Ethical Issues in Business Essay

The issue of faithful manner is 1 of the vellicate ch aloneenges facing organizations today. A unspoilt definition of morals includes the thought of doing what is morally acceptable or what is good and right as opposed to doing what is bad or wrong (Sims, 1992). But why are these issues a concern for organizations? What quarter they do to promote honest demeanor from their employees? Organizations should be concerned with ethical behavior for many reasons.Even though ethical decisions are not al ports black and white, ethical behavior is important to the organization beca handling ethical behavior enhances the corporate re borderation, helps attract talented employees, and enhances the corporate image. First, there is raise that profitability is enhanced by a reputation for honesty and corporate citizenship (Kinicki, Kreitner, 2009). After all, the number one reason for business is to make a profit, thus returning value to its share holders. Consumers are more than likel y to buy goods or services from a reputable company then one with a reputation for unethical behavior.The track Company in the 1970s was a good example of unconnected sales due to an unethical decision. When the Ford Pinto was hit in the rear, the gas tank would often explode. Ford was slow to acknowledge the problem. By the time Ford admitted that they had a flawed design, many consumers had stopped purchasing Fords. Another reason organizations should be concerned with ethical behavior is its ability to attract talented employees. In a recent survey eighty three percent of those polled rated a companys playscript as very important when deciding to accept a job offer (Kinicki, Kreitner, 2009).Hiring and keeping innovative, productive and talented employees is essential for businesses as they attempt to compete in this global economy. Without talented people, organizations will be at a disadvantage when it comes to competing for future business. Being good corporate citizens is another reason that organizations should be concerned with ethical behavior. Businesses have many stakeholders that rely on them. These include shareholders, current and former employees, customers, suppliers and communities where facilities are located (Kinicki, Kreitner, 2009).Businesses are more than just profit centers today. When reservation decisions, businesses must consider the social, political, and environmental make as well as the profitability aspect. The challenge to be a good corporate citizen has put the emphasis on being an ethical company, with every decision made. Ethics is an important organizational issue, exclusively ethics starts with the individual. We make decisions based on a combination of our personality characteristics, values and moral principles (Kinicki, Kreitner, 2009). all(prenominal) of us learns what is right or wrong as we grow up.Our moral compass is set by what we learn from parents, teachers, grandparents, siblings and society. We take ou r observations and experiences and use them to form our opinion as to what right and wrong means. We then use our moral compass to make decisions as we become employees and managers of business. Organizations should do everything necessary to address ethical issues up front. If they are unsuccessful in eliminating issues before they happen, organizations should be forthright in communicating any feasible wrongdoing. Consider an example shared recently in the Wall Street Journal.Defense contractor DynCorp global Inc. recently admitted that it may have violated Foreign Corrupt Practices when it tried to speed up the issuances of visas and licensing cogitate to work for the U. S. government overseas (Cole, 2009, p. B. 4). This possible violation, if legitimate, was committed by sub-contractors working for DynCorp. By proactively disclosing possible outlawed behavior, DynCorp is sending a message that it will not tolerate unethical behavior by its employees or sub-contractors. But o rganizations can do more than address possible issues after they occur.They can impact ethical behavior in a positive manner through various means. By utilizing different measures organizational culture can be affected in a positive way. Ethical behavior starts at the top (Sims, 1992). The ethical tone of an organization is set with its top managers. How top management acts when faced with an ethical dilemma, strongly effects how the rest of the organization will react when they face questionable issues. By walk of life the walk and talking the talk, organizational leaders can show their subordinates what they expect in the area of ethics.Actions and row by top executives will set the tone for the entire organization. Another way an organization can positively affect ethical behavior is through a corporate code of ethics. This code of ethics should be shared with all employees throughout the organization. The company that I work for emails the code of ethics to all employees annua lly. A high ranking executive will send the code out for all to read. from each one employee then is required to electronically sign indicating that he or she understands the code. This annual process sends the message that unethical behavior will not be tolerated.Organizations have much to do to be a productive, lucrative entity in todays global economy. Building an organizational culture that supports ethical decision making through active leadership, positive community actions, and employee involvement will go a long way toward meeting business goals. With a strong culture in place, organizations will be seen in a positive light by their customers, future and current employees, and by the communities where they do business. Being a good corporate citizenship will lead to a well liked, responsible, financially supported organization that can be competitive in the twenty first century.