Before
we begin to understand the importance of ethics in an organization, we should
have an understanding of what an organization is. As defined by Daft and Marcic
(2015) the formal definition of an organization is “a social entity that is
goal directed and deliberately structured” (p. 9). Organizations are designed
to meet a certain objective. In addition, organizations are also deliberately
structured which means that tasks are divided and the responsibility of
performance lies on organizational members. Small organizations are more
numerous than larger corporations.
However, all organizations are important to society. Whether for profit
or not for profit, the goals can be reached by meeting social satisfaction or
meeting a community’s needs.
In the
daily operations of an organization, individuals (organizational members) are
left with many decisions that can be beneficial or harmful to their workers and
society. For this reason, it is extremely important that organizations
familiarize themselves with a code of conduct or principles and values that
govern the behaviors of a person or group in regards to what is right or wrong.
Does this mean that individuals will always do the right thing and that
corporate corruption doesn’t exist?
ABSULUTELY NOT! Just think about
the mortgage mess in the United States and this is only one example of how
unethical behavior affects individuals’ lives. It might have not started as
such, however the outcomes affected millions of Americans. However, there are
measures that an organization can take to ensure that they stay on ethical
footing. Daft and Marcic (2015) explain
that some primary forms of making sure that companies stay on track are:
developing a code of ethics, ethical structures, and methods to safeguard
whistle-blowers.
So
then, what is a code of ethics? Daft and Marcic (2015) sum it up as a formal
statement of what the company stands for. Generally, there are two forms of
Codes of Ethics: Principle-based and Policy-based. Principle-based affects
corporate culture. These principles outline the core values and responsibilities
of the organization, the quality of products or services, and treatment of
employees. Policy-based statements outline what protocol will be used in
specific ethical situations. An
organization can urge and support ethical behavior by undertaking a number of
positions, programs and systems (also known as Ethical Structures). Such
structures might include an ethics committee who can oversee all ethics and
legal compliance. Furthermore, protecting employees who disclose any misconduct
by an organization and encouraging and supporting whistle-blowing as
advantageous is the only way this can be effective. Holding organizations accountable relies
heavily on individuals willing to speak up when there is conduct that is
illegal or unethical. Unfortunately, some individuals and the corporations that
they work for can slide into unethical conduct.
The
following are just some examples of corporate scandals:
http://www.youtube.com/watch?v=RfEwp8Kl2GY
http://www.youtube.com/watch?v=RfEwp8Kl2GY
References
Daft,
R., & Marcic, D. (2015). Understanding management (9e. ed.). Cengage
Learning.
