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Ethical leadership in organisations
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While reading Daniel Terris’s opinion on Lockheed Martin’s ethical program, I noticed he observed that the company does not commit enough effort to counteracting ethical violations when pertaining to those in higher leadership positions. I would have to agree with the author, throughout the book I began to realize that the ethical program was geared more towards the employees who were located at the “bottom of the food chain”. Top level leadership has no issues displaying and voicing that they stand behind the ethical program and those in charge of it; for instance, the CEO Brain Sears at times sits in on the training sessions to listen and view the different perspectives of the employees (Terris, 2005). Although it is important for the Lockheed
Moncrief Company agreed to pay Jim Lester 20% of the gross profit made from the 2013 sales of the Zelenex. Between January 1, 2013 and December 28, 2013, Moncrief’s total available units for sale were, 50,000 units of Zelenex for $30.00 per unit ($1,500,000). Also in addition to the former activities, Moncrief sold 35,000 units for $60.00 per unit ($2,100,000). Moncrief Company uses periodic LIFO inventory method as a result, Jim Lester was to receive $210,000. (Textbook pg.469)
By proactively addressing ethical issues with a code of conduct, Raiders Inc. can set the standard regarding how they want employees to behave. Employee can be trained on the company code of ethics so they understand how their company expects them to respond. They can also train them on the biases of decision making, to make sure they are aware of the pitfalls that exist. (Robbins & Coulter, 2012)
The NASW (National Association of Social Workers) Code of Ethics is intended to serve as a guide to the everyday professional conduct of social workers. This Code includes four sections. The first Section, "Preamble," summarizes the mission and core values of the social work profession. The second section, "Purpose of the NASW Code of Ethics," provides an overview of the Code 's main functions and a brief guide for dealing with ethical issues or dilemmas in social work practice. The third section, "Ethical Principles," presents broad ethical principles, based on social work 's core values, that affect social work practice. The final section, "Ethical Standards," includes specific ethical standards
Many counselors enter into the profession because they are interested in helping individuals and have the desire to enhance human development. Though counselors are guided in culture from their own values and beliefs they have about living, ethics supersedes morality. Ethics are rooted in philosophy and are created by professional associations in order to govern those members of the profession. In the field of counseling there are two individual agencies, American Counseling Association (ACA) and the American Association for Marriage and Family Therapy (AAMFT), that both have several similarities and differences within each specific codes of ethics.
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the only important value is the bottom line, most executives merely give lip service to living and operating their corporations ethically.
Ethics policies are implemented in almost all businesses. Companies search for candidates that will be moral in their actions so they can ensure long-term financial success. Throughout history we have seen businesses fall due to unethical behavior. In recent years the business Enron Corporation is best known for the scandal that led to the bankruptcy of a company with more than 60 billion dollars in assets. We will examine the circumstances that led to the downfall of Enron, how the scandal was realized, as well as the outcome of one of the largest bankruptcies in American history; a case that exemplifies unethical professional behavior.
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 author felt that Boeing is plagued by bad company norms. Previous CEOs were people with low ethical sensitivity who had not been leading by example. Stonecipher committed an ethical lapse by having a relationship with an employee while Philip and Stonecipher travelled in luxurious business jet with personal handlers. Subconsciously, they were conveying a message across the company: Boeing tolerates ethical lapse; power and privileges are entitlements for higher ranking staff. McNerney agrees that bureaucracy has given higher ranking staff too much autonomy such that breaching ethical codes can be overlooked since little or none in the company can penalize them.
The aerospace industry is fairly new in our day in age. It has been recorded in history that the first flight ever by man took place in Kitty Hawk, NC roughly 100 years ago. Since that first model, drastic improvements have been made in aerospace technology. Aerospace has evolved from simple prop planes to sound barrier breaking jets and even to space shuttles. The very definition of aerospace in the adjective or active form is “of or relating to aerospace, to vehicles used in aerospace or the manufacture of such vehicles, or to travel in aerospace.” In general, aerospace deals with any dynamic manufactured vehicle that travels above the surface of the earth. This, as you might expect, leaves two possibilities, the atmosphere or our earth, and outer space. Such basic examples of aerospace vehicles are Cessna planes, Black Hawk helicopters, Goodyear blimps and the Columbia Space Shuttle. Throughout the 20th century and into the 21st, aerospace has and will continue to be an integrated part of our society.
Lockheed Martin is one of the largest contractors in aerospace, defense, and security industry. After getting caught using unorthodox sales strategies, including bribery and illegal trades, Lockheed decided to develop a code of ethics as part of its culture. Lockheed took the first step by publishing a document with the title “Lockheed Principles of Business Conduct” in the firm’s magazine. Using this document, the company communicated its devised policies and principles to the employees, making it a responsibility for every employee of the company to follow and act according to these policies. When the “Defense Industry Initiative on Business Ethics and Conduct” was drafted by the major defense contractors in the mid-1980s, Lockheed and Martin
Many laws have been put into place to make sure corporations act ethically, so they do not harm people or the environment. Corporations have a social responsibility to follow these laws and various other ethical actions; Johnson & Johnson, considered to be one of the most admirable companies according to Fortune, is one company that included their corporate social responsibilities in their code of ethics. Their code of ethics states that executive officers cannot financially benefit from unethical transactions or that their management must be competent and ethical (Code of Business Conduct, 2015). It is important for corporations to act ethically and hold up to their social responsibility, especially within the workplace; ethics are especially
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.
“Ethical leaders within an organization cannot make every ethical decision by themselves” (Ferrell, 2015). In centralized management, the top people make all of the decisions. There are still however many opportunities for lower level employees to make unethical decisions. Management can promote ethical behavior at every level by being a good example and following its own code of conduct. The ethical environment should also be closely monitored. When someone makes a really great ethical decision, that person should be recognized. By rewarding good behavior, others will naturally want to receive these rewards as
A company's code of ethics is very important to establishing the expectations and quality of its brand. The code of ethics are concrete expectations for employee behavior, accountability and communicates the ethical policy of a company to its partners and clients. A good business practice is to have sound ethics. Having good ethical practice is knowing the difference between right and wrong and choosing what the right thing is. Though good ethical behavior is something that should be done automatically, a company needs to have a set of rules in place that holds everyone accountable. Over the last twenty years, the country has been bombarded with company scandals and unethical behavior; though morally wrong, the punishment does not fit the crime. The punishments have been overkill. A murderer, rapist, or child molester commits violent crimes and potentially is out of jail in 10 - 20 years. The CEO’s that commit white collar crime receive 25 years to life; this paper will discuss how this punishment for committing nonviolent crimes, such as breaching a company’s code of ethics, are disproportionate to violent crimes that plague the country today.
Ethics is the responsibility of each individual person, but starts with the CEO and the Board of Directors, setting the right tone at the top and moves down through the organization, including setting the tone in the middle. A company’s culture and ethic standards start at the top, not from the bottom. Employees will almost always behave in the manner that they think management expects them, and it is foolish for management to pretend otherwise (Scudder). One of the CEO’s most important jobs is to create, foster, and communicate the culture of the organization. Wrongdoings or improper behavior rarely occurs in a void, leaders typically know when someone is compromising the company