A impart of case studies of ethical problems assorted organizations have encountered show that many common ethical problems that organizations find themselves facing arise from individuals protecting their own financial benefit and/or the short-term economic goals of their organizations and not protecting other key stakeholders of the business or organization. Organizations can avoid serious consequences by inspecting the consequences of their actions to six key stakeholders, including; business partners, customers, employees, opinion formers, society and authorities (Trevino and Nelson, 2005, p. 196). By analyzing decisions using these six groups as a guide; "one can begin to recognize how a variety of calamities might work on a company's credit and the value of its brand, and how much those calamities might cost" (p. 196).
Webster University
By reviewing how fellowships have both effectively and ineffectively responded to severe ethical dilemmas, leaders of organizations can recognize 8 steps for preventing ethical dilemmas in their own organizations.
1. Top down accountability for ethical behavior must exist within an organization. The head of the club must take accountability to conduct the ethical behavior of the organization. This accountability cannot be delegated. Furthermore, this accountability cannot be downplayed to a lesser role than other key leadership responsibilities, such as, short term profits. Top leadership must set the ethical tone of the organization. They must impart their vision regarding ethical behavior to employees often and with as much emphasis and clarity as they do with other club goals. The leader cannot leave the ethical tone of the club to chance or to others within the organization.
2. Organizations must manufacture a code of ethics for the organization. This code should be industrialized with input from a broad section of individuals within the organization. It should be distributed to every member of the club and referred to often in training and other types of transportation to employees so that it is not just a hand-operated that sits in a file but is seen as a valid document for answering questions regarding what is thorough and not thorough as thorough behavior within the organization.
3. Policies must be established and reinforced in the club regarding how to report ethical abuses. Employees must understand how to report problems and know that they can do so without fear of retribution. Care must be taken that this is not just a theoretical exercise but that examples of real reporting be given and employees are rewarded for reporting ethical dilemmas.
4. Ethical accountability must be taught to members of the organization. This must be done in assorted settings along with on boarding of new employees, ongoing workshops, business meetings, round-table discussions with leaders, newsletters, websites, etc... Training should consist of case studies where employees must eye and discuss ethical dilemmas that they realistically might face and inherent actions they should take. These case studies should consist of real cases that have occurred or theoretical cases that may occur in the club so individuals can understand the proper way to handle real life issues. Employees must clearly understand what they have a shared personel ethical accountability to each of the stakeholders along with the accountability of the organization.
5. Practices must be incorporated to ensure that discussions regarding ethics are included in the decision development process. For example, a "devil's advocate" should challenge decisions in order to eye either unforeseen stakeholders may be jeopardized as a follow of the decision; or decisions should be reviewed by an ethics committee or division to rate either other stakeholders may be at risk. The convention of questioning decisions and openly exploring their consequences must be encouraged and rewarded.
6. accountability for ethical behavior must be taken seriously by all levels of the organization. Unethical behavior should be punished and not allowed to continue. Ethical behavior must be rewarded. doing administration systems should consist of ethical behavior as well as other key aspects of job performance. Those higher in an club should be punished equally as those lower in the organization. In fact, it could be justified to punish those higher in the club more severely than those at entry level positions because they should know great and because of the example it sets for others in the organization.
7. Organizations should act swiftly to safe stakeholders when dilemmas occur. Contingency plans should be made for dealing with a emergency in order to act swiftly to safe stakeholders in times of emergencies.
8. Members of the club must know that their primary accountability is to defend and profess the high credit of the club at all times. Leaders should encourage standards of behavior to be set higher than what the law requires. What is legal should be considered a minimum standard; however, standards should be set higher than this minimum in order to heighten and safe the credit of the organization. Conduct below that thorough should not be thorough and raising the bar higher should be rewarded and recognized by senior leaders.
References:
Trevino, L., and Nelson, K., (2005). Corporate public accountability and managerial ethics. Hoboken, Nj: John Wiley and Sons, Inc.
8 Steps to preclude tasteless Ethical Lapses in Organizations
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