I need a 1500 word essay on how ethics affects an organization



How ethics affects an organization?

INTRODUCTION

Ethics is a branch of philosophy and it addresses questions about morality. It means ethics refers moral values which governs the appropriate conduct of an individual or group. Through ethics, the associated people habituate and learn how to live and how treat others etc. The Ethics allows systematic thinking. Many organizations started to issue code of ethics for their organizations, so that all staff should observe the code of ethics. Code of Ethics is set of rules for which the associated staff must observe.

The Ethics prescribes principles and these principles guide the moral choices of the prescribed group. The principles are developed over many years. The ethics are in nature of disciple and hence continuously in the mode of evolving. At the earlier, the ethics were just to the group of persons and later on it developed to community, business, environment etc.

ETHICAL STANDARDS

The individuals and organizations monitored and evaluated by a set of ethical standards. The ethical standards are set internally to maintain the ethical standards. The external bodies like professional, government and other international bodies also set the ethical standards. Maintaining such ethical standards enhances the image of the organization in the eyes of stakeholders including shareholders, government, public and other suppliers. The ethics are inevitable in organizations. [1]The unethical practices damage the images of organization besides costing billion dollars.

In order to retain the social responsibilities and other societal expectations and pressures from professional and other legal bodies also forced the organizations to uplift the ethical standards and practices. It is also witnessed by the cigarette industry that the organizations who continue unethical found their products to be harmful to the consumers.

ETHICAL DILEMMA

Every organization accountable towards its stakeholders. The stakeholders are not just shareholders and employees but extended to government, competitors, and community members too. Therefore the organizations able to balance its obligations towards all stakeholders. It means the organization maximizes the financial returns to the shareholders but it is at the cost of ecological system or legal business practices.

By that time, the middle management will be dilemma either to protect interests of the organization or to short term profits. High output performances in the organization may adversely affect on ethical norms. To have clarity and to move further, the establishment of ethical norms required. Brian Schag, Executive Secretary of the Association for practical and Professional Ethics clarifies [2]“Typically, ethics programs convey corporate values, often using codes and policies to guide decisions and behavior, and can include extensive training and evaluating, depending on the organization. They provide guidance in ethical dilemmas”.

The ethics can be applied to an individual, group or any system. However ethics is not business issue or social issue. In fact, [3]the ethics is personal issue. Successful ethical compliance program create good atmosphere in the organization that leads fulfillment of desires of stakeholders. The stakeholders will have different views over the organization. Ethical dilemma will exist and require different approaches to take corrective action.

Therefore ethical codes and compliance programs are designed so that the associated persons will be able to take meaningful decision that will address the interests of the stakeholders. Before establishing ethical business practices, the organization must ensure ethical orientation among the people who are associated with the organization. While performance evaluation, the successful organizations critical measures ethical conducts. The middle management forced to decide on specific issues where arguments for both sides equal. The decision making will be very difficult. During that the ethical policies, code of conduct will help to take meaningful decision.

ETHICAL TOOLS

The ethical values in the organization include Trustworthiness, respect, responsibility, caring, justice& fairness and Civic virtue & citizenship. Such ethical values enhance the quality of the organization. At present, the organizations uses ethical tools thereby establishes code of conduct, policies & procedures, resolving ethical dilemmas, training, etc. With the tool of Code of Conduct, the ethics are promoted and also develop the efficiency of members of the organization while dealing the problems relating unfairness or injustices as those are experienced daily during the job.

[4]ETHICS IN ORGANISATIONS

The ethics in organization can be approached through individualistic approach and communal approach. Each approach incorporates different moral responsibilities and different kinds of ethical principles so that ethical problems can be resolved. According to individualistic approach, every person is morally responsible in the organization. As per the communal approach, the individuals treated as members of the communities and partially responsible for their behavior.

When the ethical problem arises in the organization, both approaches required to get the solution for such ethical problems. However more ethical issues at the workplace consider individualistic approach as it focuses to promote the good of individuals, individual rights etc. On the other hand, the communal approach focuses on policies that influences on entire community. The ethics in the organization will be designed which benefits interests of the individual and organization.

The practice of business ethics in the organization will create sound culture within the organization and becomes heart and soul of the company’s culture besides attaining financial returns. [5]According to statement of Director of IBE, Philippa Foster Black “Not only is ethical behavior in business life the right thing to do in principle, we have shown that it pays off in financial returns.” The findings also considered as longer-term success and growth of the companies.

The ethics are periodically revaluated and accordingly changed will be made in ethics. Such developments incorporated in training manuals to update the information among the staff. The ethics allows improving the lives and installs good feelings. The companies desire to establish workplace ethics, so that the related staff must observe the specific rules to have meaningful output. [6]The high level ethics in the business keep the company at top place in the eyes of customers.

Managing ethics at workplace lead to have many benefits which include the following:

1. The business ethics increases improvement in the society. For example, children supposed to work 16 hour per day during early days. Illegal terminations, crippling of price fixation etc. The present system changed by the establishment of Anti-Trust Laws, well organized unions, establishment of protective laws and legislations eliminates such situation.

2. The ethics program helps to maintain moral course in critical times.

3. Ethical programs generate strong teamwork and productivity.

4. The ethics programs also support employee growth.

5. In fact, ethics program is an insurance policy and it helps to ensure the legalized policies.

6. The Ethics programs helps to avoid criminal acts and even lower the fines.

7. The ethics programs helps its managerial values those are associated with quality management, strategic planning, diversity management etc.

8. The ethics programs in business promote strong public image.

CONCLUSION

The Code of conduct is a master plan and it indicates the destination for which employees must reach. Many types of codes of conduct will be designed by the organization to address the objects, goals and ethics in the organization. The working environment, employee conduct, standards of conduct, business codes, ethics compliances, professional code of conduct etc will be established in the organization which allows attaining the good image of the organization. Top Management Leadership qualities help the organization development. Out of other areas, ethics programs, ethics training, ethical decision-making processes and code of conduct influences the management. [7]Good examples of codes of conduct are those that are being used by many businesses that entail their employees to always do the right thing. Hence organizations always desire to implement the ethical practices and other codes of conduct.

REFERENCE:

1. Sunil Kumar Maheshwari & MP Ganesh (2004); Ethics in Organizations; Accessed on 31st March 2010 from the website of

2. Business Ethics and Social Responsibility; Ethics Management Programs: An overview; Accessed on 29h March, 2011 from the website of

3. Rose-Marie Chaperon (2001); What Ethical Standards Should Guide Business Practices ?; Accessed on 1st April 2011 from the website of

4. Marvin brown; Ethics in organizations; Accessed on 31st March, 2011 from the website of

5. Robert Moment; 7 Principles of Admirable Business Ethics; Accessed on 1st April, 2011 from the web site of

6. Myron Curry (2011); Ethics In the Workplace; Accessed on 1st April, 2011 from the website of

7. Codes of Conduct: The Art of Correct Behavior in a Working Environment; Accessed on 31st march, 2011 from the website of

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[1] Sunil Kumar Maheshwari & MP Ganesh (2004); Ethics in Organizations; Accessed on 31st March 2010 from the website of

[2] Business Ethics and Social Responsibility; Ethics Management Programs: An overview; Accessed on 29h March, 2011 from the website of

[3] Rose-Marie Chaperon (2001); What Ethical Standards Should Guide Business Practices ?; Accessed on 1st April 2011 from the website of

[4] Marvin brown; Ethics in organizations; Accessed on 31st March, 2011 from the website of

[5] Robert Moment; 7 Principles of Admirable Business Ethics; Accessed on 1st April, 2011 from the web site of

[6] Myron Curry (2011); Ethics In the Workplace; Accessed on 1st April, 2011 from the website of

[7] Codes of Conduct: The Art of Correct Behavior in a Working Environment; Accessed on 31st march, 2011 from the website of

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