What are Business Ethics and how do they affect your Company?

Business Ethics have only come to the fore recently. They state that there is more to business than just making a profit. The new focus is also on how the business treats the environment, reacts with the local community and works with its staff to build a responsible company that is both sustainable and adds value to the people that it interacts with.

6 Steps for Ethical Leadership in nowadays organizations

Perhaps no other issue can so dramatically define the difference between management and leadership, than the attention the individual gives to ethics.

A manager must focus on the on the day-to-day aspects of keeping the department, team or organization running smoothly. This includes making sure the department is staffed appropriately, that the company is on target for sales, that production is on target, etc. A leader, on the other hand, must be able to set goals and aspirations for the team, set the tone of the organization, motivate and inspire the group, etc. Realistically, managers must be able to do both. They must inspire and motivate and they must ensure that the company operates effectively. Setting the ethical tone of the organization is a leadership function. The challenge for most managers is to spend enough time focusing on leadership functions without becoming totally consumed by the day-to-day operations of the team. Because “business ethics are about the morally functional nature of our business relationships…giving them the attention and care they deserve is crucial to an organization’s success” (Hamm, 2003, p. 1). I suggest six steps for a manager to take to lead ethically.

1. Reflect on Values. To focus the appropriate attention on the ethical tone of the organization, a leader must “draw on their own fundamental values and capabilities” in order to optimize their leadership potential (Quinn, 2005, p. 76). To do this, leaders must find time to reflect and identify their own personal moral compass as well as to ask themselves what are the key ethical questions and dilemmas facing their organizations. Just as a manager must take time to understand their market, budgets, production timelines, etc., an ethical leader must take time to understand his/her own personal values, the values of the team, what the value statements of the organization should be and identify the gaps that exist in aspired goals and current behavior within the organization (Hamm, 2003, p. 3).

2. Establish Trust. Build an environment of trust with employees in order to create an environment where employees feel free to discuss ethical dilemmas and issue with management.

3. Establish a Shared Ethical Vision. To ensure buy-in and commitment from the organization, include members from various levels of the team to help create a “Code of Conduct” that is aligned with the Ethical Vision of the organization (p. 3).

4. Communicate the Ethical Vision and Code of Conduct. A leader must ensure that the vision and code is communicated to everyone within the organization. This can be done through policy manuals, training events, one-on-one and team coaching, newsletters, team meetings, etc… “Communicating the program frequently is another important success factor (p. 3), as is establishing a way for employees to communicate their concerns back to management in a safe and confidential manner.

5. Act. To be effective, the leader must show that all the organization is serious about ethical behavior. All reports of unethical behavior must be investigated thoroughly. Furthermore, all violators of ethical standards must be punished equally and justly throughout the organization, irregardless if the perpetrator is a senior executive or first line hire. In addition to punishing negative behavior, effort should be made to reward and recognize positive ethical behavior (Trevino and Nelson, 2005, p. 304). Just as a good manager knows that rewarding employees for reaching goals is important, the ethical leader will recognize that equal importance must be given to recognize those who exemplify ethical behavior within the organization. Acting also means leading by example by letting ethical behavior guide the actions of the leaders at all times. Doing so will help establish and sustain a culture of ethical behavior.

6. Monitor and Sustain Ethical Behavior. The leader must consider ethical leadership a key aspect of their role as a manager. It cannot be seen as a passing organizational fad. Effort must be made to gather feedback through surveys, focus groups, one-on-one interviews, etc., to identify employee concerns regarding the ethical environment where they work. This should be a continuous improvement process to identify concerns and to improve the overall ethical environment.

There are at least seven benefits for a manager to focus on being an ethical leader, including; improved public image of the organization, restoration or enhancement of investor confidence, prevention and reduction of criminal penalties, preventing civil lawsuits of employees who could not have their grievances met satisfactorily inside the company, improved employee retention, market leadership through by improved customer satisfaction and setting the example for others in the market

Improving organizational culture has become a necessity in today’s ever-changing business environment.

Improving organizational culture has become a necessity in today’s ever-changing business environment. People want to work for a company where they can be happy and balance work and life. Organizations who treat their members well have experienced a better retention rate, an increased productivity and a happier overall culture.Improving organizational culture can be a big challenge for the organization and its members. Focusing on a few important steps will help you get started in improving organizational culture Getting the right training for your employees is the first step toward improving organizational culture. The other important steps for enhancing organizational culture include: Analyze your organization’s existing culture and compare it with customers’ expectations and perceptions.Form a diverse team of interested and enthusiastic people in an organization to enhance the organizational culture.Get your team to discuss the current culture and explain the parts of the culture that are already great and need to be supported. Then create a vision of the culture you want to create, taking into account the entire current picture of the organization.Provide the appropriate training to the team members regarding the vision of the culture. Communicate to everyone to bring awareness about the team and organizational leadership, that this isn’t a band-aid, quick fix; but an ongoing, strategic intention to build a more attractive culture that fits the needs of the organization and that can improve its culture. Get the cultural team excited. Help the team recognize that not everyone else in the organization is going to think that these efforts are worthwhile immediately. Remember that enthusiasm is contagious. Do what you can to keep the enthusiasm of your team high. If their excitement falters, remind them of the vision they created to re-invigorate them. Culture improvement is like any other change, as it requires champions. The champion needs to be someone who is passionate about creating the new culture.Any change will have a greater chance of success with momentum. Thus, get started but be committed to building momentum and staying with it. It will be one of the most rewarding efforts you and your team will ever engage in and with this you can bring great improvement in your organizational culture.The above-mentioned lists are the specific tips that have enhanced and improved the organizational culture of various organizations. Obviously, these are not the only things you can do to enhance your culture , but these will provide you with a good starting point.