Values And Ethics Of The Workplace

1259 Words6 Pages
Values and ethics are essential in the workplace. It establishes how a company is run and remains profitable. Leaders are the key to demonstrating and creating the organization’s culture, ethics and values. It has to start at the top of the organization including the Chief Executive officer, board and owners. Leaders’ internalization and manifestation of the values in how they operate have a great influence on the employees. Every organization must start with a foundation, a code of conduct, code of ethics and a statement of values ( Ferrell, O.C., John Fraedrich, and Linda Ferrell). A code of conduct and a statement of formal statements describe and explain what an organization expects from its employees and a code of ethics generally consists of statements that serve as principles and basis for rules of conduct. Leaders and managers must be role models for organizational success. If employees see leaders and management demonstrating the organizational values then it adds to the commitment and credibility of leadership and reinforces the importance of the organization’s values which leads to employees who are more engaged and committed to the organization. Also turnover among employees tends to be lower and productivity tends to be high. On the other hand, if leadership demonstrates behavior that is inconsistent with the code of conduct then a negative message is sent to the employees. Therefore, employees may disengage and compromise company standards as seen in the
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