In the business world, ethical misconduct and ethical
business scandals are quite common, particularly in the areas where the
corruption rate is high and ethical values are not given enough importance in
society. Ethical misconduct, accountability, and transparency related issues
and scandals draw negative impact on the overall financial health and market
operations of the company. According to our analysis, the United Kingdom faced
a number of scandals related to these issues in the last few years. In the
report, two famous scandals related to ethical misconduct are discussed. Such
issues can be controlled if proper ethical standards are introduced in the
organization. For the purpose of ensuring ethical operations agency have to
develop policies related to the transparency. Procurement agency will make
changes in its practices to work on the transparency policies in the agency. However,
the procurement agency can promote accountability and transparency by adopting
a flexible environment and democratic leadership style.
In the
last few years, biggest ethics related scandals are presented by the electronic
and print media. In August 2017, the news was aired about the Google that one
of the employees of the Google known as James Damore wrote controversial memos based
on the content criticizing racial and gender related diversity in the
organization [1]. The content was
basically ethical misconduct of the employees that was written with the
intention to hurt the minorities and races. His voice against gender diversity
spread in the world of technology as wildfire and influenced the business of
Google in a negative manner. Google took a step against him and fired him from the
job. Damore took his case into the federal labor officials that calls the Chief
executive officer of the Google to resign from his position.
In September
2017, Equifax known as a credit-reporting agency in the Western countries
reported that personal data of 145.5 million consumers (living in the United
States) is hacked between the last three month duration including May, June,
and July. However, later it was proved that news was totally fake news, far
away from reality. Action taken by the Equifax presents the ethical misconduct
of the company as it influenced the US in a very bad manner. Because of the
potential negative impact generated by the fake news still, Equifax is a
subject of investigation for government agencies [1].
The United
Kingdom is working seriously on these issues by improving their system of
transparency and accountability, a fine example of this is presented below in
the graph. The following graph represents that how the UK is paying attention
to the accountability and transparency to bring down and eliminate the chances
of ethical misconduct by their employees in the future. The right steps taken
today will definitely make the United Kingdom free in future from such evil cases
of ethical misconduct, accountability, and transparency related issues in real
manners.
Figure 1 Accountability trend in the UK
in comparison to other European countries
Source: https://www.personneltoday.com/hr/ethics-at-work-2018-whistleblowing-misconduct/
Such
scandals represent the risk factor for the procurement agency working in the
United Kingdom that can be controlled through accountability. [2]. Organizational
policies and strategies related to the ethics, accountability, and transparency
influence the behavior and environment of the organization. Appropriate
policies developed to control employee’s misconduct, strong and fair auditing
systems can reduce the risk factor for the companies related to the ethical
scandals and ethical misconduct.
The
procurement agency will deal with the state and government. Therefore there is
the responsibility for the procurement agency to work on the policies and
practices that can ensure ethical operations. A wrong step or action taken by
the procurement agency can create trouble for the sustainability of the
government and state businesses in the international market and national
market. Therefore considering this fact procurement agency will develop
policies and work on the practices that will ensure ethical operations and help
out in achieving the target related to the transparency, accountability and
employees conduct. to ensure ethical operations at the procurement agency we can
develop several strategies as we can bring accountability by ensuring training,
empowering employees, clearly explaining expectations, and making the
accountable environment in the agency and in all the concerning areas.
To
ensure ethical operations at the procurement agency we can also encourage transparency
in the agency operations and practices. For this purpose we will develop
policies as open financial details, hiring the right employees, treating all
the employees equally, and eliminating the discriminations and stereotyping
from the agency. Agency will involve the employees in the decision-making process,
leaders will treat the employees in the right way without any type of personal
biases, employee's salaries and hiring will be totally based on the laws and
regulations set out by the government and state. Only working on these policies
and practices procurement agency can get the title of ethical operations for
all its operations. However, one more important aspect for the procurement
agency is to eliminate and reduce the ethical misconduct of the employees to
make the organizational operations ethical. Procurement agency will develop
strategies that will reduce the chances of misconduct and help out the
employees to perform their duties and responsibilities in the ethical ways and
support the ethical environment of the agency. Procurement agency will
introduce the auditing system to monitor the financial statement to eliminate
the chances of data manipulations and other ethical misconduct related to
financial data presentation. While for other operations PA will assign duties to
the managers to monitor the operations and report or take corrective actions for
ethical misconduct. As corruption is getting common in the world and there are
a number of ethical scandals in the UK, therefore procurement agency need to
work hard to present a clear and fair image in front of GCC member state.
Ethical
change in the organization can be ensured by appropriate leadership model.
Employees working in an organization follow up the instructions and orders of
the leaders. Leaders create the environment and culture of the organization
supportive for ethical operations or unethical operations. To bring strategic
ethical change in the organization, the Democratic leadership model is
required. In accordance with the democratic leadership model, managers create
the democratic environment in the organization that gives importance to the
employees of the organization in decision making.
Democratic
leadership model in the organizations ensures and promote accountability and
transparency that are essential to make the operations of the organization
ethical in reality. Therefore to bring sustainable change there is a need to
support the culture of transparency and accountability in the organization. Autocratic
leadership models cause to make the employees unable to stand against the
unethical and corruption related operations or actions taken by their
supervisors and managers of the organization. In the case of Equifax
organization, the organization faced an ethical scandal because of the fake
news presented by the employees of the organization.
Such
issues could be controlled through the increase of accountability and ethical
policies. However, initiatives as a strategic change in the culture of the
unethical organization can support the organization to eliminate the chances of
such issues in the future. The strategic change relates to corporate level
management. Corporate management develops policies and strategies on which the
organization work. Developing strategies related to ethics as providing
training sessions to the employees related to ethics and making the management
accountable for their actions corporate management of the organization can
ensure ethical practices in the organization. New strategies made by the
corporate level management of the company will help out in changing the culture
of the organization.
Culture
develops with the actions, values, thinking styles and norms of the employees
and behavior of the employee can be modified through the leadership. Therefore after
the whole discussion recommendations for the procurement agency is to focus on
the strategies and policies first if procurement agency wants to make changes
in the culture of the organization to support ethical environment and ethical
operations. While another recommendation for the procurement agency is to adopt
the democratic leadership model in the organization. Treating employees as an
asset and giving importance to the employees in decision making process can
make the employee loyal. Employee’s empowerment supports the employees to stand
against the unethical actions taken by their supervisors, subordinates, and
managers without having any kind of fear. However, while adopting this agency
should not forget that development of ethical policies at the corporate level
is essential. Employee’s empowerment in the organizations that do not have an ethical
culture and policies causes to promote unethical practices only rather than
ethical practices.
References of Leading and Managing People
[1]
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A. Hartmans, "The 17 biggest tech scandals of
2017," 30 12 2017. [Online]. Available:
https://www.businessinsider.com/biggest-tech-scandals-2017-12. [Accessed 21
12 2018].
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[2]
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R. Moss, "UK employees more lenient around ethics
but more likely to report misconduct," 13 09 2018. [Online].
Available: https://www.personneltoday.com/hr/ethics-at-work-2018-whistleblowing-misconduct/.
[Accessed 21 12 2018].
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