Question

What does it mean for an organization to be ethical? What is the difference between an unethical and an illegal act?

Answer 1

Organizational ethics is the ethics of an organization, and it is how an organization responds to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture.

Ethical organization means, An organization forms when individuals with varied interests and different backgrounds unite on a common platform and work together towards predefined goals and objectives. A code of ethics within an organization is a set of principles that is used to guide the organization in its decisions, programs, and policies.It also refers to the code of conduct of the individuals working in a particular organization. Every organization runs to earn profits but how it makes money is more important.

Elements of an Ethical Organization

• Respect:As an entrepreneur building a business, you need to respect yourself and surround yourself with people you can respect. Remember, strong respect doesn't mean you can fly on auto-pilot. While you can assume your people will do their job as well as they can, they do need coaching, training and direction, but respect and trust make it easier for you to avoid micro-managing them.
• Honor:Good people are a fundamental part of good ethics. They are also great ambassadors for doing things right. Give special attention to strong performers and people who exemplify the spirit of your organization.
• Integrity: It comes to integrity, it is impossible to avoid sounding preachy or parental. Do not lie, steal, or cheat. Make your word your bond and always stand by your word. When you are wrong, own up to it and make good on the deal. Treat others as you'd want to be treated.
• Customer focus: A company is nothing if it does not have customers. More to the point, if a company does not produce what people want and will pay for, there is no point to that company. A focus on your customers reinforces the responsibility you have to the market. Your decisions affect your people, your investors, your partners and ultimately, your customers. Serving all of these people is part of your ethical responsibility.
• Results-oriented:Good managers clearly identify the results they expect, then support their employees and help them achieve those results. They provide feedback on performance in an effort to help the employee achieve their potential, and the results the company needs for success.
• Persistence: People in awesome organizations have the will to persist. They will keep working even when results are not what they hoped, or when customers refuse to buy. Their persistence is tied to their passion for what they are doing and a belief that this group of people, this company, has the best chance of "making it" of any company they could join. And so, they work harder, They continue to take risks.
• No organization should depend on unfair means to earn money. One must understand that money is not the only important thing; pride and honor are more important. An individual’s first priority can be to make money but he should not stoop too low just to be able to do that.
• Employees should not indulge in destruction or manipulation of information to get results. Data Tampering is considered strictly unethical and unprofessional in the corporate world. Remember if one is honest, things will always be in his favor. Employees should not pass on company’s information to any of the external parties. Do not share any of your organization’s policies and guidelines with others. It is better not to discuss official matters with friends and relatives. Confidential data or information must not be leaked under any circumstances.
• Organizations must not discriminate any employee on the grounds of sex, physical appearance, age or family background. Female employees must be treated with respect. Don’t ask your female employees to stay back late at work. It is unethical to discriminate employees just because they do not belong to an affluent background. Employees should be judged by their work and nothing else.
• Never lie to your customers. It is unprofessional to make false promises to the consumers. The advertisements must give a clear picture of the product. Do not commit anything which your organization can’t offer. It is important to be honest with your customers to expect loyalty from them. It is absolutely unethical to fool the customers.
• The products should not pose a threat to environment and mankind

“Illegal” is an act against the law while “unethical” is against morality. or Illegal behavior is easy to detect; however, unethical behavior is tough to detect. An illegal act by a health care provider. is always unethical, but an unethical act is not necessarily illegal. Ethics are concerned with standards of behavior and the concept of right and wrong, over and above that which is legal in a given situation.

Ethical standards are based on the human principles of right and wrong. The differences between them are these: Legal standards are based on written law, while ethical standards are based on human rights and wrongs. Something can be legal but not ethical.

Ethical behavior is not always best defined within the confines of the law.While this may not be an illegal activity, it is considered wrong and we are looking to the law to make sure it does not allow it.