethical decisions are real-life situations where they are forced to make on a daily basis. This is why it is ultimately important that all employee know the six steps to ethical decision making that the company uses.
I discovered how sticking to one’s morals should be the topmost priority for everyone involved in business, whether personal or professional. Regardless of what the consequences may be, the intensity of the problem, and the complexities it may bring, sacrificing one’s integrity should never be an option, as integrity goes hand-in-hand with the morals of an individual (Duggan & Woodhouse, 2011). They further go on to say that having individuals take part in building a code of ethics that supports employee integrity, they will act ethically. Also, I believe that companies should place more emphasis on the moral behavior of their employees, and clear-cut policies should be set regarding such ethical situations. Furthermore, I realized how serving justice while making decisions really helps in the long run, and that opting to go for the ideal rather than they deserved is not always the best option, and could hurt a company in more than one
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
Organizations are constantly tested with various moral and ethical problems and dilemmas. Organizational leaders are the key to establishing an ethical climate in the workplace. By understanding and improving their own moral reasoning, and the biases that affect moral judgment, they enable themselves to make better decisions. This has a catalytic effect that positively increases organizational climate, ultimately improving all organizational behavior.
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.
"Ethics are personal and, at the same time, a very public display of your attitudes and beliefs. It is because of ethical beliefs that we humans may act differently in different in situations" (University of Phoenix, 2007). Poor ethical choices in the workplace can truly hurt people. Poor ethics can damage their career, happiness, and quality of living. Not only can these actions hurt the individual who has made the bad choices, but also most often it hurts the innocent. This essay will provide two actual case studies; one of positive ethical principles and the other of poor ethical principles.
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
“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
Corporate governances actually illustrate that no entity or agent is immune from fraudulent practices (Arjoon, 2005 p 342-344). Therefore, it is crucial for an organization to have a stable ethically healthy corporate culture, Patagonia is "doing things right" by influencing the actions of the workforce. Through the integration of ethical conduct in an organization, employees see the complexity of making ethical choices; also, it helps the staff understand what an ethical decision entails and how to talk about hard ethical choices and taking responsibility for making moral choices carefully and