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01. Organizational Ethics and Values

 

The application of ethics to behaviors of personnel in a particular organization refers to as Organizational ethics. Organizational ethics includes a set of moral principles about right and wrong that needs to be followed by individuals and groups of the organization when making decisions.

The importance of organizational ethics in company operations, decision-making, and stakeholder interaction cannot be overstated. It is founded on ideas, beliefs, and moral standards that drive an organization's behavior and reflect the organization's dedication to doing what is right and just. It places a premium on integrity, honesty, fairness, and responsibility in all facets of an organization's operations. Employees are expected to uphold these ethical standards, which represent the leadership's commitment to ethical behavior.

Organizations that prioritize ethical behavior understand that their obligations go beyond maximizing profits and include the well-being of all stakeholders, including employees, customers, suppliers, shareholders, the community, and the environment. Balancing competing interests and making ethical decisions in complex situations is a difficult but necessary part of organizational ethics.




Transparency, accountability, and compliance with legal obligations are all essential components of ethical behavior. Ethical organizations disclose their acts, decisions, and outcomes openly, accepting responsibility for their actions. They understand the necessity of adhering to laws and regulations while also striving for ethical behavior that goes beyond legal compliance.

Organizational ethics is essential for long-term success in today's interconnected and socially conscious world. Ethical organizations not only foster trust and credibility, but also positively contribute to society and the environment by acting in accordance with their beliefs and principles.

In general, ethics deals with moral principles in respect of right or wrong human behavior. According to Rue and Byars (1992), ethics are principles of conduct used to govern the decision making and behavior of an individual or group of individuals. Dess, Lumpkin and Eisner (2008) define ethics as a system of right and wrong that assists individuals in deciding when an act is moral or immoral and socially desirable or not. Ethics are moral belief and rules or obligations with regard to right and wrong (Opatha, 2009).


References

Management Study Guide (2015). Organization ethics - meaning and its importance. [online] Managementstudyguide.com. Available at: https://www.managementstudyguide.com/organization-ethics.htm [Accessed 1 Dec. 2023].

ResearchGate. (n.d.). (PDF) Organizational Ethics. [online] Available at: https://www.researchgate.net/publication/302472978_Organizational_Ethics [Accessed 1 Dec. 2023].

‌www.bing.com. (n.d.). organizational%20ethics - Search Videos. [online] Available at: https://www.bing.com/videos/riverview/relatedvideo?q=organizational%20ethics&mid=D12A43C0C2E4AD51BA39D12A43C0C2E4AD51BA39&ajaxhist=0 [Accessed 3 Dec. 2023].
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Comments

  1. Kalpa PremachandraDecember 5, 2023 at 7:25 AM

    Hi Dilith! I believe that the organizational ethics act as the basic structure of the Organizational Culture and it fosters the discipline the organization is expecting from their members and it helps grow the accountability of the employees towards their duties and responsibilities and helps increase employee engagement by morale stimulation.

    ReplyDelete
    Replies
    1. Dilith MelloDecember 6, 2023 at 9:54 AM

      Yes Kalpa, Organizational ethics is like the foundation of how a company works together. It helps create a culture that guides everyone on how to behave. This not only encourages discipline but also makes sure that everyone takes responsibility for their work. When people feel accountable, it naturally boosts their commitment. And you're absolutely right, it's like a morale booster, making work more engaging and enjoyable.

      Delete
  2. Pathum Suraweera - E193894 - Employee EngagementDecember 13, 2023 at 9:51 AM

    Hi Dilith. These ethics and culture are very important to achieving the organization's goals. And also related to building the relationship between employees and the organization.

    ReplyDelete
    Replies
    1. Dilith MelloDecember 14, 2023 at 8:18 AM

      Yes Pathum
      The foundation of any successful organization lies in a strong ethical framework and a positive organizational culture. These elements not only contribute to achieving our goals but also foster a healthy and collaborative relationship between employees and the organization. It's the key to long-term success and sustainability.

      Delete
  3. Chanika Janani FernandoDecember 20, 2023 at 5:19 AM

    A thorough justification was given. I believe when it comes to building trust and credibility organizational ethics fosters trust among stakeholders, including employees, customers, suppliers, shareholders, and the community. Trust is a crucial factor in building strong and lasting relationships.

    ReplyDelete
    Replies
    1. Dilith MelloDecember 20, 2023 at 6:00 AM

      Thanks. Organizational ethics indeed plays a pivotal role in cultivating trust and credibility among various stakeholders such as employees, customers, suppliers, shareholders, and the broader community. Trust is the cornerstone of robust and enduring relationships in any setting, and when organizations prioritize ethical practices, it sends a clear message about their commitment to integrity and responsibility.

      Delete

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