Examine The Major Influences On Organizational Ethical Decis

Examine The Major Influences on Organizational Ethical Decision Making

Discuss the major influences that organizational culture can have on organizational ethical decision making. From your personal experience in your current or past organization, provide one example of how organizational culture influenced the outcome of an ethical decision. Note: Please do not identify workplaces or leaders by name. Use the Internet to research a business leader that you believe to be an ethical leader. Next, examine the key traits and actions that the selected leader demonstrates in order to influence a positive ethical culture in the organization. Suggest two actions that a company could take in order to achieve a positive ethical culture. Use the following book as a reference, specifically Chapter 7: Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2017). Business ethics: Ethical decision making and cases (11th ed.). Stamford, CT: Cengage Learning. I have attached access to the book if you do not already have it, and chapter notes.

Paper For Above instruction

Organizational culture exerts a profound influence on ethical decision-making within businesses. It functions as the social and psychological environment of an organization, shaping employees' attitudes and behaviors, including their approach to ethical dilemmas. A strong ethical culture encourages integrity, accountability, and transparency, guiding employees to make decisions that align with moral standards. Conversely, a weak or unethical culture may promote complacency, misconduct, and a disregard for ethical norms, often leading to damaging decisions. The interplay between organizational values, leadership conduct, and established policies creates the contextual framework within which ethical decisions are made. Personal experience underscores this influence; in a previous organization, the pervasive culture prioritized sales targets over customer well-being. Despite ethical concerns about aggressive sales tactics, employees felt pressured to conform to organizational norms, which sometimes resulted in questionable practices. This example illustrates how a culture that emphasizes performance metrics over ethical considerations can lead to unethical decisions, even when individual employees may initially possess strong moral principles.

The role of leadership is pivotal in shaping organizational culture and, consequently, ethical decision-making. A notable example of an ethical leader is Paul Polman, the former CEO of Unilever. Polman exemplifies traits such as integrity, social responsibility, and vision that influence a positive ethical culture. His commitment to sustainability and stakeholder interests over short-term profits underscored his leadership, fostering a corporate environment that valued ethical behavior and social impact. Polman’s actions, including transparent reporting and the integration of corporate social responsibility into business strategies, demonstrated his dedication to ethical conduct, inspiring employees and stakeholders alike. Such leadership cultivates trust and accountability, which are essential components of an ethical culture.

To foster a positive ethical climate, companies can implement specific actions. First, establishing comprehensive ethics training programs ensures that employees understand the firm’s values, policies, and decision-making frameworks. Regular training reinforces the importance of ethics and prepares employees to navigate complex situations responsibly. Second, creating channels for open communication where employees can report unethical behavior without fear of retaliation is crucial. Whistleblower protections and anonymous reporting mechanisms create an environment of accountability and transparency, encouraging ethical conduct throughout the organization. These initiatives, aligned with a culture of integrity promoted by leadership, can significantly enhance organizational ethical standards and decision-making processes.

References

• Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2017). Business ethics: Ethical decision making and cases (11th ed.). Stamford, CT: Cengage Learning.
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