Creating ethical organization
Most corporate mission statements today are too long to remember, too obvious to need stating, too clearly tailored for regulators, or too distant from day-to-day practices to meaningfully guide employees.
Good judgment is enhanced by reflection on previous decisions and review of what might be learned with the benefit of hindsight. This dramatic effect occurred even though the financial incentives were identical.
Good leaders produce good followers; but if employees in the middle of the organization are surrounded by coworkers who are lying, cheating, or stealing, they will most likely do the same, regardless of what their bosses say.
Ethical practices in organisations
People tend to underestimate both how positive they will feel about connecting with others in a prosocial way and the positive impact their behavior will have on others. Explicit values. Perhaps most important, depressive symptoms dropped dramatically among both groups compared with the control condition, a result that continued for at least three months beyond the initial one-month intervention. It is one piece of a broader system that draws attention to ethics. Although some argue that people are innately inclined to behave unethically out of self-interest, 4 our research reveals that organizational ethics matter significantly to most employees and managers, and that people want to work for employers whose values and principles are aligned with their own. Over time, a consistent mishandling of these micro-level issues can spiral into macro-level corporate scandal. The actions — and inaction — of dozens of employees at all levels, across divisions and countries, contributed to this disaster, including the software engineers who designed the cheating device, the workers who installed it, the managers who approved the fitting and testing, and the members of the senior leadership team who either orchestrated the scam or simply turned a blind eye. You might be relying on that person to save your life. Context is not just powerful, researchers have learned; it is surprisingly powerful. Along with earning an income, employees care about doing meaningful work, making a positive impact, and being respected or appreciated for their efforts. Psychology and work: Perspectives on industrial and organizational psychology.
An ethical organization is a good institution. Context is not just powerful, researchers have learned; it is surprisingly powerful. The question I should have asked is not what is the rule, but what is the principle.
When asked how important such incentives were to employees, customer service managers at one Fortune firm tended to dramatically underestimate what they meant to their reports. That may sound simple just pay people for acting ethicallybut money goes only so far, and incentive programs must provide a variety of rewards to be effective.
Set up seminars, workshops, and similar ethical training programs. Yet people in the midst of these situations tend not to recognize the influence of context.
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