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Strengths and weaknesses of ethical leadership
Ethical standards for employees
Strengths and weaknesses of ethical leadership
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Our group believes that there are several factors that contribute to poor ethical analysis, decisions, and self-destructive behavior. On an organizational and industry level, some of those factors include loose ethical standards being put into place, inadequate enforcement on the part of managers and executives, having too much opportunity to act unethically, and pressure to make profit. On a societal level, the biggest factor is the constant push to be successful, which can lead to people acting unethically to achieve that success.
2. How has the Sarbanes-Oxley Act helped to change business ethics and culture? What are the structural, governance and leadership factors that promote ethical business and behavior? Explain.
The Sarbanes-Oxley
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They include things such as corporate goals, good leadership that enforces ethical decisions, and checks and balances that ensures no single person or group is able to do as they please.
3. What are the possible positive and negative effects of whistle-blowing? Explain.
There are multiple positive and negatives aspects of whistleblowing, some of them being more obvious than others. Positives include possibly stopping the unethical/illegal behavior that the whistleblower has been observing, encouraging other people who have seen unethical/illegal behavior to speak up, and in some cases a financial reward. Negatives include being labeled as a troublemaker or an untrustworthy person, the company being put into a negative spotlight, possible company collapse if the issue is severe enough, and possible retaliation against the whistleblower.
4. Per Case 4.4, Oreos, please answer Discussion Questions 1,2,3 on Page
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In a majority of cases these were innocent employees who had nothing to do with the financial cover up.
6. Per Case 4.21, Andersen, please answer Discussion Question 2 on Page 300
Our group believes that the case of David Duncan highlights the fact that it doesn’t take a bad person to do unethical things, similar to what we can imagine is the case with Ms. Winters. In a lot of cases, it is simply a matter of a good person being put into a position that they’ve never been put into before, and they end up making the wrong decision. In the case of Mr. Duncan, he was put into a position where there was a great deal of money on the line, and that had a huge impact on him. We all had different things that we felt we could add to our credo as a result of Duncan’s experiences, ranging from always running ethical dilemmas through the tests we’ve learned, to always stick to the rules/laws and regulations, regardless of our personal beliefs on the
Who are all of the stakeholders that are impacted by the ethical issue in the case? Discuss how the ethical issue impacts each stakeholder.
Throughout your life, you’ll face tough decisions where you'll have to decide possibly against your ethical beliefs. Ethics don’t necessarily always have to involve law abiding. It’s rather about trusting your moral path and doing the right thing. Dori Meinert is the author of “Creating an Ethical Workplace” she explains the thought behind the never black or white decision making when it comes to businesses. Can businesses truly trust those individuals hired to steer their companies? It was mentioned that last year 41 percent of U.S. workers said they observed unethical or illegal misconduct on the job, according to the Ethics Resource Center's 2013 National Business Ethics Survey. Meinert’s article was not only eye-opening but very truthful since we’ve all been faced or witnessed unethical decision making. Once employees see individuals breaking the rules and regulations others will then think it's okay, which could result in employees leaving or major hoops for companies to jump through. When we tolerate misconduct we lower productivity and diminish the reputation of a company. Meinert mentioned that if
Their organizational initiatives are often self-serving; however, the emerging workforce isn’t motivated by selfish managers. This selfish behavior often turns into unethical conduct. Unethical dealings in the workplace are always wrong. It is crucial to promote ethical behavior. Everyone must understand that once caught, unethical behavior is not just a problem for those directly involved, it is everyone’s problem.
I certainly agree to the author and McNerney that the unethical dysfunctional company norm is the root cause of the ethical issue. It is this norm created by the predecessors who never set good ethical examples that influences the employees. They believed the politically safest way of executing tasks would be mimicking how their superiors get their jobs done.
The act of whistle-blowing is an ethical issue that all employees have the right to. Whether they decide to make the corrupt information known publicly or anonymously, the information they provide can protect everyone involved. The ethical and moral sides of whistle-blowing can go both ways. In order to protect the customers, patients, or consumers of the harmful products the companies are offering, employees that have morals and feel the need to make the truth be known have an ethical responsibility to do so. Issues of being a whistle-blower are more controversial than the responsibilities of the employees doing so. When a whistle-blower takes action, they expose information from their company that it not meant to be public. They basically turn their backs away from their company and colleagues by revealing the truth. When surveying these issues, an employee who is torn by exposing information or keeping silent must decide whether it is more ethical to stay loyal to their organization or to the organization's
Despite the longstanding acceptance and promotion for the crime-fraud exception, it appears that the use of the exception to report fraud has been relatively scant and use of ethical rules to sanction lawyers is similarly rare. For those that may favor private regulation or the ability of the market to dictate its own terms it seems that the equilibrium reached was one without lawyers disclosing of their own accord. This could be just viewed as an information failure problem—even if the ability to report fraud up the ladder was technically already available, lack of knowledge may have prevented lawyers from reporting fraud when they otherwise would have done so.
Many other businesses may not want to do business as the company was involved with immoral behavior. The unethical business practices of the company will also gain exposure in the media and to the public (Nicol, 2015, n.p). Employees no longer keep unethical activities of the company to themselves. As a whistleblower, they may be perceived as a traitor, but in this case the senior executives are being traitors. They are taking money from immoral behavior and tarnishing the name of the company (Nicol, 2015, n.p).
On November 29th, Mary Inman gave us a talk on the topic whistleblowing, which let me know more about the whistleblower activities and the whistleblower protection. According to the definition given by the website whistleblowers international, whistleblowing is someone who reveal the unethical or illegal activities within the company. The person can be current or past employee, or an outside individual who is familiar with the unethical activity. This whistleblower does not need to be U.S. citizen.
Ethical behavior is behavior that a person considers to be appropriate. A person’s moral principals are shaped from birth, and developed overtime throughout the person’s life. There are many factors that can influence what a person believes whats is right, or what is wrong. Some factors are a person’s family, religious beliefs, culture, and experiences. In business it is of great importance for an employee to understand how to act ethically to prevent a company from being sued, and receiving criticism from the public while bringing in profits for the company. (Mallor, Barnes, Bowers, & Langvardt, 2010) Business ethics is when ethical behavior is applied in an business environment, or by a business. There are many situations that can arise in which a person is experiencing an ethical dilemma. They have to choose between standing by their own personal ethical standards or to comply with their companies ethical standards. In some instances some have to choose whether to serve their own personal interests, or the interest of the company. In this essay I will be examining the financial events surrounding Bernie Madoff, and the events surrounding Enron.
This manifests in a leaders tendency to overrate themselves and their work. People typically view themselves on a higher level than their peers, which can have them overlooking their own short comings. Also, people are more inclined to take credit for success and blame external factors for failures. Lastly, there are conflicts of interest. Hughes et al. (2014) cite that “we may be conscious of potential conflicts of interest, but even then, though, we misjudge our own ability to discount the extent to which the conflict actually biases our perception of the situation in our own favor” (p. 149). All of these are biases impact moral reasoning. When leaders allow these biases to impact their behavior and decision making, it results in an unhealthy organizational culture and unethical climate. Conversely, when leaders fully understand these biases and continually work towards improving their moral reasoning, they can positively affect organizational culture and create an ethical climate, which ultimately influencing all organizational
Some of the common causes of unethical behavior in the workplace are: 1) extreme emphasis on profits, 2) loss of corporate loyalty, 3) fixation on personal advancement, 4) probability of not getting caught, 5) immoral quality set by top management, 6) indecision about whether act is wrong, and 7) reluctance to stand up for what is right
This essay will provide two actual case studies: one of positive ethical principles and the other of poor ethical principles. Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as Gaye-Anderson, 2007 states, quite easily the lives and professional reputation of the employees can even be severely damaged. 3.
Focusing on what is best for the organization as a whole and not self greed, not focusing on short-term profits but the long-term profit goals for the shareholders, investors, and employees would help keep employees ethical (Ferrell, et al, 2009).When an employee is fearful of losing his or her job, unethical conduct can be the result of trying to keep that job (Ferrell, et al, 2009).When pressures are placed on employees to make money quick, fast, and in a hurry, the results could be unethical behavior (Ferrell, et al,
In the aftermath of Enron, Washington Mutual Bank, TYCO, and World Comm these companies went against the grain of what good ethical behavior is and what their respective company’s code of ethics were. The criminal justice system has made it clear that it will not allow companies and their executives to get away with the misuse of public trust by allowing them to make themselves rich at the expense of the employee. Where these crimes are both ethically and morally wrong, the CEO’s of major corporations are being punished by a ...
Whistle blowing is an attempt of an employee or former employee of a company to reveal what he or she believes to be a wrongdoing in or by a company or organization. Whistle blowing tries to make others aware of practices that are considered illegal or immoral. If the wrongdoing is reported to someone in the company it is said to be internal. Internal whistle blowing tends to do less damage to the company. There is also external whistle blowing. This is where the wrongdoing is reported to the media and brought to the attention of the public. This type of whistle blowing tends to affect the company in a negative way because of bad publicity. It is said that whistle blowing is personal if the wrongdoing affects the whistle blower alone (like sexual harassment), and said to be impersonal if the wrongdoing affects other people. Many people whistle blow for two main reasons: morality and revenge.