Introductions we take a look at corruption in the workplace, we would like to believe that there is a single sinister-little-man behind the green curtain of the organization, but as we look further behind the curtain, we find that It Is the organization itself that can become corrupt. Although we do find occasionally that in a corrupt organization we can stumble across one or two people who are behind most of the unethical behavior.
In this paper, we will be discussing some key topics in the ethical arena such as issue clarification; stakeholder analysis, addressing objections, values identification, Issue resolution, and resolution implementation. As you read this paper you’ll find facts and figures on what troubles corruption can cause and the many facets that surround It but also keep In mind that ethics Is an issue that runs deeper than something you can read on paper or in pixels; to find true ethics we need to look within. Defining Corruption of the biggest problems in corporate ethics is determining the definition of corruption.
There are two dominant perspectives from which corruption can be defined. The first definition Is from a legalistic perspective. This set of beliefs concentrates on the legal framework that determines whether an action is considered unethical or corrupt. The objective of this definition is to deter acts of corruption by imposing sanctions and fines. The second dominate definition takes into consideration the public inters. Corruption is behavior that harms the public interest or betrays the public trust that corporations have a moral duty to uphold.
When an Individual considers corruption, It Is Important to understand that corruption does not Just apply to a single character. The corrupt Individual alone Anton wreak havoc of monumental magnitude unless they find themselves within a corrupt environment where they can fulfill their devious intentions. Thus, in the professional world, an individual’s corruption can only be realized when the corporation is flawed. It is the faulty machinery of a defunct organization that allows corruption to fester and grow.
Throughout history, there have been several instances in which a corrupt Institution has acted In Illegal and unethical ways. More often than not, the Interest of Its employees and Investors were Jeopardized. Corruption among institutions is a phenomenon that will hold value well into the near future. When a corporation becomes corrupt, the chain of command becomes a hierarchy of deception and greed. Corporate executives always want to gain more prestige and control. To do this they must Implement guidelines they hope will generate profit.
When these ethical methods are unsuccessful, corruption and fraud become more powerful. In the case of the Houston, Texas energy giant Enron, the norm was not sufficient. United States Senator Byron Dorian said, “This is almost a culture of corporate corruption here. There are far too many aspects and perspectives to this story. ” An Internal Investigation of Enron operations revealed that the energy trading company prior to the eventual collapse of Enron, top ranked officials claimed that the financial health of the company was strong.
As a result, thousands of the company’s employees continued to invest in the company, many contributing their retirement pensions. Enron officials placed a freeze on employee trading; however, the same policy did not apply to them. The executives experienced the freedom to trade. In December of 2001 the company filed for bankruptcy protection. However, critics say Enron executives knew well in advance of the company’s financial dilemma. Enron officials mislead both its employees and investors on Wall Street up until the day the stock plummeted.
Stakeholders business organizations gain more power, they will be under increasing pressure to recognize and act upon their obligations and responsibilities for their stakeholders. Stakeholders are groups without whose support the organization would cease to exist (shareowner, employees, customers, suppliers, lenders, and society). They are also defined as any identifiable group or individual on which the organization dependent for its continued survival, including employees, customers, suppliers, key governmental agencies, shareowner, and certain financial institutions.
According to Weiss (2006), Stakeholder research provides one important set of measures of organizational performance. Stakeholder satisfaction is very important for organizational effectiveness. A successful organization should have four characteristics: satisfying all their stakeholders, resolving conflicts between stakeholders, finding ways to serve all constituencies at once, and being committed to higher purpose. Its role is set to provide society with needed goods and services, employment, and wealth creation in profits to increase the general standard of living and quality of life.
Ethical Plutocracies executives in handcuffs. A declining stock market with losses of approximately $8 trillion in investor wealth over a two-year period. Reform legislation to overhaul accounting procedures. Resignations at the Security and Exchange Commission. $1 billion in fines for Wall Street brokerage firms. They are men and women who you passed by in the hall every day. They are the people who dad your coffee and brought you your mail, and parked their car right next to you. They are people who were proud to work with.
They never did a bad thing to anyone but they also have a side to them that is shocking. Corruption reaching throughout corporate America all the way to the White House’s leading economic advisers. (Evergreen, 2005 ) Commitment and upholding company values is essential that each and every employee adheres to and that becomes a company’s most important asset. The reputation and integrity that each employee is what can make or break the foundation of a company. Evergreen, 2005) Integrity and the highest ethical standards go hand-in-hand.
When any company has an outstanding reputation, it is built on the actions of all the employees starting from the highest level to the newly hired ones. Future success depends, in large part, on the continued good Judgment of all employees. To be important. Many organizations believe that they can get people to “buy into” their stated core values. Once an organization has identified its core values then the next task is to find people who are already predisposed to sharing those values. This is where recruitment and retention come into play.
As an employer, you must first attract and then retain people who believe strongly in the same values that you do. (Evergreen, 2005) Companies need to be committed to hiring and promoting employees fairly, based on talent and merit. All employees are entitled to respect; to be evaluated and promoted based on their contribution; and to work free from harassment. This will make employees strive to achieve and maintain a positive work environment. A strong goal for any company to have is to attract and retain a diverse workforce that closely matches the diversity of the communities in which they work.
Without integrity, respect and accountability in the workplace it will be wide open for all kinds of corrupt activity to take place. Issue resolution:Business ethics in the workplace is about proportioning moral values for the workplace and ensuring behaviors are aligned with those values. Perhaps too often, business ethics is portrayed as a matter of resolving conflicts in which one option appears to be the clear choice. (Hardware, 2005) For example, case studies are often presented in which an employee is faced with whether or not to lie, steal, cheat, abuse another, break terms of a contract, etc.
However, ethical dilemmas faced by managers are often more real-to-life and highly complex with no clear guidelines, whether in law or often in religion. (Hardware, 2005) Ethical decisions are things we must make each and every day. The decision process can be a tedious process at times, but with the proper techniques, we can all become better decision makers in our personal lives, on our jobs, and in everything, we are thinking about doing. Organizational ethics is important to maintain for any company.
Many organizations will outline their code of ethics for employees to have an understanding of the type of behavior that the company expects at all times. In some situations, a company will fall under the guidelines of a specific governing body. (Hardware, 2005) Issue resolution is an important component in every successful business. This will allow members on a team to communicate, track, and bring all issues to closure. Successful use of the process ensures that employee concerns are addressed, increasing trust and open, honest communication among all employees.
Issue resolution is a powerful component where employees have a voice in expressing concerns. Addressing Objectifications are really two sides to addressing objections in regards to ethical or unethical situations. The first side is as an employee attempting to voice your opinion on an unethical approach in the workplace, for instance whistle blowing and the second side is how organizations as a whole deal with ethical situations. When it comes to addressing objections in a corrupt organization an employee whose objection might challenge authority will find great resistance among managers.
In a doing whatever it takes to keep those Jobs. Let’s say company X promotes unethical behavior by instructing their sales people to lie to the elderly in order to sell more insurance plans, if one of the sales people finally starts to grow a conscience about hat they are doing and feels that they need to complain to the manager, how much help do you think they’ll receive? In fact, wasn’t it the same manager that taught them this unethical behavior in the first place?
Do you think the manager is going to simply say, well I guess your right? No, they will most likely find a way to get rid of this ethical person. After all, there is no room in a corrupt organization for ethical minds. The best approach for employees would be to seek out advice from someone at the better business bureau. When it comes to facing addressing ethical issues as an organization no one understands this more than companies in the chocolate industry. Chocolate as we know is a treat derived from the cocoa plant.
The cocoa plant doesn’t grow on your front lawn if you haven noticed, it’s mostly grown in tropical locations; locations where the cost of labor can be found at very low dollar amounts. This is where we hit a dilemma. There are actually companies out there that are using child labor to do their dirty work for next to nothing in terms of payment. Sometimes these children are punished if they do not produce enough and who is paying the slave drivers for heir punishment on the children, you guessed it these chocolate companies.
As it turns out many companies are aware of this injustice and have taken measures to ensure that their employees are not children or slaves of any kind. Establishments like the fair-trade commission are getting involved and helping to straighten this problem out. Although there are still many large corporations out there that thrive off this corruption and simply turn a blind eye to it due to the extremely large paycheck they receive each month. Stores such as the Co-pop and Whole Foods go out of there ay to carry chocolate companies such as Divine and other ethical manufacturers.
It’s the Nestleg’s and Caduceus of the world who are still lining their pockets with tainted dollars. Divine prints its story on the inside of wrappers, which allows customers to engage firmly with the ethics of fair trade, explains head of communications Charlotte Berger (Halyard, 2007). Resolution ImplementationResolution can be defined as the act of resolving or determining upon an action or course of action, method, procedure, etc. (Dictionary. Com).
Equally, one could add that in order to determine a course of action, arties must be in agreement as to the process, plan, and/or method, thus resulting in a solution. Once there is a mutual understanding amongst the parties or groups, the implementation process can then begin. The resolution implementation process is perhaps the most important step towards corrective and preventive management. Subsequently, it is the proper approach to incorporating and maintaining ethical behavior within an organization, and, putting an end to company corruption. He abstract reasoning that “if no one is paying attention stealing, lying, and cheating is socially acceptable. In the case of energy giant Enron, the company was able to mislead employees, auditors, and stakeholders, having them believe that the business was in a better position than it actually was. From personal knowledge, the company was sax. N. Y enough to convince the world’s foremost provider of independent credit ratings, indices, and risk evaluation Standard & Poor’s that their financial situation was flourishing and in good standings.
Plan of action to avoid these circumstances would have been to allow less authority to all C-Level employees (CEO, COOP, etc. ) and hiring an outside company to monitor the company on a earthly basis. Moreover, by conducting shareholder meetings, distributing newsletters and other financial correspondence, and incorporating ethics and integrity throughout the corporate culture are further examples. Change management is an essential tool for an organization to have as they attempt to implement an ethics issue resolution and reduce the act of corruption.
Conclusion the corporate arena, individuals will be periodically “tested,” and subjected to circumstances in which personal and business ethics will come into play. Can I take a coworker’s lunch from the refrigerator and eat it without asking? Should I “borrow” my colleague’s business idea and call it my own? Is it fair to steal money from my “most prosperous” company because I did not get a raise? These are a few illustrations of how company corruption manifests itself in the workplace. Good decision-making is an essential requirement for leaders and managers.
While we are developing our professional skills for future advancement, we must keep in mind that the welfare of employees and coworkers, stakeholders, and the organization as a whole, are more important than our own needs. That said, it is imperative that we make decisions in the most ethical manner possible. Regardless of which specific method for ethical decision-making one chooses, there are six rudimentary steps that every good manager should consider and follow: (1) issue clarification, (2) stakeholder analysis, (3) values identification, (4) issue resolution, (5) addressing objections, and (6) resolution implementation.
