Understanding Professional
Ethics
Organization Ethics - Meaning
and its Importance
 An organization is formed when individuals
from different backgrounds and varied
interests come together on a common
platform and work towards predefined goals
and objectives.
 Employees are the assets of an organization
and it is essential for them to maintain the
decorum and ambience of the workplace.
What is Organization Ethics?
 The way an organization should respond to external
environment refers to organization ethics.
 Organization ethics includes various guidelines and
principles which decide the way individuals should
behave at the workplace.
 It also refers to the code of conduct of the individuals
working in a particular organization.
 Every organization runs to earn profits but how it
makes money is more important.
 No organization should depend on unfair means to
earn money.
 One must understand that money is not the only
important thing; pride and honour are more important.
 An individual’s first priority can be to make money but
he should not stoop too low just to be able to do that.
 Children below fourteen years of age must not be
employed to work in any organization.
 Childhood is the best phase of one’s life and no child
should be deprived of his childhood.
 Employees should not indulge in destruction or
manipulation of information to get results.
 Data Tampering is considered strictly unethical and
unprofessional in the corporate world.
 Remember if one is honest, things will always be in
his favour.
 Employees should not pass on company’s
information to any of the external parties.
 Do not share any of your organization’s policies and
guidelines with others.
 It is better not to discuss official matters with friends
and relatives.
 Confidential data or information must not be leaked
under any circumstances.
 There must be absolute fairness in monetary
transactions and all kinds of trading. Never ever
cheat your clients.
 Organizations must not discriminate any employee
on the grounds of sex, physical appearance, age or
family background.
 Female employees must be treated with respect.
Don’t ask your female employees to stay back late at
work.
 It is unethical to discriminate employees just because
they do not belong to an affluent background.
 Employees should be judged by their work and
nothing else.
 Organization must not exploit any of the employees.
 The employees must be paid according to their hard
work and efforts.
 If individuals are working late at night, make sure
overtimes are paid.
 The management must ensure employees get their
arrears, bonus, incentives and other reimbursements
on time.
 Stealing office property is strictly unethical.
 Organization must take care of the safety of the
employees.
 Individuals should not be exposed to hazardous
conditions.
 Never lie to your customers.
 It is unprofessional to make false promises to the
consumers.
 The advertisements must give a clear picture of the
product.
 Do not commit anything which your organization can’t
offer.
 It is important to be honest with your customers to
expect loyalty from them.
 It is absolutely unethical to fool the customers.
 The products should not pose a threat to environment
and mankind.
 Employees on probation period can be terminated
anytime but organizations need to give one month
notice before firing the permanent ones.
 Employees can’t stop coming to office all of a
sudden.
Six Characteristics of an Ethical
Organization
 Strong, Ethical Leadership: The culture of
an ethical business is defined starting from
the very top of the organizational chart.
 Core Value Statement: An ethical business
has a core value statement that describes its
mission.
 Integrity and Fairness: Integrity is an all-
encompassing characteristic of an ethical
business. The ethical business adheres to
laws and regulations at the local, state and
federal levels.
 Respect for Employees and Customers
 Loyal Relationships with Employees and
Customers
 Concern for People and Environment
Causes of Unethical Behaviour
 What Are the Causes of Unethical Behaviour
in the Workplace?
 No Code of Ethics. Employees are more likely
to do wrong if they don't know what's right. ...
Fear of Reprisal. ...
Impact of Peer Influence. ...
Going Down a Slippery Slope. ...
Setting a Bad Example.
Major Reasons behind Unethical
Practices
 Poor Leadership: It is a common practice in
offices where there conflict or clash arises
between a boss and an employee.
 Poor Management: Marking wrong
attendance, appearing late at the office, killing
time by using the internet, taking long breaks,
misbehaving with the subordinates and
misusing his authority are some of the
examples
 Discrimination (any specifically Gender)
According to labor law, no employee should
be discriminated based on age, race, gender,
and all employees should be treated on a fair
and just basis.
 Poorly Managed Policies: If the policies
regarding ethics have already been designed
and mentioned in the office manual but still
not generating productive results, so the
chances are higher, they are not
appropriately addressed.
 Hesitant to Report: The reason is simple
that employees hesitate to complain because
they have to work in the office for the long
term can’t take the risk of rivalry that can
affect their career.
 Wrong Practices: It’s been also observed
that to gain small financial benefits for any
reason, many employees collect bribe from
clients to have their task done or to disclose
organizational secrets.
 Habitual to Steal: Many employees have a
natural habit of stealing the company’s
stationery for their personal usages like pens,
folders, papers, and other sorts of stuff. They
often grab these items for their family or have
a habit of storing them at home.
 Liar by Nature: This is a widespread practice
among unethical behaviors studied and is
also observed among managers.
 Impact of Peer Influence: If everyone is
doing it, it must be right. Or is it? What’s to
stop someone from padding their expense
report when their co-workers do it but don’t
get caught? Too often people lapse into the
bad behavior of others.
Benefits of Ethical Practices in
Organizations
 Competitive advantage: Customers favour
those organizations, which are known for
their ethical practices.
 Better staff attraction and retention: Ethics
compliant organizations also develop their
brand image and such employer branding
help them to attract and retain the best
people, which eventually contribute to their
sustainable competitive advantage.
 Investment: Ethics compliant organizations
also attract investors, as people repose their
confidence only on those who show integrity,
a sense of responsibility and who are
trustworthy.
 Morale and culture: Ethical organizations
develop high-integrity, become socially
responsible, globally considerate. And all
these make such organizations less prone to
stress, attrition and dissatisfaction.
 Reputation: Building organizational
reputation, takes years of effort, and ruining it
hardly requires one violation.
 Legal and regulatory reasons: Early
preparedness of the organization will benefit
them in the long run, when ethical issues
become legally enforceable.
 Legacy: Organizations believe the test of real
legacy is ethical decision making.

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UNIT- 11_Understanding Professional Ethics.pdf

  • 2. Organization Ethics - Meaning and its Importance  An organization is formed when individuals from different backgrounds and varied interests come together on a common platform and work towards predefined goals and objectives.  Employees are the assets of an organization and it is essential for them to maintain the decorum and ambience of the workplace.
  • 3. What is Organization Ethics?  The way an organization should respond to external environment refers to organization ethics.  Organization ethics includes various guidelines and principles which decide the way individuals should behave at the workplace.  It also refers to the code of conduct of the individuals working in a particular organization.  Every organization runs to earn profits but how it makes money is more important.  No organization should depend on unfair means to earn money.
  • 4.  One must understand that money is not the only important thing; pride and honour are more important.  An individual’s first priority can be to make money but he should not stoop too low just to be able to do that.  Children below fourteen years of age must not be employed to work in any organization.  Childhood is the best phase of one’s life and no child should be deprived of his childhood.  Employees should not indulge in destruction or manipulation of information to get results.
  • 5.  Data Tampering is considered strictly unethical and unprofessional in the corporate world.  Remember if one is honest, things will always be in his favour.  Employees should not pass on company’s information to any of the external parties.  Do not share any of your organization’s policies and guidelines with others.  It is better not to discuss official matters with friends and relatives.
  • 6.  Confidential data or information must not be leaked under any circumstances.  There must be absolute fairness in monetary transactions and all kinds of trading. Never ever cheat your clients.  Organizations must not discriminate any employee on the grounds of sex, physical appearance, age or family background.  Female employees must be treated with respect. Don’t ask your female employees to stay back late at work.  It is unethical to discriminate employees just because they do not belong to an affluent background.
  • 7.  Employees should be judged by their work and nothing else.  Organization must not exploit any of the employees.  The employees must be paid according to their hard work and efforts.  If individuals are working late at night, make sure overtimes are paid.  The management must ensure employees get their arrears, bonus, incentives and other reimbursements on time.
  • 8.  Stealing office property is strictly unethical.  Organization must take care of the safety of the employees.  Individuals should not be exposed to hazardous conditions.  Never lie to your customers.  It is unprofessional to make false promises to the consumers.  The advertisements must give a clear picture of the product.
  • 9.  Do not commit anything which your organization can’t offer.  It is important to be honest with your customers to expect loyalty from them.  It is absolutely unethical to fool the customers.  The products should not pose a threat to environment and mankind.  Employees on probation period can be terminated anytime but organizations need to give one month notice before firing the permanent ones.  Employees can’t stop coming to office all of a sudden.
  • 10. Six Characteristics of an Ethical Organization  Strong, Ethical Leadership: The culture of an ethical business is defined starting from the very top of the organizational chart.  Core Value Statement: An ethical business has a core value statement that describes its mission.  Integrity and Fairness: Integrity is an all- encompassing characteristic of an ethical business. The ethical business adheres to laws and regulations at the local, state and federal levels.
  • 11.  Respect for Employees and Customers  Loyal Relationships with Employees and Customers  Concern for People and Environment
  • 12. Causes of Unethical Behaviour  What Are the Causes of Unethical Behaviour in the Workplace?  No Code of Ethics. Employees are more likely to do wrong if they don't know what's right. ... Fear of Reprisal. ... Impact of Peer Influence. ... Going Down a Slippery Slope. ... Setting a Bad Example.
  • 13. Major Reasons behind Unethical Practices  Poor Leadership: It is a common practice in offices where there conflict or clash arises between a boss and an employee.  Poor Management: Marking wrong attendance, appearing late at the office, killing time by using the internet, taking long breaks, misbehaving with the subordinates and misusing his authority are some of the examples
  • 14.  Discrimination (any specifically Gender) According to labor law, no employee should be discriminated based on age, race, gender, and all employees should be treated on a fair and just basis.  Poorly Managed Policies: If the policies regarding ethics have already been designed and mentioned in the office manual but still not generating productive results, so the chances are higher, they are not appropriately addressed.
  • 15.  Hesitant to Report: The reason is simple that employees hesitate to complain because they have to work in the office for the long term can’t take the risk of rivalry that can affect their career.  Wrong Practices: It’s been also observed that to gain small financial benefits for any reason, many employees collect bribe from clients to have their task done or to disclose organizational secrets.
  • 16.  Habitual to Steal: Many employees have a natural habit of stealing the company’s stationery for their personal usages like pens, folders, papers, and other sorts of stuff. They often grab these items for their family or have a habit of storing them at home.  Liar by Nature: This is a widespread practice among unethical behaviors studied and is also observed among managers.
  • 17.  Impact of Peer Influence: If everyone is doing it, it must be right. Or is it? What’s to stop someone from padding their expense report when their co-workers do it but don’t get caught? Too often people lapse into the bad behavior of others.
  • 18. Benefits of Ethical Practices in Organizations  Competitive advantage: Customers favour those organizations, which are known for their ethical practices.  Better staff attraction and retention: Ethics compliant organizations also develop their brand image and such employer branding help them to attract and retain the best people, which eventually contribute to their sustainable competitive advantage.
  • 19.  Investment: Ethics compliant organizations also attract investors, as people repose their confidence only on those who show integrity, a sense of responsibility and who are trustworthy.  Morale and culture: Ethical organizations develop high-integrity, become socially responsible, globally considerate. And all these make such organizations less prone to stress, attrition and dissatisfaction.
  • 20.  Reputation: Building organizational reputation, takes years of effort, and ruining it hardly requires one violation.  Legal and regulatory reasons: Early preparedness of the organization will benefit them in the long run, when ethical issues become legally enforceable.  Legacy: Organizations believe the test of real legacy is ethical decision making.