Factors Influencing Ethical Behavior

Decent Essays
Prominent moral outrages immersing each area of life and profession have picked up significance right now. For instance, significant business disappointments, for example, WorldCom, Enron, Tyco International, HealthSouth, and Lehman Brothers are among business associations where pioneers fizzled morally for various reasons (Decker, 2015). Enron’s was the greatest failure in the history of American capitalism and had a major impact of financial markets by causing significant losses to investors(, 2002). It has been noticed that moral administration disappointments have influenced the way of life, notoriety and profitability of associations. (Decker, 2015)
This assignment is an attempt to look for the role of organisational leaders in fostering ethical behaviour in an organisations. Keywords: ethics, ethical behaviour,
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It is fundamental for the leader to set great illustrations, and take after morals.(Anon, 2015)

Factors influencing ethical behavior in an organization:-
1. In an organization, factors influencing business ethics are :- Leadership, strategy and performance, individual characteristics, corporate culture and environment. One of the key sources of organizational influence is the degree of commitment of the organization’s leader to ethical conduct. Which is also called code of conduct. This commitment can be communicated through a code of ethics, speeches, publications, Supervisory behavior, policy statements and written rules, peer group norms and behavior, etc. (Trevino and Nelson, 2014)
2. Legal interpretations- these are based upon contemporary and often transient values and standards. (Trevino and Nelson, 2014)
3. Individual factors - elements influencing one's moral conduct incorporate phases of good improvement, individual qualities and ethics, family impacts, companion impacts and backgrounds. (Trevino and Nelson, 2014)
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