Ethics

Ethics is defined as the discipline that deals with what is bad or good and with moral obligation and duty. Ethical issues are of a major concern because businesses and organizations can easily become unethical, as evident in the numerous unethical corporate practices witnessed today. The world economy is one of the major reasons that a company could become unethical. Companies are more competitive than ever. With all companies wanting to increase sales, and increase revenue for shareholders, the probability of a company conducting unethical practices is high. Numerous challenges are quickly approaching organizations in the present century. These challenges influence ethical behavior of organizations. Some of these challenges include global competition, increased quality, managing diversity in the workplace, and new technologies. In a highly competitive market it can be easier to make decisions that could be deemed unethical. “In the absence of globally accepted moral rules or "hyper-norms," many traditional business ethicists (stockholder theorists) have long argued that the best one can hope for in terms of "global corporate citizenship" is compliance with national legal standards.” (White, 2009).

In an organization, there are numerous individual influences that can impact ethical behavior, particularly the leadership of an organization. Ethics is primarily concerned with the effect of actions of an individual on other people. Leaders are required to set a moral example for members in an organization, and to identify the activities in an organization that will have a negative impact to societal values. Effective leadership is giving employees the power to make decisions. The current world economic conditions and the ever changing marketplace determine what types of decisions an organization will make. Employees will make good decisions if they are treated well and see the

Ethics 3

senior leadership making good...