Question

After reading the Hough, Green & Plumlee (2015) paper (from this week’s required readings),

Discuss how the company you work for (or if you are not currently employed, use a past employer) addresses ethical issues.

Does the company have a formal code of ethics?

Are employees assessed based on their ethical behavior?

How does trust impact the ethical environment in your firm?

Further, how does the firm handle violations in ethical behavior?

Hough, C., Green, K., & Plumlee, G. (2015). Impact of ethics environment and organizational trust on employee engagement. Journal of Legal, Ethical & Regulatory Issues, 18(3), 45-62.

Answer 1

Does the company have a formal code of ethics?

Yes, the company have a formal code of ethics as it is a guide of principles designed to help professionals conduct business honestly and with integrity. Both businesses and trade organizations typically have some sort of code of ethics that its employees or members are supposed to follow. Breaking the code of ethics can result in termination or dismissal from the organization.

Are employees assessed based on their ethical behavior?

Yes, In light of several decades of numerous ethical and legal scandals, it is "apparent that "bad ethics" can lead to catastrophic outcomes and reinforced arguments that "good ethics" is also "good business"" .current research does appear to indicate that employee engagement is significantly related to employee performance. This study seeks to examine the antecedents to employee engagement, specifically ethical environment and trust. One of the best screening tools you can use is administering a “cultural” assessment. This will give you an idea of whether a candidate is a good “fit” for your organization. Of course, this assumes that you have a very good idea of what your company culture is, and that it has been documented. Without the proper baseline knowledge on which you can formulate your questions, this kind of assessment will not work.

How does trust impact the ethical environment in your firm?

The tone set by managers influences how employees respond to ethical challenges and is enhanced by ethical leadership. When leaders are perceived as trustworthy, employee trust increases; leaders are seen as ethical and as honoring a higher level of duties. Employees identify with the organization’s values and the likely outcome is high individual ethics; high organization ethics; and a lack of dissonance. When values coincide, the organization prospers – at least from an ethical point of view.

Trust is the key to establishing an ethical organization environment -- one that guides decisions and actions. Trust in business is the cornerstone of relationships with customers, suppliers, employees, and others who have dealings with an organization. Trust means to be reliable and carry through words with deeds. Trust is gained when an employee follows through ethical intent with ethical action. Trust becomes pervasive only if the organization’s values are followed and supported by top management. By modeling the organization’s values, senior leaders provide a benchmark for all employees.

Further, how does the firm handle violations in ethical behavior?

While it may not rise to the level of being illegal, unethical behavior in the workplace can have serious consequences if unaddressed. And it can create a toxic work environment in which your employees and business ultimately suffer.

At large businesses, a human resources department or manager can provide a way for employees to voice their concerns about unethical behavior of colleagues and provide policies, procedures and training. At smaller businesses with few resources and little or no HR support, creating an avenue for reporting or disclosing unethical behavior is challenging, as is putting in place the proper guidance for addressing such behavior. If your business lacks robust HR support, it's critical for employees to have an easy way to report their concerns and for your company to put in place policies, protocol and training related to unethical behavior.you can take the following steps to proactively address unethical behavior at work:

1 Create a code of ethics.

Set the tone for behavior in your workplace by creating a code of ethics. They should be written in broad, idealistic terms to communicate the company’s ethical vision, yet be succinct enough to be contained in a values statement. If it makes sense, include ethical expectations in the company's mission statement and employee handbooks.

2. Establish a protocol.

Include in your code of ethics instructions about how to report unethical behavior. For example, set up an anonymous ethics hotline as well as a clear protocol for reporting, such as requesting a private meeting with the appropriate manager or supervisor.

3. Empower employees.

Grant staff the know-how to appropriately identify and handle ethics violations. Accomplish this by implementing ethics-training programs for all new and existing employees to increase the effectiveness of the code.

4. Continuously review the code.

Keeping the code updated is an important step in keeping a company’s ethics top of mind. Each year, share copies of the code of ethics with every employee.