Report on Principles and core values to ethical decision making

Ethical decision making mean the process of choosing and evaluation between different alternatives in a way that will be consistent with the principles of ethical decision making. While making any ethical decision, it is important to eliminate unethical options and thus choosing the best ethical way.

The procedure in ethical decision-making is;

• Commitment: a wish to perform the right thing no matter what

• Consciousness: having full awareness of the acts and the application of moral conviction in daily life behavior

• Competency: this is the ability to evaluate the given information, then developing the alternative and also evaluate the future consequence and risks that will be involved

To things are involved in ethical decision making that is balance and choice. It is way to eliminate bad choices in order to have good one remaining. So, while making any ethical decision it is important to question yourself that ‘what a reasonable man would do in such condition?’ there are 3 rules of management while making the ethical decision;

1. The rule of private gain. What if you are the only one who is getting benefit from this decision. Then you have to reevaluate in advance.

2. If everyone does it. In order to identify the unethical decision making. One should question that what would be the result of it, who would get hurt.

3. Benefits vs. burden. If the benefits do the results, are they going to outweigh the burden?

Following are some major ethical principles that can be used by individuals and organizations;

Utilitarianism: A Consequentialist, “Ends Justifies Means” Approach

The utilitarianism principle is actually something about holding that the action was morally right if it will create a great good for many of the people. This concept is broad in nature. Judgement is always required. “good for all” concern is basics of this principle. But sometimes it is difficult to measure costs and benefits of some action. This principle is widely used by many institutes and organizations and even by the general public. This principle generally used when sources lack, and there is conflict in priorities and no choice could meet needs of everyone.

Universalism: A Duty-Based Approach

This is the principle that look toward the welfare and risks of everyone when making decision or the outcomes. This principle takes seriously everything like including individual, their needs and even values on which they believe. “Universalism is the outward expression of leadership character and is made manifest by respectfulness for others, fairness, cooperativeness, compassion, spiritual respect, and humility.”

Rights: A Moral and Legal Entitlement–Based Approach

The roots of this principle are on moral and legal rights. Legal rights are surrounding the legal system and jurisdiction. On the other hand, moral rights are universal and, in every society, it is based on norms like rights to work and rights for not making slaves. 

Justice: Procedures, Compensation, and Retribution

This methodology has nearly four important components that are structured on the basis of tenets which are as follows

1. Equality should be practiced among all individuals

2. Equal opportunities and advantages should be provided to all persons (through their positions and offices) to the opportunities and burdens offered by the society and this is how justice is served

3. Practices based on fair decisions, methodologies and mutual consensus among the parties should be practiced

4. The process should be vigilant to enforce punishment to those who have caused harm and compensation and justice shall pe provided to those who have been the victim of any sort of injustice practiced against them

Virtue Ethics: Character-Based Virtues

The ethics of virtue relies on character which reflects the capabilities such as being truth spoken, talking on practical basis and wisdom, well-being and flourishing.  This principle is connected to the literature of universalism, there are many leaders’ characters and their actions which serve as an example of working of character-based virtue. Some certain limitations also reside in this ethic, some people might not come to an agreement about who is virtuous in multiple circumstances and result into refusing to use the character of that person as a principle.

The Common Good of Principles and core values to ethical decision making

“The accumulation of those situations of social life which allow groups of social and their individual members relatively thorough and accurate access to fulfillment of their own” is elaborated as the Common good. The decision handlers should acknowledge the intent and also the effects of their action which will brough up in a broader canvas and the common good of the many should always be in mind. A critical point of limitation when implementing this principle is “who analyzed regarding the common good in a situation where multiple parties don’t collaborate over whose interests are being effected”. In a society full of individualistic parties and capitalist societies it is quite hard in many circumstances for particular to let go of their interest 

Ethical Relativism: A Self-Interest Approach

Ethical relativism is not considered as a principle to be implemented or structured. It is a Process that many individual implements frequently. Ethical relativism holds that people set up their own standards of morality for judgement of their actions. The limitations which are clear of relativism involves following the binds spot of one or self-interest that can change and interfere with reality and facts. The follower who practice this law become true believers of their ideology and are mostly resulted of becoming a dictator.

References of Principles and core values to ethical decision making:

Buck, J., Moore J., Schwartz, M., and Supon S. (2001). What is Ethical Behavior for an Academic Adviser? The Mentor: An Academic Advising Journal, 3(1) . Retrieved April 23, 2004, from http://www.psu.edu/dus/mentor

Hojnacki, William. (2004). Three Rules of Management. In Managerial Decision Making, graduate course conducted in the School of Public and Environmental Affairs, Indiana University South Bend

https://opentextbc.ca/principlesofmanagementopenstax/chapter/ethical-principles-and-responsible-decision-making/

http://josephsoninstitute.org/

Article 2

Influence of corporate culture on business ethics

Abstract of Influence of corporate culture on business ethics:

In order to keep up with competitors, companies have to resolve some moral issues during difficult financial times. These issues can affect directly on ability of employee to make decision. Businesses do not focus much on employee ability to make ethical decision and to apply ethics in actions and decisions. This problem can get resolve by maintaining a corporate culture that will emphasize on ethics. Corporate culture can be a source of problems or it can be a solution and it is that factor that how people behave in an organization. In any organization, the role of management is very important and critical as they can directly influence employee and can be a role model for them in order to improve the behavior and culture of the organization. There are various methods that organization can choose to incorporate ethics in to the corporate culture to increase the percentage of those employee who work with ethics and the organizational performance could get more improved.

Introduction of Influence of corporate culture on business ethics:

When the financial crisis began, business has to face many challenges and then more forces can be seen that can affect the climate of the business. Greater financial burden on companies can be seen due to the actions of government like implementation of taxes or other environmental rules. Banks also decrease the amount of loans, as result of such increase burden on organization. And sometimes, sales reduce and there are very few tenders and contracts for the organization. These things can increase the pressure on companies. Companies have to face with many moral issues, in order to keep up with competitors or even for just surviving. Some previously mentions problems could have direct impact on ability of employee to make decision. There are various methods that organization can choose to incorporate ethics in to the corporate culture to increase the percentage of those employee who work with ethics and the organizational performance could get more improved. This paper is focusing on corporate cultures and how this could influence the ethics of the company. In any organization, the role of management is very important and critical as they can directly influence employee and can be a role model for them in order to improve the behavior and culture of the organization.

Ethics and ethical climate of Influence of corporate culture on business ethics:

There is a difference between ethics, moral or morality. Ethics are actually something like philosophy we identify that what is right and wrong, while on the other hand morals are the beliefs that community has about what is wrong or right. But general population use both terms simultaneously so there is no such difference between these two in this article. Ethics give us principles and rules on which people can act to make a decision in many situations. For example, a recent study in Russia by Jaffe and Tsimerman (2011) demonstrated that Russian MBA students and managers lack ethical principles (according to typical international standards) particularly when their behavior is compounded by an economic crisis. An ethical climate is referring to as an environment of proper behaviors. In an environment of the business, ethics or the ethical climate is something that leader or management of the company do and what their followers do in that company. We can conclude that, behavior and perceptions of someone in any organization are affected by 3 things; 1) organizational factors like ethical program 2) institutional factors like ethics legislation 3) personal factors that include moral development.

Codes of ethics of Influence of corporate culture on business ethics:

Institutional factors are one that influence the behavior and perception of the organization. The most related one is code of ethics it can be defined as “a statement setting down corporate principles, ethics, rules of conduct, codes of practice or company philosophy concerning responsibility to employees, shareholders, consumers, the environment, or any other aspects of society external to the company” in another way we can say that it is written form of any organizational values and ethical norms. In order to maintain and boost up the organization reputation, code of ethics play its role. Code of ethics create positive picture of the company. And sometimes in order to conduct business, code of ethics is required. They help in creating a sense of community in an organization. But just establishing these codes of ethics are not enough, giving the help of other ethical measures to this is critical that also include creating a corporate culture ethics.

Organizational culture of Influence of corporate culture on business ethics:

Organizational culture is something along which people behave ethically in any organization and also increasingly documented. It can be defined as “a phenomenon that arise from the belief and interactions f the member of the organization that also include their values and mutual understandings and their behavior that make the persons in that organization bonded together over a time”. Corporate values and cultural values then help to make a sense of identity and also increase the social stability. It is the organization culture that hold up the organization together and prevent it from falling apart. It helps the members in the organization to be committed and to give good outcome. So, it is important in the context of talking about ethics so there is a direct relation ship between ethics and corporate culture. Followings are the typical elements of the organizational culture;

Core values- it means that what the individuals of the company believe are the right way of the perception.

Stories- events that go around the organization conveying their core values.

Heroes- people from past and present that demonstrate the core values.

Symbols- it can include language, that every organization has as a symbol to convey their core values.

Rites and rituals- the organization with their own way of doing something like how they celebrate heroes and events that explain their core values.

Conclusion of Influence of corporate culture on business ethics

Ethical issues are giving some major challenges to the companies and there will be more problems regarding this in future. It is not easy to maintain good practices of ethics but still with a well design policy of ethics, ethical leadership and incorporating ethics into the strategies and processes, everything will become easier. This is the question that how could we develop any organization o cultures so it is the responsibility of every person within that organization like leadership. Strong leaders are those who pass on the aspects of ethics of the culture and use some strategies and s=decision making process, rewards, rituals, stories and heroes to make the culture strong in that organization. This article had defined the corporate culture and the role it plays in the ethics of the company. All this not only reduce the unhealthy environment that could began the financial crisis but it also helps in regaining the strength of financial system that actually caused it.

References:

ABRHIEM, T. H. 2012. Ethical leadership: Keeping values in business cultures. In Business and Management Review. 2012,vol. 2(7) s. 11 – 19. ISSN: 2047 - 0398. 

 BAYLEY, B. K. 2012. Organizational ethics training: A proactive perspective. In The Journal for Quality Participation. 2012, vol. 35, no. 2. s. 15-19. ISSN: 1040-9602.

GIBERSON, T. R., RESICK, C. J., DICKSON, M. W. et al. 2009. Leadership and organizational culture: Linking CEO characteristics to cultural values. In Journal of Business & Psychology. 2009, vol. 24, issue 2, s. 123–137. ISSN: 1573-353X. 

 JAFFE, E. D., TSIMERMAN, A. 2011. Do business ethics worsen during economic crises? A study of Russian attitudes. In Journal of Academic and Business Ethics. 2011, vol. 4. s. 1-13. ISSN: 1941-336X.

 NEL, P, NEL, L., du PLESSIS, A. 2011. Implications for human resources and employment relations practice with regard to the integration of corporate ethics programmes into the culture of organisations. In International Employment Relations Review. 2011, vol. 17, no. 2, s. 55-74. ISSN 1324-1125.

FUDGE, R. S., SCHLACTER, J. L. 1999. Motivating employees to act ethically: An expectancy theory approach. In Journal of Business Ethics. 1999, vol. 18, issue 3, s. 295-304. ISSN: 0167-4544.

CARLSON, D. S., PERREWE, P. L. 1995. Institutionalization of organizational ethics through transformational leadership. In Journal of Business Ethics. 1995, vol 14, issue 10, s. 829-838. ISSN: 0167-4544.