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Impact of ethics on business performance
The importance of values and ethics in business
How values and ethics in business are related
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Ethical leadership is of great significance to the prosperity of an organization. Ethical leaders usually motivate their employees to work hard. In that regard, ethical leadership requires a cocktail of ethical values ranging from rationality to independent and critical thinking. Most organizations nowadays have ethical leaders responsible for the good relationship among the members. Ethical leaders are usually more concerned about the welfare of other people rather than other motives. My focus on ethical leaders will be on corporate leaders, specifically chief executive officers. My leader of choice is Mike Duke, the chief executive officer of Wal-Mart retailers, which is one of the largest retailers in the United States. For its prosperity, …show more content…
Different individuals value different principles and my preferred standards are for the good of the majority while excluding self interests. As already stated in the introductory segment, ethical leaders are always concerned about the welfare of others. My own personal values aim to accomplish that (Brown, Treviño, & Harrison, 2005). My core ethical lenses are autonomy and rationality. This value emphasizes more on responsibility and this will ensure that my personal views on benefiting the majority are fulfilled. Responsible leaders respect humanity first before any other benefits accrued to the organization. A good decision is the one that fulfills the desire of many, even if it means the company will lose. But with rationality, a good leader will balance all these for the benefit of both …show more content…
With this value, I can be able to apply my wisdom on offering practical solutions that bring optimism to others. This will also show my self interest in the issue at hand. My key choice is responsibility, which comes from the application of autonomy and rationality. With this value, I can make choices that are good for the benefit of the majority. My ethical tool is the use of critical thinking, which is an important value when it comes to problem solving. Solving problems requires critical analysis of the situations at hand and making conclusions that benefit the majority (Ciulla, 2005b). Since it is a known fact, that one cannot make all people happy, you only strive for what is of benefit to the majority.
The values that I have mentioned in the inventory are my strongholds and I do believe that I can comfortably adapt them when working in different environments. My ethical tool of critical thinking to solve problems can be used in any situation to offer reasonable solutions. Critical thinking can be used at work, at home, and even in my social life, by allowing me to make rational decisions when solving problems at hand without any bias (Spangenberg & Theron,
To apply this system of moral values effectively, one must understand the structural levels at which ethical dilemmas occur, who is involved in the dilemmas, and how a particular decision will affect them. In addition, one must consider how to formulate possible courses of action. Failing in any of these three areas may lead to an ineffective decision, resulting in more pain than cure.” Ken Blanchard states, “Many leaders don’t operate ethically because they don’t understand leadership; these executives may have MBA’s from Ivey League schools or have attended leadership training; they may routinely read the best-selling management books, however, they don’t understand what it means to be a leader.” They don’t model a way of ethical behaviors.
The major areas of my values and ethics can be summarized in six words: excellence, personal integrity, responsibility, ambition, accountability, and determination. Excellence guides me when setting targets in all my undertakings; I normally strive to achieve my best. Personal integrity and accountability enable me to make sound judgments to avoid engaging in actions that will hurt me and/or other people around me. Responsibility is important to me as it enables me to identify the part I need to play in my family, at the workplace, and in the community. Lastly, ambition and determination are applicable in providing me with the momentum needed to ensure that all my initiatives and tasks are done to completion.
A personal ethical framework is developed by the influence of values and mores we are exposed to throughout of lives. Those of us having been born and raised in the United States are exposed to experiences that create a heavy emphasis on the American system of preservation of individual rights and entitlement to due process as we become programmed to obey and respect these set frameworks in society. Our frameworks will develop based on our life experiences and social norms. When developing a framework a “person also needs an opportunity to begin to articulate their personal and professional value system in a method by which they can begin to explore the values that form the basis for their decision making is with an exercise in which they commit to paper the characteristics they admire in themselves and in others” (Gibson, 2008). The underpinnings of all judgments and ethical decisions are made and embody fairness reliance on impartial facts and uncompromising integrity if that is what they admired and wish to form their boundaries of.
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
Values, although tend to be stable, they can be changed or can be developed because values have cognitive, affective and behavioural components (Baillie & Black, 2015). Potter and Perry (2014) added that values influence behaviour basing on a conviction that a certain action is right depending on the given circumstances. Culture, society and personality were identified by Rokeach (1973, as cited in Baillie & Black, 2015) as key precedent of human values. Furthermore, as a person becomes more aware of and reflective about him/herself, he/she can consider to change his/her value set and will also result in modifying his/her attitudes and behaviour. By understanding one’s own personal values, he or she will become sensitive to the values of others. Values are important in nursing and health care as they strengthen all aspects of professional practice, including decision-making (Baillie & Black, 2015). The key factors influencing values in nursing include professional education, training and
The values that impact my decisions include: accountability, truth, honor, spirituality, reliability, kindness, ambition, family and compassion just to name a few. My grandfather was a successful business man in the 1930’s through 1980’s. He was a firm believer that you are only as good as your word. He did business with a hand shake and a smile. Teaching his grandchildren that if a man’s word is of no value, neither is he. Furthermore, he taught us the importance of sticking with your fundamental beliefs and principals. The value that is non-negotiable in my life is integrity. I believe it is important to be ethical, honest, truthful, reliably and trustworthy in every aspect of life. I am inspired and driven professionally by compassion, kindness and a belief in healing those that are
With so many constant changes today with different generations, legal and political circumstances and ever-changing and improving technology sources, organizations have new and recurring issues arising every single day. The reasons for these issues vary widely and develop because of so many different situations. The outcome of the situation depends on many factors including the issue at hand, the management style and the ethics of the organization to simply name a few. These outcomes can certainly make or break an organization if not handled appropriately. The issue I have found to be the most significant is leadership. Within leadership, there is the opportunity for many issues in itself.
In this paper I am going to be discussing my values and morals in life that helps me be successful with knowing what is right and wrong in personally and professionally everyday life. There are many things that go on in the world today and it is extremely important to have values and morals set in place. Also going to be discussing how cultural heritage has shaped my values and what ethical behaviors I see in myself.
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.
The term “ethics” refers to an external set of rules that have been established by an institution or organization, for example, a university, and the members are expected to follow them. On the other hand, integrity refers to an individuals’ internal set of principles that guides their actions and behavior (Czimbal and Brooks n.p.). As a rule, people are usually rewarded when they follow ethical codes of conduct by an external committee or board that monitors their behavior. For a person of high integrity, the benefits are usually intrinsic. Moreover, such individuals always make the right decisions even when they are not being watched. Therefore, this feature of character is often influenced by a person’s upbringing. In
Personal values provide an internal reference for what is moral and establishes between right and wrong. Values are a reflection of beliefs and what you are willing to support. Identifying personal values is important in that it provides a roadmap for making decisions in life that are both ethical and moral as it adheres to our values. “Without an awareness of personal values, it can be difficult to justify a decision on ethical or moral grounds in a way that others would find persuasive” (“The manager’s role”, 2014). The more that choices line up with personal values the better we feel about ourselves and the greater the sense of satisfaction.
Good, strong, ethical people can have an immeasurable impact on a company as well. “Ethical leadership creates an ethical culture. Top managers provide a blueprint for a firm’s corporate culture. If these leaders fail to express desired ethical behaviors and goals, a corporate culture evolves on its own to reflect the values and norms of the company” (Ferrell, 2015). “Leadership has a significant impact on ethical decision making because leaders have the power to motivate others and enforce the organization’s norms, policies, and viewpoints” (Ferrell, 2015). Often employees will look to management and top leadership for clues as to what is acceptable and what is not. It is not only important to have good role models in those top positions, but to have a culture where they can fully express their ethical
Critiques to authentic leadership Kellerman (2004) argued in her book why there are so many bad leaders that it is important to note that leadership experts make much more money by consulting than from their academic jobs; “Hence, any new leadership theory that captures the imagination and pocketbook of corporations has the side effect of being a very lucrative enterprise” (Rita A. Gardiner, 2011, p101). It should also be kept in mind that Furthermore, Gardiner states that this concept is still in early development stage, hence the empirical effect of authentic leadership on follower attitudes, behaviours, and performances is not yet perfectly developed. Parameters and conceptualisation requires consolidation, and practical and theoretical
Ethical leadership organizational ethics and socially responsibility are inseparable (Johnson). Leadership is not a inherited gift or family heritage; it is not a degree from an ivy league graduate school. Becoming a leader is an intentional process of growth that must be lived out experientially (Mullane). Ethical leaders demonstrate three distinctive characteristics, knowledge, action and character. Leaders have to have the ability to say “yes” or even “no” to a never ending series of challenges. A leader needs to be able to define their values, character and leadership style. When accepting the role of leadership you become encumbered by ethical issues and concerns. .
Understanding who we are as individuals can be a struggle for people throughout life. It can be difficult to comprehend who we are and why we exist. There are daily outside influences that help create who we are and what our values are. Values play a significant role in our lives. They shape the choices we make and reveal a big part of our identity to the world. Some values may be more important than others, but they still manage to influence our lives in one way or another, whether we know it or not. Values can range from a tangible item to an idea that has influenced us to stand by and remember those values. The values we hold with the highest importance act as a guide and help us prioritize our purpose and goals in our daily life. My family has taught me a list of values and traits that have helped me become a well-rounded individual. I value my family more than anything because most of my core inner values have started from their teachings at one point or another. My top values that I have developed from my family are dedication, honesty, and wisdom. I will discuss who I am in terms of the important values that shape my personal belief system and decision making framework that, in essence, describes the direction of my life.