Question

Summarize the difference between individual ethics and organizational ethics. What do you think is the source of each type of ethics?

Answer 1

Business ethics are the moral principles that guide the behavior of the organization as a whole.The factors that influences ethical decision-making are: -

• personal ethics
• long-term self interest
• Government regulations
• moral development of managers
• ethical principles that solve the problem

The difference between individual ethics and organizational ethics are: -

• Individual ethics guide the individual in performing the job ethically whereas organizational ethics is the practices that focus on doing the things right and treat its stakeholders fairly and ethically.
• Individual ethics involve going extra mile and doing things in a right way that can be beneficial for self as well as others. Organizational ethics involve selling safe products to customers and reduce environmental impact.

The source of personal ethics is influenced by values that are developed with time by watching others like parents, teachers, mentors, friends, etc. Other sources include religion, culture, media, models, attitudes and experiences.

the source of organizational ethics is influenced by the values of the business owner. They choose the ethical stance of their organization which is followed by people in the organization. The business ethics is also affected by three sources. They are culture, religion and laws of the state.