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.