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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