The importance of ethics in an organization.

2833 Words Apr 27th, 2005 12 Pages
The term 'ethics' can commonly refer to the rules and principles that define right and wrong conduct of individuals (Robbins, Bergman, Stagg and Coulter, 2003, p.150). Ethical Behavior is accepted as "right" or "good" in the context of a governing moral code. Ethics can be viewed as a way of behaving that can be prescribed and imposed by the work environment (Garcia-Zamor, 2003).

Virtually all societies have developed rules and regulations about how business should be transacted and how business organizations should be managed. In other words, based on experience and the philosophical and religious values of the society, rules of acceptable and non-acceptable behaviors evolve and are encoded into society (Mendenhall, Punnett and Ricks,
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According to Kreitner and Kinicki (2001, p.92), there is a tendency among managers to act unethically in the face of perceived pressure for results. Terms of employment and compensation schemes can also create incentives for unethical conduct (Carson, 2003). This can cause managers to unwittingly set the stage for unethical shortcuts by employees who seek to please the organization. Adequate training, good communication channels and a cooperative working environment within the hierarchies can help reduce the unethical practices. The rewarding of ethical behavior can be a practice organizations can adopt. The rewards could come in the form of recognition or praise and not necessary money (Minkes, Small, Chatterjee, 1999). This can help promote and encourage ethical behavior within the organization.

Unethical behavior in organizations can be reduced by proper employee selection during interviews and job positions. Selection may bring greater benefits by helping managers decide which employees have attributes that will encourage ethical behavior in the organization (Wilk and Cappelli, 2003). An employee that has gone through interviews and tests and has been assessed by higher authority will be less likely to commit unethical acts in an organization.

Organizational Benefits From Developing Ethical Codes of Conduct for Employees

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