Every organization has a set of ethical standards that they abide by. The organization ethical standards purposes: it build the organization confidence in the community , keep the employees uniformed in what the organization strive to have as organizational behaviors and help the employees have guidelines to make ethical decisions that protects the organization.
Every organization also has a profession responsibility to conduct business honestly and ethically. Our readings reported, “Experts estimated that U.S. companies lose about $600 billion a year from unethical and criminal behavior” Kinicki and Kreitner (2009). The organization could avoid having ethical issues by meeting the guidelines of state, federal, and local laws. Ethical issues are a great concern for the organization because it place liabilities on the organization as well as harsh penalties such as:
1. It could be costly for the organization.
2. It can ruin the reputation of the company cause the organization to shut down.
3. Employees will be at-risk of facing incarcerations.
When an organization use ethical practice it builds a strong reputation, increase profits and accomplish long-term standings with their consumers. When the organization use unethically practices the damages to the organization reputation is hard to repair, the company usually have to restructure and repair the internal and external forces of the company. A great example would be the starting of Wal-Mart, it started out with a strong reputation as a respectable organization the stores produce tremendous growth and popular very quickly. Wal-Mart problems and publicity came when the employees complaining of unfair, ...
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...ity on the organization.
Although no organization is 100% protected, the organization can minimize the risk of unethical practice penalties by screening applicants, providing ongoing ethical training, insist that management lead by example, implement reward and appraisal system for employees, and observe the behavior of individual ethics .
Kinicki, A., & Kreitner, R. (2009). Organizational behavior: Key concepts, skills & best practices (4th ed.). New York, NY: McGraw-Hill Irwin. ISBN: 9780073381411
Stephanie Rosenbloom, (2008) Wal-Mart announces new ethical and environmental principles
Danny Weil, 2010 Chronicle of Higher Education
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