From a general perspective, ethics refers to moral principles that command or influence a person’s conduct. In an organization, ethical leadership and strategies are critical elements in realizing a conducive working environment. Ethical-based leadership is realized when leaders exemplify and encourage proper conduct in the workplace. This can be demonstrated through interpersonal relations and personal behavior. Through ethical leadership, leaders can create a positive culture within an organization, promote a sense of trust within the customer base, and aid in boosting employee morale. Ultimately, leaders practicing ethical leadership create a positive and collaborative environment where all stakeholders feel comfortable and appreciated.
The organizational structure of a company defines its entire foundation. It specifies the hierarchical levels and their range of control and departmental groupings within an organization. Moreso, it outlines the coordination network across an organization (Nelson et al., 2020). Organizational structures are either centralized or decentralized, and such structures have a crucial influence on the ethical impression of an organization. This is because the delegation of roles and job descriptions outlined within a system can create instances of unethical or ethical conduct.
Centralized organizational structures are portrayed by the consolidation of power at the top. In such a case, the interrelation between the decision-makers occupying the top positions and the ordinary employees at the bottom levels of an organization is either strained or nonexistent (Van Wart & Denhardt, 2019). This breakdown in interrelations and communication can create ideal grounds for undesirable conduct.
The decision-makers may not be aware of unethical behaviors at lower levels, while the lower-level employees may pursue unethical approaches due to minimal supervision and controls. In a decentralized organizational structure, power is delegated through departments, and individual responsibility is highly upheld. In such a structure, decentralized centers of authority may act without consultation and regard for an organization’s objectives. It is also likely for individuals to pursue personal interests.
The leaders and organizational structures are critical in achieving an organization’s goals. Moreso, ethical leadership and ethical-orientated organizational structures play an even more crucial role in enhancing an organization’s competitiveness, longevity, and profitability. However, unethical behavior may arise within the implementation of ethical leadership and the adoption of ethical-orientated organizational structures. Organizations that strive to realize a conducive ethical culture encourage their stakeholders to conduct themselves with integrity and honesty. It is essential for such organizations to legitimately evaluate their resources and ethical requirements, erect an ethical-based foundation, establish a culture of integrity from their top management to the lower-level employees, and constantly re-evaluate their ethical and compliance status.
In addition to the ethical roles of leaders and organizational structures, employees are another critical part of ensuring sustainability and profitability. Ethical responsibility cuts across the entire corporate structure. It is the responsibility of the employers to ensure that employees are treated properly, with respect and integrity, and they are compensated fully and according to the set legal framework. They should also ensure they are continually empowered through training and appraisals. It is also an employee’s ethical duty to deliver as per the set job description, act and deliver with integrity and honesty, and strive to ensure that all the set ethical guidelines are adhered to.
Corporate Social responsibility
Corporate social responsibility describes an organization’s duty where it proceeds beyond its profit maximization efforts and contributes to a deeper purpose as a good corporate citizen. In addition to protecting the environment and contributing to social welfare, corporates comply with corporate social responsibility by ensuring that the interests of all stakeholders are secured and protected.
When an organization adopts a robust corporate social responsibility approach, it improves its employee engagement, refines its public image, supports both local and international community programs, and boosts its bottom-line financials. A socially responsible entity fosters positive brand acceptance and attracts and increases customer loyalty and base while attracting top-tier employees. All these positives contribute to increased acceptance of the entity as a brand and increased sales leading to profit maximization. However, in some instances, implementing such a policy may require expert interventions, paying extra taxes, and purchasing specialized equipment. These elements contribute to additional costs, thus jeopardizing profit maximization.
Ethical Dilemmas
In today’s globalized business, several ethical dilemmas impact a company. Among such difficulties is discrimination within the organization between employers and their workers. Discrimination occurs when a person is treated unfairly due to their origin, race, gender, sex, color, or religion. When discrimination occurs in a workplace, the normal working interrelation among the employees is affected and broken. As such, the working environment becomes untenable, affecting overall productivity and eventually cutting on profit maximization.
When employees are discriminated against, their work output and productivity are negatively affected. When clients are discriminated against, their relationship with a given entity is negatively affected, their purchasing power is lost, and the entity’s profits decrease. When stakeholders are discriminated against, their contributing ability is compromised. Their investment advantage is lost. When any other outside party is discriminated against, the company’s public image is negatively impacted, its brand power is negatively smeared, and it loses its competitive edge.
For a company to realize its objectives, its motivated employees must serve its client’s needs and satisfy them fully. Such a company needs stakeholders’ expertise, contributions, and investment to enhance its operations and competitiveness. The outside party forms the public aspect. A company’s quality of operations contributes to its public image. In such an interrelation, the entire structure breaks down if any party were to be discriminated against. However, a company can effectively deal with this dilemma with sound anti-harassment and anti-discrimination policies. Such a policy should clearly define all forms of discrimination, describe instances where it is likely to occur, and define clear roles and responsibilities in dealing with it.
In recent years, top companies have been struggling with this ethical dilemma of discrimination. Almost 99% of Fortune 500 companies have dealt with lawsuits about discrimination and harassment (Fekedulegn et al., 2019). Top companies, including Google and Amazon, have found themselves in undesirable positions. However, implementing clear anti-discrimination policies and constant training aids in regulating and curbing this vice.
As a guideline in dealing with discrimination in the workplace, an equal opportunity policy should be implemented in an organization. Such a policy should define discrimination, outline clear conditions under which equal opportunity should be adhered to, and also describe the punishment procedures in the cases where it is not applied. The employees, the stakeholders, the clients, and the outside parties that relate to the organization in question, should be educated on the ramifications regarding the implementation of the policy. The employees should be accorded equal opportunities and benefits within the organization, and the clients and other stakeholders should be offered adequate and fair information and services.
References
Fekedulegn, D., Alterman, T., Charles, L. E., Kershaw, K. N., Safford, M. M., Howard, V. J., & MacDonald, L. A. (2019). Prevalence of workplace discrimination and mistreatment in a national sample of older US workers: The REGARDS cohort study. SSM-population health, 8, 100444. Web.
Nelson, W. A., Taylor, E., & Walsh, T. (2020). Building an ethical organizational culture. The health care manager, 39(4), 168-174. Web.
Van Wart, M., & Denhardt, K. G. (2019). Organizational structure: A reflection of society’s values and a context for individual ethics. In Handbook of administrative ethics (pp. 227-241). Routledge.