Ethics In The Workplace

Ethics in The Workplace

Learning Team C

University of Phoenix

Ethics in The Workplace

We as a society are faced with ethical dilemmas virtually every day. How we handle these situations shapes our culture. But what are ethics? According to the Miniature Guide to Ethical Reasoning, ethical reasoning entails doing what is right even in the face of powerful selfish desires. To live an ethical life is to develop control of our own egocentric tendencies. It is not enough to be able to do the right thing when we ourselves have nothing to lose. We must be willing to fulfill our ethical obligations at the expense of our self-centered desires and vested interests. (Dr. Richard Paul & Dr. Linda Elder, 2003) In short, ethics is doing what is right even when no one is looking. A society with a strong code of ethics tends to run smoothly. A society with no code of ethics devolves into anarchy. Although arguments have been made to the contrary, ethics are just as vital in the workplace. Ethics are essential in the workplace because a tough ethical code provides a non-threatening environment with high employee morale, a company that exhibits clear-cut ethics tends to show higher profits, and simply because it is the right thing to do.

The Ethics Resource Center, a non-profit, non-partisan organization devoted to business ethics, released the results of its 2005 National Business Ethics Survey, polling more than 3000 workers across America. The results were disheartening.

* 21% observed abusive or intimidating behavior toward employees

* 19% observed lying to customers, employees, vendors or the public

* 18% observed situations that placed employee interests over company interests

* 16% observed violations of safety regulations and misreporting of time worked (Verschoor, 2000, pp. 19-20)

Environments that accommodate these low ethical standards tend to feel hostile to the average employee. When this behavior is witnessed repeatedly over time, it lowers morale.

A workplace that encourages effective ethical administration, however, is a workplace that breeds strong morale. Patricia Harned, ERC president, states "Creating a strong ethical environment should be a top priority of all companies." (Verschoor, 2000, pp. 19-20) According to "Workplace Ethics" a company with strong ethical guidelines has a few commonalities. These companies encourage communication; the staff feels open and unthreatened about reporting and discussing ethical concerns. They also clarify rewards and punishments, which provides a meaningful context to what otherwise seems arbitrary. These businesses encourage and create trust between management and employees as well; this is much less expensive and more effective than legally defining and enforcing all rules. These organizations also build corporate values, which improves the corporate image. (Compilation, 1999) This creates an environment that employees find a joy to work in. Also, from a corporate perspective it is just as significant to note that an ethical company tends to be a profitable company.

Can a company have ethical practices, and still show a profit? Yes, according to Business Ethics magazine. By concentrating on the effects of business decisions made and how they enhance or diminish the well being of others, benefits can be seen for the company, the employee, the stockholder, and the consumer. Many of the corporations that show up on the 100 Best Corporate Citizens by Business magazine also show up on Fortune magazine's 100 Best Companies to Work For in America and Working Mother magazine's Best Companies to Work For. (Do Good, Do Well, 2001, p. 28) Starbucks is one of these companies and has been a regular on these lists.

Starbucks is working to empower farmers in East Timor, where coffee provides the livelihood of 25% of the population. The company also participates in various external programs to help benefit the environment and provide relief efforts after disasters. Internally, Starbucks offers many benefits to its employees-including tuition reimbursement, partner benefits, a wellness program and a 25 to 150% match in it's 401(k) plan. (Examining the benefits of corporate social responsibility, May1 2006) These factors contribute to the success of Starbucks and provide the company with the foundation to build a coffeehouse on every corner. Another company that is perennially honored for its ethical conduct is Southwest Airlines. Although the airline industry has been through what some may characterize as catastrophic circumstances over the last several years Southwest has never cut employee pay. In fact, the organization's employees took a voluntary pay cut after Sept. 11, 2001, rather than allow surging costs to force Southwest to reduce it's flight schedule. "I've been here 28 years," states Donna Conover, Southwest's executive vice president of customer service, "and from the beginning we've felt that employees are our greatest assets." (Examining the benefits of corporate social responsibility, May1 2006)

An unethical company, however, can expect none of these benefits, and may see its own destruction. One example of this would be fallen oil giant Enron. Former Enron chairman Kenneth Lay, discussing his company's collapse due to fraud, insider trading and tax evasion, recently insisted that his once great and honest company adhered to prevailing business practices. "The Enron task force investigation is largely a case about normal business activities typically engaged in on a daily basis by corporate officers of publicly held companies throughout the country," Lay insisted in a December 2005 speech. Lay went on to say that the Enron task force was "attempting to criminalize" what he characterized as common business practices. Under Lay's perverted ethics code, transactions meant to deceive are not wrong if these transactions, legal or not, are commonly practiced by corporate America. Stockholders often pay the price of such moral relativism. (Zamansky, 02/01/2006, p. 11a)

This points out what should be the overriding reason for expecting high ethical standards in the workplace-it's the right thing to do. A recent survey by The Society for Human Resource Management found that 54% of human resource professionals surveyed had witnessed conduct in the workplace which violated either