This website uses cookies to ensure you have the best experience. Learn more

Benefits Of Incorporating Ethics And Values In A Company

1457 words - 6 pages

In the wake of the Madoff Ponzi schemes, the SEC has stepped up investment regulation and fraud detection measures. Additionally, the Sarbanes-Oxley Act of 2002 (SOX) was passed as direct result of the Enron and WorldCom ethic violations. SOX has been characterized as "the most far reaching reforms of American business practices since the time of Franklin Delano Roosevelt” mandated a number of changes to improve financial disclosures from corporations and prevent accounting fraud. SOX also created the Public Company Accounting Oversight Board (PCAOB) to oversee the activities of the auditing profession. Had the PCAOB been in place perhaps Arthur Anderson would not have been so quick to turn ...view middle of the document...

One of the major costs in business is employee turnover. Employee retention and recruitment can be hurt by the ethical issues. Ethical conduct in the workplace encourages a culture of making decisions based on ethics within the organization. The loss of valuable experience and development of new hires is a cost that can be controlled by instilling values that recognize and encourage participation and growth. The most successful organizations are ones that employees work with managers and supervisors in making decisions based on the company's values.

Employees who are treated with dignity and respect, who take pride in their organization and its ethics, tend to respect the assets of that organization and perform better at their jobs. These employees take greater pride in their work areas, and are careful with ensuring charges/expenses are correctly reflected. Employee theft is greatly reduced as well within an organization that leads by example.
Executives and Ethics
Corporate executives and business owners need to realize that there can be no compromise when it comes to ethics and that there are no easy shortcuts to success. Their companies need ethics to grow and succeed.
It is important for organizations to implement, communicate business values as well as lead by example. Of equal importance is ensuring management is all on the same page, if not, then they should be encouraged to find employment elsewhere.
Top-Down Approach
Corporate culture is built from the top down. An organization can’t have one set of standards for management and another for staff. Every executive and employee needs to be held accountable. Besides, employees will embrace the ethics and values of an organization if their management is taking an ethically lead.
Additionally, employees need to be encouraged to speak up when they see wrongdoing. They should not be fearful when they make a mistake as it is better to deal with the immediate fallout than to allow the mistake to become uncontrollable. A corporate culture that doesn't allow for mistakes is destined for disaster. The best strategy is to encourage employees to communicate issues and learn from their errors.
Creating an Ethics Program
An organization can’t expect its management and employees to just behave ethically. The organization must invest time and effort into developing and implementing an ethics program. Generally, there are five phases to developing an ethical corporate culture and specifically a business ethics program:
1. Perform an Assessment - Business owners know a lot about building products or marketing services but they don’t know what kind of company they need to be. An organization can’t determine where to go until it knows where they are starting from. As such, it is important to determine the company's position on its ethics before developing an ethics program. Additionally decisions such as if the organization needs a full time or part time compliance department and/or specific...

Find Another Essay On Benefits of Incorporating Ethics and Values in a Company

Affect of Cultural Values And Personal Ethics in Business Decisions

1227 words - 5 pages tasks when personal values and ethics are involved in making business decisions that can positively or negatively affect an organization. Culture definition from Meriam Websters dictionary is the customary beliefs, social forms, and material traits of a racial, religious, or social group c: the set of shared attitudes, values, goals, and practices that characterizes a company or corporation. Working from the previously stated definition there are

The Importance of Ethics and Values in Business Sustainability

1312 words - 5 pages Business Management Research Assignment (chapter 5 & 11) Q1: The importance of ethics and values in business sustainability: Ethics has to do with an individual’s judgment and their morals. Their ethics help us determine right from wrong. “Values are attitudes towards things like truths, justice, honesty etc.”( Nieuwenhuizen, Oosthuizen & Drotskie 2012:95) Ethics and values are important within a business organisation because they influence

An Analysis of How an Individual Reconciles Personal, Organizational, Cultural Values and Ethics in a Global Setting

1578 words - 6 pages the workplace, ethics and social corporate responsibly is a guide to decision-making and fair treatment of employees and consumers.3. Creativity and innovations is another dimension of the global settings. Oden (1997) argues that in today's fast changing competitive environment, organizations must explicitly articulate a strategy to induce innovative activities. They contend that this entrepreneurial activity is necessary for a company to sustain

Cultural Values And Personal Ethics in Business

1455 words - 6 pages ; however, references to values and ethical principles must take priority. In addition, conflict resolution and effective communication are necessary to assist in a swift but intelligent resolution of the ethical dilemmas. Conclusion Effective and ethical decision-making is a very complex process. Decision-making involves a systematic process of evaluating benefits, losses, and facts. However, the process of decision-making becomes more complex

Professional Ethics and Values

1302 words - 5 pages and play a vital role in our lives. But what do values and ethics exactly mean? The following material defines each of them.Definition of Ethics and ValuesWe all know the golden rule, which is: "Do unto others as you would have them do unto you." Ethics help people think about what is right and wrong. Everybody starts learning ethics at a very young age for example, at home, in kindergarten, later in school or/and church and so on. The

Professional Values and Ethics

1221 words - 5 pages , legal, medical, nursing, and science.Professional success has a direct correlation to ethics and professional values because of the role that ethics and professional values play in the workplace. In today's economy, this is especially important because of the loss of ethics in comparison to the economic pitfalls that has been recently experienced. Recently there have been exposes on the corruption on Wall Street where profit maximization greatly

Personal Values and Ethics

1049 words - 4 pages Personal Values and PAGE \* MERGEFORMAT 1 Running head: PERSONAL VALUESPersonal Values and EthicsUniversity of PhoenixMANAGEMENTMGT/521June 02, 2010Personal Values and EthicsThe word ethics is best described as, the behavior related to established standards of right and wrong that determine what he or she, as human beings, should do in terms of his or her moral duty, obligations, and virtues as it relates to societies welfare. Developing

ethics and values

4068 words - 16 pages , ethics, values or integrity. In fact, many educators believe that these topics are better covered by religious teachings. However, unlike religion which is based on faith and beliefs, ethics is more a "system of principles of conduct for man as a social being …"4 and deals with the realm of actualities. Other educators believe that values must be instilled by parents. However, during the most developmental period of a child's life, the role of

The Benefits and Ethics of Human Cloning

1522 words - 6 pages The Benefits and Ethics of Human Cloning Introduction On February 24, 1997, the whole world was shocked by the news that Scottish scientists had successfully cloned a sheep. Dolly an artificially cloned mammal was born a star. After the shock, that cloning was not only a possibility but a reality, wore off the out cry against human cloning began. Physicians, scientists, politicians and church leaders and many more have been trying to ban

Knowledge Management: The benefits of implementing knowledge managemnt in a company

2114 words - 8 pages easy to access, people will want to participate. For example, at Motorola, a knowledge management system piloted by one group of users was provided on a read-only basis to everyone. Soon everyone demanded the ability to participate in full.In conclusion, one can see how understanding and utilizing knowledge management can lead to success in an organization. Developing effective methods of knowledge retrieval, analysis and dissemination will yield great benefits to any organization.

Values and Ethics in Social Work, Cultural Competency

1344 words - 5 pages In the National Association for Social Workers (NASW) Code of Ethics, there are many standards a social worker should uphold in order to promote a healthy and helpful relationship with the client. One such aptitude is Cultural Competence and Social Diversity, which is in section 1.05 of the NASW code of ethics (National Association of Social Workers, 2008). There are three sections associated with this competency “Social workers should

Similar Essays

Ethics Code Of Conduct In A Company

939 words - 4 pages Company X Code of Ethics Statement In order to uphold the Company X vision, core values, expectations and beliefs, a code of ethics is essential to serve as a clear guide in assessing behaviors and decisions that may compromise the company’s standards of integrity. This Code of Ethics Policy is based on the principles of personal responsibility, professionalism, collaboration, innovation, honesty, fairness and respect, and accountability. Ethics

Reconciling Values And Ethics In A Global Setting

1616 words - 6 pages close interaction. When employee and company values compete, there usually exists an ethical dilemma. This is a dilemma that may have many different answers based on the stakeholders involved. Having a process established by which these situations are evaluated and solved is critical to the organizations health, especially in a global setting.Organizational Ethics and Values Issue ResolutionThe need for globalization of organizations and

Reconciling Values And Ethics In A Global Setting

1132 words - 5 pages Reconciling Values and Ethics in a Global SettingEthics refers to principles that define behavior as right or wrong. Who determines which actions are right and where did the rules come from? The definition of "right" is clearly a matter of perspective (Josephson Institute of Ethics, 2002). Differences in perspective due to the infinite diversity of people often lead to conflict between personal ethics and those adopted by groups. Individuals

Sap Implementation In A Company And Its Benefits

1721 words - 7 pages SAP implementation is a huge undertaking for any company, big or small. The one thing that every company wants to see during and after this implementation is benefits to their business. The biggest result they are looking for is a tangible or measurable benefit as these are easily identifiable and make the task of proving the reason for the hefty investment in SAP much easier. The question becomes how does a company go about seizing the benefits