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Discussed by: Prof. Sheryl R. Morales
What Ethics is NOT...
Business ethics in the workplace is about
prioritizing moral values for the workplace and
ensuring behaviors are aligned with those values —
it’s values management. Yet, myths abound about
business ethics. Some of these myths arise from
general confusion about the notion of ethics. Other
myths arise from narrow or simplistic views of
ethical dilemmas.
Myth 1: Business ethics is more a matter of religion than management. Diane
Kirrane, in “Managing Values: A Systematic Approach to Business
Ethics,”(Training and Development Journal, November 1990), asserts that “altering
people’s values or souls isn’t the aim of an organizational ethics program —
managing values and conflict among them is …”
Myth 2: Our employees are ethical so we don’t need attention to business
ethics. Most of the ethical dilemmas faced by managers in the workplace are
highly complex. Wallace explains that one knows when they have a
significant ethical conflict when there is presence of a) significant value
conflicts among differing interests, b) real alternatives that are equality
justifiable, and c) significant consequences on “stakeholders” in the situation.
Kirrane mentions that when the topic of business ethics comes up, people are
quick to speak of the Golden Rule, honesty and courtesy. But when presented
with complex ethical dilemmas, most people realize there’s a wide “gray area” when trying to apply
ethical principles.
Myth 3: Business ethics is a discipline best led by philosophers, academics and theologians.
Lack of involvement of leaders and managers in business ethics literature and discussions has
led many to believe that business ethics is a fad or movement, having little to do with
the daytoday realities of running an organization. They believe business ethics is
primarily a complex philosophical debate or a religion. However, business
ethics is a management discipline with a programmatic approach that
includes several practical tools. Ethics management programs have
practical applications in other areas of management areas, as well. (These
applications are listed later on in this document.)
Myth 4: Business ethics is superfluous — it only asserts the obvious:
“do good!” Many people react that codes of ethics, or lists of ethical
values to which the organization aspires, are rather superfluous because
they represent values to which everyone should naturally aspire.
However, the value of a codes of ethics to an organization is its priority and focus regarding certain
ethical values in that workplace. For example, it’s obvious that all people should be honest.
However, if an organization is struggling around continuing occasions of deceit in the workplace, a
priority on honesty is very timely — and honesty should be listed in that organization’s code of
ethics. Note that a code of ethics is an organic instrument that changes with the needs of society and
the organization.
Myth 5: Business ethics is a matter of the good guys preaching to the bad guys. Some writers
do seem to claim a moral high ground while lamenting the poor
condition of business and its leaders. However, those people well versed
in managing organizations realize that good people can take bad actions,
particularly when stressed or confused. (Stress or confusion are not
excuses for unethical actions — they are reasons.) Managing ethics in the
workplace includes all of us working together to help each other remain
ethical and to work through confusing and stressful ethical dilemmas.
Myth 6: Business ethics in the new policeperson on the block. Many believe
business ethics is a recent phenomenon because of increased attention to the
topic in popular and management literature. However, business ethics was written
about even 2,000 years ago — at least since Cicero wrote about the topic in his
On Duties. Business ethics has gotten more attention recently because of the
social responsibility movement that started in the 1960s.
Myth 7: Ethics can’t be managed. Actually, ethics is always “managed” — but, too often,
indirectly. For example, the behavior of the organization’s founder or
current leader is a strong moral influence, or directive if you will, on
behavior or employees in the workplace. Strategic priorities (profit
maximization, expanding marketshare, cutting costs, etc.) can be very
strong influences on morality. Laws, regulations and rules directly
influence behaviors to be more ethical, usually in a manner that improves
the general good and/or minimizes harm to the community. Some are still
skeptical about business ethics, believing you can’t manage values in an
organization. Donaldson and Davis (Management Decision, V28, N6) note
that management, after all, is a value system. Skeptics might consider the tremendous influence of
several “codes of ethics,” such as the “10 Commandments” in Christian religions or the U.S.
Constitution. Codes can be very powerful in smaller “organizations” as well.
Therefore, Ethics in the Workplace is....
The biggest internal challenge for organizations always relates to managing ethics in
the workplace. Professional Values and Ethics are backbone of any organization and how they
treat it determines their standing and reputation in any given environment. The
fact is that biggest companies in today’s scenarios exist and are known
because of the way they manage values and ethics. It is their
unquestionable trust and compliance that make them
integral part of the society and the world as a whole. Ethics is all
about doing right things in the right manner by complying with
processes and procedures. And when they become integral part of
any organization, all that is left is to manage them efficiently in the workplace.
When organizations are entrusted with responsibilities there are expectations that their
behavior would comply to highest ethical standards. In this
scenario it becomes important for organizations not only to set
up definite standards and procedures but also ensure their
compliance. Most managers and employees fail to realize that
ethics are their guiding light that helps them tread the path of
the righteous. It is not a process but a way of life that help them
become better individuals. Thinking them to be stringent hard
rules rather than owning them up makes the task and benefits of
managing ethics in the workplace more important.
In this article I have talked about 10 points that helps organizations and individuals manage
ethics in the workplace. It covers all the steps and can help organization maintain process
and procedures of highest ethical standards. Students who are studying for a business degree
online will learn about business ethics. These tips below are sure to supplement any of that
knowledge and hopefully add new insight.
1) Well Defined It is very important for organization to define clearly
the standard codes and procedures. Having a rule book of do’s and
don’ts removes an element of subjectivity and complexities involved.
Some procedures are general and sometimes enforced by the
government too but there are other that varies from organizations to
organizations and need to be strictly implemented. Depending upon the
nature of the company, it is important to protect right of various
stakeholders and incorporate rules and procedures of highest ethical value.
2) Training Have a rule book in itself is not important. What matters is
whether the employees are properly trained on it and they know what is
expected out of them. The training should ideally start when the person
joins the company and employees should be updated about changes at
regular intervals.
3) Guiding Principles The ethics should be guiding principles and should remove
any subjectivity whenever the decision needs to be made. All
employees and managers can look upon the ethical standards described and
can take decision accordingly. Also employees within an
organization can mold their behavior keeping these guiding
principles in mind.
4) Management Practice It is important for managers holding position of responsibility to
imbibe them as part of their management practice. A top down approach
always helps to maintain sanity and provide employees with examples of
how it is being followed at critical positions. Things must always start from
the one implementing the rules and besides it is the 'management people'
who created it, therefore, they are the ones who understand it and do it
better.
5) Ownership – Managing ethics in the workplace involves a sense of ownership among
employees for their own and company success. It is important to have
the culture that promote sense of ownership and ensure compliance to
the highest degree. Having a free and fair environment is important for
exceptional growth of the employees. Just like any form of ownership, it
must be clearly defined who are the people possessing such authority.
This will help subordinates properly channel their communications.
6) Openness It is imperative for organizations to be open when
issues happens and practice forgiveness where there is an opportunity
to help employees learn from mistakes. Ethics can span across areas
and at times compliance can be a challenge. In such scenario it is
important for organizations to take them up for open discussions and
make sure that trivial mistakes get eliminated forever.
9) Incorporating Changes Anything which is constant in this world is
the change. It is important for organizations to evaluate the changes in
rules and procedures from time to time and implement them at the
earliest. There is no point in following rules that has lost its significance
in current scenario.
10) Culture Last but not the least, an important point in
managing ethics in the workplace is to have a culture that
promotes growth rather than acting as a hindrance to it. It is
important to derive a relationship that in itself is self enriching
and makes employees relate to the success in a more prudent way.
The importance given to values and ethics tells a lot about organizations and how
they take up ownership in light of various stakeholders and the society as a whole.
Managing ethics in the workplace is a natural next step that helps organizations to grow by
doing the right things in the right manner. It helps to promote participation that makes this
world a better place to live in.
References:
Freeman, Bill, Tips and Tools for Nonprofits, Retriecved Date: Decmber 21, 2010, Website:
http://501cweb.wordpress.com/2007/02/07/tenmythsaboutbusinessethics/
Mystic Madness, A Blog to Change the Way You Think: Managing Ethics in The
Workplace, Retrieved Date: December 20, 2010, Website:
http://www.mysticmadness.com/ managingethicsintheworkplace.html