Question

Ethics prescribes expected behavioral norms for employees, and often the vendors and suppliers. The company’s ethics are often communicated in the form of a Code of Conduct that is usually available on the organization’s website. You will do some reading and research to see how ethics impacts motivation and an organization’s culture. Topic: Ethics Access the article on ethics by Bart, C. (2011) in the Reading area. Based on the recommendations by Bart in the article:

How has your current or previous organization complied with Bart’s recommendations?

If the company was not or is not complying, explain how they have addressed ethics. What do they need to do to better comply with his suggestions?

Do some research on the internet regarding Benefit Corporations and discuss whether you would be more or less inclined to work for such an entity and explain your response.

Do some research on the Internet on various company cultures and address the following: What kind of company culture do you prefer and why?

Answer 1

Ethics are moral principles which help a person decipher between right and wrong. In an organisation, ethics play a vital role as they are the do's and don'ts that the employees of the organisation have to follow. They are the guidelines which decide how individuals behave within and outside the organization they represent. Good ethics in an organisation help create a positive work culture and boost the morale of the employees. It also has a positive impact on the retention, loyalty and productivity of the employees. It impacts the efficient use of resources of the organization.

I would like to give an example from India. Mr Ratan Tata headed the multinational conglomerate Tata Group (owners of Jaguar & Land Rover Cars, Taj Mahal Hotels etc.). The iconic Taj Mahal Hotel in Mumbai faced a terrorist attack in 2008, where many guests and staff members were either injured or killed. Ratan Tata made it a point to visit each injured person in his hotel, personally. Be it a wealthy guest or a security guard. Also, all the medical expenses of the wounded, some of whom still need treatment are bourne by the Tata Group. Mr Tata, being the head of the group, could have delegated one of his managers to visit the injured. But he chose otherwise. This magnanimity and humane attitude have percolated in all the companies of the group. Their business dealings, employee relationships, social responsibility programs, environment protection programs etc. are all done on ethical grounds. No case of financial misconduct or fraud has ever been lodged against any of the group companies. As such, a moral code of conduct present in the organization has impacted the employee to undertake the right path to their work and bifurcate between the right and wrong.

Ethics by Bart C recommends various the various virtues of ethics such as integrity, fair treatment of employees, adhering to state and federal laws, open and honest communication. He rightly said that leadership without ethics is like a ship without a compas. He recommended building the trust of the customers to retain them. He also suggested ethical measures in the human resource policies of the organisation, in their hiring process, role discription, training and development etc. Alsoimportance of ethics in the performance management system. He suggested the implementation of ethical measures to boost employee confidence and morale.

A benefit corporation is a for-profit organization that includes positive impact on employees, society, environment, etc. besides making a profit as its primary goal. The premise on which a benefit corporation is built is that the decisions of the organization are taken after due consideration of the employees, environment, society etc., whereas a regular corporation only focuses on profit-making ignoring all the other aspects. With the laws mandatory mission statement, companies registered as B corporations will take decisions in the interest of the community even at the cost of lower shareholder value.

The kind of company culture that I would like to work for would be the one who does not only give precedence to maximizing profit but also gives due consideration to employees, environment, society in general etc. The success of the organization does not merely depend upon the amount of money it earns. it also depends upon the impact it creates in the society, the socio economic change in the status of its employees etc.