Making a profit is a primary goal of any business, but ethical values are also fundamental for any organization. Organization’s ethics and the ethical values of its members are cooperating components.
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Managerial ethics meets standards of moral behavior used by organizations or their supervisors. A leader of a company must exercise his/her power to set formal procedures for defining ethical principles and standards among the administrators. Written ethical code identifies what the organization considers as being right or wrong. It may be a list of procedures, regulations and laws that includes policies and prohibitions. Ethical standards concern worker’s ethical responsibilities to customers, colleagues, partners, government authorities and the whole society. The introduction to a code of ethics is a substantial part which describes company’s mission and future prospects (Colley, Doyle, Hardie, Logan, & Stettinius, 2007).
The Code of Ethics summarizes core values on which the work of the company is based, and provides specific ethical rules that must be used as a guide. For additional guidance administrators can consult the literature on ethical decision making and seek appropriate ways to resolve ethical dilemmas; but, first of all, worker’s ethical behavior and their ethical responsibilities flow from their personal to the professional. The righteous behavior is influenced by prior ethical development of an individual (Gorlin, 1999).
The ethical tone can be set by organization’s rules of conduct that encourage ethical behavior. It is determined by strategic leadership, ethics policies and ethical institutional practices. Thus, organization is observed as ethical environment for their members. The organization’s core values should be applied by all staff members. Otherwise, not only will the organization’s work be not only less productive, but the skepticism of its employees will also impede the efficiency of the company. That is why managers have to present the information in such a way that the employees are motivated. The important part of motivation is knowledge that their opinions are heard and used (Driscoll & Hoffman, 2011).
The Code of Ethics is only one of the first steps to prevention of ethical conflicts. If a breach of ethics occurs, the situation can be solved by a special ethics committee or a regulatory body. The basic elements of their work will include ethics training and education of supervisors, managers and employees; systems for confidential reporting; availability for advice on ethical issues. The quality of decisions becomes better, and the process of decision making grows short due to ethical leadership. A real danger arises when unethical behavior is unnoticed or not punished. That is why there must be appropriate penalties for violators. It can be also particularly effective to introduce not only punishments for unethical conduct, but also rewards for decent behavior (Gorlin, 1999).
In conclusion, ethical responsibility is the obligation of any organization. It can be achieved by wise ethical leadership and policies. High ethics in an organization is determined by general principles and standards. All of them can be standardized in the Code of Ethics and regulated by a specific organization’s ethics committee.
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