Question

Critically explain the importance of establishing and instilling an ethical corporate culture in the organization. Illustrate with relevant examples the significance of a formal ethics program to the stakeholders of an organization.

Answer 1

Corporate behaviour includes legal rules, ethical code of conduct, and corporate social responsibility. When a corporation behaves ethically and socially responsibly , then that corporation will be more sustainable. Ethical behaviour is the behaviour that  means the person applies the principles of honesty and fairness to relationships with coworkers and customers. Ethical individuals make an effort to treat everyone with whom they come in contact as they would want to be treated themselves.

It is important to create and instill ethical behaviour in the organisation so that the workers and officials are fair in thir work. There is coordination and cooperation in the organisation. All this promote smooth flow of operations. Also ethical behaviour also helps in creating goofd relationship with the customers. As people like to be treated well and are also more loyal towards the product which takes care their safety and needs. Also good behaviour of the management attracts the consumers' admiration.

In Today's time , it is very important to behave ethically with increasing consumer awareness and people becoming more independent and aware of their rights. Also to survive in such competition, the strongest weapon a company can have is trust and loyalty of its customers and determined work force.

Ethics program convey corporate values, often using codes and policies to guide decisions and behavior, and can include extensive training and evaluating, depending on the organization. They provide guidance in ethical dilemmas. They provide the workers with the solution to what to do in situations of conflict with ethics .

If everyone is known of what to do and what not to do and ethical behaviour is instilled in them , there will be less cases of discrepancies. The stakeholders on knowing the ethics program of the organisation can take investment, buying , lending decisions. Since an organisation is run my human and human are driven by emotions , it is very important to know the behaviour of the organisation towards variable situations.