Thursday, 27 June 2013

The Understanding of Corporate Culture and Organization Ethicse



     The definition of corporate culture and organization ethics is a culture can share pattern of beliefs, core of ethics, expectation of the goal and meaning that guide the behaviour of its members. For business perspective standard and expectation are the element that influential by the business. For example like working hours, dress codes and firms values. Culture can provide the way or direction when organization facing challenging problem. The stability is a good direction for organization success at one time, but it also the barrier for organization success at another time.

   In some situation that the law cannot really make the judgement for guide the organization, the corporate culture can play important role to be the determining factor. According to Demand Media ethics is an integral part of a functioning society, but many people struggle to define ethics and put it into practice in a business setting. Owners and managers set the bar for ethics in an organization, but they aren't the only participants. Employees and other business players also influence and perpetuate ethics. In the case of small businesses, managers need to know how to carry out ethical policies in addition to knowing the virtues.From the point of view of employees, higher management manage the direction and shapes to build a special working environment for employees. It is the symbols to show that unethical behaviour had come into the minds of subordinates; especially the boss of the organization who pays the salary to the employees is not setting the good example for employees. Employees should know that they have the authority to have personal and professional rights within business operation. For example, if an employee suffers any kind of accident, higher management should take it seriously and take necessary action to overcome it. Working conditions should be safe for employees. Work schedules should be considering the ability of employees to work on time and fair to every employee.

   Business Customers is also an important person that influence by the organization culture. Most of the small businesses usually interact with other companies, such as suppliers and bankers. They are very important person that provide the facilities and capital to the organization, organization should be honest and respect to them and gain the trust from them. We don't want to intimidate or strong-arm other businesses, because owners, managers, and even employees will take it personally. Organization should set up ethical policies that have a sense of reliability and integrity. Consumers usually do not take kindly to unfair pricing and billing practices. Beside of this, consumer wants to ensure that they will get quality products and services, it is under the situation of truthful advertisements and presentation. A lot of consumers do not really understand about business savvy and them trust organization will not cheat them all the time. When trust had broken by the organization, consumer will be angry and try to do similar unethical action to take the revenge from organization. Bad comment from the social networking websites and consumer advocacy groups can destroy the reputation of the organization. We need to fair with all large and small business, not only for that we should have customer service policies and procedures in place to address consumer concerns before they get out of hand.

In particular, city councils, county boards and state legislatures are all playing an important role that influence in local, national and even global business matters.
Their responsible on avoid unethical business practices, they can do more than express concern; they can create new laws that correct unethical behaviour. Organization should consider creating legal policies to every employee’s in an organization. Organization should respect the environment that society depends on. Social responsibility is the term that describes how businesses set out to be good contribution to the earth. Now days many large organizations have very details information on their own public website that clearly lays out the commitment to social responsibility. Some big chain organization hires new staffs that are environmental and sustainability specialists to provide the suggestion and opinion to organization develop these policies. Although small organization lack of resources to implement the policies, managers can make continue effort to adopt more reasonable and useful policies.

   Ethical leadership should set the tone not only via personal behaviour, but also via allocating corporate resource to implement the ethical behavior. According to Desmond Berghofer the ethical leader understands that positive relationships are the gold standard for all organizational effort.  Good quality relationships built on respect and trust—not necessarily agreement, because people need to spark off each other—are the single most important determinant of organizational success. The ethical leader understands that these kinds of relationships germinate and grow in the deep rich soil of fundamental principles: trust, respect, integrity, honesty, fairness, equity, justice and compassion.

   The Importance of ethical leadership is purpose of the employees come to work on punctual working hour every working day and deal or join company activities that can fall anywhere along a spectrum from rewarding and fulfilling to dis-empowering, toxic and debilitating. The benefits of ethical leadership are can shared understanding that success depends on a constellation of relationships. If the employees treat their employees and customers well, employees will be satisfies with their job and happy work as a team, beside of this, they will share that emotional contentment in positive interactions with customers.If operating in this way, the organization will increase their revenue and their products and services are well received and good reputation will be comment by the consumer.Implications for leadership development should be in the middle management who have personal ethical competence and who can ensure that others employees can get the work done and maintain harmony and good relationships with colleagues. Leadership development usually focused on training ethical leaders throughout the organization.

   Organizational ethics will influence every organization runs to earn profits with ethical way 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 honor 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. 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. (Susan Liautaud, 2013). Organization should focus on corporate culture and organizational ethics and find a good way to change it be more benefits to both organization and employees as well.

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