An organization’s ethics are the collective behaviour of its employees.
1. Golden & Platinum Rules: Golden Rule - Treat others as you would have them treat you. Platinum Rule – Treat other people as they want to be treated.
2. Four-Way Test: When you are faced with an ethical dilemma, ask yourself the following: Is it the truth? Is it fair to all concerned? Will it build goodwill and better friendship? Will it be beneficial to all concerned?
3. Stakeholders’ Approach to Ethics When making decisions you try to create a win- win situation for all relevant stakeholders so that everyone benefits from the decision.
4. Going Beyond the Stakeholders’ Approach to Ethics Some managers go beyond creating a win-win situation and make self-sacrifices for others’ benefit.
Managers develop their organization’s guidelines for ethical behaviour, set the example, and enforce the rules they want to play by. But finally, individuals are responsible for their own behaviour and must pay the consequences, including being fired and going to jail.
1. Codes of Ethics: Also called codes of conduct. State the importance of conducting business in an ethical manner and provide guidelines for ethical behaviour, Knowing and following the code can help keep you honest and out of trouble.
2. Support and Example of Top Management If is the responsibility of management from the top down to develop codes of ethics, to ensure that employees are taught what is and is not considered ethical behaviour, and to enforce the company’s code of ethics.
3. Enforcing Ethical Behaviour If employees are not punished for unethical behaviour, they will continue to pursue questionable business practices. To help keep people honest, many organizations create ethics committees. Such committees act as judge and jury to determine whether unethical behaviour has occurred and what the punishment should be for violating company policy.