PERSONAL AND ORGANIZATIONAL ETHICS

Personal and Organizational Ethics

Personal and organizational ethics

Introduction

Organizational ethics is one of the most important, yet perhaps one of the most unseen and misunderstood notions in corporate America and schools of business. Organizational ethics plans have not been competently implemented by many companies, and there is still much debate in relation to the usefulness of such plans in stopping ethical and lawful misconduct. Simultaneously, business schools are attempting to teach courses and/or integrate organizational ethics into their curricula without general agreement about what should be taught, or how it should be taught.

Societal norms require that businesses assume responsibility and ensure that ethical standards are properly implemented on a daily basis. Such a requirement is not without controversy. Some business leaders believe that personal moral development and character are all that are needed for effective organizational ethics. These business leaders are supported by certain business educators who believe ethics initiatives should arise inherently from corporate culture and that hiring ethical employees will limit unethical behavior within the organization. A contrary position, and the one espoused here, is that effective organizational ethics can only be achieved by proactive leadership whereby employees from diverse backgrounds are provided a common understanding of what is defined as ethical behavior through formal training, thus creating an ethical organizational climate. In addition, changes are needed in the regulatory system, in the organizational ethics initiatives of business schools, and in societal approaches to the development and implementation of organizational ethics in corporate America. According to Richard L. Schmalensee, Dean of the MIT Sloan School of administration, the inquiry is, "How can we make graduates who are more attentive of their potential . . . and their obligation as professionals to make a affirmative contribution to society?"He asserted that business schools should be held partially responsible for the cadre of managers more concentrated on short-term games to trounce the market rather than construction lasting worth for shareholders and society (Schmalensee 2003).

Defining Organizational Ethics

Ethics has been termed the study and beliefs of human conduct, with an focus on the conclusion of right and wrong. For managers, ethics in the workplace mentions to directions (standards, values) ruling the perform of organization members. Most delineations of ethics relate rules to what is right or incorrect in exact situations. For present purposes, and in simple terms, organizational ethics refers to generally accepted standards that guide behavior in business and other organizational contexts (LeClair, Ferrell, and Fraedrich 1998).1

One distinction between an ordinary conclusion and an ethical one is that acknowledged directions may not apply and the decision maker should weigh standards in a position that he or she may not have faced before. Another distinction is the allowance of focus placed on a person's values when making an ethical decision. Whether a specific behavior is judged right or wrong, ethical or unethical, is often determined by the mass media, interest groups, the legal system, and individuals' personal morals. While these assemblies are not necessarily "right," their judgments influence society's acceptance or ...