ETHICS AND GOVERNANCE

Ethics and Governance

Ethics and Governance

Thesis Statement

Are the actions of people in the workplace a consequence of individual or organizational characteristics? What would promote ethical behavior at work?

Introduction

Business ethics and employee behavior is the cornerstone of any organization. Both areas signify the behavior and action of human resource in the workplace with each other and towards the productivity of the organization. This research essay discusses about business ethics and governance from a compliance viewpoint. It further suggests whether distinctive performance or organizational characteristics influences the employee behavior in the organization. It also highlights ways to promote ethical behavior at work.

Ethics is incredibly important. They define moral principles and the rules of conduct. These practices reflect the development of people, processes and performances in the business organization that are referred as three P's of the organization. The responsibility of formulating an ethical climate in the workplace lies down in the hierarchy of the organization. Leadership is described as one of the most important element for organization's cultural ethics. The goals of forming and sustaining ethical climate should be the strategic leadership responsibility for executives. It will help individuals to act ethically in their daily routine (Thomas et. al, 2004, p.57). This explains that managers can maintain the ethical standards in the organization and can influence the work behavior and attitude of employees. In the long run, it contributes toward business productivity, corporate image and establishes long-term relations with stakeholders of the society.

To attain competitive advantage, organizations should display improved and enhanced performance for business success (Gokmen & Ozturk, 2012, p.3). With commitment, motivation and skills of human resource; this organizational goal can be achieved in the best interest of ethical business practices. A culture of ethics can be evaluated on the examples set by management and senior managers. They can be role models to constitute ethical atmosphere in the work environment that supports individual performance and good governance of the organization.

Discussion

Ethical climate is the sum of values and norms in an organization that identifies what is right and what is wrong in making business decisions. Everyone in the employment relationship must recognize that even in an environment where there is nothing but a transactional relationship employers and employee must engage in mutually beneficial actions (Burns, 1978). A value system in an organization reflects the ethical norms used for the purpose of novel performance and organizational togetherness. However, norms in a value system are expected behavior and beliefs by individuals to form an effective organizational framework. Motivation is a key factor that links employee to achieve goals of the organization through occupational pleasure, work satisfaction and positive contribution to the work place and its environment.

Business practices reflect the corporate governance. Business decisions are taken with their ethical implications at every level of management; strategically in the board room, managerially throughout the organization, and operationally in each of its functions. Successful business organizations not only associate organizational ethics with profit maximization but consider employee satisfaction and commitment as part of their ...