Running head: Ethical Organizational Management

Name of student Student ID Ethical Organizational Management Unit Code

Ethical Organizational Management

Contents Contents...........................................................................................................................................2 Introduction......................................................................................................................................3 Current Ethical Organizational Management Models in Practice...................................................3 Concept of Ethics.............................................................................................................................4 Code of ethical organizational management....................................................................................5 Business Ethics within Organizations..........................................................................................6 Factors that Affect Ethical Organizational Management.................................................................6 Organizational Ethics and CSR.......................................................................................................7 Impact of Ethical Values in Different Societies and Cultures.........................................................8 Impact of Ethical Legislation on Organizational Accountability....................................................9 Values and Beliefs that Help Make Ethical Decisions..................................................................10 Ethical Organizational Approach that Respect Other Cultural Value Systems.............................12 References......................................................................................................................................14

Ethical Organizational Management

Introduction The ethics within an organization that help it to operate efficiently are known as organizational ethics. These ethics can be strategized differently at different times so that the members of the organization respond to this stimulus accordingly and the organization can achieve targets accordingly (Aswathappa, 2007). Organizational ethics and organizational culture go hand in hand. While many may think that the relationship between organizational ethics and organizational culture is like the relationship between organizational behavior and business ethics, the truth is that both equations defy different things about the concerned organization. The ethics within an organization help to determine the value of that organization to the ones serving it and the ones willing to serve it, irrespective of what other regulatory bodies or government authorities have to say (Griffin, 2011).

Current Ethical Organizational Management Models in Practice Four Ps help to chalk out the modern ethical management models implemented in the UK. Let us take a look at these four Ps more closely. 1. Purpose Purpose of the organization includes making a good amount of profit for the shareholders if it is a private establishment. However, if the company in concern deals with public service, then the purpose automatically becomes cost effective and timely delivery of services.

Ethical Organizational Management 2. People This takes into consideration all people for whom and with the help of whom the company operates. This includes the staff, suppliers, customers, local communities as well as stakeholders. 3. Planet Planet refers to the area or space in which the organization operates. Other factors like fair trade, neural recourses and sustainability are also taken into consideration when bearing the planet factor in mind. 4. Principles There are some basic principles of the organization. These would usually be listed as honesty, integrity and truth. It is important that these principles match with the other three Ps listed above for the company to operate successfully and smoothly (Gupta, Gollakota, & Srinivasan, 2007).

Concept of Ethics The word ethics is derived from the Greek word ethos that literally translates to character. Ethics are a set of implied rules by which employees within an organization will be able to assess what kind of conduct is perceived as right and what is perceived as wrong. The laws in the UK, just like those in countries across the world, prohibit firms, companies as well as businesses from being part of or promoting any kind of illegal practices. Clearly these laws tend to hinder the competitive spirit of these bodies but for those organizations that have already incorporated high standards of ethical behavior in their management system, such laws against corrupt practices do not seem to make a difference (Brooks & Dunn., 2009). Most times, organizations cause their own demise by overlooking the importance of having positive ethical practices as part of their work culture. Brands like WorldCom and Enron are examples of organization that endorsed questionable accounting practices. On the contrary,

Ethical Organizational Management when an organization encourages ethical conduct, they automatically garner respect from not only their own employees or community but also from members of other industries. Thus an

ethical company can retain human capital a lot better than a company whose ethical practices are questionable. Knowledgeable and experienced employees can help in reducing employee turnover as well as the time one needs to spend in training the newer lot. Instead, their resources can be used for the purpose of greater outputs and that is how all stakeholders in the business stand to gain (Harold & Heinz, 2008).

Code of ethical organizational management To be able to implement a framework for the ethical conduct of people within an organization, at least four elements need to be taken into consideration. a. A written code of conduct b. Training on ethical practices for manager, employees and executives c. Infrastructure and personnel who are be available for advice on ethical matters d. Provision for confidential reporting Leaders who want the best for their organizations will implement these four elements in the right manner to ensure their ethical organizational management is foolproof. For them, restoration of ethical practices around the workplace will have very high priority as they can foresee the atrocities their company is headed towards in the absence of these ethical standards (Bakker, 2003).

Ethical Organizational Management Business Ethics within Organizations It is not easy to implement an ethics system in an organization as there are no definite or clear

guidelines. The ethical practice in each organization varies, often depending on and reflecting the culture of the heads of the organization. It is important that the ethics associated with the organization do not stifle the functioning of any department. If the ethical organizational management is not carried out pragmatically and with enough caution, the desires, needs and personalities of the stakeholders may suffer. They may feel compelled to use unethical practices to gain what they wish to (Schermerhorn, 2010). Thus, the Rational Decision Making Model is a good option to avail of in this regard even though it may take a lot of time to be put to practice. Once this model is implemented successfully, all stakeholders including employees and leadership agree to the system of benchmarking the standard of ethics. Each stakeholder also feels a certain sense of responsibility towards the organizations ethical standards when they are required to make a positive choice on a daily basis (Schermerhorn, 2010).

Factors that Affect Ethical Organizational Management While an ethical code of honor is picked up by individuals during their growing years, the factors that affect this general knowledge of ethics in a working environment may emerge from diverse facets. Let us take a look at what these are (Pojman & Fieser, 2012). i. Social norms The traditional practices in a place and culture affect the ethical organizational management of a company. What is normal for one culture may be the complete opposite in another, thus what is ethical is the first culture may be completely unethical in the second.

Ethical Organizational Management ii. Religious beliefs If one religion promotes in life after death and judgment in the afterlife, another may not. So while an organization with a particular religious belief can incorporate those views in their ethical management, another may have to change those. iii. Upbringing Common belief suggests that in general, adults who grew up in non-abusive

and loving setups have a more acceptable ethical conduct. On the other hand those who had a troublesome and disturbed childhood tend to show traits of unethical behavior. This can play a very significant role in the ethical organizational management of a company. iv. Laws Last but not the least, the laws of a particular place also impact the ethical practices of an organization. If the laws are very stringent and people fear being prosecuted or punished, then it is more likely that they will abide by the high ethical standards at their workplace.

Organizational Ethics and CSR The two terms organizational ethics and corporate social responsibility have distinct meanings even though they are often used interchangeably. While most business organizations aspire to provide goods and services for monetary profit, as an organization they are also seen as social embodiments, being goal oriented, impacting the external environment and depicting a coordinated activity system at the same time. Hence an organization needs society as much as society needs the organization which is why even though it is organizational ethics and corporate social responsibility cannot be used as interchangeable terms, it is true that they are highly interdependent (Brooks & Dunn., 2009). Ethics defines a sense of morality and set of socially acceptable conduct by which people will look up to an organization and respect it. Corporate social responsibility is multidimensional

Ethical Organizational Management aspect of a company that compels it to display economic, ethical, legal as well as philanthropic duties. While economically, the organization is supposed to render goods and services for the sake of profit, as part of its social responsibility, the company is expected to take on some voluntary role whereby it will not focus on generating revenue and help society instead. It is often noticed that companies that have a high standard of ethical organization are also more sincere about their corporate social responsibilities (Harold & Heinz, 2008) (Mateo, 2010).

Impact of Ethical Values in Different Societies and Cultures Ethical standards refer to the values that majority of people in society consider as good without any definite set of rules and regulations telling them how to behave. While those who fail to conduct themselves ethically are often implicated as guilty, the laws in that society ensure that they are punished accordingly. In the west, ethical standards are based largely on Judeo-Christian principles and it revolves around making a decision between choice and balance. How most ethics evolve in an organization is via a simple question what would a reasonable man do in a given situation. In situations where this simple question does not offer a solution, there are three other questions one can ask himself: i. ii. iii. If no one but you is gaining from this situation, are you benefiting at someone elses cost? If everyone did what you are doing, what would this world be like? Are the benefits of this decision good enough to weigh out the burden that comes along? Society is such that while an individual may have his own ethics even though he is part of a group, the ethics that others have will often rub on to him -this is called influence. This is why the single question may not always give a satisfactory answer to all concerned in an

Ethical Organizational Management organizational setup and all team members must thus ask the three questions which do not only reflect individual gains but also addresses the gain of the larger group. Often this will lead to a

choice between profit and integrity which is when the group needs to make a collective decision. With time since all institutions have become more diverse and flexible, differences between races, ages, cultures and disabilities have also become blurred. It is easier to reach an ethical consensus now as compared to before. Still, it is important to recognize and respect each individuals core values when working together in an organization that may have a significantly different ethical standard. If the beliefs of an individual employee are radically different from the ethical standing of the organization, he is free to not work there. But if the employee can come to terms with the companys ethical views and does not have a problem with it, despite his own beliefs, other employees need not cause conflict for him as that will be nothing but unnecessary. For example, plagiarism is a problem that is frequently addressed in western countries. This is why students learn to cite sources for their work from a very young age. However, it is quite natural that a student from a different culture does not have this sensibility because knowledge is considered as common ownership there (Braswell, R.McCarthy, & McCarthy, 2012).

Impact of Ethical Legislation on Organizational Accountability As discussed before, ethics have already been established as a set of principles by which people within an organization conducts themselves. The code aims to provide people with a guideline so that they can make decisions that are ethically correct. Laws related to ethics in the UK make the procedure of organizational accountability a lot more credible. However one should be aware that a code of ethics issued by an organization is in fact as legitimate as a policy. If it is framed correctly, it is a kind of legislation by which employees of that organization are

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bound. If the policy has sanctions, then violation of the code leads to dismissal unless of course the unethical act is criminal. However, if the policy does not have any sanctions, then it is only a list of pieties (Harold & Heinz, 2008). During the 1960s, when social responsibility was gaining popularity, ethics became one of the most sought after traits in business establishments as well. One of the most apparent differences between law and ethics is that bare minimum ethical conduct enforced by society is law whereas ethical behavior enveloped more than just that. For example, it may be unethical to lie but law sees lying as a crime only under specific circumstances which is usually under oath. Then lying is seen as an act of perjury. Organizational ethics usually go beyond strict legal codes and expect employees to live up to a certain set of values (Braswell, R.McCarthy, & McCarthy, 2012). After a number of highly publicized scandals, organizational ethics have become more important than ever before. For instance, the Sarbanes Oxley Act that was passed in 2002 expects corporations to publish their code of ethics and also publish the changes as and when they are made. This is one of the reasons why corporations now try to specify strong incentives in their code of ethics so that they can win over the confidence of potential investors (Gupta, Gollakota, & Srinivasan, 2007).

Values and Beliefs that Help Make Ethical Decisions When you need to make ethical choices, there are certain values and beliefs that may ease the decision making process. Since there is something worth keeping on both ends, the seven qualities below will help you make a decisive choice in order to realize which option is worth letting go. This will stand true in business scenarios as well as personal ones.

Ethical Organizational Management i. Patience When you take some time and think about the options, you save yourself from

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making rash decisions and even if the choice you make is not most profitable, it will be well thought out and you will thus know which way youre headed. ii. Humility This trait will help you clarify what your goals are both in the short run and in the long run. More often than not you will learn that decisions that satisfy your short term needs often turn against you in the long run. iii. Knowledgeable Gather all the information you need to make an intelligent decision. Take into consideration the credibility and reliability of those divulging information to you. iv. Developing options With all the knowledge you gather and after patient thinking, you will surely know what course of action you have to take. When you reach this stage, remember it is important to have a number of options to reach the goal you want to eventually. Trust yourself and you will be able to develop a number of options. v. Farsightedness You should be able to gauge the consequences of your decision. When making an ethical decision, it is important that you know how your decision will affect yourself and others related to you. vi. Ability to make choices Whether you have to talk to a number of people or imagine yourself as someone you know and admire for his decisiveness, being able to make the choice is your final aim. Also let not thoughts like the opinion of others deter you from making your decision. If you make one, stand by it because you know you have made the most intelligible choice.

Ethical Organizational Management vii. Flexibility You will realize that your decision do not necessarily get you the results you

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desired, always. In that case be open minded about changing your course of action and trying a different route which is why it is important to have multiple options, like mentioned above (Hergenhahn, 2009).

Ethical Organizational Approach that Respect Other Cultural Value Systems Very often, ethical organizational approaches overlook important facets of cultural value systems. Many employees have reported that their companys ethical approach is more individualistic and less communal. According to the individualistic approach, each employee in an organization is responsible for his or her conduct and if one wants to change that behavior, it has to focus on the concerned individual. According to the communal approach however, employees are not seen as isolated beings but as part of a community that plays an equally important role in how he or she behaves. So when this has to be changed, the interest of the whole community is born in mind and not just that of a single employee. While critics may feel that adopting either approach is not going to help reach the best end, the more viable thing to do is incorporate both approaches. For example lets talk of an alcoholic employee. For the longest time, alcoholics were seen as people with problems and treatments revolved around helping this individual to cope with the issue. Modern studies have however revealed that alcoholics are part of dysfunctional units and not solely responsible for his or her behavior, which is why it becomes important to change the entire scenario and not just treat the individual. To look at this from another perspective, lets take into consideration another example. An employee who practices Islam will often not have the privacy at a workplace to read his or her prayers as and when they like during the day this again shows how the

Ethical Organizational Management communal approach is not taken into account at most workplaces and only the individualistic approach is put to practice. So we must know that upon drawing insights from both approaches, the ethical organizational management in any company will have a far better understanding of the

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communal ethics that are being put at stake for the myopic promotion of employees individual ethics. Having said that, it is also true that often having to choose between the good of an employee and good of many employees leaves the management in dilemma. In such a dilemma, the final decision will depend on the values that the management prioritizes on. Since ethics can be a complex issue and individuals may find themselves battling with the concept at a personal level each day, do not forget how difficult ethical organizational management must be, especially when a single organization has to bear in mind the sentiment, beliefs, faiths and ideologies of each and every stakeholder (Cowan, 2007) (Feldman, 2011).

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References 1. Aswathappa, K. (2007). Human Resource and Personnel Management. New Delhi: Tata McGraw-Hill Education. 2. Bakker, G. (2003). Building Knowledge about the Consumer: The Emergency of Market Research in the Motion Picture Industry. London: Frank Cass and Company Ltd. 3. Braswell, M. C., R.McCarthy, B., & McCarthy, B. J. (2012). Justice, Crime and Ethics. Burlington: Elsevier Inc. 4. Brooks, L. J., & Dunn., P. (2009). Business & Professional Ethics: For Directors, Executives & Accountants. Ohio: South-Western, Cengage Learning. 5. Cowan, R. S. (2007). Communication Technologies and Social Control. New York:: Oxford University Press. 6. Feldman, R. S. (2011). Understanding Psychology. New York: McGraw-Hill. 7. Griffin, R. W. (2011). Management. Mason: Cengage Learning. 8. Gupta, V., Gollakota, K., & Srinivasan, R. (2007). Business Policy and Strategic Management: Concepts and Applications (2 ed.). New Dhelhi: PHI Learning Pvt. Ltd. 9. Harold, K., & Heinz, W. (2008). Essentials Of Management. New Delhi: Tata McGrawHill Education.

Ethical Organizational Management 10. Hergenhahn, B. R. (2009). An Introduction to the History of Psychology. Belmont: Wadsworth, Cengage Learning.

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11. Mateo, D. M. (2010). Global Governance as Business Strategy: The Case of Gazprom (1 ed.). Humburg: Diplomica Verlag. 12. Pojman, L. P., & Fieser, J. (2012). Ethics: Discovering Right and Wrong. Wadsworth: Wadsworth, Cengage Learning. 13. Schermerhorn, J. R. (2010). Management. New York: John Wiley & Sons.