Organizational ethics: Difference between revisions

Content deleted Content added

Inline

Revision as of 04:57, 4 October 2007

Organizational Ethics is the ethics of an organization, and it is how an organization ethically responds to an internal or external stimuli. Organizational ethics is interdependent with the organizational culture. Although, it is akin to both organizational behavior (OB) and business ethics on the micro and macro levels, organizational ethics is neither OB, nor is it solely business ethics (which includes corporate governance and corporate ethics). Organizational ethics express the values of an organization to its employees and/or other entities irrespective of governmental and/or regulatory laws.

Overview of the Field

The Foreign Corrupt Practices Act (FCPA) restricts U.S. firms from engaging in bribery and other illegal practices internationally. There are laws that have the same type of prohibition for European companies. These laws create a disadvantage competitively for both European and U.S. firms.^[1] Such laws are not a restricting element to organizations that have highly elevated ethical behavior as part of their values. Organizations that do not have an outlook for positive ethical practices as part of their cultures, usually lead to their own demise, such as, Enron and WorldCom by their questionable accounting practices. The converse is generally true, organizations that have integrity and encouraging ethical practices as part of their culture are viewed with respect by their employees, community, and corresponding industries ^[2] Thereby, the positive ethical outlook of an organization results in a solid financial bottom-line, because of greater sales along with their ability to retain and attract new and talented personnel. More importantly, an ethical organization will have the ability to retain employees that are experienced and knowledgeable (generally referred to as human capital). This human capital results in less employee turnover and less time to train new employees, which in turn allows for greater output of services (or production of goods).

Basic Elements of An Ethical Organization

There are four elements that exist in organizations that make ethical behavior conducive within an organization. The four elements necessary to quantify an organization's ethics are: 1) written code of ethics and standards; 2) ethics training to executives, managers, and employees; 3) availability for advice on ethical situations (i.e, advice lines or offices); and 4) systems for confidential reporting.^[3]

Intrinsic and Extrinsic

The intrinsic and extrinsic rewards of an ethical organization are tethered to the organizational culture and business ethics of an organization. Based upon the reliability and support structure of each of the four areas needed for ethical behavior, then the organizational ethics will be evident throughout the organization. The organization, the employees, and other entities will receive intrinsic and extrinsic rewards. Actions of employees can range from whistle blowing (intrinic) to the extraordinary actions of an hourly employee buying all the peanut butter (as produced by his employer), because the labels were not centered, and he knew that his employer (extrinsic) would reimburse him in full.^[4]

Above and Beyond

Above and beyond is a standard part of the operational and strategic plans for organizations that have positive organizational ethics. Above and beyond the quarterly or yearly income statements, an entity will plan for its employees by offering “wellness programs” along with general health coverage, and/or a viable stable retirement plan. Further, an organization will allow for paid maturity leave, or even paid time off for new parents after an adoption. Other perks may include, “on-site” childcare, flex-time for work hours, employee education reimbursement, and even telecommuting for various days during a week. All the above are just a few examples of employee benefits that quality organizations offer to their employees. These benefits are not mandates by law, and they represent only a few of benefits that best known corporations and firms offer to their employees throughout the world.

Theories and models

External links

Organizational Ethics and Integrity
[http://www.ethics.org/resources/articles-organizational-ethics.asp Organizational Ethics

Articles]

[1]

References

^ Svensson, Jakob, “Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms,” Quarterly Journal of Economics, 118(2003), page 207
^ Managing with Soul: Combining Corporate Integrity with the Bottom Line,” November 14, 2003, www.hreonline.com/HRE.
^ Clark, Margaret M.,JD.,SPHR, "Corporate Ethics Programs Make a Difference, but not the only difference", HR Magazine, July 1, 2003, page 36.
^ Peters, T.J., and Austin, N. 1985, Passion for Excellence: The Leadership difference. New York: Ballantine.

Halbert, Terry, and Ingulli, Elaine, Law & Ethics in the Business Environment, 5th edition (2006). Mason, OH: Thomson Learning.

[qje-1] Svensson, Jakob, “Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms,” Quarterly Journal of Economics, 118(2003), page 207

[man-2] Managing with Soul: Combining Corporate Integrity with the Bottom Line,” November 14, 2003, www.hreonline.com/HRE.

[hrm-3] Clark, Margaret M.,JD.,SPHR, "Corporate Ethics Programs Make a Difference, but not the only difference", HR Magazine, July 1, 2003, page 36.

[pfe-4] Peters, T.J., and Austin, N. 1985, Passion for Excellence: The Leadership difference. New York: Ballantine.

[1]

[2]

[3]

[4]

@@ Line 1: / Line 1: @@
 {{cleanup|date=September 2007}}
-'''Organizational Ethics''' is the  [[ethics]] of an [[organization]], and it is how an organization ethically responds to an internal or external stimuli. Organizational ethics is  interdependent with the  [[organizational culture]].  Although, it is akin to both  [[organizational behavior]] (OB) and [[business ethics]] on the micro and macro levels, organizational ethics is neither OB, nor is it solely '''business ethics''' (which includes corporate governance and corporate ethics).   Organizational ethics express the [[values]] of an organization to its employees and/or other entities irrespective of governmental and/or regulatory laws.
+'''Organizational Ethics''' is the  [[ethics]] of an [[organization]], and it is how an organization ethically responds to an internal or external stimuli. Organizational ethics is  interdependent with the  [[organizational culture]].  Although, it is akin to both  [[organizational behavior]] (OB) and [[business ethics]] on the micro and macro levels, organizational ethics is neither OB, nor is it solely '''business ethics''' (which includes corporate governance and corporate ethics).   Organizational ethics express the [[values]] of an organization to its employees and/or other entities irrespective of governmental and/or regulatory [[laws]].
 ==Overview of the Field==
 The [[Foreign Corrupt Practices Act]] (FCPA) restricts U.S. firms from engaging in bribery and other illegal practices internationally. There are [[laws]] that have the same type of prohibition for European companies. These laws create a disadvantage competitively for both European and U.S. firms.<ref name="qje">Svensson, Jakob, “Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms,” ''Quarterly Journal of Economics'', 118(2003), page 207</ref> Such laws are not a restricting element to organizations that have highly elevated ethical behavior as part of their values.   Organizations that do not have an outlook for positive ethical practices as part of their cultures, usually lead to their own demise, such as, [[Enron]] and [[WorldCom]] by their questionable accounting practices.    The converse is generally true, organizations that have integrity and encouraging ethical practices as part of their culture are viewed with respect by their employees, community, and corresponding industries <ref name="man"> Managing with Soul: Combining Corporate Integrity with the Bottom Line,” November 14, 2003, www.hreonline.com/HRE.</ref> Thereby, the positive ethical outlook of an organization results in a solid financial bottom-line, because of greater sales along with  their ability to retain and attract new and talented personnel.  More importantly, an ethical organization will have the ability to retain employees that are experienced and knowledgeable (generally referred to as [[human capital]]).  This '''human capital''' results in less employee turnover and less time to train new employees, which in turn allows for greater output of [[services]] (or production of goods).
+===Basic Elements of An Ethical Organization===
 There are four elements that exist in organizations that make ethical behavior conducive within an organization. The four elements necessary to quantify an organization's ethics are: 1)  written code of ethics and standards; 2) ethics [[training]] to executives, managers, and employees;    3) availability for advice on ethical situations (i.e, advice lines or offices); and 4) systems for confidential reporting.<ref name="hrm">Clark, Margaret M.,JD.,SPHR, "Corporate Ethics Programs Make a Difference, but not the only difference", ''HR Magazine'', July 1, 2003, page 36.</ref>
@@ Line 11: / Line 12: @@
 ==Above and Beyond==
-Above and beyond is a standard part of the operational and strategic plans for    organizations that have positive organizational ethics.   Above and beyond the quarterly or yearly income statements, an entity will plan for its employees by offering “wellness programs” along with general health coverage, and/or a viable stable retirement plan.  Further, an organization will allow for paid maturity leave, or even paid time off for new parents after an adoption.  Other perks may include, “on-site” childcare, flex-time for work hours, employee education reimbursement, and even telecommuting for various days during a week.  All the above are just a few examples of employee benefits that quality organizations offer to their employees.  These benefits are not mandates by law, and they represent only a few of benefits that best known corporations and firms offer to their employees throughout the world.
+Above and beyond is a standard part of the operational and strategic plans for    organizations that have positive organizational ethics.   Above and beyond the quarterly or yearly income statements, an entity will plan for its employees by offering “wellness programs” along with general health coverage, and/or a viable stable retirement plan.  Further, an organization will allow for paid maturity leave, or even paid time off for new parents after an [[adoption]].  Other perks may include, “on-site” [[childcare]], [[flex-time]] for work hours, employee education reimbursement, and even [[telecommuting]] for various days during a week.  All the above are just a few examples of employee benefits that quality organizations offer to their employees.  These benefits are not mandates by law, and they represent only a few of benefits that best known corporations and firms offer to their employees throughout the world.