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2017, Journal of Business Strategy
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11 pages
1 file
Purpose Business organizations should strive to create ethical cultures to win consumer loyalty and thus safeguard long-term performance success. Management bears ultimate responsibility for promoting ethical behavior. By rewarding ethical behaviors and punishing transgressions, management will reinforce morally upright behavior and create a positive company culture. Successful promotion of corporate ethics, in turn, will boost employee morale, increase performance beyond bare minimums and retain employees in the long run. With a well-structured ethics code and strong reward system, management has all the tools necessary to create an ethical company culture. Design/methodology/approach This viewpoint paper, while advocating for a systematic approach to ethical behavior in a business organization, carefully reviews both well-established literature in this area as well as current best practices. The aim is to provide senior managers with a sense of how the best corporate ethics programs are organized and structured. Findings A successful corporate ethics program must involve all employees from executives to hourly wage workers, with each taking personal responsibility for his or her own performance and results. While no guarantees of success are offered, one reasonably certain path to failure is for an organization to post an ethics code and then ignore it. Ethics must be discussed, modified from time to time and actively integrated into the life of every organization that hopes to avoid ethical missteps.
In difficult financial times, companies face various moral issues to try to keep up with their competitors. Although these issues have a direct impact on employee decision making, businesses rarely address how employees should assess the ethics of their actions and incorporate ethics into their decisions. Often this can be alleviated by creating and maintaining a corporate culture with a focus on ethics. Corporate culture is often considered to be both a source of various problems and the basis for solutions and is certainly a factor that determines how people behave in an organization. The role of management in the organizational culture is important as it both acts as a role model for the employees and can also directly influence the behavior and culture to improve organizational performance. Of course there are better methods that management can use to incorporate ethics into the corporate culture or increase the likelihood that its employees will act ethically and these methods are explored.
International Journal of Value-Based Management, 2002
Within the general frame of proposals for an adequate management of business ethics, this paper is based on the vision of corporate culture as a pattern to achieve such purpose. If we consider ethics as a specific value of corporate culture, we may resort to the mechanism of cultural change and implementation in order to manage ethics. Despite the difficulties it entails in terms of time and money investment, this procedure is one of the safest ways to reach ethical values which are known, shared and then practiced by all the members of a corporation, whatever the category. From this central standpoint, and basing ourselves on our own proposal for the management of culture, we shall describe which specific steps must be taken in order to achieve a set of ethical values which are both realistic and furthermore shared by all collaborators of an organization.
Journal of Business Ethics, 2000
In view of the scope and scale of the latest scandals, e.g. Enron's maximum breaking bankruptcy, the re-discovery of ethics in business has received an impressive boost. By now even car salesmen have written ethics, ''a Code of Conduct'', e.g. in the USA or Poland. But there is no clear aim of the role ethics obtains in organizational settings as we may show in some small cases of practical approaches to deal with ethics in organizations. We discuss how ethics is the prerequisite to conduct any business and what advantages may be realized if a clear set of ethics is followed. We will discuss three practical examples. In cases of ethics-based valuesadded management of Siemens (Germany), Boeing (U.S.) and SAP (Germany) we explain the mechanisms of ethics in management to strengthen organizational success. We emphasize the importance of clear ethics-related communication processes in organizations. We explain the use of communication theories inside organizational processes to clarify communication about such an abstract topic as ethics. Finally, we point out how a management of ethical ideas and cultural values should be designed in business enterprises.
In view of the scope and scale of the latest scandals, e.g. Enron's maximum breaking bankruptcy, the re-discovery of ethics in business has received an impressive boost. By now even car salesmen have written ethics, ''a Code of Conduct'', e.g. in the USA or Poland. But there is no clear aim of the role ethics obtains in organizational settings as we may show in some small cases of practical approaches to deal with ethics in organizations. We discuss how ethics is the prerequisite to conduct any business and what advantages may be realized if a clear set of ethics is followed. We will discuss three practical examples. In cases of ethics-based valuesadded management of Siemens (Germany), Boeing (U.S.) and SAP (Germany) we explain the mechanisms of ethics in management to strengthen organizational success. We emphasize the importance of clear ethics-related communication processes in organizations. We explain the use of communication theories inside organizational processes to clarify communication about such an abstract topic as ethics. Finally, we point out how a management of ethical ideas and cultural values should be designed in business enterprises.
Journal of Business Ethics, 1992
This paper is designed to do three things while discussing the challenge of ethical behavior in organization. First, it discusses some reasons why unethical behavior occurs in organization. Secondly, the paper highlights the importance of organizational culture in establishing an ethical climate within an organization. Finally, the paper presents some suggestions for creating and maintaining an ethically-oriented culture.
1997
Behaving ethically depends on the ability to recognize that ethical issues exist, to see from an ethical point of view. This ability to see and respond ethically may be related more to attributes of corporate culture than to attributes of individual employees. Efforts to increase ethical standards and decrease pressure to behave unethically should therefore concentrate on the organization and its culture. The purpose of this paper is to discuss how total quality (TQ) techniques can facilitate the development of a cooperative corporate culture that promotes and encourages ethical behavior throughout an organization.
What constitutes ethical behaviour lies in a " grey zone " where clearcut right versus wrong and good versus bad dichotomies may not always exist. This paper is an empirical study on organizational culture and ethical behaviour from a strategic standpoint. Its objectives were to determine if there is a significant relationship between organizational culture and ethical behaviour and if there is a significant relationship between organizational culture and employees' values. The participants of the study were employees of selected public and private organizations in Lagos, Nigeria. The selection was through simple random sampling technique. The sample size was 92 respondents. Two (2) hypotheses were formulated and tested using regression analysis. Hypothesis one revealed that there is significant relationship between organizational culture and ethical behavior; the coefficient of determination (R 2) is 0.370. It shows that 37% of the variation or change in ethical behaviour is caused by variation in organizational culture. Hypothesis two also shows that the coefficient of determination (R 2) is 0.423. It means that 42.3% of the variation or change in employees' values is caused by variation in organizational culture, which connotes that organizational culture has significant relationship with employees' values. The study recommends that management should constantly review its organizational culture to be sure that it remains strong on the vision of the founders of the organisation, because organizational culture can be eroded as more people come into the organization with their various individual behaviours and values.
Quest Journals Journal of Research in Business and Management, 2016
This article review literature on ethical behavior to identify factors and variables which influences ethical behavior. This study is divided into theoretical and empirical studies and its relevance to theory. Identified variables are divided into individual factors, organizational and external factors. Variables under these factors are locus of control, achievement orientation, Machiavellianism as individual variable. Ethics training, code of ethics and rewarding system are organizational variable. Competition, influence of stakeholders and regulation system are external variables. These studies aim to find out the development of trends from seventies to two thousands fifteen in the studies of ethical behavior. This review provides insights to the future researchers who want to research related to ethical behavior. This review also helps professionals to understand ethical behavior in context of their organization to manage ethical aspects in to their organizations in a better way.
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