Ethics

Organizational Ethics

PPA 301

Dr.

September 12, 2011

Organizational Ethics

Ethics can be defined as having morals, good character, doing the right thing, and living with principles. Most children are taught the Golden Rule of treating others the way they, themselves would want to be treated. A simple lesson taught in youth that seems to be forgotten as people grow into adults. In most religions there are rules and guidelines for followers to abide by regarding: lying, cheating, murder, greed, and stealing and yet these rules are broken without much thought to the consequences. What makes a person act unethically? Greed? Power? Or, is it the thrill that they won’t get caught? Losing ones ethics start small, one bad choice at a time. With each infraction of the rules comes a confidence that know one will ever know the truth or care. Others will turn away and not get involved if it doesn’t affect them directly. Practicing ethics is a system that affects everyone. Each individual is responsible for their own actions as well as not turning a blind eye and not speaking up when others fail in their choice. If leaders can set the examples and live by what they preach, then others will follow in their footsteps.

Why are ethical issues a major concern in organizations? It is big news and unfortunately becoming more common in the news of stories about CEO’s of big companies being indicted and imprisoned for some unethical and unlawful act involving abuse of the company’s assets. “Experts estimated that U.S. companies lose about $600 billion a year from unethical and criminal behavior,” Kinicki & Keitner, 2010, (p23). The financial costs to the company and to the taxpayers for financial costs of the judicial system is growing. Some companies don’t recover from the burden and their ruined reputation. Employees and customers lose faith and trust in the organization. The other ramifications of these unethical acts are the effects that it makes in...