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U/S; 12891 – Apply Concepts and Principles of Business Ethics in the Professional Environment  Copy

U/S; 12891 - Apply Concepts and Principles of Business Ethics in the Professional Environment. 

Learning Unit1

US: 12891, NQF Level 6 Worth 5 Credits

Apply concepts and principles of business ethics in the professional environment. 

Unit Standard Purpose

People credited with this unit standard are generally found throughout professional service environments. On successful completion of the unit standard, people will be able to understand and apply the concepts and principles of ethics in a professional service environment. 

Learning Assumed to be in Place

·        Learners accessing this unit standard should be competent in: 

·        Communication at NQF level 4 

·        Mathematical Literacy at NQF level 4 

Session 1

SO 1

 

Demonstrate an understanding of the concepts and principles relating to business ethics.

Learning Outcomes

(Assessment Criteria)

·        The philosophy and framework of ethical conduct is explained in a meaningful manner. 

·        The corporate code of ethics of a corporation/business entity is described in relation to general principles of corporate behavior within the organization and/or profession.

·        Codes of professional conduct are explained in accordance with their related regulations.

Concepts and Principles Relating to Business Ethics.

 

Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior. Business owners and managers can use an ethics theory they deem most appropriate for use in their operations. A few different business ethics theories exist, such as the utilitarian, rights, justice, common good and virtue approach. These theories can be used on their own or in combination with each other. Each theory includes specific traits or characteristics that focus on specific ethical principles that can help companies correct business issues.

The utilitarian approach focuses on using ethical actions that will promote the most good or value among a society while limiting the amount of harm to as few people as possible. Among the business ethics theories, this is typically seen as the oldest theory, as it was propagated by many philosophers, such as Jeremy Bentham, James Mill, and Mill’s son John Stuart Mill. Businesses can use this theory to ensure the outcome of various situations helps the maximum amount of stakeholders.

A rights ethical approach is based on the belief that all individuals have rights in life and should be treated with respect and dignity. Morals play a large role in this because individuals must personally use ethical behavior in order to achieve the end goal without mistreating people. Business ethics theories often use this approach by not imposing their missions, products, or systems on consumers.

Whether you work for a small business or a major corporation, following ethical principles matters.

The most recent lesson on the importance of business ethics came with the Wall Street collapse, as once highly esteemed financial institutions made headlines for their bad choices and questionable behavior.

While businesses have to meet economic expectations, they also have ethical responsibilities. Everyone, from the bottom to the top of the organizational chart, must take care to meet these responsibilities.

What are Business Ethics?

 

Ethics are moral guidelines which govern good behavior.

So, behaving ethically is doing what is morally right.

Behaving ethically in business is widely regarded as good business practice.  To provide you with a couple of quotes:

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Ethical principles and standards in business:

  • Define acceptable conduct in business.
  • Should underpin how management make decisions.

An important distinction to remember is that behaving ethically is not quite the same thing as behaving lawfully:

  • Ethics are about what is right and what is wrong.
  • Law is about what is lawful and what is unlawful.

An ethical decision is one that is both legal and meets the shared ethical standards of the community

Businesses face ethical issues and decisions almost every day – in some industries the issues are very significant.  For example:

·        Should businesses profit from problem gambling?

·        Should supermarkets sell lager cheaper than bottled water?

·        Is ethical shopping a luxury we can’t afford?

You will probably note the link between business ethics and corporate social responsibility (CSR).  The two concepts are closely linked:

  • A socially responsible firm should be an ethical firm
  • An ethical firm should be socially responsible

However there is also a distinction between the two:

  • CSR is about responsibility to all stakeholders and not just shareholders
  • Ethics is about morally correct behavior

How do businesses ensure that its directors, managers and employees act ethically?

A common approach is to implement a code of practice. Ethical codes are increasingly popular – particularly with larger businesses and cover areas such as:

  • Corporate social responsibility
  • Dealings with customers and supply chain
  • Environmental policy & actions
  • Rules for personal and corporate integrity 

The Philosophy and Framework of Ethical Conduct is Explained in a Meaningful Manner.

 

Ethical Conduct

Ethical conduct is central to Sodexo’s business. We take measurable steps to ensure that our business practices and our management are held to the highest levels of ethical conduct.

This framework for ethical conduct of is guided by principles of :

  • dignity
  • respect
  • care for others
  • honesty
  • integrity
  • objectivity
  • accountability
  • openness
  • leadership

The field of ethics (or moral philosophy) involves systematizing, defending, and recommending concepts of right and wrong behavior. Philosophers today usually divide ethical theories into three general subject areas: met ethics, normative ethics, and applied ethics. Metaethics investigates where our ethical principles come from, and what they mean. Are they merely social inventions? Do they involve more than expressions of our individual emotions? Metaethical answers to these questions focus on the issues of universal truths, the will of God, the role of reason in ethical judgments, and the meaning of ethical terms themselves. Normative ethics takes on a more practical task, which is to arrive at moral standards that regulate right and wrong conduct. This may involve articulating the good habits that we should acquire, the duties that we should follow, or the consequences of our behavior on others. Finally, applied ethics involves examining specific controversial issues, such as abortion, infanticide, animal rights, environmental concerns, homosexuality, capital punishment, or nuclear war.

Philosophical Ethics

 

Ethics is the branch of philosophy that explores the nature of moral virtue and evaluates human actions. Philosophical ethics differs from legal, religious, cultural and personal approaches to ethics by seeking to conduct the study of morality through a rational, secular outlook that is grounded in notions of human happiness or well-being. A major advantage of a philosophical approach to ethics is that it avoids the authoritarian basis of law and religion as well as the subjectivity, arbitrariness and irrationality that may characterize cultural or totally personal moral views. (Although some thinkers differentiate between “ethics.

Generally speaking, there are two traditions in modern philosophical ethics regarding how to determine the ethical character of actions. One argues that actions have no intrinsic ethical character but acquire their moral status from the consequences that flow from them. The other tradition claims that actions are inherently right or wrong, e.g, lying, cheating, and stealing. The former is called a teleological approach to ethics, the latter, deontological.

The Corporate Code of Ethics of a Corporation/Business Entity is Described in Relation to General Principles of Corporate Behavior within the Organization and/or Profession.

 

Code of ethics implies an ethical code or a conduct of behavior that one needs to follow in a business organization. It pertains to following a protocol that is set by the company for its employees and staff members. Code of ethics brings about a regularity of functioning and a discipline. Rigid in nature, code of ethics is responsible for building the reputation of the company. Just as the organization demands behavior as per the determined protocol, the art of writing business letters also asks the writer to adhere to writing code of ethics.

Writing a code of ethics for your business helps in deciding how your company will flourish and prosper in the long run. Business ethics is a broad spectrum and takes considerable amount of time to frame. Nature of the work, the market, the employees, the stakeholders, social responsibility of the company and legal aspect are some of the features that must be covered when creating a business code of ethics.

Nature of the Work

 

Individualistic natures vary with time. However, a business entity has one goal: Growth. A business house needs more than water and fertilizers to grow. It has to be fostered and developed through tapping new markets, innovations and ‘ideating’. Thus, the procedure of finding new markets and launching yourself there has to be set in such a way that it renders a win-win situation. An organization has to know its interests and objectives. This also involves studying your line of work and understanding the code of ethics followed there.

Nature of Other’s Work

 

As the famous quote by the Don and an ace businessman goes, ‘Keep your friends close, but your enemies closer’, know what’s happening outside your industry. The reason for this advise comes from the fact that all industries are interdependent and grow only when they work in a symbiosis. Competition is healthy, but an overly competitive industry begins to indulge in malpractices. Thus, find out how you can benefit from the others around you.

Set Your Priorities

 

Demands are unlimited, but the resources to satisfy them are limited. Reconciling the two, is where the problem arises. Hence, setting your priorities will help you achieve your goals in a more systematic manner. Once the objectives are set, it prevents the board members from procrastinating, thus speeding up the work process. Setting priorities in the code of ethics for business will improve the performance of your company by leaps and bounds.

Evaluate the Past

 

While scripting your code of ethics of business, the past may not always be glorious. Hence, scrutinize and assess the events carefully, so that similar mistakes aren’t repeated. Pick up that mistake as a challenge and conquer it.

The Great Expectations

 

The stakeholder is the real owners of the company. Hence, by that virtue they run the company. The same is not true in practicality, as they appoint board members. Write down the expectation of the stakeholders as a guide for your plan. A company also has a responsibility towards the society, as the society is the reason why it prospers.

Legal Aspect

 

A company is never expected to indulge in fraudulent practices. Any kinds of frauds and scams ruin the reputation of the company. Hence utmost care should be taken while running a business. A business entity is an organization that is formed in accordance with the law in order to engage in business activities, usually the sale of a product or a service. There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole traders, Limited Liability Company and other specialized types of organization.

A code of ethics, also called a code of conduct or ethical code, sets out the company’s values, ethics, objective and responsibilities. A well-written code of ethics should also give guidance to employees on how to deal with certain ethical situations. Every code of ethics is different and should reflect the company’s ethos, values and business style. Some codes are short, setting out only general guidelines, and others are large manuals, encompassing a huge variety of situations.

There are three fundamental segments of a business’ code of ethics.

 

Legal

Each business and its employees must follow the laws set forth by the federal and state government. Although most business organizations don’t write down the legal code of ethics each member of the business is responsible for, some organizations do. The foundation of any code of ethics is the legalities governing employees and the specific establishment. A bar may establish an official code of ethics for bar attendance, bouncer etiquette and drinking maximum. An organization that produces written content may establish a plagiarism clause as part of a code of ethics. Beyond these specific ethical areas, most establishments establish a diversity program where equal opportunity is available for all regardless of sex, religion or background.

Moral 

Whether you subscribe to the ideas discussed in the Bible or not, treating others like you want to be treated is the foundation of moral ethics. Treating employees with respect builds loyalty. Doing the right thing for the customer is paramount to maintaining customers. When employees have access to confidential public information, creating ethical standards on confidentiality not only protects clients but establishes trust in the organization. In addition, how an organization deals with complaints and resolves conflict, internally and externally, is set by a moral code of conduct. The code of conduct establishes protocol to treat each issue from an objective viewpoint and move toward amiable resolution.

Professional

Professional codes of ethic vary from organization to organization. A state bar association will have a very descriptive code of ethics for attorneys practicing law in that area. A car dealership may describe its professional code of ethics by defining dress code, promptness and disclosure to consumers in the sales process. Ultimately, the professional code of ethics demands from employees at all levels of an organization to do what they were hired to do with care and diligence. Among many executives, a professional code of ethics extends to the handshake agreement with someone following through on what he said he would do.

Codes of Professional Conduct are Explained in Accordance with Their Related Regulations.

 

A code of ethics is a set of guidelines which are designed to set out acceptable behaviors for members of a particular group, association, or profession. Many organizations govern themselves with such a code, especially when they handle sensitive issues like investments, health care, or interactions with other cultures. In addition to setting a professional standard, a code of ethics can also increase confidence in an organization by showing outsiders that members of the organization are committed to following basic ethical guidelines in the course of doing their work.

The format of a code of ethics can vary widely. Unlike more straightforward employee guidelines and codes, this document usually starts with a section that sets out the purpose, aspirations, and goals of the parent organization.

Status of the Code

 

1.1 In terms of the powers granted to it by sections 13 and 23 of the Public Accountants’ and Auditors’ Act, 1991 (Act 80 of 1991) the Public Accountants’ and Auditors’ Board has published this Code of professional conduct as a guide to registered accountants and auditors. It replaces the previous Code of conduct with effect from 1 January 1997. This Code is not intended to contain an exhaustive list of all matters affecting the conduct of registered accountants and auditors and neither does it restrict the scope of the Act or of the Disciplinary rules published in terms of the Act.

1.2 The spirit of this Code is at least as important as the letter and a breach of, or a failure to observe any of the provisions of the Code may be considered as improper conduct within the ambit of section 23 of the Act, or of rule 2.1 of the Board’s Disciplinary rules, and as such will be dealt with in terms of the Act or the Disciplinary rules.

1.3 Except where otherwise indicated, this Code is a guide for all persons registered with the Board.

The principles of professional conduct therefore include:

 

  1. Knowledge and expertise: A member shall perform only those professional services for which the member is competent and appropriately experienced.
  2. Values and behavior: A member shall act honestly, with integrity, competence and due care, and in a manner that fulfils the profession’s responsibility to the public.
  3. Professional accountability: A member is subject to the professional requirements and oversight of the Society, and shall do nothing that brings the actuarial profession into disrepute.

Specific requirements for professional conduct are set out in the following sections.

The headings are inserted for reference purposes only and do not affect the interpretation of any of the provisions to which they relate. The Preface and Definitions form part of the Code.

 

Session 2

SO 2

 

Exercise professional judgment regarding practical situations. 

Learning Outcomes

(Assessment Criteria)

·        Practical situations are analysed to enable the practitioner to make professional judgments in relation to the applicable code of professional conduct.

·        Professional judgment is applied to practical situations in accordance with the applicable code of professional conduct. 

·        Professional judgment is exercised in line with the organizational code of ethics 

Professional Judgment with Regard to Practical Situations.

 

The concept of professional judgment is considered, including its theoretical foundations, how it is developed, and how it may be assessed. Professionals are asked to engage in complex and unpredictable tasks on society’s behalf, and in doing so must exercise their discretion, making judgments–decide what is “best” in the particular situation rather than what is “right” in some absolute sense. Inevitably, some of these judgments lead to “error,” which is endemic to professional practice. This challenges some current ideologies in health care regarding the primacy of evidence-based practice and the application of protocols. At the foundation of professional judgment is a form of knowledge–called practical wisdom–which is not formally taught and learnt but is acquired largely through experience and informal conversations with respected peers. Wisdom develops through “the critical reconstruction of practice,” including deliberation, which is distinguished from mere reflection. Professionals need to engage in the appreciation of their practice–not just to understand what informs their own practice but to consider critically the contestable issues endemic to practicing as a professional.

Professional Judgment is Applied to Practical Situations in Accordance with the Applicable Code of Professional Conduct. 

 

Defining Professional Judgment:

 

Professional judgment is a process used to reach a well-reasoned conclusion that is based on the relevant facts and circumstances available at the time of the conclusion. A fundamental part of the process is the involvement of individuals with sufficient knowledge and experience. Professional judgment involves the identification, without bias, of reasonable alternatives; therefore, careful and objective consideration of information that may seem contradictory to a conclusion is key to its application. In addition, both professional skepticism and objectivity are essential to the process and to reaching an appropriate conclusion.

Professional judgment is not an arbitrary decision, a substitute for professional skepticism, or a method to rationalize a particular result. Performing the process in “form” without focusing on the substance does not constitute well-reasoned professional judgment.

Professional judgment is critical to efficiently and effectively planning, performing, and concluding in an audit. Auditors use professional judgment to focus on the most important aspects of an audit; to determine the nature, timing, and extent of audit procedures; and to appropriately challenge the accounting, reporting, and other conclusions reached, and financial statement assertions made by management.

The process of forming an opinion or evaluation (characterized by or conforming to the technical or ethical standards of a calling requiring specialized knowledge and often long and intensive academic preparation) by discerning and comparing.

Applying Professional Judgment

 

Because of the nature of the auditor’s professional responsibilities and the regulatory environment, the auditor’s judgments will most likely be challenged. Knowledgeable, experienced, and objective persons can reach different conclusions in applying professional standards despite similar facts and circumstances. This does not necessarily mean that one conclusion is right and the other is wrong. Appropriate questioning to understand the procedures performed and basis for conclusions reached is to be expected.   

Contemporaneous documentation of professional judgments is important. Documentation demonstrates that a sound process was followed and helps the development of a well-reasoned conclusion. When professional judgment is challenged, contemporaneous documentation shows the analysis of the facts, circumstances, and alternatives considered as well as the basis for the conclusions reached. The extent of documentation and the effort expended in the process will vary with the significance and complexity of an issue.

When the professional judgment process is appropriately applied and contemporaneously documented, it is much easier to support and defend the conclusions reached. Conversely, decisions that appear to be arbitrary; not supported by the facts, evidence, or professional literature; or not well-reasoned or documented are difficult to support.  

Professional Judgment is Exercised in Line with the Organizational Code of Ethics.

 

Professional judgment is Necessary in Particular Regarding Decisions About:

 

  • Materiality and audit risk.
  • The nature, timing and extent of audit procedures in accordance with auditing standards.
  • Evaluating whether sufficient appropriate audit evidence has been obtained, or further procedures are required to meet the audit objectives and the requirements of standards.
  • The evaluation of management’s judgments in applying the entity’s applicable financial reporting framework.
  • The drawing of conclusions based on the audit evidence obtained.

However, professional judgment does not mean that auditor can reach or form conclusions on his own. Auditor always makes conclusions based on facts which are known to the auditor. Thus it also means that professional judgment does not mean that auditor is capable of discovering such events and misstatements in respect of which he was unable to obtain information after applying reasonable audit procedures. Professional judgment does not mean that auditor possess the knowledge of unknown.

 

Session 3

SO 3

 

Use ethical procedures in a professional environment. 

Learning Outcomes

(Assessment Criteria)

·        Ethical procedures are used in the professional environment that comply with the code of professional conduct. 

·        Situations are evaluated to judge the professional intervention and procedure that are most appropriate. 

·        Procedures are developed and implemented, where necessary, in accordance with organizational and professional ethics 

Use Ethical Procedures in a Professional Environment. 

 

To practice effectively and ethically, social workers need a working environment that upholds ethical practice and is committed to standards and good quality services. All employers, social workers and service users should have the possibility to refer to a body with the legally recognized responsibility for safeguarding professional standards and ethical practice.

A positive working environment is created where the values and principles of managers and social workers are consistent with each other and mutually reinforcing. There is substantial evidence that the most effective social work services are provided in situations where employers understand the social work task, respect their employees and are committed to implementing professional values.

A framework for supporting good practice needs to take account of ethical principles and ensure effective induction, supervision, workload management and continuing professional development.

Ethical Procedures are used in the Professional Environment that Comply with the Code of Professional Conduct.

 

It may not fit the stereotype of the cutthroat business world that some people have, but ethics play a very important role in the workplace. The most effective organizations are those that have been able to establish an effective set of ethics that their workers are able to adhere to and rely on. Creating awareness of ethics in the workplace is an essential part of creating an effective organizational culture.

Duty;

Duty is a beginning premise of workplace ethics. All employees owe their employers certain things, and employers likewise owe their workers certain things. A worker has a duty to work to the fullest of his abilities to accomplish his job. An employer likewise has a duty to provide appropriate compensation for the work of her employees. Belief in these two duties makes for a more efficient and effective business organization.

Honesty;

Honesty is an ethical principle for members of a business to master. Honesty makes the relations between employees much simpler, as they are able to rely on each other’s word. Communication can only really be effective if people have confidence that what the other person is telling them is the truth. Honesty is necessary for teamwork to develop and for a group of people to be able to bond together.

Fairness;

The principle of fairness in the workplace is necessary for a business to better approach the goal of a meritocracy. In a meritocracy, workers are only rewarded and advanced based on the work they accomplish and their actual merit. This is an ideal that no business will ever completely reach, but an awareness of fairness will bring it a lot closer. A meritocracy would mean the maximizing of a company’s different resources and skill sets.

Liability;

A business will stand to significantly lower its legal liabilities by creating a better ethical awareness in the workplace. An improved ethical awareness would help to prevent abuses that can get a business in legal trouble, such as sexual harassment and discrimination. One way to improve the ethical awareness of a workplace is to communicate ethical goals to employees regularly and to create rewards for ethical behavior by making it a part of employee evaluations.

Many people working in the social and development field either fear evaluation or have little idea how to go about it. Either way, evaluation is often regarded as a somewhat foreign intervention. Yet without constant and continual evaluation, development projects have small hope of achieving success. This paper represents one attempt to remedy this situation. The intention is to present clear and accessible information with regard to the evaluation process. The contention is that if evaluation is understood, it will become less foreign, less threatening, and therefore lead to effective utilisation of an essential and necessary intervention strategy. While not attempting to be exhaustive, the paper will try to cover the most important aspects of evaluation.

  • Section One – Principles – is a bald and straightforward statement of 12 principles of evaluation, for easy reference.
  • Section Two – Derivation of principles – provides an explanation of these principles in the form of a step-by-step guide.
  • Section Three – Comments on methodology – provides relatively brief indications as to how the principles can be applied: it provides methods and techniques for evaluation. This section, too, has been arranged to correspond directly with the principles outlined in Section One. It is hoped that this will ensure that the information presented is as accessible as possible.
  • One last word of introduction: While this paper has been written mainly for workers in the social development field, it is intended that the information supplied may be as effectively utilized by others concerned with developing projects and programs, whether in the field of economics, or education, or any other. It is important to realize that while many of us hold that the principle of ACCOUNTABILITY is an essential component of the work with which we are involved, exercising accountability is impossible without adequate and effective evaluation procedures.
Section one:

 

Principles

 

  • Evaluate regularly and continuously, for without evaluation there is no development.
  • Self-evaluation is the best type of evaluation. One must evaluate oneself.
  • Nonetheless, regular – although not necessarily frequent- assistance of an “outside consultant” is also necessary.
  • Evaluation is conducted in terms of the goals which we set for ourselves; thus, the setting of goals is a prerequisite for effective evaluation.
  • It is essential to evaluate not only a specific project but also the program/organization which contains it and to evaluate the project in terms of the program.
  • Evaluation cannot occur without planning; the two are opposite sides of the same coin. Planning informs the evaluation process, and evaluation is undertaken in order to inform future planning.
  • The search for accurate information, and the analysis of that information, is very important for adequate evaluation.
  • “Accurate information” includes financial information. Financial accountability is a vital part of the evaluation process.
  • Evaluation of the functioning of an organization/project is as important as evaluation of achievements for an evaluation process which does not take into account the maintenance of the organization/project with respect to the people involved is insufficient and misleading.
  • It is as important to evaluate process as it is to evaluate product; it is as important to evaluate qualitative change as it is to evaluate quantitative results.
  • For evaluation to be successful we need to spell out the criteria which we will use to judge whether our goals have been achieved or not.
  • The concept of participative evaluation, whereby clients of an organization’s development activities are helped to participate in the evaluation process, is an important and developmental element in evaluation.

 

Procedures are Developed and Implemented, Where Necessary, in Accordance with Organizational and Professional Ethics 

 

Business organizations often develop several different policies, rules and guidelines for governing their operations. While home-based or sole proprietorship businesses usually require fewer policies, larger organizations use these guidelines to manage employee behavior. A code of ethics is a common organizational policy used in business organizations. The code of ethics policy usually sets the minimum standards for business owners, managers and employees to follow when completing various business functions.

Facts

In a small business, a code of ethics is usually based on the business owner’s personal morals or values. As the business grows and expands, the ethical values can be implemented into the business’ organizational mission or values statement. This statement helps provide companies with a compass to guide the organization through the business environment. Companies often refer to the mission or values statement when guidance is needed regarding questionable situations.

Improve Business Relationships

A code of ethics can help companies improve business relationships. Ethical values are often designed to provide guidance when working with other companies and the general public. These values dictate how businesses handle contract negotiations, customer questions and feedback or negative business situation organizational and professional ethics.

Prohibit Inappropriate Behavior

Many companies use a code of ethics to prohibit inappropriate employee behavior. Inappropriate behavior can include lying to managers or clients, engaging in fraud or embezzlement, failing to meet specific operational standards or other similar conduct. A code of ethics can help employees understand why these actions are inappropriate and the reasons companies expect better behavioral performance. Companies may also limit their legal liability from poor employee performance by using a code of ethics.

Hold Management Accountable

Owner, director or upper-level management accountability is an important function of a company’s code of conduct. These individuals are usually required to exhibit honesty, transparency and integrity in their daily roles. Not only do these actions set the company’s ethical tone, it also keeps individual owners and managers accountable for their actions. Allowing an unethical manager free rein in a business capacity can create difficult business situations that overextend the company’s resources.

Considerations

Companies often use refresher seminars to continually educate and inform employees about the importance of ethical behavior. The seminars may also provide information regarding new business policies or past violations of the company’s code of ethics. This information ensures that employees have a clear understanding about the importance of ethics and why they should adhere to the company’s policy. Companies can use an employee or third-party agency to conduct these refresher seminars or meetings.

Basic elements of an ethical organization

There are at least four elements which exist in organizations that make ethical behavior conducive within an organization. The four elements necessary to quantify an organization’s ethics are: 1) written code of ethics and standards; 2) ethics training to executives, managers, and employees; 3) availability for advice on ethical situations (i.e. advice lines or offices); and 4) systems for confidential reporting.[3]

Good leaders strive to create a better and more ethical organization. Restoring an ethical climate in organization is critical, as it is a key component in solving the many other organizational development and ethical behavior issues facing the organization.

Ethical system implementation and consideration

The function of developing and the implantation of an “ethics system” is difficult, because there is no clear, nor any singular decisive way that is able to be presented as a standard across the board for any organization – as due to each organization’s own culture. Also, the implementation should be done accordingly to the entire areas of operations within the organization. If it is not implemented pragmatically and with empathic caution for the needs, desires, and personalities (consider the Big Five personality traits) of the stakeholders, or the culture, then unethical views may be taken by the stakeholders, or even unethical behavior throughout the organization. Therefore, although, it may require a great deal of time, stakeholder management should consider the Rational Decision-Making Model for implementation of various aspects of an ethical system to the stakeholders. If implantation is done successfully, then all stakeholders (not just the leadership) have accepted the task of benchmarking not only the implantation of an “ethics system”, but each stakeholder feels empowered for the moment-to-moment daily decisions that are ethically positive for the organization. When executed timely and with care, then all stakeholders (including leadership) will have at the very less a positive and functional success as the basis for continuous improvement (or kaizen) to present as the norm for its organizational ethics.

End

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