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ETHICAL ISSUES 7

Ethical Issues

OL-7005B Ethical Leadership

Dr. Banerjee

17 May 2020

Ethical Issues

The ethical stand of an organization determines its conduct and policies. Ethical issues are either known as the business ethics or corporate ethics. Ethical values apply to all aspects that determine the conduct of the organization and the way the management and employees in the organization relate to each other. The field of organizational ethics can either be descriptive or normative. The quantity and range of ethical issues in an organization reflect the degree to which the working of the firm is perceived to be at odds with non-economic social values. Organizational ethics emphasize on the commitment of the organization in promoting non-economic social values. They are interlinked to the ethics of the individuals who work in the organization, the customers who buy goods or services from the company, as well as the general society.

The concept of organizational ethics is not a phenomenon that emerged recently. Ethical codes have been in use for centuries and have been evolving with the development of human civilization. Ethics normally deals with the right actions of organizations and individuals. Beginning in the 1980s, organizations started declaring their ethical stands with an aim of distancing themselves from the corporate scandals that used to happen at the time (Koehn, 2017). With time, the concept of organizational ethics has been interpreted differently by different people. However, the concept generally involves knowing what is right and what is wrong in the workplace and ensuring that individuals do what is right regarding the products or services that the company deals with and regarding their relationships with stakeholders. Paying attention to organizational ethics is crucial, especially during periods of fundamental change (Nuseir & Ghandour, 2019). During times of fundamental change, values that may have been previously taken for granted may now be strongly questioned. Many of these values get abandoned.

The company that I would love to work for is Chipotle Mexican Grill, simply known as Chipotle. This is a company that deals with the development and operation of fast-food restaurants that make fresh Mexican foods throughout the US. Examples of foods that the restaurant chain makes are tacos, burritos, salads, and burrito bowls (Abutalibov, Mammadov & Guliyev, 2017). These foods are prepared using classic methods of cooking. Steve Ells founded this restaurant chain in 1993, with its headquarters in Newport Beach, CA.

Chipotle is a company based on ethical values and integrity. Specifically, the company places a greater emphasis on the values of being real and honest. This implies that employees are expected to always do what is right, even in times when no one is watching them. These values determine the way everyone in the organization does or does not do business. Everyone in the organization is expected to use good judgment, conduct themselves ethically, and avoid situations that may put them in perceived conflict of interests. The company requires that all the transactions that its stakeholders participate in must always be ethical and within the law. When in doubt, employees are required to consult their superiors or the compliance department so as to be informed about the right course of action (Nuseir & Ghandour, 2019). In such instances, the person or department being consulted determines whether a conflict of interest exists and establishes the most appropriate controls that should prevent abuse.

My desire to work for Chipotle started a long time ago, way before I joined college. Every time I visit any of the company’s establishments, I get awed by the way the employees conduct themselves ethically. On the company’s website, they have uploaded a PDF document that clearly explains the stance of the company regarding various issues that may cause ethical concerns. On the document, it’s clear that the company takes ethics seriously. The document identifies the key values or principles that the company wishes to be held accountable to and which they are committed to. The company then translates these values and principles for all employees so that they can use them to make critical decisions such as in instances when they are faced with ethical dilemmas. The core values that the company is committed to are fairness, transparency, openness, trust, respect, integrity, and responsibility.

One of the most important tasks that a leader should focus on is shaping an ethical climate for the organization. Today, organizations operate in an environment that is highly competitive and dynamic. This forces them to come up with measures that will enable them to adapt their structures to cope with this environment (Bowie, 2017). However, the problem with initiating change initiatives is that employees may oppose the initiatives because they may not be ready to change. While leaders have a role to shape the ethical environment of an organization, the willingness of employees to act ethically is also important.

Leaders are one of the most crucial sources of information in an organization. They play a vital role in shaping the culture of the organization. The ethical culture of an organization describes the values that all parties in the organization share. These values are guided by procedures, practices, and policies. These elements inform employees about behaviors that are discouraged, supported, expected, or rewarded. Ethical leadership have distinctive characteristics that play a key role in influencing the ethical environment of the organization. For instance, servant leaders promote the value of team effectiveness (Koehn, 2017). For organizations to be successful, the leaders must lead by example and show their juniors the importance of ethical conduct for the success of the organization and for their own career development and growth.

In the world of business, it would be right to say that most work is done by teams. Unfortunately, most teams tend to be mediocre, or not that great. Sadly, many members of these teams would give dreaded details regarding the conduct of some members of their teams. Such destructive behaviors may include finger-pointing, sabotage, or gossip. There are a number of steps that leaders can follow to stop these destructive behaviors. The first step is setting clear behavioral expectations. When a leader is working with employees that may be toxic, it helps to make it clear to them how they are expected to behave (Bowie, 2017). The leader should stay strong and state what behaviors are tolerable and which ones are not. The employees should be made to understand which behaviors are considered to be acceptable and appropriate. Further, the leader should ask the employees whether they agree to the stated behavioral expectations.

Secondly, leaders should model the behaviors that they would wish to see. When interacting with employees, the leader should engage with them using the kind of behaviors that they would wish to see from them. For instance, the leader may be forced to manage his or her anger issues because sooner or later, they would wish to see the employees who have anger issues changing. The leaders should also learn to appreciate and knowledge positive behavioral change (Nuseir & Ghandour, 2019). The third step would be setting limits or boundaries. These limits should clarify personal and organizational boundaries. The limits or boundaries clarify the extent to which one’s conduct would be tolerable. When an employee crosses the limit or boundary, they should be called out on their behavior. The fourth step is asserting oneself (Abutalibov, Mammadov & Guliyev, 2017). This is done by expressing what the leader expects other people to treat him or to behave when dealing with him. Finally, leaders should have a support network. Dealing with employees that have destructive behaviors can be stressful. It can make someone feel physically, emotionally, or mentally exhausted. Thus, a leader should learn to share what they are going through with their supportive workmates or superiors. These people could serve as useful confidants who may help him or her deal with the situation at hand.

There are numerous differences between integrity organizations and compliance organizations. For instance, compliance organizations believe that the conformance of employees should be guided by standards that are externally imposed while integrity organizations believe that conformity should be guided by standards that have been chosen internally. Another difference is that in compliance organizations, leadership is lawyer-driven while in integrity organizations, leadership is controlled by the management (Bowie, 2017). The core elements of an integrity-driven organization are fairness, honesty, self-drive, responsibility, and transparency.

I believe in universal ethical standards. This is because universal standards of ethics would ensure that individuals and corporations conduct themselves in a manner that causes minimal harm to others. This would revolve around issues such as confidentiality, privacy, the feelings of other people, and the reputation of others (Nuseir & Ghandour, 2019). A universal code of conduct would ensure respect for diversity and the acknowledgement of minority groups. This is a crucial step in today’s business world.

References

Abutalibov, R., Mammadov, R., & Guliyev, S. M. (2017). Ethical issues in business administration and their effects on social and economic development. In Sustainability and Management (pp. 152-160). Routledge.

Bowie, N. E. (2017). Business ethics: A Kantian perspective. Cambridge University Press.

Koehn, D. (2017). Ethical issues in human resources. The Blackwell guide to business ethics, 225-243.

Nuseir, M. T., & Ghandour, A. (2019). Ethical issues in modern business management. International Journal of Procurement Management, 12(5), 592-605.