Week 2 Discussion Ethics in Organizations

Ethical Principles

Whether you work for a small or large organization, ethical principles matter. Media accounts in recent years include too frequent reports of once highly esteemed �rms damaged by their bad choices or questionable behavior.

While businesses have to meet economic expectations, they also have ethical responsibilities. Ethical principles are one way to assess those responsibilities. According to the Josephson Institute (2015), the six pillars of ethical character are:

Trustworthiness

Respect

Responsibility

Fairness

Caring

Citizenship

The Josephson Institute (2015) also identi�es twelve ethical principles for business executives:

Honesty,

Integrity

Promise-Keeping/ Trustworthiness

Loyalty

Fairness

Concern for Others

Respect for Others

Law Abiding

Commitment to Excellence

Leadership

Reputation & Morale

Accountability

If ethical behavior does not come from top leadership, it is unlikely to permeate throughout the remainder of the organization. Ethical organizations are characterized by everyone, from the bottom to the top, in the organization exhibiting ethical character and operating by ethical principles.

Following ethical principles is not necessarily the most pro�table strategy in the short-term, but doing so is essential for long-term organizational survival.

Reference: Josephson Institute (http://www.josephsoninstitute.org/)of Business (2015). Retrieved from

Business professionals face many complexities in running a business while attending to the needs and expectations of both stockholders and stakeholders. To address these issues, business professionals require a �rm foundation of knowledge so they can provide products and services that will positively affect organizational outcomes. Stakeholders expect business professionals to have a thorough understanding of the ethics and laws speci�c to their industry.

The same is true with the study of ethics. Ethics in business is not just about doing the right thing. The issues faced by an organization are often complex and far from being black and white. In light of these challenges, it seems logical to have solid knowledge of the theory and principles of ethics to be able to make appropriate professional decisions.

A foundation of ethics theory will provide you with practical tools for analyzing any ethics-related issues that you may encounter in the future. Without an ethics foundation, it would be dif�cult to develop plausible solutions to the unpleasant and untimely issues that emerge. Thus, a foundation of theories, principles, and decision making will enhance your ability to reason through whatever problems are presented.

As you face ethical dilemmas in the future, you could ask, "What theory or theories best apply here?" or "If I take this position, what principles will I support or violate?" or "What is the price of not being ethical?" Because ethical issues are usually broader in scope than they appear, you could also think about their effects on individuals, your organization, or the society in which you live.

This type of thinking is and will continue to be necessary in the business environment, where even the smallest issue may have a large impact on professionals and the institutions in which they work.

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