Ethical Behavior In Organizations

737 Words3 Pages
With reference to relevant theoretical concepts and models, discuss the role of organizational leaders in fostering ethical behavior in organizations What are ethics? Ethics are the conduct of activity that governs a person’s behavior. They are not enforced by anyone but are expected to be followed by everyone. Ethics are not codified in law. Difference between laws and ethics Laws are imposed by government and have to followed by everyone but ethics are not imposed they are implied to be followed by everyone. Business ethics Business ethics is a set of moral standards and principles that guide behavior in the world of businesses. Business ethics deal with questions about whether specific business practices are acceptable. It comprises of…show more content…
Among several lawsuits, the one in 2003 struck, where Germany's High Court ruled Wal-Mart's pricing strategy as undermined competition. Allegations against wal mart show the best example of bad ethics. Types of approaches in ethics: There are 4 types of ethical approaches: Utilitarian approach: According to this approach, it is difficult to find out the problems faced by affected parties as this approach makes a decision of what is ethical and what is not according to the majority. This approach says what is good for maximum people is good for everyone, but the problem with this approach is it ignores the minority interest. Individualism approach: this approach overcomes the problems of the utilitarian approach as it concentrates on individual’s interests. According to this approach every person’s long term interests are taken into account before making any ethical concepts. Moral rights approach: this approach promotes fundamental rights which can’t be changed for any individual person’s interest. Justice approach: in this approach moral decisions are based on standards of fairness, equality and…show more content…
There are many influences like Conflict of interest: this means that the interests of one person should not take priority over the interests of the organization as a whole. People sometimes prioritize their interest over the organizations interest this can harm industry in some manner, which would be considered as unethical. A common example of this is bribery which has been associated with many employees of a company. Entry of new person in the organization: a new person either can bring positive environment or a negative one. But people are likely to adapt to a bad influence much faster than a good one. Every person has a different attitude and perspective. Thus with every new entry there comes a new way of seeing a particular
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