Developing Organizational Ethics and Socially Responsible Behavior
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Western Governors University *
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Philosophy
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Apr 3, 2024
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docx
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Developing Organizational Ethics and Socially Responsible Behavior
Scott J. Rich
Western Governor’s University
Professor Detria Moore
May 22, 2023
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Developing Organizational Ethics and Socially Responsible Behavior
Section A:
Corporate social responsibility is a relatively new idea. The idea of a corporation acting socially responsible continues to gain steam throughout the world. Corporate social responsibility, in its simplest definition, can be described as a corporate conscious or a sustainable responsible business approach (Westover, J. H. 2013). Corporate social responsibility
is an unwritten contract between a corporation, its stakeholders, citizens of the communities the corporation operates in, and its consumers. The unwritten contract ensures that the company take
all considerations to its stakeholders and communities prior to making decisions. Corporate social responsibility is a form of self-regulation, business policies and practices
encourage positive impacts on the environment, consumers, employees, communities, stakeholders, and all member of the public. This type of self-regulation requires buy-in from all parties and starts from the inside-out. Examples of corporate social responsibility include implementing policies and procedures that treat everyone equally, building a culture of trust, fairness, and equity, and producing goods or providing services that help better the community. Operating in an ethical manner is a proactive action that an organization can take to all scenarios.
The thought of corporate social responsibility affects more than just the company profitability. Corporate social responsibility allows an organization to become an integral part of the community in which it operates. In many instances, the community in which a company operates is the same community in which its employees and their families work. Many communities are built around the corporations that operate inside of them and acting in a socially
acceptable manner has a large effect on the community members.
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Section A1:
One primary stakeholder for Paradigm Toys is the employees that operate the facility and
sell the toys. One secondary stakeholder for Paradigm Toys is the financial institution that provides the funding for the corporation’s financial ventures. Section A2:
Paradigm Toys has many obligations to its primary stakeholder, the employees. One of those obligations is to operate a clean and safe facility that values its employees and makes ethically sound decisions. To meet this obligation, the company would need to implement human
resources policies that ensure each employee is provided with a safe and equitable workplace. For example, the company could implement a code of ethics that ensures equal treatment for every employee, regardless of position. Like it’s primary stakeholder responsibilities, Paradigm Toys has obligations to secondary stakeholders as well. Companies operate on capital and investments. The institutions that provide that capital and investments expect Paradigm Toys to operate in a fiscally sound way. To do this, Paradigm Toys would need a system of checks and balances to ensure finances are being directed to the proper recipients. For example, Paradigm Toys could implement benchmarks with triggers that ensure adjustments are made within certain timeframes. A system of checks and balances gives the financial institution faith that the company is operating in a fiscally sound way. Section B1:
There are many benefits to an organization to operate ethically and develop a culture that promotes ethical decision making. This type of decision making starts at the top where leaders
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set an example for subordinates. The culture the company forms ties directly into the success of the company. A company that operates a culture that does not value ethical decision making can face fines, negative publicity, and even lawsuits. In an ethically sound culture, employees and leaders have the knowledge and tools to identify and react to ethical dilemmas. The forementioned code of conduct may include a policy that prohibits decision makers and contract writers from accepting gifts of a certain value. For example, in this scenario, a contractor is attempting to secure more business within a corporation and attempts to gift concert tickets to a decision-making leader. The leader is prohibited through the code of conduct from accepting this
gift as it may seem like a bribe to other companies. A company that has built an ethical culture can have confidence that the employee will make the correct decision.
Section B1a:
Ethical decision making, as stated, starts at the top of the leadership chain. The leadership
at Paradigm Toys has a duty to set an example for its employees. Top leadership at Paradigm Toys must not only support an ethical culture, but also encourage one. Leadership should devote the resources needed to foster the culture and make it a priority to invest in the proper ethical training. Leadership can ensure that there is transparent communication from them with regards to their stance on an ethical culture. They should show that they are dedicated to building the culture and put policies and procedures in place to ensure doing the right thing is easy. Section B2:
An ethics audit is not a “gotcha” moment, however, it is a tool used to identify a company’s weaknesses so they can be strengthened. An ethics audit is a chance for leadership to get a clear picture of what the culture of the company looks like. It allows leadership to see how
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employees of the company view management and what concerns the employees the most. Ethics audits must be performed regularly to ensure the company’s culture remains intact.
Ethics audits can be both formal and informal. An ethics audit not only evaluates the company, but also dives into the company’s policies and procedures to ensure they are abiding by them. Ethics audit can identify policies not being followed as well as where a company might be missing a policy. Section B2a:
An ethics audit can be beneficial for Paradigm Toys in several ways. The audit can be utilized to identify weak or struggling areas of company policies, as well as to reinforce the ethical culture that already exists. The audit will continue to show employees that management is
dedicated to an ethical culture and wants to strengthen it. The audit allows a chance for employees to participate in the process and shows that their opinions matter. An audit of the formal system of Paradigm Toys will evaluate all policies are in place throughout all levels of the company. It allows an opportunity for the auditor to take a policy from development and track the communication to the end receiver, the employee. The audit may include topics such as code of business conduct, communication to employees, hiring standards, and disciplinary practices. An audit of the informal system of Paradigm Toys covers a broader prospective. It asks questions regarding ethical and unethical practices that may have been normalized throughout the company. This set of broader questions and answers could come from one-on-one employee interviews. Employees are sat down in a safe space and given a chance, repercussion free, to express what they feel is wrong, or right, about the culture of Paradigm.
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Section C1:
An ethical dilemma that takes place often surrounds friendship and fraternization of a leader and follower. For example, two employees at the company grew up together and have been friends for most of their lives. Until recently, they both worked at the same company performing the same role, an operator. However, Operator A has now been promoted to managing the shift and is the direct supervisor of their friend, Operator B. As weeks go by, the new manager realizes that Operator B has been taking shortcuts and covering potential environmental issues up without reporting. Both the new manager and Operator B know and understand the environmental and safety policies that the company has in place. They both understand that covering up environmental spills is an offense that could lead to
termination. The new manager is faced with an ethical dilemma with their friend Operator B. The manager knows that Operator B is a great employee, friend, and has a family at home that depends on their income. However, the manager also understands the policy and realizes that if they do not address the issue, they could be terminated as well. Does the manager address the policy violation and risk having to terminate their friend? Or does the manager speak with Operator B and instruct them that it is never to happen again?
Section C2:
One solution is for the manager to address the issue with the employee and report the action through the chain of leadership. Notification to the managers leadership will initiate an investigation into Operator B and identify what policies have been broken and to what extent the damage occurred.
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Another solution would be for the manager to trust Operator B that they were only small spills and they cleaned them up thoroughly. The manager, in this case, would essentially look away and pretend it never happened. The manager could review the policy with Operator B and provide a coaching moment. By doing this, the manager would ensure their friend keeps their job
and they remain life-long friends. Section C3:
The more ethical decision is option one. The manager is responsible for reporting all incidents and spills per the company policy. They are tasked with the leadership of the team and must set an example of ethical leadership. By not reporting the incidents, the leader risks their creditability amongst the team, their future with the company, and further harm to the environment. The fact that the manager and Operator B are friends is irrelevant and must be set to the side. Section D1:
Paradigm’s ethics training should include diversity and inclusion, harassment, and code of business conduct training.
Section D1a:
Diversity and inclusion are an integrate part of any successful company. Introducing employees to different cultures will ensure a positive and ethical workplace. Topics would include hiring practices, team building, and acceptance of differences. Harassment in the workplace is a growing problem throughout the business world. Harassment comes in many shapes and forms and can be detrimental to the success of a
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corporation. The training would include sexual harassment, workplace violence, and bullying, as well as how to report it. Lastly, code of business conduct helps communicate expectations of how an employee is to act when faced with tough decisions. It highlights several policies and encompasses many areas of business practices. Topics would include social media, gift acceptance, and use of company funds.
Section D2:
The delivery method for the ethics training at Paradigm Toys would be multilevel. It would begin as a new hire to the organization and be delivered as an instructor-led, in person course. The classroom structure allows for engagement from new hires. Following the new hire course, the training would then become a yearly course that is delivered via online module. Employees would be required to complete the training yearly and acknowledge that they understand all policies.
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References
Westover, J. H. (2013).
Socially Responsible and Sustainable Business Around the Globe: The New Age of Corporate Social Responsibility
. Common Ground Publishing
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