...Managing Ethical Decision Making in the Workplace James E. Gleason BUS 275-H01 Calhoun Community College Abstract Business leaders struggle to balance the desire for profit and maximum shareholder return with corporate ethics and social responsibility. Unfortunately, short-term financial bottom line has taken the place of maintaining strong moral character in today’s business practices. In the United States alone, about two-thirds of the top corporations have been guilty of some type of corporate malfeasance. In the face of both damaging and publicly embarrassing litigation, business leaders now recognize the need for sound, straightforward ethics management programs in their companies that makes ethical business practices a top priority at all times. Top executives must lead by example and actively and willingly encourage ethical behavior in their peers as well as employees. The need for stronger ethics in business has prompted business schools to critically examine their business curricula and place greater teaching emphasis on ethics and social responsibility to ensure future generations of new business graduates enter the workforce with the highest moral standards. Keywords: ethics, social responsibility, malfeasance, business schools, business curricula Managing Ethical Decision Making in the Workplace Introduction Ensuring that the necessary steps are taken to create and foster a high level of ethics in the business practices of the workplace is critically...
Words: 2351 - Pages: 10
...Organizational Design & Business Ethics: A Literature Review Abstract A review of the current literature regarding business ethics was conducted analyzing scholarly peer-reviewed articles about business ethics and their relation to leadership, managerial decision making, corporate social responsibility and overall corporate structure. Increased corporate scandals and the discovery of a rise in unethical business practices have thrown the topic of business ethics into the spotlight. Organizations are expected by their stakeholders to implement strong ethics within their corporate structure and culture. This expectation could be accomplished through strong ethical leadership, formal structures and regulations that place emphasis on ethics, and by making a commitment to corporate social responsibility. Using these guidelines will help organizations overcome the various challenges allowing the business to build a strong ethical foundation that will ultimately benefit the company through increased customer and employee satisfaction, which could result in increased profits, organizational sustainability and social status. The review of the literature reveals that there is still plenty of room for exploration on the topic of business ethics and particularly with the topic of ethical leadership. It is recommended that more focus be placed on understanding the influence of strong ethical leadership within an organization and how this influence flows down the organizational...
Words: 6417 - Pages: 26
...Quarterly Published by the Society for Human Resource Management Business Ethics: The Role of Culture and Values for an Ethical Workplace FOURTH QUARTER–2009 Whether in domestic or global companies, ultimately, the commitment to business ethics and the foundation is built through organizational culture, with ethical values reflected in the workplace. Business Ethics: The Role of Culture and Values for an Ethical Workplace Abstract An ethical workplace is established through an organization’s culture, values and leadership. To promote ethical behavior, human resource professionals, people managers and senior management need to be knowledgeable about business ethics—from leadership, codes of conduct and related legislation to compliance training, ethical decisionmaking, and cultural and generational differences around ethics. Transparency, fairness and communication are key for establishing and maintaining an ethical workplace. Introduction In the business world today, issues of trust, respect, fairness, equity and transparency are gaining more attention. Business ethics includes organizational values, guidelines and codes, legal compliance, risk management, and individual and group behavior within the workplace. Effective leadership, with open dialogue and thoughtful deliberation, develops the foundation of an ethical workplace, is woven into the fabric of the organizational culture and is mirrored in ethical decision-making. Toward this end, all organizational...
Words: 5913 - Pages: 24
...whole function of the business (the company). The success of an organization is based upon how well the employees (the elements) come together to perform their functions. This paper will define Organizational Behavior, Organizational Culture, Diversity, Communication, Change Management, and Ethics, followed by a few examples of how they are applied in the work environment. Organizational Behavior is defined as “the study of humans and group behavior within an organizational settings” (BNET), Studying the behaviors of a an organization’s employee’s is vital to the success of an organization and entails regular analysis of their employees personalities, their relationships with one another, the productivity, performance, commitment, job satisfaction of their employees, and the intensity of organizational commitment and business relations. An organizations leadership influences organizational behavior, the management styles within the business and its corporate culture. The final outcomes are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from. An example of Organizational Behavior within my current company is every six months our human resources department conducts a survey taken by every employee in the company. There the employee is asked a series of questions that pertain to their feelings about their jobs, departments, their management and the company as a whole...
Words: 1066 - Pages: 5
...workplace culture views what is acceptable and what is not. In this article, we will discuss ethics and their effects during a change implementation, most importantly, how they change with the ever-changing business environment. Despite the hundreds of pages in an organizations code of conduct manuals, ethics, and the ethical culture is something that is often over looked during a change implementation. With everything that is changing in the business environment, often ethics and morals is the last thing management and upper echelon management tends to overlook. When the business changes, everything changes, including the culture of the environment. In the event of an environmental culture change, workplace ethics will have to change along with it. Ethics and Change During the initial stages of change, there is always resistance to change. One perceived reason of resistance to change is the perceived clash with ethics. Management and front-line employees are both subject to this resistance. Research on obedience to authority reveals that resistance to change has motivational factors of individual desires to act in accordance to the already established ethical principles of the organizational culture. The perceived threat of advancements or security can also lead middle management to overlook such...
Words: 1307 - Pages: 6
...------------------------------------------------- Ahmad Zubair Chedi ------------------------------------------------- Abstract Accounting plays a vital role in providing information that permit economic decision, therefore the information has influence on its users. The financial statements that serve the basis for the economic decision are drawn up, not by the users, but by the enterprise’s accountants under the authority and control of the enterprise’s management. Ideally the preparers should take as their objective the fulfillment, (to the best of their ability) of the users’ needs. However the preparers have their own objectives, which often are quite different from those of the users. The financial statements can play a very important role in helping the enterprise’s management to achieve its objective. If the accounts show that the enterprise is doing well, the shareholders will be happy also the market price of the company’s shares will remain high. Since the accounts are prepared under the direction of the management there is a temptation for the management not to present the full truth about the enterprise in the financial statements, particularly when the company is doing badly. The paper examines the behavioral aspect of accounting with emphasis on the need of ethics; the methodology used is purely content analysis, using secondary data. The study reveals that unethical behavior is less prevalence in the organization that has adopted corporate code of ethics. Therefore, it is recommends...
Words: 7209 - Pages: 29
...Bray BUS610: Organizational Behavior Instructor: Dwight Reimer October 17,2011 To do or not to do that is the question. Business Ethics is a concept that must be studied worldwide to determine what is appropriate across all cultures and societies. Ethics is mainly needed in matters that have to do with the gray areas in our lives. When moral decisions are black and white, knowing what we should do is easy. We may not live up to our convictions all the time, but often one may find that there is no question in his or her mind of what one ought to do. Though many people disagree about the definition of right and wrong all the time it has been significant to education and business practices to consider what the concept of ethical behavior actually entails. Business ethics is the written and unwritten rules, standards and policies that businesses deal and govern the actions that occur daily within the organization, the world and the interactions between the company and the customer. There are a variety of ethical issues that are apparent within various organizations today. These issues constitute the study surrounding ethics that helps businesses keep their organizations from falling through the cracks of unethical behavior that may have been or may be popular amongst certain groups in the business workforce. Among these ethical issues falls within the idea that specifically organizations that have a diverse workforce and how they have become the conflict of interest. ...
Words: 883 - Pages: 4
...Developing an Ethical Business Environment: A Report to Executive Management Introduction Ethics and business rules always go together. The fact that business policing is based upon the different measures of complete recognition of social norms and social limitations, ethics is indeed a large part of the ways by which business organizations try to strive to be able to become more effective within their operational engagements with regards their aim of being able to influence the society as well. It is indeed certain that the rules and regulation that a business puts up should be able to meet certain standards of social compromises. Any business organization could not afford to be questioned simply because of the fact that the business procedures that they are adapting to are not meeting the set standards for business organizations. (Kuhn, 2005, 12) To be able to have a clearer view of the matter being reported herein, it is first most importantly to be given attention to as to how management is indeed in relation with the actual application of ethical standards within the society. To be able to do this, there are three major points to consider. The said points are as follows: • The effect of organizational culture on ethical operation • The roles and responsibilities of executive management in fostering an ethical operating environment • The impact of ethical standards as they are used in business operations Through the consideration given to these particular...
Words: 3627 - Pages: 15
...Evaluating a Business Code of Ethics Michelle Leonhardt University of Phoenix Ethics in Management PHL/323 Dr. John Rhome Evaluating a Business Code of Ethics Businesses in today’s society share a purpose, a vision, that relates philosophy and principles of ethics to better meet the needs of the organization and stakeholders, including customers, employees, shareholders, suppliers, and communities. Without professional ethics, businesses and its programs would not have the ability to be successful. This paper will examine Humana, its business code of ethics, and its mission statement that assists in organizational values and goals of the company. The type of ethical system used by Humana will be explored, along with examples that support this system and its attributes. In addition, how the code of ethics is identified and used within the company will be addressed as it pertains to employees, management, and its board of directors. Upon further evaluation, this paper will explore the need for modification, if any, to their existing code of ethics. Reactions to the code of ethics, its effects of organizational culture on the code of ethics, and its effects on the organization will be defined. Lastly, this paper will provide an analysis of Humana’s business code of ethics and how the analysis exhibits significant key concepts to maintain and promote ethical decision making and business success. Business Code of Ethics and its Mission Statement Businesses developed codes...
Words: 1796 - Pages: 8
...Reporting and Ethical Practices HCS 405 June 24, 2014 Reporting and Ethical Practices Financial and accounting professionals must follow the ethical standards that regulate the type of business they conduct, who they conduct business with, and how they use their skills to conduct their business. These ethical standards are defined by professional finance organizations and the Financial Accounting Standards Board. This article will discuss reporting and ethical practices for any financial and accounting organization. It will include a summary of generally acceptable accounting principles and general financial ethical standards, as well as, summarize the four elements of financial management. This article will conclude by discussing researched articles on financial reporting practices, ethical standards, and financial management within the health care organization. Generally Accepted Accounting Principles (GAAP) and Financial Ethical Standards According to "Business News Daily" (2014), “Generally Accepted Accounting Principles (GAAP) is a combination of guidelines, comprehensive rules, and generally accepted standard practices utilized throughout the accounting industry to prepare and standardize financial statements, such as balance sheets, income statements, and cash flow statements” (Generally Accepted Accounting Principles (GAAP): Standards & Rules for Accountants). In 1999, the American Institute of Certified Public Accountants (AICPA) designated the...
Words: 984 - Pages: 4
...Delivering value Assurance SuSTainabiliTy manaGEmEnT background Sustainability management and reporting is aligned with the three principles of the AA1000 AccountAbility Principles Standard (2008) 1 : materiality, inclusivity and responsiveness. Members are firmly embedded in governance (both in general, and in sustainability governance specifically) and policy formulation (pages 13 and 14). As such, whilst engagement with wider stakeholders is central, there is an additional focus on how democratic structures are used to ensure that strategies, policies and performance respond to stakeholder concerns. This level of responsiveness is almost certainly unique among large businesses in the UK. materiality and strategy In 2010, following consultation with different stakeholders, the Group Board agreed a new vision: ‘to build a better society by excelling at everything we do’. In pursuit of this, six aims are identified: to be a commercially successful business; to meet the needs of the customers and communities served; to respond to members and to share profits; to be an ethical leader; to be an exemplary employer; and to inspire others through co-operation. The key performance indicators underpinning strategy, together with progress, are presented within the Annual Report and Accounts 2 . The Sustainable Development Policy (page 10) and the Ethical Operating Plan (page 13) set out the need for business to develop in a more sustainable manner ...
Words: 3868 - Pages: 16
...it Essential in Management? Michael Perez Dr. Marie Harper MGMT 618 28 February 2016 Abstract Ethics is a subject that most people or companies tend to avoid due to the complications that tend to arise when it is brought up. Though ethics can be a sensitive subject it is very important in life, business and especially in management. Managerial ethics is something that companies say they have when it comes to how they do business but are there managers really ethical or are they just looking the other way when it comes to ethical issues that might arise within their company. Keywords: Ethics, Management Ethics: Why is it Essential in Management? When it comes to ethics in management it is essential for business to have, but most of the time it is just a way for businesses to check off the box saying “My business has ethical leaders”. This can be said for companies, branches of the military and people that hold a position over other people. As Marshall Schminke states in his book, Managerial Ethics Managing the Psychology of Morality, Ethics is not something that can be taken lightly due to the fact that it is something that holds great value when it comes to how people see a leader or manager. Though it may be hard for companies to say yes all of my managers are ethical it is something that is an ongoing process within companies (Schiminke, 2011). Ethical Leadership When it comes to management nowadays it has many issues that affect the way business make sure that...
Words: 2664 - Pages: 11
...Financial Management of Health Care Organizations Latasha Rowell August 4, 2015 HCS/405 Conway Brew Financial Management In any business, financial managers should ensure that financial reporting practices and ethical standards are being met as well as maintained. These practices are vital in the financial success for any company, especially in health care finance. Within this paper, a summary of the four elements of financial management, generally accepted accounting principles, and general financial ethical standards will be discussed. Summary of the Four Elements of Financial Management There are four main financial statements of a profit earning organization. They include the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash flows. The balance sheet provides a snapshot of what an organization's owns and owes. This is displayed as assets and liabilities. The balance sheet provides a snapshot of a company’s net worth. The income statement provides an overview of the financial flow of an organization. This report is commonly extracted for a specific period of time rather than a single point in time. This statement is most often utilized in an audited financial report on a quarterly and annual basis. The statement of net worth calculates the non-operating expenses and allows the income statement to tie back to the balance sheet when the three statements are prepared for the same point in time...
Words: 877 - Pages: 4
...Examine the impact of an organization's business ethics on the performance of the organization. Explain how poor business ethics could adversely affect a business. Use examples. Ethics is the field of study that is used to prescribe morally acceptable behaviors, and including a wide range of moral and ethical principles, providing methods and guidance for the distinguish between right and wrong. "Ethics is important for managers involved with Management Control Systems (MCS) because ethical principles can provide a useful guide for defining how employees should behave." [Management control-related ethical issues and analysis] It is important for an organization to have good ethics as unethical behaviors are costly not only to the individuals involved but also the organization, market and the society.' People learns from history,' each time a serious unethical issue arises, the government creates extra laws and standards for the governing of organizations, however these extra enforcements mechanisms "are incomplete, imperfect, and expensive, and have the typical drawbacks of rigid action controls." [Management control-related ethical issues and analysis] Business ethical issues arise because in most cases ethical actions may not generate the best outcome for an organization, "ethical individuals sometimes must make actions that are not in their own self-interest or their organizations owners' best interest." [Management control-related ethical issues and analysis] There are many...
Words: 2445 - Pages: 10
...preference of people can create biases and conflict of interest since people have different likes and dislikes as well as different attitudes about culture, morals, and the way an individual carries theirself. If organizational ethics are not clearly defined within an organization, then chaos can occur. Companies need to make sure that there is a set standard of ethics and codes of conduct to assure an organization remains consistent and compliant. For example, preferences of a high-level manager on the gender of the people of whom he/she would like to work with, a specific type of educational background, or a certain income bracket of a person can lead to discrimination and prejudices against employees within that company. Personal differences of one’s culture, race, or even their appearance or characteristics should not come into play when working at a company. Diversity of an organization is vitally important and if someone is bias to a person’s personal difference, then someone can be treated unfairly or overlooked when that said person may have valuable input and resources that could help a department or company. In the 2005 National Business Ethics Survey conducted by the Ethics Resource Center, they would that ethical culture has more impact on achieving an effective ethics and compliance program than program inputs and activities. Furthermore, the survey found that employees who perceive their managers, upper-level supervisors, and co-workers displaying Ethics Related...
Words: 2610 - Pages: 11
