Task 2

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C206 Task 2 (DEVELOPING ORGANIZATIONAL ETHICS AND SOCIALLY RESPONSIBLE BEHAVIOR) Ethical Leadership Abanoub Gabra Western Governor University

A. Corporate Social Responsibility (CSR) Corporate Social Responsibility (CSR) is a strategy that helps organizations to incorporate different standards into their policies and long-term goals with primary goal to benefit stakeholders include both primary and secondary stakeholders. This is a way for the organizations/corporates to self-regulate their duties and to be held responsible for any plans that may impact stakeholders. There are four different types of responsibilities that organizations should consider: legal, and economics, philanthropic, and ethical responsibility. CSR is defined as an opportunity to use the strengths of the organization to minimize its weaknesses in a way that could influence the primary and secondary stakeholders and surrounding society overall. A1. Primary and Secondary Stakeholders Paradigm Toys, like any other corporates, is influenced by their stakeholders. The two primary stakeholders would be their employees of the corporation in addition to their customers. Secondary stakeholders would be customers and federal/state government regulations.

A2. Responsibility to Stakeholders Paradigm Toy Company recognizes their employees as their top primary stakeholders. The company provides adjusted salaries according to inflation/ adjusted cost of living, health benefits, life insurance, mental health coverage, and legal benefits. That way the company can compete to hire new employees and retain the employees on board. Regarding customers as secondary stakeholders, the company strives to provide the best product with the least price for our customers, thus helping the company to maintain their market lead position as a pioneer in the field. Considering the government as a secondary, the company excels to maintain all federal and state regulations followed by all the company departments, the company also updates its policies and regulations regarding minimum wages and labor laws to adhere to federal and state regulations.

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B1. Importance of Ethical Culture Ethical leadership is an important component of developing an ethical culture within an organization (Makaroff, 2019). Leaders are, by definition, the ones steering the organization towards the goals that the organization wants to achieve. An ethical culture within Paradigm Toys is important because this will be self-promotion of encouraging trust and loyalty with all stakeholders. A pledge to the community and standing by that pledge will cultivate loyalties on every front. Leadership members have an obligation to their teams to promote integrity and appropriate ethical culture by being a role model in ethics and adhering to organizational code of conduct. When employees see their leadership in the front line of facing ethical dilemmas, team members feel a sense of ownership and belonging to where they work. Leader also draft policy of ethics compliance for all staff upon hiring which outlines expectations and the potential outcomes if those expectations are not met and rewarding team members who go above and beyond to adhere to ethical standards. B2. The purpose of an ethics audit An ethics audit, also known as social audit, is a systematic controlled evaluation of an organization's ethics in terms of practices, policies, and

procedures (Wade DT, 2005) . It provides critical insights and recommendations for enhancing ethical compliance, ensuring adequate performance, and strengthening ties with stakeholders. An audit would initiate an investigation into any allegation brought to the administration table and provide feedback for potential strategies to mitigate and to prevent any future similar incidences. The value of an ethics audit ensures inclusion of each partner who plays a role in leadership and employees and affirming that they are all held to the same ethical standards. Integrity among teams and the security of whistle blowers is equally important to resolve issues of concern related to ethical audit and ensuring that all issues will be addressed and responded to in a timely manner. C. Ethical Dilemma As an employee within the Paradigm Toys organization who accidently found that products containing toxic lead levels are used in the manufacturing of some child toys. These toys are marketed using labels that ensure their safety despite the known side effects of lead on bone metabolism and brain development. He has also found that the major clients of these products are unaware of this facts.

As an employee he was unsure how to report the incidence. There are two possible ways to address the above ethical dilemma. First, the employee may choose to notify State Customer protection services. Second, the employee may choose to notify their direct manager of the information, and let the organization address the issue internally first. I believe notifying state officials is the most ethical because it ensures fair and just process to address the issue and maintain customers safety away from any conflicts of interest. D. Implementing an ethics training program at Paradigm Toys: Maintaining a respectful workplace, recognizing, and avoiding conflicts of interest, and protecting stakeholders’ information and resources would be the three topics that would be included in the ethical training program at Paradigm Toys. Ensuring respect in the workplace is critical for any organization and as a result, employees need to be informed and educated on their facility code of conduct ( McKibben L, 2017 ). This training needs to involve behaviors that are encouraged and discouraged by the facility. The employee training would need to include practical theoretical situations on how to resolve conflicts of interest because these problems can affect the facility’s reputation

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causing a loss of revenues as well. Protecting stakeholders’ information and resources should be also part of this ethical training so employees can understand that safeguarding all the stakeholders’ information, and resources will build a mutually beneficial relationship between facility and stakeholders. The most effective training method would be a virtual classroom which maintains flexibility of time and location. Through interactive learning methods and involving all team members, adequate learning experience can be achieved. References: - - McKibben L. Conflict management: importance and implications. Br J Nurs. 2017 Jan 26;26(2):100-103. doi: 10.12968/bjon.2017.26.2.100. PMID: 28132555. - Wade DT. Ethics, audit, and research: all shades of grey. BMJ. 2005 Feb 26;330(7489):468-71. doi: 10.1136/bmj.330.7489.468. PMID: 15731146; PMCID: PMC549663. - Schick-Makaroff K, Storch JL. Guidance for Ethical Leadership in Nursing Codes of Ethics: An Integrative Review. Nurs Leadersh (Tor Ont). 2019 Mar;32(1):60-73. doi: 10.12927/cjnl.2019.25848. PMID: 31228345.

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