I am opening up the discussion forum for your class from today on wards and the second and final topic for discussion will be as follows
Ethics in an organization will enhance its image among Public at large? Does it impact its long term sustainability positively or Negatively?
The discussion can be in the form of comments/answers from each of you to be posted in the blog. each of your comment/answer will have to be supported from a real life example. A blind answer without quoting an example will not be eligible for evaluation. The discussion will start from 6-00 PM(evening) on 31-08-17 and will close at 6-00 PM(evening) on 04-09-16. All students of class are invited to participate. The discussion will carry 3 marks and evaluation parameters will be innovative answers, contemporary and not overlapping. Please note that copying can be easily caught. Further if you base your comments/answers on any contemporary events/research articles/scholarly articles they will get 3.5 marks. For this you need to give the relevant references along with your comments.Please note that unwanted and overlapping comments will not be considered. Students are advised not to blog during class hours.Answers posted during 9-00 AM to 5-00 PM on any day will not be considered for evaluation
Wish you happy blog discussions.
Ethics in an organization will enhance its image among Public at large? Does it impact its long term sustainability positively or Negatively?
The discussion can be in the form of comments/answers from each of you to be posted in the blog. each of your comment/answer will have to be supported from a real life example. A blind answer without quoting an example will not be eligible for evaluation. The discussion will start from 6-00 PM(evening) on 31-08-17 and will close at 6-00 PM(evening) on 04-09-16. All students of class are invited to participate. The discussion will carry 3 marks and evaluation parameters will be innovative answers, contemporary and not overlapping. Please note that copying can be easily caught. Further if you base your comments/answers on any contemporary events/research articles/scholarly articles they will get 3.5 marks. For this you need to give the relevant references along with your comments.Please note that unwanted and overlapping comments will not be considered. Students are advised not to blog during class hours.Answers posted during 9-00 AM to 5-00 PM on any day will not be considered for evaluation
Wish you happy blog discussions.
Organizational ethics
ReplyDeleteThe main motive of any organization is to earn profits and to have sustainable growth . To earn this profits & growth organizations are using unfair methods to earn profits and to increase the goodwill of the company.
Earning profits is not a wrong thing but the way the organization chooses to earn this profits is more important and it should be ethical and they should not affect the interests of other people.
Organizational ethics are the principals and standards by which businesses operate, according to Reference for Business. They are best demonstrated through acts of fairness, compassion, integrity and responsibility.
Organization should maintain ethics in the following issues
• Organization should have ethics towards their employee’s and they should not discriminate employees on the basis of gender, region, language, race etc.
• And they should not exploit the customers and employee’s of organization.
• They should maintain transparency in business transactions.
• Should protect the interest of share holders , creditors and other interested parties of organization.
The organization may use unethical practises to safeguard company and to increase the profits of the company they will company to survive for short period but it will effect the company in long run.
Example:-
Satyam computers which is started in the year 1987 and the company offers consulting & information technology services and satyam had network in 66 countries and had 53000 thousand employees across 6 continents. And it has listed in NSE, BSE, NYSE.
Achievements of Satyam Computers:
• First Indian IT Company to get ITAA Certification for Y2K Solutions.
• In year 2007, became first Asian company to features in the training magazines list of top 125 companies for learning
• And in year 2008 it had won corporate governance award.
And such well established and well famed company had been take overed by Mahindra. The company had affected interests of various group and done falsification of records.
the company had floated two other companies for their own purpose without taking permission of share holders and failed to repay loans.
The company had inflated the cash and bank balances in balance sheet by 5312 cores and accrued non existent interest of 376 cores and it has underestimated liability of 1230 cores
The company had done this things for surviving the company for short run but in long run affected business in the following manner
Company worth had reduced to 1607 cores from 11464 cores
And it has traded in stock market at 11.50rs from 524.90rs.
Biggest day fall of 77% in stock in single day.
And at last satyam had takeoverd by Mahindra group.
“ If ethics are poor at the top the behaviour is copied to the down “
Satyam computers completely focused on window dressing (ie, even though the company is not getting any profits in the last few financial years it was showing huge profits in the financial statements) its absolutely unethical and against to corporate governance. But to sustain in the computation satyam continued this scheme and finally get caught . this can shows us no one can survive long when someone following unethical issues . Even though the company benefiting in short run we can not see such companies in the long run. It is one of the example for unethical practice can not survive in the long run and what happen when someone not follows corporate governance.
DeleteOrganizational ethics is the ethics of an organization, and it is how an organization responds to an internal or external stimulus. Organizational ethics express the values of an organization to its employees and/or other entities irrespective of governmental and/or regulatory laws.
ReplyDeleteEthics are the principles and values used by an individual to govern his or her actions and decisions. An organization forms when individuals with varied interests and different backgrounds unite on a common platform and work together towards predefined goals and objectives.]A code of ethics within an organization is a set of principles that is used to guide the organization in its decisions, programs, and policies. An ethical organizational culture consists of leaders and employees adhering to a code of ethics.
There are at least four elements that aim to create an ethical culture and behavior of employees within an organization. These elements are:
1) a written code of ethics and standards
2) ethics training for executives, managers, and employees
3) the availability of ethical situational advice
4) confidential reporting systems
Credibility A lack of ethics in a business becomes public knowledge, that business loses credibility. While some businesses survive public knowledge of a lack of ethics through reimaging and advertising campaigns, many lose a key customer base. Even if a business recovers from news about its lack of ethics, it takes a lot of time and money to restore its image and consumer confidence. This loses the reputation of the company
Ethical behaviour of Employees in an Organisation: A lack of ethics has a negative effect on employee performance. In some cases, employees are so concerned with getting ahead and making money that they ignore procedures and protocol. This can lead to additional paperwork and careless errors that result in the task having to be completed again. Additionally, employees who feel acting ethically and following the rules will not get them ahead in the business sometimes feel a lack of motivation, which often leads to a decrease in performance.
Ex : CORPORATE FRAUDS- AGRI GOLD CASE STUDY
Agri gold, an AP-based company is spreading its tentacles fast through the State of Andhra Pradesh. Its owner Mr V R Rao is a former employee of now extinct Golden Forest Ltd, which vanished with several hundreds of crores of public money with the promise of easy and quick money and now facing criminal cases. It never returned the deposits it collected from public with the promise of high returns. Its representatives then claimed that it has huge tracts of land all over India and there is no threat to their deposits with the company. They never revealed that the company has no permission from the Reserve Bank of India to collect deposits from public.
The Agrigold has already forayed into several manufacturing units including Ayurveda medicine, easy-cook instant foods, cosmetics, spa and yoga centres. All these were started with people's. In case of failed activity in any of these ventures, they need not worry about loss. Just they need not repay the deposits. If all these ventures are profitable, the Agrigold could approach commercial banks and raise loans. But it has chosen to raise deposits from the gullible poor who cannot question or demand their monies back.
With the cheating of this company many people were suffered, loosed hopes and attempted suicide
A number of factors play a part in making a business profitable, including expert management teams, dedicated and productive employees, consistent consumer demand and careful watch over the bottom line.
ReplyDeleteIn addition to these well-known business practices, companies that implement a management philosophy that relies heavily on business ethics are proven to be more successful than those that operate in an unethical manner. Although it may not be the first variable considered in analyzing the profits of a company, business ethics is an equally important catalyst to the success of a company
Business ethics ensure that a certain required level of trust exists between consumers and various forms of market participants with businesses. Business ethics provide a basic framework that businesses may choose to follow to gain public acceptance.
Example of negative impact : Volkswagen
September 2015, German car manufacturer Volkswagen was raked over the coals for installing software in its cars that ensured it falsely passed emission tests. Eleven million cars were involved over a period of seven years. Then the United States Environmental Protection Agency (EPA) issued a notice of violation of the Clean Air Act to German automaker Volkswagen Group. Becouse of this Volkswagen became the target of regulatory investigations in multiple countries and Volkswagen's stock price fell in value by a third in the days immediately after the news. Volkswagen Group CEO Martin Winterkorn resigned, and the head of brand development Heinz-Jakob Neusser, Audi research and development head Ulrich Hackenberg, and Porsche research and development head Wolfgang Hatz were suspended. After Volkswagen announced plans to spend US$7.3 on rectifying the emissions issues, and planned to refit the affected vehicles as part of a recall campaign.
Example of positive : Microsoft
Given the fact that it was started by Bill Gates, one of America's most generous philanthropists, it follows that Microsoft (NASDAQ:MSFT) would do well in following his example. The tech company and its employees donate over $1 billion yearly to charities and non-profit organizations. If that wasn't enough, Microsoft's management and employee's have also decided to tackle America's IT professionals shortage through its TEALS program. Through the TEALS program, Microsoft employees are encouraged to volunteer at local schools to instruct students in computer science, in the hopes that it will inspire them to enter the technology industry. It's only natural that Microsoft employees would be generous people; in addition to being among the highest paid employees in America, they also enjoy a plethora of perks, including 100% coverage on their health care premiums.
Organizational ethics: The way an organization should respond to external environment. it includes various guidelines and principles which decides the way an individual should behave at the workplace
ReplyDeleteit is interdependent with the organizational culture . It express the value of an organization to its employees.
*Ethics are the principles and value used by an individuals to govern his/her actions and decision. In an organization, a code of ethics is a set of principles that guide the organization in its programs, policies and decisions for the business.
*An organizations ethical philosophy can affect the organization in many ways(includes) reputation, productivity and bottom line of the organization.
IMPORTANCE OF ORAGANIZATIONAL ETHICS: contributes to
a) employee commitment
b) investor and customer loyalty and confidence
c) customer satisfaction
d) ability to build the relationship
e) build up the reputation and image
*Ethics can offer many benefits:
a) a positive ethical corporate culture improves the morale among the workers which in returns could increase productivity and employee retention.
b) more productivity improves the efficiency of the organization and increased employee retention reduce the cost of replacing employees.
*The organization that lack ethical practices as a mandatory basis of their business structure, have commonly been found to fail due to the absence of business ethics.
Examples of the organizational ethics: UNIFORM TREATMENT
*business owners should treat all employees with the same respect, regardless of their race, religion, culture or lifestyles. everyone should have equal chances for promotions. One way to promote uniform treatment in organization is through sensitivity training.
*HONESTY: you need to be honest in all of your actions, and every communication you make. when people start to notice your honesty they start to trust your company because you're not only being truthful, you're being upfront. People appreciate the fact they can take you at your word.
*INTEGRITY: being ethical in business means maintaining a high level of personal integrity.
COCA-COLA company struggles with ethical crises: ethical issues throughout different aspects of the company, and with multiple leadership changes in the last 10 years, coke has some catching up to do. the company has been involved in racial discrimination, misrepresentation market test, manipulating earning and disrupting long-term contractual arrangements with distributors. The president of coke is working to improve their reputation cause by some of the problems faced.
"ETHICS MUST BEGIN AT THE TOP OF AN ORGANIZATION. IT IS LEADERSHIP ISSUE AND THE CHIEF EXECUTIVE MUST SET THE EXAMPLE"
Organization ethics rules that how a company govern how it operates, how decisions are made and how people are treated. In an organization, there are many different people you have to answer to: customers, shareholders and clients. Due to ethics, there can be increase in the reputation of company, trustworthiness among customers and there can be huge profits. Some organizational ethics are imposed by law.
ReplyDelete• Treat your employees well
• Be honest in all business dealings
• Be socially responsible
• back up your products and services
Negative ethical standards lead to
Toshiba facing nearly $1bn in claims from accounting scandal
Beleaguered Japanese company hit with lawsuit No. 26 and counting
TOKYO -- Toshiba disclosed a lawsuit from 70 plaintiffs, including foreign banks and institutional investors, that seek about 43.9 billion yen ($399 million) for losses they blame on the dodgy accounting that came to light in 2015.
The complaint was filed with the Tokyo District Court on April 3 and served Monday, the company said. The Japanese group has now been hit with 26 suits from institutional and individual investors relating to the scandal, demanding a total of around 108.4 billion yen in compensatory damages. This creates a potential stumbling block to efforts to repair the damage from losses in its U.S. nuclear power business.
Toshiba has so far reflected the impact of litigation costs on its estimated fiscal 2016 results at around 40 billion yen. The figure includes a portion from the just-revealed complaint, of which the company received notice from some of the plaintiffs.
With the list having grown, "provisions for a reasonably estimable amount" of liabilities will be made in fiscal 2016 results.
Positive ethical standards
Intel
Since 1988, the computer chip manufacturer Intel has been trying to bolster its reputation through its efforts to strengthen technological education. Through the Intel Foundation, the company hosts the Intel Science Talent Search and the international Science and Engineering Fair to help encourage STEM (science, technology, engineering, and mathematics) education for young people. Intel is also interested in making these areas more diverse; the company has many donation funds and programs to encourage girls and underprivileged minorities to study in these fields. Employees of Intel also experience the company's dedication to education through a very strange corporate perk -- the company promotes or reassigns them to different fields and areas every 16 to 24 months, in the interest of making sure that workers never become bored with their roles, and encouraging them to explore new fields. Accepted employees are often told, "Welcome to your next five jobs."
it is difficult but not impossible to conduct strictly honest business
Good ethics make good business sense. Your company stands to profit from a reputation for acting with honesty and integrity.
Environics International recently surveyed 25,000 people in 23 countries; 50% said they "pay attention" to the social behaviour of companies. One in five said they’d protested poor social performance by speaking out against the companies or refusing to buy their products.
In any organisation ethics plays a vital role to sustain in short term or long term journey. One should understand how to communicate stakeholders ethically without effecting society ,internal and external organisation. because every shareholder in a company trust its company that they are performing a fair practices not all shareholders look at profit but some shareholders invest their amount based on the company values , ethics , and how they use their surplus in welfare activities like CSR activities etc.
ReplyDeletehow the company treating their employees , how internal activities taken place whether there is any transparency in accounting statements are not.
No doubt every organisation main objective is to earn profit but how??
1) one way is to follow the values and ethics (ie, slow and steady win the race)
here one can definitely succeed in long run . and can get huge profits and also can build up goodwill and positive image of the company in the public.
2) another way is to earn without following ethics and values (ie, no rules no regulations doing what ever company want )
in this case company 1st enjoys profit but it could not sustain in long run as it is in earlier
example:- in infosis case we can see that what happened before narayana murthy and after narayana murthy
narayana murthy is the one who believes in ethics and who follows the values .
vishal sikka is the person who having his own values both are doing well according to their experience .
the reason behind why mr murthy pointed out sikka was as follows ( as per my knowledge)
The way company agreed to pay Rs 23.02 crore (Rs 230.2 million) to former chief financial officer Rajiv Bansal (Rs 17.38 crore -- Rs 173.9 million -- in severance pay) and kept it under wraps before mentioning it in the annual report, stinks.
it is shocking that Infosys' board not only did not record the proceedings of the meeting which discussed the payment but is now dismissing it as a 'housekeeping issue.'
that is violation of full disclosure (hiding facts)
therefore narayana murthy as a share holder raised his voice against mr sikka performance and next scenario we all know what happens .
"A man with out ethics is a wild beast loosed upon this world"(albert camus)
Organisational ethics are the set of principles and standards to be followed by an organisation in addition to mandatory requirements. Even though rules and regulations makes the organisation tend towards being ethical there are certain aspects where rules and regulations can't involve and organisation only have to choose what to follow. in those aspects ethics comes into picture
ReplyDelete"Ethics have a larger scope beyond the norms"
ethics are not fixed to all organisations they may differ from organisation to organisation and situation to situation. organisation only have to decide what decision to be taken between good and bad by considering how it impacts and effects(great&harm) all the stake holders. mandatory norms will be followed by anyone but only following ethical standards makes the organisation unique,successful and sustainable. even though earning profits in unethical way may visible as profitable but can't see profits in long run can't sustain in market
Organisation ethics shall be followed in all aspects involves in the company and can be mainly divided into the following categories
1.ethics in operational activities(delivering quality products& services)
2.ethics in work place(treating employees without discrimination)
3.ethics with public( following csr activities etc..)
4.ethics in financial disclosure(disclosing not only mandatory requirements but also
those aspects which effects investor's decisions)
5.following corporate governance (accountable towards all the stake holders)
6.environmental ethics( not releasing harmful chemical wastage directly into rivers
recycling)etc..
Benefits of following ethics in organisation
organisational ethics helps the organisation
1 To build a belief and bonding with customers to gain loyal customers. i.e, an ethical
organisation can have a relationship beyond the customer and seller relationship
2 company can build it's own and unique brand image
3.To sustain in competitive market
4.Minimizing sues and complaints
5. to hold it's current market share and to gain additional market share etc..
simply apple can be taken as example of being ethical orghanisation
it's quality makes it as a strong brand and the term apple itself makes people directing trust towards it's quality and it had gained loyal customers through out the world it is running in huge profits being ethically.. so we can say that organisational ethics helps in sustainability
where as if we take kingfisher airlines as an example it seems more successful organisation in 2007-08 later on knowing the window dressing and the losses incurred by the company & bankruptcy by kingfisher airlines leads to liquidating the whole the company and stopped it's operations in 2012 and it's licence was cancelled in 2013 and not survived in the market
so we can conclude that "organisational ethics are not an optional but mandatory" to follow by an organisation in corporate world to sustain and survive
Organization ethics is the application of these morality related choices an influenced and guide by value, standard rules, principles and strategies associated with organisational activities and business situation.
ReplyDeleteBusiness ethics deals with choices about what laws should be and whether to follow them, about economics and social issues outside the law and about the priority of self-interests over the company’s interest.
There are many ways that organizations can create a culture that supports and nurtures ethics.And good ethics is good business in the end. Closely attending to just a few important and easy to remember strategies to help create and sustain a culture of ethics could be endorsed and shared with perhaps all organizations. These include the following:
1. Clear Expectations
All organizations have both spoken and unspoken rules and guidelines about how to act within their environments. This includes everything from attire, attitudes expressed, and behavior towards colleagues, customers, and the public.
Clear expectations for behavior among all members of an organization is the first step towards a more ethical organizational culture.
2. Focus on Skill Building and Problem Solving
Organizations can do a great deal to focus their attention on developing ethical skills and problem-solving techniques. Rather than only stating what kinds of behaviors are expected or not, institutions must help with the step by step strategies for developing effective ethical decision making and behavior skills and strategies for resolving ethical dilemmas or troubles.
3. Provide the Tools People Need to Act Ethically
If an organization wants to create a culture of ethics they must be sure that members have the tools that they need to do so. These include adequate and appropriate training, consultation, modeling, and supervision. These tools also include being able to bring internal and external to the organization experts in to engage staff at all levels of training and problem solving as well.
Importance of ethics in an organization
The ethics that leaders in an organization use to manage employees may have an effect on the morale and loyalty of workers. The code of ethics leaders use determines discipline procedures and the acceptable behavior for all workers in an organization. When leaders have high ethical standards, it encourages workers in the organization to meet that same level. Ethical leadership also enhances the company’s reputation in the financial market and community. A solid reputation for ethics and integrity in the community may improve the company’s business.
Unethical behaviour or a lack of corporate corporate social responsibility by comparison may damage an organization reputation and make it less appealing to shareholders, and profit will be fall as a result.
Example: positive ethics of GOOGLE
Google regularly makes good on its motto: "Don't be evil." Through its Google Green Program the company has donated over $1 billion to renewable energy projects, and has decreased its own footprint by using energy efficient buildings and public transportation. The company is also a staunch advocate of free speech, which can be observed from its frequent conflicts with the Chinese government. Google is also an open supporter of gay rights. Yet all this pales in comparison to Google's status as a paragon for employee benefits. Just to name a few, Google employees have access to free health care and treatment from on-site doctors, free legal advice with discounted legal services, a fully stock snack pantry and onsite cafeteria, and a free on-site nursery. With such a stellar record of social awareness and positive employee relations, Google is easily the best example of ethics in the corporate world today.
Ethics are the principles and values used by an individual to govern his or her action and decisions.A code of ethics within an organization is a set of principles that is used to guide the organization in its decisions , programs and policies.
ReplyDeleteBenefits to a company for being ethical are as follows:
1. Easier change management: Ensuring ethical conduct helps the management win over the confidence and support of employees,thus enabling easier change management.
2. Employee growth: An ethical work environment offers appropriate career advancement opportunities to the employees.
3.Better work place management: It helps to keep the work environment to be free from discrimination,harassment and exploitation.
4. Government intervention: By ensuring ethical conduct ,the risk of Government intervention and legal battles in the law courts shall be minimum.
5. Avoid violations: It helps in minimizing unethical decisions, misconduct,frauds,scams and scandals. It helps the company to avoid loss of reputation.
6.Promote market efficiency – especially in areas where laws are weak or inefficient – by rewarding the best and most ethical producers of goods and services.
7. Ethical Practices develop Customer Trust and Good Image of organisation is Built.Thus Growth of organisation can also be achieved
8.Ethics programs help manage values associated with quality management, strategic planning and diversity management
9.Enhance morale, employee pride, loyalty and the recruiting of outstanding employees
10.Help promote constructive social change by raising awareness of the community’s needs and encouraging employees and other stakeholders to help
11.
Help the company communicate its expectations to the staff to suppliers, vendors and customers. Also, by soliciting feedback and questions, a company can use the code to encourage frequent, open and honest communication among employees
On the whole practice of Ethics plays vital role in Sustainability of the organisation.If there is not Strong Image Of organisation , there is sustainability
“Ethical values, consistently applied, are the cornerstones in building a commercially successful and socially responsible business"
Examples :
1.Google employees have access to free health care and treatment from on-site doctors, free legal advice with discounted legal services ,a fully stock snack pantry and on-site cafeteria and a free on-site nursery. With such a stellar record of social awareness and positive employee relations,Google is easily the best example of ethics in the corporate world today
2.Hershey’s Code of Conduct
Hershey’s code of conduct is very similar to Dell’s in that it also uses the question and answer feature to help employees navigate potentially unethical situations. There are also questions and answers on almost every page, which helps to clarify the points being made.
Also, the design of the PDF is very appealing. The use of candy and chocolate colors helps to brand the code of conduct, while the bold headlines, hierarchical fonts and multiple colored fonts make the document easy to read
3. Starbucks’ Code of Conduct
One of the interesting things about Starbucks’ code of conduct is the environmental commitment in the section on community involvement. It shows that a code of conduct isn’t simply limited to discouraging negative behaviors. In fact, it can help affirm the positive things about your company culture.
Additionally, Starbucks has a frequently asked questions section. This section goes over the purpose of the code of conduct and provides additional information on a helpline services offered to employees for questions.
Organisation have survived long because of Various ethical practices towards is employees,customer and society and environment at large.
But if an organisation encourages unethical methods it may earn profits in the short term but in the long run it losses its reputation, credibility and results in losses,therefore it has a negative impact if unethical methods are followed
Ethics are the principles and values an individual uses to govern his activities and decisions. In an organization, a code of ethics is a set of principles that guide the organization in its programs, policies and decisions for the business. The ethical philosophy an organization uses to conduct business can affect the reputation, productivity and bottom line of the business.
ReplyDeleteIMPORTANCE OF ORAGANIZATIONAL ETHICS: contributes to
a)Leadership Ethics
b)Employee Ethics
c)Ethical Organizational Culture
d)Benefits to the Organization
*Proactive Measures to Prevent Ethics Violations:-
1)Communicate clear vision:-Look for warning signs within the culture of potential unethical practices that might include harassment, discrimination, and double standards.
2)Incorporate ethics policies :- new employee orientation and training programs. Senior leaders should openly express support for ethical practices within the organization and each employee should sign a statement acknowledging the value of workplace ethics and practices
3)Create a leadership training and development course that focuses on ethics and accountability. Coke Cola Company evaluates all executives on their ability to lead ethically in their annual performance review.
*Negative ethical standards:-Sahara - SEBI case is the case of the issuance of Optionally Fully Convertable Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
SEBI in return ordered Sahara's two companies to stop issuing the said bonds and return monies to investors. Sahara contested the case in various courts which eventually came to Supreme Court of India. On June 14, 2012, (during the final hearing of the case), the group had provided details of its financials up to April 30, 2012. While the court reserved its order, Sahara claims that it has already paid to 93% of the investors and discharged its OFCD liability to the tune of Rs. 23500 crores and only around Rs. 2260.69 crores are left against which Sahara has already deposited more than Rs. 12,000 crore which has with interest swelled to Rs. 16000 Crore. By August 31, 2012 the date of Supreme Court order, the group repaid majority of its OFCD investors between May the last date of hearing and by August 30, 2012 the final order. Since these repayments have not been taken into consideration, Sahara maintains that any money paid now will obviously mean a double payment towards one liability.
*Positive ethical standards:-While most winter and outdoor clothing companies advocate environmentalism to some degree, Patagonia is dedicated enough to the cause to let it seriously affect its bottom line. In 1985, the company started the 1% for the Planet pledge and has consistently asked other companies to join it in donating 1% of its sales to help save the environment. Even more impressive is the fact that Patagonia, aware of the impact its business has on the environment, has frequently asked its consumers to refrain from buying its products if they don't really need them
ETHICS: HOW PEOPLE ACT EVERY DAY BEYOND WHAT'S LEGALLY REQUIRED.
ReplyDeleteSUSTAINABILITY: HOW COMPANY USES RESOURCES AND AFFECTS THE ENVIRONMENT.
Being ethical is doing the right thing when no one is watching. business ethics is all about finding the right balance between performance and integrity. success in business is seen as making profits and advancing private interests and having unlimited ambition for money, position and power and where as the moral life by contrast , focuses on duties to others and places others interest over self.
In this volatile , uncertain, complex, ambiguity world , ethical business is seen as oxymoron. business ethics will effect long term sustainability of business. when the ethical environment was poor , organisational performance would suffer due to poor group dynamics, suppressing openness and communication.
1. productivity will reduce
2. morale got badly effected
3.leaving the organisations vulnerable to setback.
Many organisations had poor environment because they could concentrate on maximizing the profits without thinking about the people and the process they adopt,sooner than later these business would run into problems.
BENEFITS FROM ETHICAL BUSINESS PRACTICES.
1. Mental peace for employees
2. accurate perception around the world.
3. a stronger and sustainable business.
4. environment for employees to think , plan adopt and execute effectively as team.
5. healthy environment and behaviour
6. superior reasoning and performance.
7. grater level of innovation and group dynamics.
8. Commited and mutually beneficial relationships between employees.
Sustainability of organisation involves working ethically on three levels.
1.environment
2.economic
3.social
the right balance of above three
1. will improve customer performance
2.prosperity of organisation.
3. raise quality of life where we operate.
BUSINESS ETHICS :
1. Behaviour with investors, customers, suppliers,employees
2.responsibility towards society and environment
3.relationships with investors, customers, suppliers and employers
4.morality in employees
5.reliability in work
6.choice right according to law
will lead to sustainability of the business.
HOW TO MAKE BUSINESS ETHICAL AND ACCOUNTABLE
1. Stake holder analysis
2.incorporate ethics in policies and objectives
3.develope measures and standards of performance
4.develope a supportive corporate culture and ensure accountability
5 Ensure implementation through reports
Collapse of ethical behaviour in financial crisis 2008
1. collapse of ethical behaviour in subprime lending
the bankers and mortgage brokers were not carrying the mortgage papers on their own balance sheet. so they lend mortgage loans to people , who could not possibly payback. and to leverage this mortgage papers , the bankers sold these papers to mortgage pool that were in turn sold to unsuspected investors. this unethical practice leads to collapse of investment banks.
2. unethical rating of rating agencies.
they sold their ratings to the highest bidder
the above unethical practices causes collapse of investment banking in U.S.A and lead world financial crisis.
Ethics are the principles and values used by an individual to govern his or her actions and decisions.
ReplyDeleteOrganizational ethics are the principals and standards by which business operate , according to references for business. They are best demonstrated through act of fairness, compassion, integrity, honor and responsibility. The key for business owners and executives is ensuring that all employees understand these ethics.One of the best ways to communicate organizational ethics is by training employees on company standards.
Example: The TATA'S took charge of being responsible for their employees who were injured at TAJ on 26/11 incident. They opened a new trust with in 20 days for the raise of funds for employees and the salaries were sent through money orders. Relief and assistance was provided to all those who were injured and killed.
Ethics refer to standards of conduct of an individual with respect to his or her moral principals and values similarly business organizations have moral duties and they are responsible for their behaviour and acts.ethics concern to an individual's moral judgement about right and wrong. Decisions taken within an organisation may be made by individuals or groups,but whoever makes them will be influenced by the culture of the company.Employees must decide what they think is right course of action.This may also involve rejecting the routine that would lead to biggest short term profits for the organization.unethical behaviour may damage a firm's reputation and make it less appealing to stakeholders which also result in fall in the profits.Ethical behaviour can bring significant benifits to a business in many ways as follows:
ReplyDelete*it attracts customers to the firm's products,which helps in boosting sales and profits.
*makes employees want to stay in the business and helps in increasing productivity for the business
*it also attracts employees wanting to work for the business,reduces recruitment cost and enables the company to get the most talented employees.
*attracts investors and keep the company's share price high,thereby protecting the business from takeovers and losses.
*Organisations earn a lot of respect & cultivate a strong image in the public domain when it makes ethical choices i.e customers would develop trust in the business
*business ethics enhances accountability and transparency when taking any business decisions i.e, a strong ethical culture guides in managing conflicts in the organisation by making right moves.
Examples:'CADBURY' practice of treating stakeholders fairly is seen as an essential part of companies success.it ensures that employees understand the company's corporate value by the statement of 'our business principles' which make clear the behaviour it seeks from employees.with its proper ethical behaviour it was voted as one of the most admired companies for community and environmental responsibility by management today magazine in 2003.it was also ranked 2nd in food & drinks sector in community 'per cent club' index of corporate giving for 2003 with an investment in community of around 3 of its uk pre tax profits during that time it was in merger with schweppes the merger took place 1969 and the company was known as cadbury schweppes(1969-2008)
cadbury is able to earn this by keeping in check its ethical performance by monitoring its suppliers .as a major international company it recognises its environmantal responsibilities and the need to care for its workforce,local communities and all others who may be affected by its activities by treating waste water prior to disposal,controlling the release of gasses into the atmosphere.cadbury is committed in providing a range of high quality treats,oral care products which are marketed truthfully,labelled clearly and meet the highest safety standards.
cadbury aims to lead the way with its ethical approach in business.its core underlying values influence all its decisions through value chain.
*WAL-MART:
it very often finds itself slapped with lawsuits.i.e,in 2003 struck,where germany high court ruled wal-mart's low cost pricing strategy 'undermined competition'.it also faced charges of monopoly by making suppliers dependent on them and forcing them to indulge in self defeating practices such as forcing them to sell goods below cost or at prices lower than they would get elsewhere.it also faced lawsuit from employees accusing the company of forcing them to work overtime without paying them health insurance this allegation on wal-mart is an example for bad ethics in business.
ethics:ethics is a system of moral principles. They affect how people make decisions and lead their lives. Ethics is concerned with what is good for individuals and society and is also described as moral philosophy.
ReplyDeleteorganisational 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.
Some of the organisational ethics are:
1. No organization should depend on unfair means to earn money.
2.Employees should not indulge in manipulation of information to get results.
3.Organizations must not discriminate any employee on the grounds of sex, physical appearance, age or family background.
4.Organization must take care of the safety of the employees.
5.A higher moral within your employees and the organization
6.It helps to attract new customers
7.It builds higher customer loyalty
8.It reduces the risk of negative press or backlash caused by doing “the wrong” things
9.It helps to make a positive impact on the community.
example:
GOOGLE-Although some may criticize the company, Google regularly makes good on its motto: "Don't be evil." Through its Google Green Program, the company has donated over $1 billion to renewable energy projects, and has decreased its own footprint by using energy efficient buildings and public transportation. The company is also a loyal advocate of free speech, which can be observed from its frequent conflicts with the Chinese government. Google is also an open supporter of gay rights. Yet all this pales in comparison to Google's status as a paragon for employee benefits. Just to name a few, Google employees have access to free health care and treatment from on-site doctors, free legal advice with discounted legal services, a fully stock snack pantry and onsite cafeteria (staffed by world-class chefs, no less), and a free on-site nursery. With such a stellar record of social awareness and positive employee relations, Google is easily the best example of ethics in the corporate world today.
Organization Ethics: Are the principles and values an individual uses to govern his/her activities and decisions.In an organization ,a code of ethics is a set of principles that guide the organization in its programs , polices and decision for the business.
ReplyDeleteEthical organization culture: Leaders and employees adhering to a code of ethics create an ethical organization culture. The leaders of a business may create an ethical culture. The leaders of a business may create an ethical culture by exhibiting the type of behavior they'd like to see in employees. The organization can reinforce ethical behavior by rewarding employees who exhibit the values and integrity that coincides with the company code of ethics and disciplining those who make the wrong choice.
Key elements of code of ethics:
* Independence
*Trust, confidence, credibility
*Competence
* Objectivity and impartiality
* Confidentiality
Benefits to the organization: A positive and healthy corporate culture improves the morale among workers in the organization, which may increase productivity this in turn has financial benefits for the organization.HIgher levels of productivity improves the efficiency in the company, while increaseing employee retention reduces the cost of replacing employees.
Example: SALESFORCE.COM has been honored for its philanthropy and good practices. Through its sales force .Com foundation, the company has donated millions of dollars toward education grants and technology even discounts its services to non-profit organization. The company also encourages its employees to get into the action by giving them six day off per year to do any type of charitable work they choose.
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Applied ethics is a field of ethics that deals with ethical questions in many fields such as medical, technical, legal and business ethics.
ReplyDeleteIn the increasingly conscience- the demand for more ethical business processes and actions is increasing. Simultaneously, pressure is applied on industry to improve business ethics through new public initiatives and laws. Businesses can often attain short-term gains by acting in an unethical fashion; however, such behaviours tend to undermine the economy over time.
Overview of issues in business ethics:-
1.This part of business ethics overlaps with the philosophy of business, one of the aims of which is to determine the fundamental purposes of a company. If a company’s main purpose is to maximize the returns to its shareholders, then it should be seen as unethical for a company to consider the interests and rights of anyone else.
2.Corporate social responsibility or CSR: an umbrella term under which the ethical rights and duties existing between companies and society is debated.
3.Issues regarding the moral rights and duties between a company and its shareholders: fiduciary responsibility, stakeholder concept v. shareholder concept.
4.Ethical issues concerning relations between different companies: e.g. hostile take-overs, industrial espionage.
5.Leadership issues: corporate governance.
6.Political contributions made by corporations.
7.Law reform, such as the ethical debate over introducing a crime of corporate manslaughter.
8.The misuse of corporate ethics policies as marketing instruments.
Ethics are the sense of right and wrong, good and evil, values and responsibitily. it can be described as the science of human duty. these ethics are therefore the measurement by which a human being is graded as being good, bad and evil.
elements of an ethical organization;- RESPECT, HONOR, INTEGRITY,AUDIENCE FOCUS, RESULT ORIENTED, RISK TAKING, PASSION, PERSISTENCE are some of ethics practices of business.
Ethics is important for every one that may be individual or organisation. this deals with ones moral in case of individual, if it is related to organisation then its describes the organisation principles.
Ethics in an organisation will enhance the image, that for every company there will be a corporate image which presents the company themselves to public.
Best example of a company with ethical values was wipro bcz citizenship and responsibility,governance, culture of ethics.
the company's ethics impacts its sustainability in long term. if the company was having high ethical values then it will impact positively, if not so then it effects the company negatively.
problems to company if having unethical values:
1. legal issues
2. employee performance
3.credibility
4.employee relation.
these are some reasons of unethical .
CONCLUSION:-
Ethics must begin at top of an organization .it is a leader ship issue and the chief executive must set an example.
EXAMPLE:- RECENTLY INFOSYS WAS FACING A PROBLEM RELATED TO ITS CORPORATE IMAGE. AS WELL ALL KNOW THAT THE PROBLEM WAS WITH VISHAL SIKKA AND NARAYANA MURTHY, FOR THIS THERE ARE VARIOUS REASONS AMONG THEM OFFICIAL REASONS APPEARING TO PUBLIC (REMUNERATION) BUT THE ACTUAL PROBLEM STARTS WITH IN AMOUNT RELATED TO BONUS ISSUE RECEIVABLE TO NARAYANA MURTHY. BY THE RESIGNATION OF VISHAL SIKKA AND REASONS RELATED TO THAT AND NARAYANA MURTHY'S ANNOUNCEMENT ABOUT THAT CREATED A NEGATIVE OPINION ON NARAYANA MURTHY. LIKE ME MANY PEOPLE MAY CREATE A OPINION ON THEM WHERETHER THAT MAY BE CORRECT OR NOT, BUT IN GENERAL IT IMPACTS THE COMPANY'S IMAGE IN PUBLIC.
Ethics in organisation-An Overview:
ReplyDeleteEthics is doing what’s right in a professional context. It encompasses a top-to-bottom commitment to treating others with respect, being honest and forthright and dealing fairly with those inside and outside the organization.
Complying to ethics is essential for sustainable growth, increased employee productivity and reliable investment in the business. In short, ethics plays a large role in individual and corporate success.
And its certain that ethics in an organisation will enhance its image public and it has a great deal impact over the long-term sustainability of the organisation positively.
Let’s take the example of classic Enron’s case where a deviation from ethics led to the downfall of a great company
Enron was formed in 1985 following a merger between Houston Natural Gas Co. and Omaha-based InterNorth Inc. The company which reached dramatic heights because of diversification and other growth strategies was creating tremendous value for its shareholders ,faced a dizzying collapse due to exploitation of accounting loopholes, special purpose entities, and poor financial reporting .
It all started on March 5,2001, when an article from magazine Fortune quoted as “Is Enron Overpriced? “questioned how Enron could maintain its high stock value, which was trading at 55 times its earnings. On subsequent research, it was found that, Enron increased notes receivable and shareholders’ equity to reflect transactions, which appeared to violate generally accepted accounting principles(GAAP).
It’s a classic case of how not following ethics led to the downfall of the great American company “Enron Inc.”, which would have otherwise created a lot of value and prominence.
Quote from a Research survey:
It is concluded from a research survey by Ethics Research Centre (ERC), the research arm of the Ethics & Compliance Initiative (ECI) which conducted its studies across global organisations, both domestic and multinational, as below
Key Metric Response (%)
Pressure to compromise standards 18-25
This finding clearly shows how companies forces its employees to compromise ethical standards in 1 out of 4 tasks. So, it’s under the purview of the company management to follow ethical standards in order to sustain in the longer run.
Reference:
https://higherlogicdownload.s3.amazonaws.com/THEECOA/11f760b1-56e0-43c6-85da-03df2ce2b5ac/UploadedImages/research/GBESFinal.pdf
I find some of you posting two times comments for completing your points. This is not acceptable. This was made clear to you in the earlier blog discussion also. Only one of your posts whichever is better will be considered for evaluation. Please Note
ReplyDeletePlease note that tomorrow the disscussion will close
ReplyDeleteBusiness ethics refers to legal behaviour that businesses, firm managers, and workers should engage in. ethics is a source of guidance beyond enforceable law. Business and management ethics goes beyond the law to provide guidelines as to what is acceptable behaviour in business transactions. Ethics are very important for the growth of business. Ethics relate to a person's moral value. By using false practices a businessman can earn huge profits but only for a short span of time. Business is all about customer satisfaction, fulfilling their demands. Then only customers will appreciate the hard work and stay loyal to the organization. In this heavy competition of the business world, one cannot afford to lose valuable customers. Ethics in a business determines its internal control and seriousness of a business towards their customer. Every customer will prefer an ethical organization to deal with. Every organization is looking forward to showing themselves as an ethical one. After so many scams in India, it has become a trend to show that every organization is ethical. Ethics will lead in achieving organization's long-term objective. Every organization should have choice of right and wrong way of idea. Without ethics there is no value of popular or big company, for big branded company ethics should be there. Ethics are the basics of a business. If a business wants to go long and earn more goodwill it will have to work on its ethics. Without ethics, if a business tries to earn more profit it will remain only for a short span of the time, Because all consumer needs a quality, loyalty and integrity from any business. He will be a long consumer only when you meet their expectations. So I would like to say, ethics are very important for any business. A business ' success and failure lie in the ethics which it holds. A positive attitude with effective ethics is the only Mantra for the success in no time. Using false practices in your business, you can make a huge profit in your business, but it will be only for a short spam and not for a long time. So by ethical practices, only an organization can earn trust and money in the long run.
ReplyDeleteEthics in an organisation means the principles which govern the organisation in making decisions and policies. An organisations ethical policy can affect the organisation in many ways like reputation, productivity etc. A positive ethical culture may increase the morale among the workers in an organisation. Following ethical norms is very important for any organisation.
ReplyDeleteAdvantages of ethics in an organisation:
1. It builds strong teamwork and productivity among employees
2. It also supports employees growth.
3. Promotes strong public image of organisation.
4. They can also avoid legal problems.
5. There will be positive work environment.
Example of negative impact:
Mc donalds despite its global success, remains the target of a vitriolic public backlash owing to what many perceive as bad business in its relationships with employees and other stakeholders. It is a Mc Donalds legislation case. In 1972, Ray Kroc, company's founder made a rare donation of $250000 to Nixon's reelection and in return got a favourable legislation that allowed them to pay teenage employees 20% less than minimum wages. Most of them considered it as legislation that serve their selfish ends and harm society. Between 1986 and 1990, activists of London Greenpeace alleged that Mc Donalds third world poverty, sold unhealthy food, exploited workers and children, destroyed Amazon forest.Then the court held that Mc Donalds guilty of exploiting children by serving dangerously unhealthy food, paying low wages to the workers, indulging in union busting activities worldwide and ignoring animal cruelty perpetrated by its suppliers.
This is how an organisation faces problems by not following the ethical norms in the organisation.
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.
ReplyDeleteIt 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.
here 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.
The drive for strategy, innovation, and corporate success can be observed in the company motto of “all or nothing”. All or nothing represents what the organization stands for. Mercedes-Benz will stop at nothing to maintain its reputation of high quality status and brand name. Not settling for anything better than the best, they strive to impress. They continue to amaze consumers across the globe with creative designs, style, performance, topped with the conveniences and innovations of today’s technological advances
This comment has been removed by the author.
ReplyDelete* The standard business practices of "bigger is better" does not seem to hold true when it comes to ethics, for sheer size by itself raises allegations of poor business ethics, as seen in the case of Wal-Mart.
ReplyDeleteWal-Mart very often finds itself slapped with lawsuits that accuse it of predatory pricing, or pricing products too low to drive competition out of business and gain a monopoly in local markets. Among several lawsuits, the one in 2003 struck, where Germany's High Court ruled Wal-Mart's low-cost pricing strategy "undermined competition."
Wal-Mart also faced charges of monopoly, by making suppliers dependent on them and forcing them to indulge in self-defeating practices, such as pressuring them to sell goods below cost or at prices lower than they would get elsewhere.
Wal-Mart regularly faces lawsuits from employees accusing the company of forcing them to work overtime without pay and denying them health insurance. The allegations against Wal-Mart are so numerous that it is a common example for bad ethics.
*It's not often that oil companies are thought of as ethical, but NuStar's Energy treatment of its employees regularly lands it on lists of the best companies to work for. The company pays 100% of its workers' health insurance premium, and even matches 401(k) contributions up to 6%. In addition, the company has a strict no-layoffs policy, and lends its employees the corporate jet in times of crisis. Although it would have placed higher if it was a little greener, NuStar's commitment to its people is truly an example of its ethical policies.
Reputation is a company’s biggest asset so you would think companies would avoid engaging in shady business practices. However, many large corporate find their reputations and credibility destroyed due to practices that are harmful and illegal.
Good business Ethics are highly important for an organization to maintain a public image and ensure its sustainability in the long run.
PARAKALA SESHA MRUDULA
ReplyDelete171260
SECTION D 25
ETHICS IN ORGANIZATION
In the 21st century, ethics is neither a luxury nor an option. More than competence, experience, intelligence and drive, people at all levels of an organization need ethical values. According to Kidder, “The principle task of this decade is the creation and nurturing of a values-based culture.” Due to the extensive amount of time people spend at work, much of that nurturing must take place in the business environment.
Rushworth M. Kidder is the founder and president of the Institute for Global Ethics, an organization whose research has identified four key factors in creating a values-based culture. These factors include:
*Shared core values :
According to Kidder (2001), there are five core values found in some form in every culture worldwide. They are honesty, respect, responsibility, fairness and compassion. A values-based culture will make these core values the driving force in decision-making.
1.Common language
Employees need a language of ethics that allows them to communicate readily and comfortably about issues that are typically sensitive and difficult to discuss. Effective ethics training programs provide the common language needed.
2.Commitment at the top
Ethics training is meaningless without top-level executives who walk the talk. When leaders consistently reward those, who choose to do what is right, it helps to create an ethical culture more than anything else could.
3.Moral courage
the quality of mind and spirit that enables one to face up to ethical dilemmas and moral wrongdoings firmly and confidently, without flinching or retreating.
* Ethics as a Priority:
More than simply a legal or moral responsibility, ethics need to become an organizational priority. Organizational leaders have a lot on their minds in today’s highly competitive world. They must keep abreast of rapid technological advancements, competitor’s products and services, the effects of globalization, and opportunities and threats within their own industry, to name the most obvious. Leaders must also keep a constant eye on the mission, vision, values, culture, strategy and goals of their own organizations. In the midst of all of this complexity, it’s not easy to find room on the organizational plate for another major priority. However, to succeed in the 21st century, organizations will have to figure out how to make ethics a priority.
Ethical values are essentially social in nature, therefore, this alignment process will be concerned with relationships and defining relational expectations. The goal of an ethical organizational culture is the greater good of all. Internal relationships between leaders and followers, as well as external relationships with clients, customers, vendors and the community are all prized. As a result, people are treated well consistently and an ethical culture emerges.
Beyond Responsibility and Priority to Opportunity.
* Long term benefits of ethics:
Furthermore, a company that cares for the values of their people and customers more than their profit or final turnover's and is viewed as operating with integrity and honesty is most likely considered as more commercially successful and responsible.
It has been proved that tangible benefits result from greater attention to various aspects of ethical behaviour. Good corporate citizenship improves employee relations and results in human resource benefits. The factors identified include more effective recruitment; higher retention; and better morale, loyalty, motivation, and productivity.
Customer relationships are also improved. Factors identified include increases in customer loyalty, enhancement of brand image, and tiebreaker effects for customer purchasing decisions. Empirical evidence suggests that customers' sensitivity to corporate citizenship continues to gain momentum. Good corporate citizenship also enhances overall business performance, particularly improved competitive advantage, higher financial returns, and better reputation.
Ethical accounting practices, treatment of employees, interactions with the public and information disseminated to shareholders are all responsibilities of the leadership team and can have a direct impact on the overall profitability of the company and sustainability.A positive and healthy corporate culture improves the morale among workers in the organization, which may increase productivity and employee retention; this, in turn, has financial benefits for the organization. Higher levels of productivity improve the efficiency in the company, while increasing employee retention reduces the cost of replacing employees.Leaders and employees adhering to a code of ethics create an ethical organizational culture. The leaders of a business may create an ethical culture by exhibiting the type of behaviour they'd like to see in employees. The organization can reinforce ethical behaviour by rewarding employees who exhibit the values and integrity that coincides with the company code of ethics and disciplining those who make the wrong choices.
ReplyDeleteCompanies would be nothing without shareholders and investors, and as such, operating with business ethics in mind is most important when interacting with these crucial players. It is common for the profitability of publicly traded companies to decline rapidly when they encounter situations where information regarding unethical behaviour is discovered. When investor confidence is lost, it can be a struggle for a company to regain the trust of the public, its investors and its valuable shareholders; profitability may take years to build up again. Companies that lay the framework for business ethics in all facets of operations are more likely to become and remain profitable than those that conduct business in an unethical manner.
EXAMPLE: "Starbucks" as an ethical company, is often quick to fix its environmental problems, from greatly reducing the water it uses for its dipper well to using recycled paper in its cups. The company also encourages consumers to be environmentally conscious by offering a 10-cent discount to those who bring their own reusable cups and giving free coffee grounds to consumers who want to use them for compost. Starbucks is also dedicated to its baristas, offering them full health insurance benefits and stock awards
Business ethics are moral pribciples concerning acceptable and unacceptable behavior by business people. Good ethical practices are the backbone of every forward thinking business. Business ethics bring much goodwill to a company that will in the long run translate into tangible benefits. It is the desire of every business entity to be in the market for a longer time.Ethical business practice is the way to go if you and your business truly value going concern.customers have more trust and confidence in the business who follow ethical rules. They feel that such businessmen will not cheat them. The business who do not follow it will have short- term success, but they will fail in the long run.
ReplyDeleteExample: Tech mahindra
Tech mahindra had faced the heat for its immoral corporate ethics. The cruel manner in which the HR disposed the IT employee. The female HR granting him a less then 24 hours notice period to put down the paper or face the termination. Tech mahindra layoffs controversy has kicked up a storm on the social media.During the entire conversation, the female HR said that the decision is not hers but that of top management but her anger tone on legit questions by the helpless techie will make you wonder about the company's ethics.
After the horrifying audio clip went viral, clearly depicting the lack of ethics and workplace harassment , the top bosses of the company have come forward to control the situation.
CP Gurnani, MD at Tech mahindra and The mahindra group chairman , Anand Mahindra tweeted, they ensured that this doesn't happen in future and their personal apologize to the employee.
Ethics in an organization:
ReplyDeleteEthics: Moral principles that govern a persons behavior (or) the branch of knowledge that deals with moral principles.
Ethics in an organization deals with the principles that the organization follow .
Ethics in an organization is important for the survival of an organization,everything that a company owns like profits , goodwill , shares ,expansion everything depends upon the values and principles that an organization follows.
"I think it is fundamental to understand that the ethics of organization indicates that you should concentrate your efforts to maintain the values and principles ."
Ethical practices in business :
Business ethics is a form of applied ethics or professional ethics that examines principles and moral or ethical problems that arise in a business environment ,it applies to all aspects to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.
examples:
My father runs an organization which deals with fruits .
Ethical standards that my fathers organization follows:
He follows the first standard quality products.
He follows the principle that he impose only 10% profit on product, and that never causes any loss to the customer.
He never treat customers low .
He always tries to give best to his customers and also tries to give many alternatives.
"And now its silver jubilee year for my fathers organization leading with good fame ,profits and making the people to choose him with out second choice."
"The more moral the people are in their business dealings ,the less paperwork you need , the more handshakes you have , the more the wheels of capitalism work better because there is trust in the marketplace"
Ethics:- The basic concepts and fundamental principles of decent human conduct. It includes study of universal values such as the essential equality of all men and women, human or natural rights, obedience to the law of land, concern for health and safety and, increasingly, also for the natural environment.
ReplyDeleteOrganizational Ethics:- Personal ethics are integral to how individuals respond to others and to situations they encounter. Analogously, organizational ethics focus on how organizations behave and act when presented with certain situations and decisions. Organizations must take into account their own values and moral positions, as well
as those stemming from external influences. These external influences can range from a single individual’s values and beliefs to professional industry codes, industries standards, the regulatory environment and general public opinion.
Important elements of an Organizational ethics are
1.Respect
2.Honor
3.Integrity
4.Customer focus
5.Results oriented
6.Risk taking
7.Passion
8.Presistence
Benefits of Managing ethics in the work place :
1.Attention to business ethics has substantially improved society.
2.Ethics programs help maintain a moral course in turbulent times.
3.Ethics programs cultivate strong teamwork and productivity.
4.Ethics programs support employee growth and meaning.
5. Ethics programs help avoid criminal acts “of omission” and can lower fines.
6.Ethics programs promote a strong public image.
7. Last and most formal attention to ethics in the workplace is the right thing to do.
Example: Maggi's ethical issues
Maggi felt unfounded reasons resulting in confusion and the trust of consumers was shaken, hence decided to withdraw the Maggi noodles from the market, but the apply the same quality standards and methods in the world, here in India too. There tests have found that Maggi is absolutely safe"- said Paul Bulcke, the global CEO of Nestle in a press conference in Delhi.These statements reflect the degree of wariness of the global CEO, Nestle regarding the Maggi noodles in the world’s largest potential market, India. This above said press conference coincided with the central food safety regulator (FSSAI), which ordered Nestle-India to recall of all nine approved variants of Maggi instant noodles from the market, terming them "unsafe and hazardous" for human consumption. This nightmare news of Nestle broke-out. From all this information from fssai changed the opinion on maggi from postive to negative.which impacts the image of the company in public.
Ethics are very much important to an organization because, it change's everything if anything went wrong in it.
Ethics in personal life refers to standards of conduct of an individual with respect to his or her moral principles and values. These guide us to choose what is right and wrong in given circumstances , and thereby make us feel satisfied or dissatisfied with our actions.
ReplyDeleteBusiness Ethics deal with the situation to create a deeper understanding of what is good and bad , what is moral and immoral or what actions are right or wrong to the operations of a business be it an organisation , institution , society or an assortment of activities relating to consumers and users of goods and services.
Ethical Issue Faced By IBM
Now a days, bribery is becoming a common crime activity. This will introduce a bribery case about IBM , as The Wall Street Journal reported early in 2011, IBM paid $10 million to settle a lawsuit brought by the U.S. Securities and Exchange Commission, which it bribed South Korean and Chinese government officials for more than a decade to win contracts.
However, bribery is seen as universally unethical .IBM employees had bribed South Korean and Chinese officials to win contracts and such action should be seen as unethical to managers. Managers should not corrupt foreign officials to win further cooperation because corruption is against global business moral. Moreover, Chinese and South Korean official should not accept bribery from IBM because government officials are responsible to its people and should act at behalf of its people. In addition, government officials should have higher ethics comparing to average citizens.
Recovery actions
IBM has been fined $ 10 million in terms of the bribery but it does not mean that IBM will diminish bribing happening. IBM should not only remedy its damaged reputation, but also change its internal environment to make its directors, managers and employees believe that bribery is unethical and against IBM’s corporate social responsibility. IBM should clearly regulate that employees and managers who do not apply with code of Ethics should be punished financially or legally in the IBM and establish a compliance committee to monitor employees to have ethical decision making processes. In all, IBM should enhance the application of code of ethics to diminish ethical behaviours of managers and employees even directors of IBM.
Thank you
K.Vaishali
Organisation is a group of people working for a common purpose. Ethics play an important role in an organisation and of course it's sustainability has a positive effect on the organisation and the people. One of the important ethic is integrity. Personal integrity is the foundation for ethics-good business ethics encourages integrity. An organisation's success depends on the employee. Expamle: I recall an incident that occurred in ADP,the company I worked prior, we deal with the accounts information if clients which is used for taxation purpose. This is something very sensitive and should not be misused. For every work we had internal auditors to check and approve. The information of one client should not be shared to another client- this is an integrity issue. The employee can be removed from the organisation for the same as the reputation of the company is at stake. One of my colleague absent minded shared some information and this was caught during the audit- the person was made to sign an apology letter to the client and legal charges were agreed to be covered by the company as retaining the client was important. This is how the company respond to the integrity incident. This shows how important ethics are in an organisation as it impacts the image of the company and the people.
ReplyDeleteEthics: Ethics are system of moral principles and a branch of philosophy which defines what is good for individuals and society.
ReplyDeleteEthics in an Organization:An Organization forms when individuals with varied interests and different backgrounds unite on a common platform and work together towards predefined goals and objectives. When talking about ethics in organization,one has to be aware that there are two ways of approaching the subject-the "individualistic approach" and "communal approach". Each approach incorporates a different view of moral responsibility and a different view of the kinds of ethical principles that should be used to resolve ethical problems.
Here in "individualistic approach" , every person in am organization is morally responsible for his or her own behavior, and any efforts to change that behavior should focus on the individual. In "communal approach",individuals are viewed not in isolation, but as members of communities that are partially responsible for the behavior of their members.An ethical organization can achieve better business results . The ethics in any organization impacts its sustainability both in positive and negative way. This maxim is now making more and more corporate leaders accept their social responsibilities and organizational ethics. The unethical business practices or dealings with their employees are now quickly identified and globally exposed in this era of technology intensive communication systems.
Wipro is the best example which follows its ethical values and extracts the positive outcome. It is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner's approach to delivering innovation, and an organization wide commitment to sustainability.It is their 5th consecutive year (2016) to win the title- World's most ethical company.
Unyielding integrity is one of the values of Spirit of Wipro, something that they live by in all their actions, day after day. Doing business ethically is a matter of first principle by them.
Wipro’s commitment to leading ethical business standards and practices that also ensure long-term value to key stakeholders including customers, employees, suppliers, regulators and investors.
Independence
Trust, confidence, credibility
Competence
Objectivity and impartiality
Confidentiality..are the core ethic values followed by them.
This is how wipro has enhanced its image among the public.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteBusiness ethics can thus be understood as the study of the ethical dimensions of productive organizations and commercial activities. This includes ethical analyses of the production, distribution, marketing, sale, and consumption of goods and services The ethical philosophy an organization uses to conduct business can affect the reputation, productivity and bottom line of the business.
ReplyDeleteEthics are the principles and values an individual uses to govern his activities and decisions. In an organization, a code of ethics is a set of principles that guide the organization in its programs, policies and decisions for the business. The ethical philosophy an organization uses to conduct business can affect the reputation, productivity and bottom line of the business.
Given the vastness of the field, of necessity certain questions in business ethics are not addressed here.
1. Varieties of business ethics
2. Corporate moral agency
3. The ends and means of corporate governance
3.1 Ends: shareholder primacy or stakeholder balance?
3.2 Means: control by shareholders or others too?
4. Popular frameworks for business ethics
5. Firms and consumers
Ethical Organizational Culture :
Leaders and employees adhering to a code of ethics create an ethical organizational culture. The leaders of a business may create an ethical culture by exhibiting the type of behavior they'd like to see in employees. The organization can reinforce ethical behavior by rewarding employees who exhibit the values and integrity that coincides with the company code of ethics and disciplining those who make the wrong choices.
example :The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India. KFC entered India in 1995 and has been in midst of controversies since then. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG, a flavor enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organization. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC's poultry farms.
Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country
» Appreciate the need for protecting animal rights in developed and developing countries like India
» Understand the importance of ethics in doing business
» Examine the reasons for protests of PETA
» Identify solutions for KFC's problems in India
Explaining the rationale behind the protest, Bijal Vachcharajani, special projects coordinator of PETA, said, "Ours is the land of Gandhi. Just as 61 years back our leaders gave a call for colonizers to quit India, we too are saying we will not tolerate cruel multinationals."5
Business Ethics| Case Study in Management, Operations, Strategies, Business Ethics,
On the 61st anniversary of the 'Quit India' movement,6 PETA India wrote a letter to the Managing Director of Tricon Restaurant International, the parent company of KFC, asking them to close their sole KFC outlet in India.
They got no reply. PETA activists decided to protest against KFC by carrying crippled chicken, which represented the birds suffering in the KFC's farms. PETA claimed that after two years of intensive campaigning to increase animal welfare standards in poultry farms, other foreign fast food restaurants operating in India like McDonald's7 and Burger King8 had improved the treatment of animals specially raised and slaughtered for food.
Only KFC had not acted. Though PETA had organized other protests earlier, the crippled chicken campaign became the precursor for more intensive protests. PETA's was one of the many shows of protest against KFC's Indian outlet.
Introduction –
ReplyDeleteWe all know the meaning and definitions of ethics and ethical behaviour of an organisation. But what is important now is, to know how much it costs for the organisation to be ethical and how much the company is getting in return for being ethical. Now, here let’s discuss regarding the cost and revenue for a company, for being ethical.
Cost for Being Ethical
There is always some cost involved in doing anything which may be monetary and non-monetary sometimes. So, even here sometimes the company must spend money to be ethical and sometimes it should maintain certain policies to be ethical. All these costs are invested by the companies in expectation of a return form the stakeholders.
Explanation-
1-{Monetary} Companies spend crores of rupees on the name of ETHICAL behaviour, which includes CSR. To make sure that they are giving back or doing something to the society, which gave a lot of resources for the company to run.
2- {Non-Monetary} CEO of Johnson & Johnson laid down a policy which says that, the company is giving first preference to customers, second to employees, third to the community and environment and last to its shareholders. By this policy it shows that it is ethical to follow this order, as they are the reasons for the survival of the organisation.
Returns for Being Ethical
I believe that, companies invest, mainly they saw some return from it. Even here, the return may be in terms of monetary or non-monetary also. Mostly the returns of ethical behaviour is directly non-monetary and monetary indirectly.
Explanation-
1- {Non-monetary} when companies be loyal to their stake holders and society, then they will automatically have a good image on the organization. If the company sells a trust or a sense of care towards the society along with the good and services, it will create a long-term image among the public.
2- {Monetary} when the society have a good image on the organization, then it will make the customers to choose the company products or services first, when compared to others, which indirectly increases the sales of the company.
Sustainability
Up to now, we discussed about the cost and returns of being ethical. We also understood that if the organisation follows ethical behaviour towards its stake holders, it will get a good public image, which in turn helps the organisations profits to increase. But the issue here is, how long the company can maintain that image in the minds of its stakeholders.
It is difficult to maintain the image of the company in the minds of stakeholders, then to create it. Many companies fail here only, to protect its image, which they created through ethical behaviour. Because it’s hard to be ethical always, if they are running the business for profits.
“Sustainability of the organisation and its positive or negative image,
will depend on how long the organisation can be ethical.”
EXAMPLE-
We all know coca cola is one of the leading beverages company in the world. Initially when It was introduced in INDIA, it created a lot of good image among the public with its brand product “coca cola”. But, once the public came to know that it used significant percentage of drugs to make the recipe of the drink which consists of 60mg of cocaine that come from the coco leaves. Even though the company knows it is harmful to the body, it was continued for several years. But, this was not encouraged later. So, from 1977 to 2006 (16 years) it was banned in INDIA. It totally lost its brand image, as it couldn’t follow the ethics in doing business.
Thereafter, they stopped using that ingredient. But, later caffeine is used as a substitution. The company then tried a lot to recreate the image among the public by saying, how ethical they are and how safe their product is.
This gives us a perfect example of unethical practices and how the society reacts to it.
“TO SUSTAIN, BE ETHICAL,
TO BE ETHICAL, HAVE SOME ETHICS
IN YOUR POLICIES AND PRACTICES”
MAHESH CHITTURI
ReplyDelete171155-D
Organizational ethics is the application of these molarity realated choices as influenced and guided by values,standards,rules,principles and strategies associated with organizational activities.
An organization which gives importance to Ethics can survive better and get better results. Organizations should deal their employees and public with ethical business practices in all activities. This practices can create commitment in employee ,create trust on organization which promotes in economic value. In current times many ethical issues are being raised about the social responsibility of companies to its employees and other stakeholders, and about the ethics of our trading systems.
EXAMPLE - Management of VJIM
According to me, From the observation and feedback of my seniors i can say that Best ethical practices are followed in VJIM. To support this statement i can say that, when the faculty follows the ethical behavior, it is also adopted by the students. SO, when they go out for their jobs in the corporate world. the organization's management were impressed by the performance of the students along with their ETHICAL BEHAVIOR. This make them to give their first preferences to the VJIM students for offering placements.
"when an institute follow ethics, it helps the students to follow them as well, which in need helps them to be placed in reputed organisations, and which helps the companies to also believe in VJIM"
ETHICS:
ReplyDeleteEthics are the principles and values of an individual uses to govern his activities and decisions. In an organization, a code of ethics is a set of rules that guide the organization in its programs, policies and decisions making for the business.
Organizational Ethics importance :
The Ethics are important in Organization because Ethics concern an individual's moral judgement about right and wrong. Decisions taken within an organisation may be made by individuals or groups, but whoever makes them will be influenced by the culture of the company. And the individual work will be done by following the company ethics.
Positive impact of Ethics in an Organization:
1. It builds strong teamwork and productivity among employees.
2. Promotes good images in customers.
3. there will be no legal problems.
4. There will be positive work environment and
5. Employees growth also increases.
6.Mental peace for employees.
Effect of a lack of ethics on an organization:
1.Legal issues (which leads to damage company reputation by paying the amount by not following the rules of ethics)
2.Employees performance ( A lack of ethics has a negative effect on employee performance. In some cases, employees are so concerned with getting ahead and making money that they ignore procedures and protocol. This can lead to additional paperwork and careless errors that result in the task having to be completed again.)
3.Employees relationship (
When a manager or head of a business exhibits a lack of ethical behavior, he faces losing the respect of his employees. It is difficult to have a successful business without well-respected leaders. A lack of ethical behavior can also cause tension among employees, with some employees resenting those who do not play by the rules and still manage to get ahead.)
Ethics in an organization will surely enhance its image among Public at large. Ethics in an organisation are the principles, policies and standards by which it runs its day to day life of its business. They are best demonstrated through acts of fairness, compassion, integrity, honor and responsibility.
ReplyDeleteEthics in an organisation can be shown in recruitment of employees, accountabilty to stake holders, work environment provided to employees [work place ethics], being integral in the process of selling the product or service to the customer etc
1) Ethics during recruitment of employees means making a decision accompanied by best practise guidelines to ensure that risk of corruption and unfair practices are completely evaded. These include equal oppurtunities, non discriminatory policies, work place diversity and gender sensitivity. If these ethics are not followed the company will sink into losses as the company will be having worthless employees to function the company.
Example: Microsoft has a best recruitment practise along with a best ethical practice during recruitment. Sathya Nadella in a letter to his team specified ''At Microsoft, we strive to build a diverse and inclusive culture that embraces learning and fosters trust—a culture where every employee can do their best work. Making good decisions and ethical choices in our work builds trust in each other and with our customers and partners. You should never compromise your personal integrity or the company’s reputation and trust in exchange for any short-term gain."
2) Accountabilty to stake holders means giving the correct information about the company to the stake holders in their point of interest. Each Stake holder in a company has a different interest in the company like the Invester wants to know the correct value of the company in the current status. customer wants to know the correct specifications of the product or service being served.
Example: Satyam computers did not give the correct information to the shareholders about its current status and had to face the crisis badly.
3) Work place ethics: A key component to workplace ethics and behavior is integrity, or being honest and doing the right thing at all times. It is about providing best environment for its employees to work. These work place ethics make an individual feel happy to get associated with the organisation and they dont feel as a burden to do work.
Example: Google has the best work ethical practices. Google has people who’s sole job is to keep employees happy and maintain productivity.
4) Ethics towards customers: Ethics in customer dealings presents the company in a good light and customers will trust the company irrespective of high prices or minor service lapses. Ethics in customer dealings improves the quality of service and fosters positive relationships.
Example: The Clorox company practices the best ethics towards customers as they understand that building best customer relation will be possible only if integrity is followed. They make it a point that all their employees participate in various refresher courses covering various ethical practices and relevant laws.
If ethics is followed in all the above activities of the organisation a positive image will be created in the society towards the company.
It does impact long term sustainability of the organisation positively as the company which follows ethics creates a possitive attitude among the customers towards the company and eventually makes good amounts of profits which inturn creates wealth to the company and sustain for a long time.
Organizational ethics are the principals and standards by which businesses operate, according to Reference for Business
ReplyDeleteDefinitely I say that ethics in an organisation will enhance its image among public at large because:
• Ethics in business is matter of creating trust among the clients and customers.
• An ethical organization can achieve better business results
• It leads to create good networking.
• It will create a brand image.
• It brings good will to the organisation etc.
Organizations indulging in unethical business practices or even in unethical dealings with their employees are now quickly identified and globally exposed in this era of technology intensive communication systems.
We can talk about City Toys’ case. City Toys used to manufacture toys using child labour in China to offer as gift items to the customers of McDonald’s. It was subjected to criticism internationally to such an extent that McDonald’s had to withdraw the practice. The Indian carpet industry and the Bangladesh garment industry faced similar predicament in terms of export restrictions for using child labour. Even suppressing facts on products and services become an ethical violation from the customers’ point of view.
And chain marketing companies like Amway, PACL India Ltd. Agri gold Etc. are duping lakhs of people through their multi-level marketing schemes unethically.
Wells Fargo Bank which is an American international banking organisation accused in 2015 that the bank secretly opened unauthorized accounts that then accrued bogus fees. This is completely unethical and lead to fall in good will of the organisation.
We all know that Maggi was banned in India last year this is because of unethical practice like disobeying the standards of contents. Even it undergone unfair trade practices like false labelling and misleading advertisements earlier in 2015.
All these practices created a bad image to the organisations hence we can clearly say that ethics in an organisation will enhance its image.
ORGANISATIONAL ETHICS:
ReplyDelete• Ethical behaviour of business has become a major issue in recent times. Not only in India but also in other countries around the world.
• Ethics in organizations generally helpful for differentiating the behaviours of individuals between Good and Bad, Right and wrong.
• Ethical issues are important for managing the various reasons. If ethics are missing, business and society as a whole cannot flourish.
• In short, ethical concerns are of vital importance to individuals, organisations and the society, in general, and cannot be discounted or slighted away as unimportant and unnecessary.
• Example:
" JHONSON & JHONSON" -code of ethics.
• They believe their first Responsibility is to the doctors, nurses and patients, to mothers and all others who use their products and services.
• In meeting their needs everything they do must be high Quality.
• they must constantly strive to reduce our costs in orders to main Reasonable prices.
• Customers orders must be serviced Promptly and Accurately.
• Therefore, these are the few examples in Johnson and Johnson’s organisation ethics which represents VALUES, RESPECT, HONESTY, INTEGRITY AND MORALS in order to maintain standards and sustainability of organisational growth.
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ReplyDeleteThis comment has been removed by the author.
ReplyDeleteEthics are the principles and values some individual uses to govern his activities and decisions. In an organization, a code of ethics is a set of principles that guide the organization in its programs, policies and decisions for the business.
ReplyDeleteA positive and healthy corporate culture improves the morale among workers in the organization, which may increase productivity and employee retention; this, in turn, has financial benefits for the organization. Higher levels of productivity improve the efficiency in the company, while increasing employee retention reduces the cost of replacing employees.
1. Recruit and hire well
2. Educate staff about what's at risk
3. Be transparent about your finances
4. Speak truth to authority
5. Legal should not be the litmus test
Examples :
Google
Although some may criticize the company, Google regularly makes good on its motto: "Don't be evil." Through its Google Green Program, the company has donated over $1 billion to renewable energy projects, and has decreased its own footprint by using energy efficient buildings and public transportation. The company is also a staunch advocate of free speech, which can be observed from its frequent conflicts with the Chinese government. Google is also an open supporter of gay rights. Yet all this pales in comparison to Google's status as a paragon for employee benefits. Just to name a few, Google employees have access to free health care and treatment from on-site doctors, free legal advice with discounted legal services, a fully stock snack pantry and onsite cafeteria (staffed by world-class chefs, no less), and a free on-site nursery. With such a stellar record of social awareness and positive employee relations, Google is easily the best example of ethics in the corporate world today.
• A higher moral within your employees and the organization
• It helps to attract new customers
• It builds higher customer loyalty
• It reduces the risk of negative press or backlash caused by doing “the wrong” things
• It helps to make a positive impact on the community
This help in boosting the employee willingness to work for the organisation effectively and efficiently. This also enhance the employee loyalty to work for common organisational objectives.
The word ethics refer to philosophical ethics or moral philosophy
ReplyDeleteethics is derived from an Ancient Greek word ethikos which means "relating to one's character".
Organizational ethics responds to internal environment and external environment. Ethics are the values and principles used by the organization to govern their actions and decisions.
Following are the elements which are used in organizations are:
1) A written code of ethics and standards.
2) Ethics training for managers, executives and employees.
3) The availability of ethical situational advice.
4) Confidential reporting system.
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.
Organization must take care of the safety of the employees. Individuals should not be exposed to hazardous conditions.
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.
Uniform Treatment:
Small business owners should treat all employees with the same respect, regardless of their race, religion, cultures or lifestyles. Everyone should also have equal chances for promotions. One way to promote uniform treatment in organizations is through sensitivity training. Some companies hold one-day seminars on various discrimination issues.
Social Responsibility:
Small companies also have an obligation to protect the community. For example, the owner of a small chemical company needs to communicate certain dangers to the community when explosions or other disasters occur. The owner must also maintain certain safety standards for protecting nearby residents from leaks that affect the water or air quality. There are state and federal laws that protect people from unethical environmental practices. Business owners who violate these laws may face stiff penalties. They may also be shut down.
Financial Ethics:
Business owners must run clean operations with respect to finances, investing and expanding their companies. For example, organizations must not bribe state legislators for tax credits or special privileges. Insider trading is also prohibited. Insider trading is when managers or executives illegally apprise investors or outside parties of privileged information affecting publicly traded stocks, according to the Securities and Exchange Commission.
Considerations:
A small company's organizational ethics can also include taking care of employees with mental illnesses or substance abuse problems, such as drug and alcohol dependency. Ethical business owners help their employees overcome these types of problems when possible. They often put them through employee advisor programs, which involves getting them the treatment they need. Employees may have issues that lead to these types of problems.
Ethics is key to successful organizations of all types, from community groups to non-profits to professional associations and corporations. All organizations face ethical challenges in their management structure, working environments, leadership style, and the objectives that they strive to achieve.
ReplyDeleteA significant goal for behavioral ethics research is to find ways to structure organizations in order to make it easier for people to do the right thing and harder for them to do the wrong thing.
These resources explore a variety of behavioral ethics concepts that, if known, can help to develop and sustain ethical organizational culture. Additionally, this section explores the skills necessary to be an ethical and effective team member.
example:NESTLE
Nestle
The World Health Organization found children in developing countries who fed on Nestle’s infant-formula had mortality rates five to ten times greater than that of breast-fed children. The problem was Nestle’s sinister campaign of appointing uniformed nurses to distribute the baby formula to poor mothers for free, long enough for lactating mother’s milk to dry up. The mother and child now became entirely dependent on Nestle’s infant formula, and since most of them could not afford the formula, they gave their children an insufficient quantity of the formula. The formula also required clean water, which most mothers could not accesS
Nestle again made the news when they sued the country of Ethiopia, one of the world’s poorest countries, for six million dollars during the time when it was in the midst of the worst drought in 20 years. Nestle wanted compensation for its stake in the Ethiopian Livestock Development Company (Eldico), which it obtained through an investment in Schweisfurth, a German company. Ethiopia had nationalized Eldico and sold it for a profit. Nestle finally reached a settlement of $1.5 million with Ethiopia, the maximum the government could afford.
Recently, Nestle has made headlines again for getting caught spying on Attac, a non-government organization. Nestle has been ordered to pay compensation to the organization.
Ethics are the principles and values an individual uses to govern his activities and decisions. In an organization, a code of ethics is a set of principles that guide the organization in its programs, policies and decisions for the business. The ethical philosophy an organization uses to conduct business can affect the reputation, productivity and bottom line of the business
ReplyDeleteLeadership Ethics
The ethics that leaders in an organization use to manage employees may have an effect on the morale and loyalty of workers. The code of ethics leaders use determines discipline procedures and the acceptable behavior for all workers in an organization. When leaders have high ethical standards, it encourages workers in the organization to meet that same level. Ethical leadership also enhances the company’s reputation in the financial market and community. A solid reputation for ethics and integrity in the community may improve the company’s business.
Employee Ethics
Ethical behavior among workers in an organization ensures that employees complete work with honesty and integrity. Employees who use ethics to guide their behavior adhere to employee policies and rules while striving to meet the goals of the organization. Ethical employees also meet standards for quality in their work, which can enhance the company’s reputation for quality products and service.
The standard business practices of "bigger is better" does not seem to hold true when it comes to ethics, for sheer size by itself raises allegations of poor business ethics, as seen in the case of Wal-Mart.
EXAMPLE:WAL-MART
Wal-Mart very often finds itself slapped with lawsuits that accuse it of predatory pricing, or pricing products too low to drive competition out of business and gain a monopoly in local markets. Among several lawsuits, the one in 2003 struck, where Germany's High Court ruled Wal-Mart's low-cost pricing strategy "undermined competition.
Wal-Mart also faced charges of monopoly, by making suppliers dependent on them and forcing them to indulge in self-defeating practices, such as pressuring them to sell goods below cost or at prices lower than they would get elsewhere.
Wal-Mart regularly faces lawsuits from employees accusing the company of forcing them to work overtime without pay and denying them health insurance. The allegations against Wal-Mart are so numerous that it is a common example for bad ethics
Every company has their own ethics and values. But only few of them would follow their own ethics which has been created by them as well ethics dosent mean creating themselves but also it will be created by the society. But whether following those ethics or not is a criteria. Shortly speaking means the responsibility that had to be performed by the concer company or individual as per the rules and regulations prescribed by its own organisation as well as the society.
ReplyDeleteMy view on whether ethics In organisation will enhance its image in public or not.
1.Not every business should be organised ethically. for example-In the banking sector when there is problem of bad debts most of the cases ethically then wont get solved. Only then unethical practises has to be performed.
For example:-when the vijay maliya has went for bad debts nearly amounted to 7000 crores then even still today the banks and the government had failed to recover those unpaid amount by vijay maliya. Then in such case ethics don’t work out.
2.But mostly in the area of pharma industries and food business ethical behaviour of the organization plays a vital role because those are the industries which is directly related to the survival proportion of the society.
For example:- GlaxoSmithKline broke a shameful record this week with a $3bn fine from US regulators for marketing medicines beyond their authorised uses. It would be comforting to believe the action was an exception by a few individuals in a single company, in one country, and in a past era. The evidence is not so reassuring. They had broked their ethical values by involving in unethical trade practise like promoting their product which makes uses even to non suffering people by telling them that this medicine dosent effect, rather it keeps you healthy by protecting human body from future unlisted diseases.
3.operations of the business that should be mostly done by the ethical standards set by the organisation. But most of the organisation break their ethical values for earning huge profits. Ethics dosent mean the work that is going to be done should not cause any harm to the other individuals or society. But also it includes work that ought to be performed as per the rules and regulations.
For example:- The current issue is of Infosys. Narayana murthy who were the one of the founder of Infosys had resigned his designation 10years ago but being continuing as the shareholder holding 3.9% stake wants his company to be operated by following all the ethics and values set by the company. But later on when vishal sikka has joined Infosys as a CEO of Infosys he has performed some business operations by not bothering the rules and regulations of the company which had led to POOR CORPORATE GOVERNANCE. May be vishal sikka had met his targets by his own way if Narayana murthy had not interrupted sikka’s ideas. But Narayana murthy who always believes that growth of the organisation takes place only if ethics had been followed. This has led to sikka’s resignation to his designation.
4.Definitly by following ethics will lead to long term sustainabaility of the business. As we see in the above example Narayana murthy had bought the business so far only by following his organisation own ethics and values.
So here I conclude that not always following ethics in the organisation will leads to the development of the organisation. But sometimes it can be breaked based upon the time and situations that a organisation faces.
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ReplyDeleteEthics involves what is good and what is bad.
ReplyDeleteGood or bad can be defined differently and may have opposite results depending on ethical perspective.
Ethics in an organization will definitely enhance its image among public which leads to long sustainability of the organization.
Ethical behavior can bring benefits to a business.
Ethics in an organization brings more number of customers which boost sales.
Attracts more number of employees and make employees want to stay with the organization.
organization should maintain ethics even at bad circumstances as bad circumstances are not excuses for bad choices.
Ethics is knowing the difference between what you have a right to do and what is right to do.
ReplyDeleteYes, ethics in an organisation will enhance its image in globe among public at a large because everyone wants a healthy practices in everything, Whether you are an employee, a manager or a company executive, how you do business matters to the larger community. Ethical business practices aren't just an example of selfless do-goodism, they are essential for sustainable growth, increased employee productivity and reliable investment in your business. In short, ethics plays a large role in individual and communal corporate success.
Ethics and Public Relations
More and more companies are turning to corporate social responsibility programs or charity work to improve their image, according to the Ethics Resource Center. The main reason they engage in such activities is because the perception that a company is corrupt or unethical can lead to public relations nightmares. You and your company succeed when you project an ethical face to the world. A company or employee known for double-dealing or unethical practices suffers in today's market. Companies with good reputations, on the other hand, succeed.
Ethics and Employee Productivity
According to the Better Business Bureau, 36 percent of employees in a recent survey said that they had become distracted at the office by incidences of poor ethics in the workplace. Not only are unethical practices wrong in the objective sense, but they impact company success when employees are unable to focus on their work because of unethical behavior or company practices. Better ethics result in employees with better focus, thus improving the company's productivity and bottom line.
Ethics and Investment
While investors are primarily concerned with the company's bottom line, they are also concerned with a firm's long-term profitability. Unethical behavior is not a long-term strategy. While unethical dealings may be covered up in the short term, when they are discovered, stock prices plummet and financial peril looms. By promoting ethics in a company's operations, managers and employees are creating an environment friendly to long-term investment and, thus, corporate success.
Ethics and Employee Retention
Employees stay longer and produce better results than those disturbed by their employer's shady behavior, according to research done by the Ethics Resource Center. According to these findings, unethical companies have a difficult time retaining workers. A high turnover rate eats up a company's budget and time, both of which impact business success. On an individual level, being an ethical employee enhances your chances of keeping your job.
Ethics and equity and the principles of justice do not change with the calendar.
In their simplest form, ethics are the moral standards you rely on when you make a decision. They define what’s right and wrong, and outline the kind of behavior that businesses should not engage in. For responsible decision making in a business environment, a good set of ethics is key. If you’re new to management, try this course on decision making and equip yourself for success. Building on this when you maintain a high set of ethics as you conduct your business it provides benefits to everyone. Ethics are not only a guide to making decisions, but also the criteria the public judge you on. In business, this is critical, because how people see you and your company is the basis of building trust. If you’re taking unethical actions, you lose credibility, and your business will suffer.
ReplyDeletePersonally, your ethics form as you are influenced by the people and the environment around you. There are ethical views that apply to people all around the world, while others are more personal, and apply only to you. Over time, your ethical views can change over time as you’re exposed to different situations and environments. In a business, ethics has very positive benefits, and you can learn more about them in this course. The reasons for having high ethical standards include:
A higher moral within your employees and the organization
It helps to attract new customers
It builds higher customer loyalty
It reduces the risk of negative press or backlash caused by doing “the wrong” things
It helps to make a positive impact on the community
If you want to run a sustainable business having a high set of ethics is critical, and there can be serious consequences if poor ethical decisions are made. Regardless of whether you believe good business ethics contribute to profits or not, poor ethics will have a major impact on your bottom line. Without standards you have misinformed, misguided and bad decisions being made, which can cause financial loss or injury to other people, or the business. Many legal cases are raised because of people seeking compensation for their losses as a result of business people making unethical decisions.
You need to get every member of your organization committed to a set of high ethical standards. As a manager or the business owner, you need to clearly define and communicate to your employees the consequences of being unethical, and the set of standards you want them to adhere to. You can study what it takes to create an ethical organization in this course. Huge organizations like Enron have been destroyed by unethical decisions, and others seriously damaged like Fannie Mae. Without a set of ethical standards combining ambition and the intelligence of senior executives is a recipe for disaster. Competitiveness, innovation and ambition are critical for a business to succeed, but they need to be kept in check with a strong moral compass, and business done in the right way.
In their simplest form, ethics are the moral standards you rely on when you make a decision. They define what’s right and wrong, and outline the kind of behavior that businesses should not engage in. For responsible decision making in a business environment, a good set of ethics is key. If you’re new to management, try this course on decision making and equip yourself for success. Building on this when you maintain a high set of ethics as you conduct your business it provides benefits to everyone. Ethics are not only a guide to making decisions, but also the criteria the public judge you on. In business, this is critical, because how people see you and your company is the basis of building trust. If you’re taking unethical actions, you lose credibility, and your business will suffer.
ReplyDeletePersonally, your ethics form as you are influenced by the people and the environment around you. There are ethical views that apply to people all around the world, while others are more personal, and apply only to you. Over time, your ethical views can change over time as you’re exposed to different situations and environments. In a business, ethics has very positive benefits, and you can learn more about them in this course. The reasons for having high ethical standards include:
A higher moral within your employees and the organization
It helps to attract new customers
It builds higher customer loyalty
It reduces the risk of negative press or backlash caused by doing “the wrong” things
It helps to make a positive impact on the community
If you want to run a sustainable business having a high set of ethics is critical, and there can be serious consequences if poor ethical decisions are made. Regardless of whether you believe good business ethics contribute to profits or not, poor ethics will have a major impact on your bottom line. Without standards you have misinformed, misguided and bad decisions being made, which can cause financial loss or injury to other people, or the business. Many legal cases are raised because of people seeking compensation for their losses as a result of business people making unethical decisions.
You need to get every member of your organization committed to a set of high ethical standards. As a manager or the business owner, you need to clearly define and communicate to your employees the consequences of being unethical, and the set of standards you want them to adhere to. You can study what it takes to create an ethical organization in this course. Huge organizations like Enron have been destroyed by unethical decisions, and others seriously damaged like Fannie Mae. Without a set of ethical standards combining ambition and the intelligence of senior executives is a recipe for disaster. Competitiveness, innovation and ambition are critical for a business to succeed, but they need to be kept in check with a strong moral compass, and business done in the right way.
In an organization, a code of ethics is a set of principles that guide the organization in its programs, policies and decisions for the business. Businesses adopt specific code of ethics to ensure integrity within the company.
ReplyDeleteWhy should organizations develop a Code of Ethics?
The following are several reasons to consider adopting a Code of Ethics for your company.
1). Shows employees you are a responsible company:
One reason to develop a Code of Ethics for your business is that it communicates to employees that your company is committed to doing business responsibly. New employees know right away your company’s standards and expectations.
2). Shows customers you value integrity:
Customers tend to feel reassured by the existence of a Code of Ethics within a company. They feel that the company values its integrity and will operate accordingly when doing business.
3).Provides a clear point of reference when enforcing corrective action:
Another reason to consider keeping a Code of Ethics as part of your company culture is that such a document will serve as a reference for corrective action or even termination for employees who fail to meet these standards. A widely known code removes anything arbitrary from dealing with an employee who consistently fails to behave in a manner that meets company standards.
Benefits to the Organization:
A positive and healthy corporate culture improves the morale among workers in the organization, which may increase productivity and employee retention; this, in turn, has financial benefits for the organization. Higher levels of productivity improve the efficiency in the company, while increasing employee retention reduces the cost of replacing employees.
Ethics are an accountability standard by which the public will scrutinize the work being conducted by the members of these organizations. Decisions are based upon ethical principles, which are the perception of what the general public would view as correct.
A business, no matter how big or small, can always benefit from having a clear Code of Ethics!
Example: "Code of ethics of APPLE".
* Improving Suppliers-We’re helping suppliers meet the highest standards in the industry.We have a strict Code of Conduct that requires our suppliers to adhere to high standards for safe working conditions, fair treatment of workers, and environmentally safe manufacturing. Every year we strengthen these standards in a continuing effort.we help our suppliers develop the knowledge and skills they need to operate responsibly.
* We’re leading the way on the environment-Throughout our supply chain we’re driving programs that minimize carbon emissions, eliminate landfill waste, conserve water, and replace unsafe chemicals. We’re also helping our suppliers reduce the amount of energy they use and make the switch to renewable energy.
*We’re even taking responsibility for our paper supply chain-More than 99 percent of the paper used in our packaging comes from either recycled wood fiber or sustainably managed forests and controlled wood sources.
*Creating a zero waste manufacturing facility-In 2015, we started a zero waste program for our final assembly suppliers.
*Educating and Empowering Workers-A more educated workforce is a more empowered workforce. In 2016, we partnered with our suppliers to train more than 2.4 million workers on their rights as employees. We’re also helping build stronger futures by offering the people who work in our supply chain a wide variety of educational and training programs. These include the opportunity to earn a bachelor’s or associate’s degree, attend vocational training, and take classes in language, arts, finance, and basic life skills. More than 689 thousand participated in career growth and life skills training in 2016 and 2.1 million+ supplier Employee Education and Development students to date.
ReplyDeleteA positive and healthy corporate culture improves the morale among workers in the organization.The key for business owners and executives is ensuring that all employees understand these ethics. One of the best ways to communicate organizational ethics is by training employees on company standards.
1.Uniform Treatment
2.Social Responsibility
3.Financial Ethics
4.Build Customer Loyalty
5.Retain Good Employees:Talented individuals at all levels of an organization want to be compensated fairly for their work and dedication.
6.Positive Work Environment: Employees have a responsibility to be ethical from the moment they have their first job interview. They must be honest about their capabilities and experience
7.Avoid Legal Problems: organization having good ethical practices will help it to stay away for legal issues.
Ethics in organization helps in building its customer loyalty.
the following company is the example for good ethical practices:
1.SAS Institute
SAS Institute is another software company that is renowned for its employee benefits. Employees at SAS receive subsidized Montessori child care, unlimited sick time, and access to a free health center. The company also fosters a strong sense of community; its staff has intramural sports leagues, and the company has never had a layoff. SAS also supports education philanthropy, particularly programs that are dedicated to promoting science, technology, engineering, and mathematics programs for children.
example:
Kala Dera - Thirsting from Coca-Cola
Kala Dera is a large village outside the city of Jaipur where agriculture is the primary source of livelihood. Coca-Cola started its bottling operations in Kala Dera in 2000, and within a year, the community started to notice a rapid decline in groundwater levels.
Unusable Well in Kala Dera Confirms Depleted Water Levels
Unusable Well in Kala Dera Showing Depleted Water Level
For farmers, loss of groundwater translated directly into loss of income. For women, it meant having to walk an additional 5 to 6 kilometers just to fetch water to meet the basic daily needs of the family. For many children in Kala Dera, it meant leaving schools to provide a much needed helping hand doing household chores since the women had additional burdens.
The community in Kala Dera organized itself to challenge the Coca-Cola company for the worsening water conditions - through extraction and pollution - and demanded the closure of the Coca-Cola bottling plant.
The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition.
Forced Assessment Validates Community Concerns
The community of Kala Dera, as well as the villages of Plachimada and Mehdiganj in India that are opposing Coca-Cola bottling plants, have enjoyed significant international support. And most notable in lending support have been college and university students across the globe, and in particular, the US, UK and Canada - some of Coca-Cola's larger markets.
One of the successful campaigns was at the prestigious University of Michigan in the US, which, after a sustained student-led campaign in which the India Resource Center represented the India issues, placed the Coca-Cola company on probation on January 1, 2006. The university also mandated that Coca-Cola agree to an independent assessment of its operations in India if it ever wanted to do business with the university.
The assessment, paid for by Coca-Cola and conducted by the Energy and Resources Institute (TERI), only looked at six bottling plants in India and was released in January 2008.
CONCLUSION :
Thus ethics in organization helps it to gain profit, brand image , improve corporate governance, customer loyalty, customer advocacy.
To improve organization image every individual of the company has to be accountable
for policies and procedures adopted by the company.
As my blog has some issue I’m posting my comment through vennela’s blog
B. kavya reddy
Roll no : 171121
Ethics in an Organisation:
ReplyDeleteEthics are the principles and values used by an individual to govern his or her actions and decisions. An organization forms when individuals with varied interests and different backgrounds unite on a common platform and work together towards predefined goals and objectives. A code of ethics within an organization is a set of principles that is used to guide the organization in its decisions, programs, and policies. An ethical organizational culture consists of leaders and employees adhering to a code of ethics . Organizational ethics is the ethics of an organization, and it is how an organization responds to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture.Organisational ethics express the values of an organisation to its employees.
Four Parts of Positive culture:
Respect
Communication
Participation
Creativity
Role of Organisational Ethics in Sustainable Development:
The focus of many organizations is profit maximization to sustainable development. Those organizations that focus on profit-only often make short-term decisions without concern for long-run sustainable benefits. The concept of organizational ethics has been widely discussed as it may provide the means to long-term business success. This paper considers the basis of organizational ethics as an integration of ethical climate and culture in organizations that has an important impact on ethical decision-making and outcomes, which in turn could lead to sustainable development. The challenge of businesses is to remain ethical to stakeholders under conditions of uncertainty. They are expected to serve sustainable development not only for the benefits of themselves, but also the interests of others in society.
Effects of a Lack of Ethics in an Organisation:
Legal Issues
Employee Performance
Employee Relations
Company Credibility
Preventing Unethical Behavior
Advantages of Ethics in Organisations:
Strategic Decision Making
Day to Day Decisions
Company Reputation
Legal Considerations
If there are certain ethics to run an organisation and if they are followed as well in that organisation then defnitely there will be a positive impact
Example:
From one perspective, Apple's world could not be rosier and its future shinier. Rising from the rubble of a disintegrating company in 1997, Apple has reached the pinnacle of success in 15 short years. With a market capitalization of over $500 billion, Apple is amongst the most valuable and highly profitable companies in the world.
Its remarkable success lies in the company's ability to create truly innovative products with vast customer appeal. Apple flouts the conventional wisdom of the consumer electronics industry, which emphasizes low cost, "me-too" products, and a continuously shortened product life. Instead, Apple has opted for constant and discrete product innovation, resulting in fanatic consumer loyalty and a high level of profitability.
U.KEERTHI MOUNIKA
Delete171327
CONCLUSION:
DeleteFinally i want to conclude that if the Organisation follows Ethics then it can earn benefits like Good Public Opinion, Long Life in Organisation and the quality of the product
ethics is the response of organisation to the external and internal situations without harming the stakeholders.
ReplyDeleteMaggi case can be taken as an example to explain the ethics in organisation. when maggi was banned due quality in the product. organisation has come to its position by taken measures to prove that their quality is good enough. organisation has kept its stakeholders expectations and did not disappoint them. organisation need to meet the interest of stakeholders and be with them.
There are some things that should never be ignored in any situation- ethics, a set of moral code that guides an individual or an organization in whole. Also in market scenario, which involves competition to get ahead in the market and to gain more market share, companies use various methods and strategies.
ReplyDeleteEthics shape the way we live, what we do, what we make and the world we create through our choices. The world evaluates one according to one’s code of conduct and is what makes one’s creditability.
The code of conduct a company has increases its creditability among public and helps its sustainability in a society through times. Its inspires both customer and employee loyalty. Affects consumer view of a company’s products.
Ethics should be followed in any scenario:
Organization to employee such as work hours, bonus, salary, safety measures, benefits, privacy.
Employee to organization- working faithfully, not misusing company authority and resources.
Employee to employee
Organization to organization
Organization to consumer
Organization to market scenario-unfair practices to dominate market.
Organization to council such as National Company Law Tribunal
Organization to government- paying taxes on time and following government policies.
Government to organization
Case:
The panama papers-The Panama Papers formerly private information was made public. A total of 11.5 million documents, comprising 1.5 terabytes of data, were stolen from the Panamanian law firm Mossack Fonseca by unknown hackers and leaked to an international consortium of journalists. The leak exposed myriad ways in which the global elite are able to hide their wealth and income from tax authorities and other interested parties.
B.kavya reddy- 171121
ReplyDeleteSir, as my blog has some issue I’m posting my comment through vennela’s blog.
Ethics concern an individual's moral judgements about right and wrong. Ethics has everything to do with management. Decisions taken within an organisation may be made by individuals or groups, but whoever makes them will be influenced by the culture of the company.The decision to behave ethically is a moral one; employees must decide what they think is the right course of action. This may involve rejecting the route that would lead to the biggest short-term profit. In an organization, a code of ethics is a set of principles that guide the organization in its programs, policies and decisions for the business. Ethical behaviour among workers in an organization ensures that employees complete work with honesty and integrity. A positive and healthy corporate culture improves the morale among workers in the organization, which may increase productivity and employee retention; this, in turn, has financial benefits for the organization. Higher levels of productivity improve the efficiency in the company, while increasing employee retention reduces the cost of replacing employees.The key for business owners and executives is ensuring that all employees understand these ethics. One of the best ways to communicate organizational ethics is by training employees on company standards.1.Uniform Treatment 2.Social Responsibility 3.Financial Ethics4.Build Customer Loyalty5.Retain Good Employees:Talented individuals at all levels of an organization want to be compensated fairly for their work and dedication. 6.Positive Work Environment: Employees have a responsibility to be ethical from the moment they have their first job interview. They must be honest about their capabilities and experience7.Avoid Legal Problems: organization having good ethical practices will help it to stay away for legal issues.
Ethics in organization helps in building its customer loyalty.
the following company is the example for good ethical practices:
1.SAS Institute
SAS Institute is another software company that is renowned for its employee benefits. Employees at SAS receive subsidized Montessori child care, unlimited sick time, and access to a free health center. The company also fosters a strong sense of community; its staff has intramural sports leagues, and the company has never had a layoff. SAS also supports education philanthropy, particularly programs that are dedicated to promoting science, technology, engineering, and mathematics programs for children. The company also encourages its employees to volunteer at various charities and even makes cash contributions to non-profit programs where the employees volunteer.
Read more: http://www.minyanville.com/sectors/consumer/articles/Good-Business253A-Corporations-with-Great-Ethical/2/16/2013/id/48045#ixzz4rdKa3kDn
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ReplyDeleteThe posting of Kavya Reddy is the last acceptable post for evaluation. The discussion is declared hereby closed and any further postings after this comment of mine will not be eligible for evaluation as the time specified is over.
ReplyDelete