Practice of Ethics in Business

 Organizational ethics are influenced by national culture and top managers.  Organizational ethics deal with the behavior of-  1. Organization to its employee  2. The employees toward their organization  3. The employees and organizations toward other economic agents

Treatment of Employees by Their Organization  Hiring: Hire the best people to provide ample opportunities for skills and career development  Interviewers must exercise care to avoid thoughtless comments that may hurt or insult the person being interviewed.  Job Discrimination: Employers should not treat an employee unfairly or differently based on the employee’s sex, age, race, color, religion, national origin etc.

Treatment of Employees by Their Organization  Nepotism: Today it is more common for companies to prohibit the employment of relatives or at least to restrict such employment, to avoid situations in which one relative is supervising another.  Wages and Benefits: Firm should pay fair and just wage to its employee.

Treatment of Employees by Their Organization  Factors that can provide the well intentioned manager with some ethical guidelines and help minimize the chances of setting unfair wages and salaries are:  What is the law?  What is the prevailing wage in the industry?  What are the employers financial capabilities?  What can an organization afford to pay?  What are other employees inside the organization earning for comparable work?

Treatment of Employees by Their Organization  Working Condition: Working condition includes health and safety, day care and maternity leave, new heath challenges.  Industrial accident are caused by inadequate worker training, lack of understanding of the job, improper tools and equipment, hazardous work environment, poor equipment maintenance and overly tight schedule.  Employees have a legal right to refuse work when it exposes them to imminent danger, and their employers are forbidden to reprimand or otherwise retaliate against them for doing so.

Treatment of Employees by Their Organization  Organization can provide training, redesign job of the employees and take other preventive measure to reduce the health problem of the employees.  Employees have the right to get maternity/paternity leave and organization should provide day care services for workers with children.  Privacy: Employees have the moral right to privacy. Computer technology, mandatory drug testing, organization’s effort to control the lifestyle of the employees influence employees right to privacy.

Moral Rights of Employees Workers employed by a business organization have several types of rights they can exercise against their employer 1. The right to employment 2. The right to equal opportunity 3. The right to organizing unions 4. The right to have assurance of job security 5. The right to strike 6. The right to equal treatment 7. The right to treatment with respect 8. The right to physical security and privacy

Treatment of the Organization by its Employees  Regular and timely attendance to the workplace  Efficient and skillful work attempts with a sense of belongingness  Provide quality performance  Maximum utilization of working hours honestly and efficiently (Avoid cyberloafing)  Protection of organization’s property from theft, overuse, unauthorized personal or family use

Treatment of the Organization by its Employees  Maintain organization’s trade secrets  Work accomplishment should not be harmful or injurious to the fellow workers  Refrain from heavy drinking, heavy gambling in the workplace  Avoid political talks, very personal or family gossiping in the office/ factory premises

Treatment of the Organization by its Employees  Refrain from any type of insider trading, information selling  Take no bribes  Prepare no false voucher  Adequate notice be served before leaving the job

Treatment of Economic Agents by Organization and Its Employees  An organization should fairly and honestly treat their economic agents such as stockholders, suppliers, dealers, competitors etc.  Investors: - Provide appropriate and true information - Manage the organization efficiently to protect shareholder’s investment - Avoid insider trading

Treatment of Economic Agents by Organization and Its Employees  Suppliers: - Honoring the term of business arrangement, such as paying for goods on time -Business should honest with his suppliers about shipping received - Only making claims if items are indeed missing

Treatment of Economic Agents by Organization and Its Employees  Consumers: - Product quality must live up expressed and implied warranties -Price should be just - Product labeling, packaging should provide clear, accurate and adequate information