1 ETHICS
1.1 Defining ethical behaviour
Ethics is a philosophical term derived from the Greek word "ethos" meaning character or custom (Sims, 1992). Ethical behaviour is behaviour that is morally accepted as good and right, as opposed to bad and wrong (Wood, Zeffane, Fromholtz & Fitzgerald, 2006). An ethical dilemma requires a person to make a choice between competing sets of principles based on how morally good and right as opposed to how bad and wrong they are (Wood et al., 2006). While striving to always do right, – with this paradigm – sound ethical conduct will likely become second nature in today’s world (Zazaian, 2006).
1.2 Ethical behaviour in the modern organisations of today
Philosopher and theologian Paul Tillich once said: “Ethics is not a subject, it’s a life put to the test in a thousand daily moments” (Lagan, 2006, pg.72). This wisdom is relevant to the modern organisations of today that are challenged in every way to uphold high ethical and moral standards which are demanded by the public for the betterment of society (Kranacher, 2006). Organisations have established codes of conduct to guide their employees regarding their ethical responsibilities while trying to minimise unethical behaviour and solve ethical dilemmas appropriately (Kranacher, 2006). Unethical behaviours such as lying to important clients and giving insufficient or inaccurate information to shareholders can result in misinformed strategic decisions and problems for organisations (Collins, 2006). One only has to look and ponder upon the fate of the large corporations HIH Insurance and One Tel, whom both suffered collapses due to their unethical decisions (Wood et al., 2006).
2 ETHICAL BEHAVIOUR POLICIES AND PRACTICES
2.1 Why ethical behav...
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An organization that lacks a true culture of ethical compliance can create problems with integrity issues with stakeholders and customers. When a major company such as Enron, was structured their approach to ethics on the surface appeared to oppose progressive innovation. The policies and ethics programs were set up to protect the company and its shareholders. According to author Berenbeim, The Enron company had a detailed code of ethics it was not enough the organization needed to incorporate ethics and integrity throughout their corporate culture. Enron had to focus on business ethics issues raised by the conduct of the company’s directors, officers, accounts and lawyers (Berenbeim, 2002).
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Langton, Nancy, Stephen Robbins, and Timothy Judge.Organizational Behaviour: Concepts, Controversies, Applications. Fifth Canadian Edition. Toronto: Pearson Canada, 2009. 141, 574-84. Print.
In order for a business to be successful it must have a strong policy on business ethics in place and a culture that is developed based on core values that should be clearly defined. An organization must do everything within its control to uphold promises made to employees as well as commitments to partners, such as the community where they are located. When the culture, ethics and core values are threatened it is imperative that the organization have a policy in place to address these concerns.
In today’s global society, a Code of Ethics policy is used to label established, acceptable behaviors among that industry’s business associates, potential investors, and the corporation’s executive officers and employees, and most important, the consumer (Ethics Resource Center, 2003). In an attempt to promote an increased efficiency and productivity potential level, among employees and prospective clients, a corporation’s standard Code of Ethics should guide its members toward a more in-depth examination of their personal moral activity, and how these actions affect the people or acquaintances they encounter. A company should utilize this strategy as a model for the professional behaviors and responsibilities of its constituents, and proves the occupational advancement of that business. Ethics are important in every level of a corporation, but specifically in the day-to-day actions of its members, and the image the company broadcasts to its associates is fundamental in building a stable business foundation. These pledges are a vital communication tool used to covey the firm’s standards for business operations, and predominantly, its relationships with the surrounding communities (Ethics Resource Center, 2003).
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Ethics is fast becoming an essential aspect of business in the modern world leading to a positive public opinion as well as investment, partnerships, employee retention, assets protection, productivity & team work.
Ethics in business is a highly important concept, as it can affect a company’s profits, salaries paid to employees and CEOs, and public opinion, among many other aspects of a business. Ethics can be enforced by company policies and guidelines, set a precedent when a company is faced with an important decision, and are also evolving thanks to new technology and situations that arise due to technology usage. Businesses have a duty to maintain their ethical responsibilities and also to help their employees enforce these responsibilities in and out of the workplace. However, ethics and the foundation for them are not always black and white. There are many different ethical theories, however Utilitarianism, Kant’s Deontological ethics, and Virtue ethics are three of the most well known theories in existence. Each theory is distinct in that it has a different quality used to determine ethicality and allows for a person to choose which system of ethics works best with both the situation and his or her personal ethical preferences.
[1] Ethics is defined as “the code of moral principles and values that governs the behaviour of a person or a group with respect to what is right or wrong” (Samson and Daft, 2005, p.158)
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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 how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
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