Introduction:
Organizational Ethics is the ethics of an organization and it is
how an organization ethically responds to an internal or external
stimulus. Organizational ethics is interdependent with the
organizational culture. Although, it is akin to both organizational
behavior (OB) and business ethics on the micro and macro levels,
organizational ethics is neither OB, nor is it solely business
ethics (which includes corporate governance and corporate ethics).
Organizational ethics express the values of an organization to its
employees and/or other entities irrespective of governmental and/or
regulatory laws.
Workplace Spirituality:
It refers to the recognition that people have an inner life that
nourishes and is nourished by meaningful work that takes place in
the context of the community.
Overview of the Field:
The Foreign Corrupt Practices Act (FCPA) restricts U.S. firms from
engaging in bribery and other illegal practices internationally.
There are laws that have the same type of prohibition for European
companies. These laws create a disadvantage competitively for both
European and U.S. firms. Such laws are not a restricting element to
organizations that have highly elevated ethical behavior as part of
their values. Organizations that do not have an outlook for
positive ethical practices as part of their cultures, usually lead
to their own demise, such as, Enron and WorldCom by their
questionable accounting practices. The converse is generally true,
organizations that have integrity and encouraging ethical practices
as part of their culture are viewed with respect by their
employees, community and corresponding industries. Thereby, the
positive ethical outlook of an organization results in a solid
financial bottom-line, because of greater sales along with their
ability to retain and attract new and talented personnel. More
importantly, an ethical organization will have the ability to
retain employees that are experienced and knowledgeable (generally
referred to as human capital). This human capital results in less
employee turnover and less time to train new employees, which in
turn allows for greater output of services (or production of
goods).
Basic Elements of An Ethical
Organization:
There are at least four elements which exist in organizations that
make ethical behavior conducive within an organization. The four
elements necessary to quantify an organization's ethics are: (1)
written code of ethics and standards; (2) ethics training to
executives, managers and employees; (3) availability for advice on
ethical situations (i.e, advice lines or offices); and (4) systems
for confidential reporting. Good leaders strive to create a better
and more ethical organization. Restoring an ethical climate in
organization is critical, as it is a key component in solving the
many other organizational development and ethical behavior issues
facing the organization.
Intrinsic and Extrinsic:
The intrinsic and extrinsic rewards of an ethical organization are
tethered to the organizational culture and business ethics of an
organization. Based upon the reliability and support structure of
each of the four areas needed for ethical behavior, then the
organizational ethics will be evident throughout the organization.
The organization, the employees and other entities will receive
intrinsic and extrinsic rewards. Actions of employees can range
from whistle blowing (intrinsic) to the extraordinary actions of an
hourly employee buying all the peanut butter (as produced by his
employer), because the labels were not centered and he knew that
his employer (extrinsic) would reimburse him in full..
Above and Beyond:
Above and beyond is a standard part of the operational and
strategic plans for organizations that have positive organizational
ethics. Above and beyond the quarterly or yearly income statements,
an entity will plan for its employees by offering "wellness
programs" along with general health coverage and/or a viable stable
retirement plan. Further, an organization will allow for paid
maternity leave, or even paid time off for new parents after an
adoption. Other perks may include, "on-site" childcare, flextime
for work hours, employee education reimbursement and even
telecommuting for various days during a week. All the above are
just a few examples of employee benefits that quality organizations
offer to their employees. These benefits are not mandates by law
and they represent only a few of benefits that best known
corporations and firms offer to their employees throughout the
world.
Leadership and Theory for Ethics in An
Organization:
There area to include the are many theories and organizational
studies that are coarsely related to "organizational ethics", but
"organizations" and "ethics" are wide and varied in application and
scope. These theories and studies can range from individual(s),
team(s), stakeholder, management, leadership, human resources,
group(s) interaction(s), as well as, the psychological framework
behind each distribution of job tasks within various types of
organizations. As among these areas, it is the influence of
leadership in any organization that cannot go unexamined, because
they must have a clear understanding of the direction of the
organization's vision, goals (to include immediate and long term
strategic plans) and values. It is the leadership that sets the
tone for organizational impression management (strategic actions
taken by an organization to create a positive image to both
internal and external publics). In turn, leadership directly
influences the organizational symbolism (which reflects the
culture, the language of the members, any meaningful objects,
representations and/or how someone may act or think within an
organization). The values and ideals within an organization are
generally center upon "values for business" as the theoretical
approach that most leaders select to present to their "co-members"
(which in truth maybe subordinates). In fact, an examination of
business methodology reveals that most leaders approach the ethical
theory from the perspective of values for business. Importantly, as
transverse alongside of presenting the vision, values and goals of
the organization, the leadership should infuse a spirit of
empowerment to its members. In particular, leadership using this
management style of empowerment for their sub-ordinates is based
upon view of: "Achieving organizational ownership of company values
is a continuous process of communication, discussion and debate
throughout all areas of the organization".
Stakeholder and Other Theories:
Whether it is a team, small group, or a large international entity,
the ability for any organization to reason, act rationally and
respond ethically is paramount. Leadership must have the ability to
recognize the needs of its members (or called "stakeholders" in
some theories or models), especially, the very basics of a person's
desire to belong and fit into the organization. It is the
stakeholder theory that implies that all stakeholders (or
individuals) must be treated equally regardless of the fact that
some people will obviously contribute more than others to an
organization. Leadership has to not only place aside each of their
individual (or personal) ambitions (along with any prejudice) in
order to present the goals of the organization, but they have to
also have the stakeholders engaged for the benefit of the
organization. Further, it is leadership that has to be able to
influence the stakeholders by presenting the strong minority voice
in order to move the organization's members towards ethical
behavior. Importantly, the leadership (or stakeholder management)
has to have the desire, will and the skills to ensure that the
other stakeholders' voices are respected within the organization
and leadership has to ensure that those other voices are not
expressing views (or needs as in respects to Maslow's Hierarchy of
Needs) that are not shared by the larger majority of the members
(or stakeholders). Therefore, stakeholder management, as well as,
any other leadership of organizations have to take upon themselves
the arduous task of ensuring an "ethics system" for their own
management styles, personalities, systems, performances, plans,
policies, strategies, productivity, openness and even risk(s)
within their cultures or industries.
Ethical System Implementation and
Consideration:
The function of developing and the implantation of an "ethics
system" is difficult, because there is no clear, nor any singular
decisive way that is able to be presented as a standard across the
board for any organization - as due to each organization's own
culture. Also, the implementation should be done accordingly to the
entire areas of operations within the organization. If it is not
implemented pragmatically and with empathic caution for the needs,
desires and personalities (consider the Big Five personality
traits) of the stakeholders, or the culture, then unethical views
may be taken by the stakeholders, or even unethical behavior
throughout the organization. Therefore, although, it may require a
great deal of time, stakeholder management should consider the
Rational Decision-Making Model for implementation of various
aspects of an ethical system to the stakeholders. If implantation
is done successfully, then all stakeholders (not just the
leadership) have accepted the task of bench marking not only the
implantation of an "ethics system", but each stakeholder feels
empowered for the moment to moment daily decisions that are
ethically positive for the organization. When executed timely and
with care, then all stakeholders (including leadership) will have
at the very less a positive and functional success as the basis for
continuous improvement (or kaizen) to present as the norm for its
organizational ethics.
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Students will individually draw up a case study report on their own organisation, or an organisat...
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