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Organizational Behavior: Term Definition

This paper discusses the ethical issues in an organization, the individual influences that impact ethical behaviors, and how organizations can influence ethical behavior in employees.

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Why are ethical issues a major concern in organizations?

The approach, communication within the organization, relationship, responsibility, efficiency, job satisfaction, and working effectiveness are considered as organizational behavior. It can be influenced in a different way such as commercial culture, headship, and administration style. “Ethical issues are a major concern for organizations because of the far-reaching impacts they can have on customers, shareholders, employees, and the overall company.” (How to improve ethics in a global economy, 2009, para.1). There are many factors that influence the ethical behavior of employees. An employee who has been influenced with Unethical behavior would affect the entire organization’s reputation. Therefore, the manager has the responsibility to take necessary steps to avoid the unethical behavior of employees. There are several reasons and ways an organization can be strongly affected by ethical issues. The employees can resort to different forms of unethical behavior in an organization. The company’s clients and outsiders may be affected by the unethical activities of company employees. For example, one missile project scandal ruined the finest reputation of General Electric (G E) due to the greediness of some of the middle managers. Effective leadership should support ethical behavior and should not tolerate unethical behavior. New technologies, increased quality, global competition, and managing a diverse workforce are the main challenges in the current century that impact the ethical behavior of an organization. For instance, a person who is engaged in negative social behavior like gossiping would have a negative impact on the organization (Andrews, 1989, p.24).

Organizations are completely created by individuals; so the individual influences impact the ethical behavior of organizations. Manners, values, character, ethics, and cultural differences are calculated as individual qualities. This individual behavior influences an organization in different measure. The approach of the top management people, who have the commitment to forming the business culture, may affect organizational behavior. An employee, who has a materialistic personal attitude, often creates a negative impact that may affect the organization as well as other employees. The values and ethics of individuals are the prime determining factors of organizational behavior. Staff is often offered rewards and recognition to stay away from unethical activities within the organization and to promote moral values in employees. Individual personality is also recognized as the prime determining factor of organizational behavior. This individual personality behavior affects the overall organization. The personality factors such as optimism, pessimism, positivity, negativity, work, social and other orientations may influence organizational behavior. Cultural differences seem to have a huge impact on organizational behavior. For instance, employees of an Asian country’s organization will not respond well if it is controlled by western management (Admin, 2008).

Ethical behavior begins at the top-level management of any organization. Training is a very essential part to influence ethical behavior in employees in any organization. There are several types of unethical behavior happening in an organization by employees such as theft, long conversation through company phone, messy work areas, violating rules, take a long break, etc. The employees should be aware of the set of laws, policies, contract rules, and potential of the organization. It is very important that managers should follow the highest standard of ethics. A manager has to give dignity and esteem to the employees that would create pride in their minds. It also helps to protect the company’s assets. The management has to build up good work- relationships and should have trust in the employees that would facilitate ethical behavior in employees.


Admin. (2008). Individual factors in Organizational Behavior. Phd Blog.

Andrews, K R. (1989). Ethics in practice: managing the moral corporation. Harvard Business Press. 24.

How to improve ethics in a global economy. (2009). Career Women, Inc.

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