The Importance Of Ethics In An Organization

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The leadership of an organization sets the ethical tone. What is ethics? Sims (2003) explained ethics as a rule of behavior based on what is the moral way to act about what is right or wrong (p. 13). The second question is who forms the ethics in an organization? It could be the founders or owners of an organization that form an ethics or code of conduct.It is document that explains the rules of interactions between members of an organization and the rules about how an organization will deal with the public they serve; the clients, the vendors, in short the stakeholders. The application of ethics will always come up in an organization in various circumstances, but the guiding principles that apply will remain tha same as honesty and integrity. All …show more content…

An organization that has this view will place at the core of its mission and it will be natural for the leadership and the employees to see themselves as part of the community, therefore what is good for the community is good for the organization (p.22). In conclusion, practice of good ethics by an organization is rewarding to all the stakeholders, the management will be happy because of high retention rate of the employees, if employees feel respected they will stay with the company. The employees will be dedicated to the organization that values them and create a path for growth. If the employees see the career path open to them, they will do their best to support the company.
The community needs companies to widen its tax base, so it is willing to do its part to provide a friendly environment for the companies to run their businesses, while they have to protect the environment and the citizen. If an organization operates with integrity, the lawmaker will treat it

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