Management and Ethical Business Practices

Management and Ethical Business Practices

Introduction

It can be tough to navigate ethical workplace behavior. No one wants to find themselves in the middle of an ethical dilemma, but it’s important to know how to handle these situations when they arise. In a business role as a manager, one needs to be aware of the most common forms of unethical behavior in the workforce. And also need to be familiar with ways to help minimize this misconduct. It’s important to remember that businesses have developed over the last 100 years, and today’s businesses are more ethical than ever before. Several factors have helped contribute to this evolution, including social media, the globalization of business, and the increasing demand for corporate accountability. There are a variety of ethical behaviors that take place in the workplace. Most of these stem from the individual’s code of ethics, which is shaped by personal experiences, religion, and morals.

Common Forms of Unethical Behavior

There are several commonly seen unethical behaviors in the workplace, many of which can be mitigated with strong leadership. Here are some examples:

1. Theft: This includes stealing company property, such as equipment, supplies, or data, and stealing from employees, customers, or clients.
2. Fraud involves any intentional deception or misrepresentation for personal gain. Fraudulent activities can include inflating expenses, faking invoices or receipts, and misrepresenting information on a resume or job application.
3. Sexual harassment is any unwelcome verbal or physical conduct of a sexual nature that creates a hostile or intimidating work environment.
4. Discrimination: This is when an individual or group is treated unfairly in the workplace due to their race, religion, gender, age, disability, or any other protected characteristic.

Leadership can help to minimize unethical behavior in the workplace by creating and enforcing clear policies and standards of conduct, providing training on ethical behavior and how to identify and report misconduct, and establishing an open and supportive culture where employees feel comfortable speaking up if they see something that doesn’t seem right (Yip et al., 2018).

Leadership’s Role in Minimizing Ethical Misconduct

Leadership’s role in minimizing unethical conduct in the workplace is critical. Good leaders create and enforce ethical standards within their organizations and provide the necessary support and resources for employees to comply with these standards. Leaders who are proactive in addressing ethics head-on can help to minimize the occurrence of unethical behavior, and they can also help to create a culture of integrity within their organization (Saha et al., 2019).

Evolution of Ethical Businesses Over the Years

Examining the evolution of ethical businesses over the last 100 years can present some interesting information. Generally, it has been argued that businesses have become more ethical as they have grown in size and influence. As organizations become larger and more complex, the need for ethical management increases. Many businesses have implemented policies to ensure that employees act ethically and take measures to prevent potential incidents, such as establishing whistleblower programs and conducting regular audits. Additionally, there has been an increased focus on corporate social responsibility, which has led to greater transparency in companies’ decision-making processes. Ultimately, ethical practices in business have been shown to lead to positive results for employees and customers (Bombiak & Marciniuk-Kluska, 2018).

Factors Influencing Ethical Business Practices

Many factors play a role in influencing ethical business practices. These include organizational culture, company policies, and economic pressures. Studies have shown that companies with a strong organizational culture that values ethical behavior are likelier to have employees who act ethically and follow their organizations’ guidelines. Good policies help create an environment of fairness and trust, ensuring that employees are aware of the expectations of appropriate behavior at all times. Finally, economic pressures can cause employees to make poor decisions as they try to boost their performance to meet corporate goals (Carroll & Shabana, 2010).

To promote ethical business practices, managers and leaders need to create an environment where ethical behavior is encouraged and rewarded. Leaders should foster a work culture where each individual feels free to express their opinions and make decisions responsibly while promoting values such as integrity, trustworthiness, and respect for others. By taking these steps, managers can ensure that their teams are held accountable for their actions and will be less likely to engage in unethical business practices (Carroll & Shabana, 2010).

Strategies for Navigating Ethical Workplace Behavior

As a manager, navigating ethical workplace behavior is an important part of your job. Fortunately, there are several strategies that you can use to ensure that ethical behavior is promoted and maintained in your workplace. First, ensure that everyone in the organization understands the company’s values, goals, and policies. This should be an ongoing effort and be communicated regularly to all employees. Second, provide ongoing training and education related to the organization’s values, ethics, and policies. This will help employees stay up-to-date on relevant laws and regulations and increase their understanding of the importance of ethical behavior. Third, be aware of your behavior and the example you set for your employees. By following ethical practices and encouraging others to do the same, you can help create a strong foundation for ethical business practices throughout your organization (Carroll & Shabana, 2010).

2007-2008 Financial Crisis Overview

The 2007-2008 financial crisis was a major event that significantly impacted the global economy. It began in the United States, where housing prices started to decline rapidly in 2006. This led to a liquidity crisis, as investors became worried that mortgage-backed securities were not worth as much as they had previously thought.

The crisis quickly spread to other countries, and by the fall of 2008, it was clear that we were in the midst of a global recession. Many banks and other financial institutions failed, and millions lost their jobs.

There is still significant debate about what caused the financial crisis. Some people argue that it was a failure of people, while others say it was a failure of our capital market processes (Johnstone et al., 2019).

Failure of People Versus Processes

The financial meltdown of 2007-2008 was a failure of our capital market processes. The events that transpired resulted from systemic issues with our financial regulations and how our markets function. It is important to note that many people have argued that the failure was a result of failures by people in the market. This includes individuals such as bankers, investors, and policy-makers. While it is true that these individuals played a role in the crisis, it is essential to remember that they were operating within a system that incentivized their behavior. For example, banker bonuses were tied to the amount of money they could generate for their banks. This led to unethical and reckless behavior as bankers tried to maximize their bonuses at the expense of the banks they worked for. Similarly, deregulation led to a system where investors could take on more risk, ultimately leading to several financial institutions’ collapse. It is clear that while people played a role in the crisis, the root cause was our capital market processes (Johnstone et al., 2019).

The Role of Diversity and Discrimination

The role of diversity and discrimination in the financial meltdown of 2007-2008 is complex. On the surface, it would seem that discrimination played a role in the subprime mortgage crisis, as many of the homeowners targeted for subprime mortgages were people of color. However, a closer look reveals that discrimination was not the only factor. Lack of diversity in the financial industry also played a role, as decision-makers did not have first-hand experience with the risks associated with subprime mortgages. This contributed to the flawed decision-making that led to the financial crisis.

Impact of Mismanagement on Organizations

The mismanagement of diversity and discrimination in the workplace can have a significant impact on an organization. Unaccounted-for cultural and racial disparities can result in high employee turnover rates, low morale, discrimination lawsuits, and a hostile work environment. One example of this was seen in 2007 when Coca-Cola faced allegations of discrimination based on gender and age. After an in-depth investigation, it was revealed that the company had violated EEO laws for decades by failing to provide equal pay for equal work and allowing unequal benefits for employees over 40. The repercussions of this misconduct were detrimental to Coca-Cola’s reputation and bottom line, illustrating the importance of taking diversity into account when managing a workforce (Sroka & Szántó, 2018).

Communicating the Importance of Diversity and Discrimination to Employees

Leaders must focus on diversity and discrimination as ethical factors when managing employees. Mismanaging these issues can harm an organization and its employees, leading to mistrust or lower productivity levels. To ensure these issues are handled effectively, leaders must communicate the importance of diversity and discrimination to their staff.

Leaders need to set a good example by promoting diversity and taking active steps to prevent any form of discrimination in the workplace. For example, employers can provide education and training sessions for their employees about the consequences of discriminatory behavior and how each employee can help create an inclusive working environment. Furthermore, employers should consistently monitor their policies and practices to address any identified issues promptly. By communicating the importance of diversity and discrimination, employers are setting the right ethical standard and creating an environment where each individual feels safe and valued (Sroka & Szántó, 2018).

Finding Solutions to Ethical Challenges

When it comes to finding solutions to ethical challenges, diversity and discrimination are two of the most important aspects for leaders to consider. This is because these issues can have a significant impact on an organization if they are mismanaged. For example, in the case of the financial crisis of 2007-2008, unequal access to financial services was identified as one of the causes of the meltdown. By failing to recognize the needs and experiences of people from different backgrounds in this way, banks and other institutions allowed risk levels to get out of control.

To ensure that such ethical issues do not occur again, leaders need to create a diverse and inclusive workplace environment and ensure that employees feel comfortable raising any concerns they may have or presenting any innovative solutions they come up with. Additionally, leaders should educate their employees on the importance of diversity and discrimination within a company setting so that everyone understands how their actions can affect the organization’s success(Sroka & Szántó, 2018).

Benefits of Corporate Outreach and Company Sponsored Volunteer Programs for Organizations

Organizations have many benefits when they implement corporate outreach and company-sponsored volunteer programs. From an ethical leadership perspective, one of the main benefits is that it allows organizations to create positive relationships with the community. When companies give back to the community, it helps build trust and credibility and can even improve a company’s image. Additionally, these programs can help to attract new customers, partners, and employees.

Another benefit is that it can help to develop the skills of employees. Employees volunteering their time and skills to help others can help them learn new things, develop new skills, and grow their networks. It can also help them feel more connected to the organization, leading to a higher level of engagement and motivation. Finally, from an ethical leadership perspective, it is important to note that these programs can help organizations to meet their social responsibility obligations. Organizations are helping to create a more sustainable and just world by providing employees with opportunities to volunteer (Sroka & Szántó, 2018).

Applying Ethical Leadership Theory to Corporate Outreach Programs

There are several theories related to ethical leadership, but we will focus on two: the moral leader as an agent and the ethical leader as a role model. The ethical leader, as an agent, makes decisions based on what is best for the organization, even if it is not popular or profitable. They can put the good of the organization above their interests (Sroka & Szántó, 2018).

As a role model, the ethical leader sets an example for others in the organization to follow. They display integrity and honesty in their actions and encourage their employees to do the same. By modeling ethical behavior, they make it easier for employees to make the right decisions when faced with a difficult choice. Both of these theories can be applied to corporate outreach programs. The ethical leader, as an agent, is willing to make unpopular decisions that are in the organization’s best interest, such as cutting costs or laying off employees. The ethical leader as role model is visible and vocal about their support for the program, encouraging other employees to get involved. Corporate outreach programs can be a valuable tool for enhancing ethical leadership within an organization (Saha et al., 2019).

Examining Examples of Impactful Corporate and Community Outreach Programs

When researching the different ways corporations and businesses can engage in corporate outreach programs, it is important to examine examples of successful programs. One example is 7-Eleven, which has been actively creating opportunities to give back to its local communities. Through their volunteer program, 7-Eleven has created several impactful collaborations with organizations that support a wide range of causes, including green initiatives and food security. This program allows employees to use their paid time off to volunteer with approved partner organizations and be “real-world problem solvers” in the community (Sroka & Szántó, 2018).

By creating volunteer opportunities through their corporate outreach programs, 7-Eleven demonstrates how ethical leadership goes beyond producing quality products and services; they also engage in meaningful participation with their local communities through employee volunteering. This commitment reflects a dedication to building relationships within and beyond the company (Sroka & Szántó, 2018).

References

Bombiak, E., & Marciniuk-Kluska, A. (2018). Green Human Resource Management as a Tool for the Sustainable Development of Enterprises: Polish Young Company Experience. Sustainability, 10(6), 1739. https://doi.org/10.3390/su10061739

Carroll, A. B., & Shabana, K. M. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice. International Journal of Management Reviews, 12(1), 85–105. https://doi.org/10.1111/j.1468-2370.2009.00275.x

Johnstone, S., Saridakis, G., & Wilkinson, A. (2019). The Global Financial Crisis, Work and Employment: Ten Years On. Economic and Industrial Democracy, 40(3), 455–468. https://doi.org/10.1177/0143831×19866532

Saha, R., Shashi, Cerchione, R., Singh, R., & Dahiya, R. (2019). Effect of ethical leadership and corporate social responsibility on firm performance: A systematic review. Corporate Social Responsibility and Environmental Management, 27(2), 409–429. https://doi.org/10.1002/csr.1824

Sroka, W., & Szántó, R. (2018). Corporate Social Responsibility and Business Ethics in Controversial Sectors: Analysis of Research Results. Journal of Entrepreneurship, Management and Innovation, 14(3), 111–126. https://doi.org/10.7341/20181435

Yip, J. A., Schweitzer, M. E., & Nurmohamed, S. (2018). Trash-talking: Competitive incivility motivates rivalry, performance, and unethical behavior. Organizational Behavior and Human Decision Processes, 144, 125–144. https://doi.org/10.1016/j.obhdp.2017.06.002

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Management and Ethical Business Practices

Paper details
1. What are some of the most common forms of unethical behavior in our workforce
today? How could leadership in organizations help to minimize this ethical misconduct?
Explain and support your positions with relevant course content and outside sources.2.
As our businesses have developed over the last 100 plus years, have our modern day
businesses evolved to be more ethical today? What are some of the factors that helped
you come to your conclusion? Take a position and support your thoughts.3. Would you
describe the financial meltdown in our 2007-2008 financial markets as a failure of
\"people\" or of our \"capital market processes\"? Why? Support your thoughts with
ethical theory and examples. Use our library for added research if needed.4. Tell me
about why diversity and discrimination are two important ethical factors that leaders
should focus on while attempting to manage their workforce? Provide one example of
how mismanaging these issues have had an impact on an organization. How would you
explain the importance of these to your employees?5. Are corporate outreach and
company sponsored volunteer programs a good idea for organizations to implement?
Why? From an ethical leadership perspective, why would you choose OR not choose to
implement these programs? Use course theory and specific examples to support your
conclusion.