Ethical Organisation

An ethical organisation is defined as a group, two or more number of people whereby the members share similar values of ethical standards in every area of their operations regardless of the type of organisation they take part in i.e. for-profit or not-for-profit organisations. Ethics serve as a strong foundation and key component for organisations in achieving success and sustain in for the long-run. Several factors influencing an ethical organisation include Openness, Transparency, Objectivity and fairness, Integrity, Trust, Values and last but not least, effective communication.  

Openness is the "best way to disarm outside suspicion of companies' motives and actions" (Cadbury, 1987). While disclosure does not improve any relations, operating an open system is the basic element to those relations. Openness is desirable in arriving at decisions on which arguments are invited and the views are being known. This will also improve the power of judgement for each member, learning from the experience. It is necessary that businesses are open about their actions to the society and this is simultaneously trust building. Transparency is described as “information visibility”, in particular, information is readily accessible, intentions and behaviours are deliberately revealed “through a process of disclosure”. Disclosed information may indicate that a particular company is not only abiding the legal requirements by law but also meeting stakeholder’s expectations such as environmental care and sustainability development. Fairness, Integrity and Values are social norms expected in each member in the organisation and the organisation as a whole. However, in order to bring out success, it is important that code of conduct is communicated effectively and discussion and negotiation between employees and management are encouraged.

Code of conduct is another component to understand in portraying an ethical organisation. It can provide a basis set of guidelines for workplace...