By Renee Lessard
Ethics in the business setting are
both necessary and complex at the same time. There are at times significant
differences between what a person or organization should do and what they
actually do. These differences are called prescriptive and descriptive threads
of ethical theory. The study of business ethics also focuses on the behavior of
individuals faced with unethical behavior and their response to it. While some
people may be eager to report unethical behavior by individuals or the
organization, others may be hesitant to report.
For this post, I will be focusing on
what businesses can do to establish ethics within their organization, how to
bring those ethics to their employees and train them on their importance, and
finally the importance of follow-through within the organization. I will bring
focus to the different facets of ethics in the organization and the potential
consequences to employees and the organization when good ethical behavior is
not embraced.
According to Sims, organizations can
use a three part system to institutionalize ethics into their organization. The
first step is to adopt a culture within the organization that encourages
learning and openness to communication and purpose. The second step is for the
organization to adopt a written code of ethics. This code should outline the
ethics of the organization both involving its employees and its customers. The third
step involves training. Employees of the organization should be trained in the
ethics of the organization. This training should continue throughout the life
span of the organization to keep all employees, old and new, up to date on the
ethics of the organization.
Bayley encourages organizations to
incorporate ethics training within the organization as a proactive tool to the
success of the organization. This training, according to Bayley, should involve
educating employees about the ethics of the organization as well as empowering
them to make ethical decisions within their work. He asserts that this training
is essential for the success of the organization because the practice of ethics
will produce better output for the organization as well as protect it from
scrutiny.
So far, I have focused on
implementation and continuation of ethics within the organization. Within this
scope, the importance of ethics are explained in theories and what ifs. There are
very real consequences to a lack of ethics within an organization. These consequences
can fall both on the organization and the employees of the organization. These consequences
can be dire to the point of ending the organization so it is important to be
aware of them as more than just a cautionary tale but a very real possibility.
A general lack of ethics or an
ethical code can lead to laxity in the organizational politics and work ethic. A
code of ethics is the organizations outline of what behavior is acceptable and
what is not. While individuals within the organization may have their own
personal ethics, without a code of ethics established by the organization each
person may use their own personal code of ethics. The friction here can be
caused by one individual’s ethics conflicting with another’s. This friction may
cause a lack of productivity or, at worst, detrimental conflict among employees
that may lead to one or more employees losing employment.
Another scenario involves an
organization establishing a code of ethics, possibly even a training program,
and then neglecting to follow through on their own policies regarding ethical
behavior. Trevino and Weaver outline some of the possible consequences and the
driving forces behind them. One of the reasons for employee strife in an
organization can be a feeling of injustice. When a code of ethics has been
established by an organization and that organization does not follow through on
their policies the employees of that organization feel that the justice system
within the organization is corrupt or lacking. This leads directly to
dissatisfaction by employees and can directly contribute to low productivity
and lack of employee morale.
Trevino and Weaver also point out
that a lack of follow through with an organizations code of ethics can lead to
unethical behavior by employees within the organization. Unethical behavior can
vary from theft and vandalism to a disregard for the well being of the
organization involving possible acts of maliciousness against the organization
such as the selling of trade secrets or misuse of organizational power. These can
have lasting or permanent consequences or both the employees and the
organization.
It is well known that ethics play a
key role in an organization’s well being and productivity. The complexity
arises when organizations begin to take steps to implement and continue ethical
values and training within the organization. If not done correctly, a focus on
ethics within an organization can be as detrimental as a lack of an ethical
code and policy.
References:
Bayley, B.
K. (2012). Organizational ethics training: a proactive perspective. The Journal for
Quality
and Participation, 35.2,
15-19. Retrieved from
untid=12924
Sims, R. R.
(1991). The institutionalization of organizational ethics. The Journal of Business
Ethics, 10.7, 493. Retrieved from
Trevino, L.
K., Weaver, G. R. (2001) Organizational justice and ethics program “follow-through”:
Influences in employees’ harmful and
helpful behavior. Business Ethics
Quarterly, 11.4,
651-671. Retrieved from http://www.jstor.org/stable/3857765
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