If the Ceo and Other Top Leaders of the Organization Behaves Ethically, Then so Does the Entire Organization (and If They Behave Unethically so Too).

In: Business and Management

Submitted By seancallister
Words 506
Pages 3
If the CEO and other top leaders of the organization behaves ethically, then so does the entire organization (and if they behave unethically so too).
Every human is unique in terms of a wide range of variables right from skill set, capabilities etc. In the same way human responses and actions to situations may differ from one to the other which can be attributed to differences in norms, values, past experiences, cultural background or religious beliefs. Ferraro (2011) also argues the fact ethics is relative to culture, history, society, organization, individual experiences etc. Thus what might be ethically right for one may be unethical for the other. Certainly behavior is not solely influenced by personal values but being a member of an organization as well. Every organization has its own unique way of going about its business, which eventually tends to be the “culture hallmark” of that particular organization. An organization’s cultural standard is strongly influenced by top management or ethical leadership perceived as the statutory role models of an organizations set culture. They are also responsible in enforcing what is considered acceptable behavior and contrary to what is not through their ethical leadership and the organization’s code of conduct. As much as this might set the tone for ethical behavior, it is not guaranteed.
Mayer et al (2010) and Stouten et al.(2010) research has established ethical leadership to be effective in reducing employee misconduct, deviant behaviors, etc in the workplace (Mayer et al. 2009; Mayer et al. 2010; Stouten et al. 2010). On the other hand, an interesting study conducted by the Human Resource Institute (HRI) employing 1121 managers and human resource experts as participants uncovered the leading cause of unethical behavior is the overwhelming pressure mounted by management to meet certain unrealistic business objectives…...

Similar Documents

Organization Behavior - Great Leader

...For an organization that you know well (e.g., the organization, where you are currently employed or for which you worked in the past), using the relevant concepts, theories and models introduced in the module, describe one person who could be called a leader and analyse how effective this person’s leadership is and why it is effective. Introduction In a rapidly changing world, organisations are in constant battle to achieve superior performance and outstanding competence. Every organisation must cope with changes caused by internal and external sources. These challenges are occurring more frequently and if not properly faced, they can create chaos and confusion. To avoid such disorder, the role of a leader in an organisation becomes crucial in establishing the vision and directing subordinates towards that vision. “Leadership is required to make sure we are continually reaching our peaks and that we are constantly moving on to the next new thing” (Tompkins, 2008). This paper is an effort to spot a leader in an organization and gauge the effectiveness of his (her) leadership qualities. The paper begins by introducing the leader, the organisation that he is leading and the context in which the effectiveness will be analysed. The paper will continue by observing certain relevant indications for an effective leader and analyse the behaviour of the corresponding leader against these indications. The paper will conclude by finalising the analysis. Organisation The......

Words: 4402 - Pages: 18

Why Should Managers Behave Ethically?

...Why Should Managers Behave Ethically? In any type of business, the behavior of all employees, especially the management reflects on the company. A manager should always behave ethically to maintain good representation of themselves and the company. When a manager shows poor representation it devalues the company. Furthermore we as humans tend to be a product of our environment. General employees look to their management for direction. If a manager behaves unethical, their employees will most likely follow their lead. When this happens it causes the company to suffer. Company’s stakeholders have a reputation to protect, So stakeholders who may have managers who are behaving unethical may refuse to invest in their companies and this will decrease the stock prices, undermine the companies reputations, and ultimately put the manager’s job at risk. A manager with a bad reputation will have difficulty finding employment through other companies. Most of all managers acting unethical will reduce efficiency and effectiveness of production and trade. Thus reduces the company’s performance, followed by reducing national standard of living, well-being and prosperity. Managers and people in general should realize that acting unethical, not only affects them personally, but affects the lives of many other people as well. All in all there are many reasons that a manager should act ethically. Through researching the topic online I found a sight by the author Gerald Gillis,......

Words: 490 - Pages: 2

Organizations and Behavior

...com/2013/10/07/qa-airasias-tony-fernandes-on-sport-hosting-the-apprentice-and-hating-check-in/ Marlene Agustine’s Lecture note 1 Organization Behavior 2013 1.The four basic functions of management performed by the Director and Founder of AirAsia, Tony Fernandes and the managerial roles he primarily performed in his position. (2.2) Tony Fernandes is the director, founder; GCEO of Air Asia but also the founders of tune group, chairman of QPR and also chairman of caterham group. According to the forbes.com, the 49 year-old Anthony Fernandes who’s born to Indian and Portuguese Malaccan parents is listed in the list of Malaysia’s 50 richest, he is in the 21st rank of Malaysia’s richest from Air Asia Airlines as his source of wealth. Since he was a little kid, he wished to own an airline one day and his dream really do come true. He then set to take low-cost flying to an all new high with his belief, “Now Everyone Can Fly”. Management is organizational process that involves strategic planning, setting, objectives, and managing resources, utilize human and financial assets needed to reach target. There are 3 different following characteristics of management: 1. It is a formation or series of continuing and related activities. 2. It focuses on achieving organizational goals. 3. It achieves these objectives through working with people and other organizational resources. There are four basic functions of management performed, those basic......

Words: 2414 - Pages: 10

Leaders and Leadership in Organizations

...successful organization is defined by a strong leader.  Regardless of the type, size, or financial performance, the foundation of the organization still lies in the hands of a leader.  The success or failure of an organization is often linked to the leadership style and ability of the leader.  There is no “one size fits all” leadership style and it is essential that each leader develop his or her own style to successfully lead the organization.  There has also been a link found between the personality of an individual and their leadership capabilities as it relates to the overall leadership style of the formal or informal leader.  “Leadership style is the manner and approach of providing direction, implementing plans, and motivating people.” (Clark, 2013)  In order to provide direction and implement plans, the four decision making styles that have been identified are autocratic, consultative, group, and delegated.  These four styles have been derived from the Vroom and Yetton Model. Leaders of an organization are not limited to those individuals who hold a managerial or official title or those who are highest on the hierarchy of an organization. “While too often we can find powerful people who do not hold genuine positions of authority, we frequently find people who are in a position of authority, but are powerless to influence the behavior of others.” (Goncalves, 2013)  Formal leaders are those who have been given or have earned their place at the top of the organization......

Words: 2170 - Pages: 9

Creating an Ethical Organization

...| Creating an Ethical Organization | | Business Ethics | Saurabh | How to Create an Ethical Workplace? Ethics in the workplace are vital, even to small business owners. No company wants to be known as unethical, and employees are more apt to display higher morale and more productivity when they know they are working for a morally sound company. It is important to create a conscientious workplace that is transparent, both to employees as well as the general public. Small business owners should never tolerate inappropriate behavior in an employee and employees should be properly trained on what is considered unethical and ethical. * Set an example for your workforce. In order for employees to behave in an ethical manner, they need to know that they are working for a moral boss. They will be much less likely to display signs of unethical behavior if they know that this type of behavior will not be tolerated or ignored. * Create a policy dealing with ethics. This company policy should state your expectations for your employees as well as outline what is and is not considered acceptable. Having a clearly written policy will help you take action should an employee act unethically. * Allow employees to report unethical behavior in a safe environment. No one enjoys ratting out a fellow employee, particularly if it will be made known who turned the person in. Give your employees a safe and anonymous way to air their complaints so that you can......

Words: 3158 - Pages: 13

Ethical Behavior and Morality... with the Tone at the Top

...Ethical Behavior and Morality in Organizations begin with “The Tone at the Top” Executive Summary Unethical behavior in organizations creates many intractable problems which climax in fraudulent acts. When behavior in an organization is not ethical regulations are broken, and the likelihood of legal suits increase. Fraud in Enron and Adelphia in the early 2000s led to big bankruptcy filings resulting in huge losses in investments. Employees also lost jobs as well as significant portions of their retirement savings. Most of the fraud in these companies were committed or influenced by senior management. Executives did not demonstrate ethical leadership by sounding ethical tones at the top. The “tone at the top” has a trickle down on employees. If top management is comprised of ethical leaders, the employees are likely to behave ethically. Such leaders lead by example, and one important way to cultivate an ethical organization is to have an organizational code of ethics that is followed by all. However, these codes can only be as good as those who are responsible to enforce them. The Securities and Exchange Commission (SEC) has placed high importance in codes of ethics. In spite of the aforementioned disadvantage that is hinged on the values of unethical leaders, codes of ethics are good internal controls. Leaders can act morally and avoid unethical behavior if they also avoid setting unrealistic goals. If daunting goals are set for employees, they are likely to commit......

Words: 2465 - Pages: 10

Planning the Need of Other Organizations

...Wal-Mart has taken a lot of heat on health care, including a custom-made bill in Maryland and copycat bills in other states mandating 'pay or play' rules for employee health coverage," noted Diana Ernst, a health care policy fellow at the Pacific Research Institute in San Francisco. "The company's new plan, however, has drawn praise from even its biggest critics." According to a mid-September news release by the company, "Associates will now have more than 50 ways of customizing their health care coverage options, which will allow them to select various deductibles, health care credits [which enable employees to visit doctors and purchase prescription drugs without paying anything out of pocket], and premiums, depending on their needs. This is a substantial increase from last year, when most associates had only nine choices." Better Insurance For premiums of less than $5 a month in some regions and no more than $8 per month nationwide, associates will have individual health coverage including "a $100 health care credit, more than 2,400 generic prescriptions for $4, a $2,000 deductible, and no lifetime maximum," according to the news release. Last year, Wal-Mart associates could get fewer than 20 generic drugs at $3. "This new plan comes at a time when many American employers are struggling to provide health care," Ernst said. Wal-Mart may even become a leader in consumer-friendly health care reform, says Ernst. The company is already helping its employees become more......

Words: 3675 - Pages: 15

Organization Leader

...Healthcare Organization Leader Interview Trisha Schrambeck Grand Canyon University: HCA-455 12/28/14 Several leaders are present inside the healthcare sector, in the clinical side as well as the business end. I was granted an interview with a practice director of a large hospital organization in Colorado. This person’s place inside the organization is to oversee six outpatient clinics, making certain all operate effectively and according to the procedures and guidelines of the medical organization. This director began in the health care field as a clerical member soon after graduation from high school, progressively working her way up to management. Though employed in the healthcare industry, she attended college for healthcare management, a college degree necessary for the director position she is in currently. Leadership was definitely a main subject through the interview. In discussing her position in the healthcare industry, important facts were uncovered regarding her leading style. One of many factors highlighted frequently was the risk associated in healthcare industries and also the value of following procedures. She spoke thoroughly regarding being sure that employees at every facility abide by HIPAA standards. I questioned the way this was accomplished and she went into details concerning the several instructions presented to employees, the required procedures that staff members are to adhere to, along with a handbook stored in every office which sets out......

Words: 1261 - Pages: 6

Why Is Shared Information so Important in a Learning Organization in Comparison to an Efficient Performance Organization?

...is shared information so important in a learning organization as compared to an efficient performance organization? Discuss how an organization’s approach to information-sharing might be related to other elements of organization design, such as structure, tasks, strategy, and culture. Shared information is so important in a learning organization as compared to an efficient performance organization because in a learning organization it promotes communication and collaboration so that everyone is fully engaged in identifying and solving problems, enabling the organization to continuously experiment, improve and increase its capability (Daft, 2010, p.31). A learning organization follows a horizontal structure which disbands the vertical structure by flattening the distance between managers a the top of the organization and putting emphasis on self-directed teams which include members from several functional areas creating less boundaries (Daft, 2010, p.31). In a learning organization, employees play a role in the team or department and roles may be continually redefined or adjusted. There are few rules and knowledge and control of tasks are located within the group. Information within a learning organization serves a distinct and separate purpose. Information is widespread and ensures that all employees are aware of the information. They maintain open lines of communication with everyone, including customers. The culture within a learning organization encourages......

Words: 689 - Pages: 3

Why Managers Should Behave Ethically

...Why Managers should behave ethically Upon studying the subject at hand, the first question should be what are ethics? Ethics are the inner guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what the appropriate way to behave. There is a close relationship between social issues and ethically responsible management practices. Since management is always involved in dealing with people, it is a part of social and work life of the manager. Ethically responsible management takes into consideration all social issues in human relations. Workers want to see any action taken by managers is an ethically correct action to consider the management ethically right. Doing things right is when the deed is in line with the interest of the company. The first step in positively influencing employee’s behavior must first come from management. Therefore an ethical program should be implemented and consist of a well-designed code of ethics. This should inspire and promote ethical values, and not just consist of a set of constraints, rules and violations. Instead focus on all stakeholders who are affected by the company’s objective (employees’, customers, supplies, shareholders and the community it shares). A provision of guidance for employees and a system for obtaining advice and speaking up on ethical issues. Allows the employee’s to feel involved in process of creating an environment of accountability. Ethical behavior......

Words: 514 - Pages: 3

Charismatic Ceos and Succession Planning: Not so Charismatic

...“Charismatic CEOs and Succession Planning: Not so Charismatic” This article takes a look at CEO succession planning. It essentially focuses on charismatic CEOs and how they chose their successor. This article argues that the approach most charismatic CEOs take is flawed, hence, their successors tend to struggle. Most charismatic CEOs often do not make succession planning a priority until it is too late. In cases where a company puts a process in place, charismatic CEOs tend to be domineering in their choice of a successor. In other cases, charismatic CEOs die on the job, thereby making the transition shaky. Although this article delves into the open literature for insights, it also uses a case study to drive home the point that charismatic CEOs’ approach to succession planning is flawed. The challenges of succession planning are truer today than ever. Indeed, the abrupt departures of two important charismatic CEOs – Charles Prince of Citygroup and Stanley O’Neal of Merrill Lynch – in the aftermath of the 2008 financial crisis, which fetched these firms colossal losses have made scholars to beam their searchlight on this neglected aspect of corporate governance. The nonchalance with the way some CEOs handle the process of succession planning not only puts their companies in jeopardy, but also signposts a major criterion on which outgoing CEOs and their executive board members will be evaluated. Before we proceed, we will issue a caveat: the practice of succession......

Words: 3191 - Pages: 13

To What Extent Is It Important for a Multi-National Business to Behave Ethically in Order to Succeed?

...Many of the ethical issues and dilemmas in international business are rooted in the fact that political systems, law, economic development, and culture vary significantly from nation to nation. Consequently, what is considered normal practice in one nation may be considered unethical in others, resulting in bad reputations for UK businesses if found to be linked to business that would be reflected as unethical in the UK. It is important for a multi-national business to behave ethically in order to succeed because the long-term implications of being unethical could result in the business having a negative image. Unethical is considered to be lacking moral principles; unwilling to adhere to proper rules of conduct. If a business is unethical consumers are less likely to buy from the business if their products come from a business whose factories, for example, use child labour or providing misleading information. As a result of this a negative image is developed and the businesses sales will decrease, as the consumers will purchase their products from other businesses whose products are produced in a more ethical way. The decrease in sales will mean that the businesses profitability will also fall. Moreover, due to the negative image the business will also struggle employing workers, as people may not want to work for a business that has an unethical image. One example of a business that has been affected due to being unethical is Nestlé, as in the 1970’s they were causing......

Words: 1267 - Pages: 6

Summary-Corporations Can Behave Ethically and Survive

...Summary: Corporations Can Behave Ethically and Thrive In the article, “Corporations Can Behave Ethically and Thrive”, important points are stated about the corruption and unethical behavior in corporations. It is said that the only way to succeed in business is engaging in unethical behavior, although numerous corporations such as IKEA, Reebok, and Google, have prospered without resorting to these practices. In combating these corrupt practices, America and Britain are leading worldwide efforts to give corporations the idea that they will be best served to forgo the short-term benefits of corruption and focus on building a morally righteous business to prosper in the long run. Although America’s Department of Justice, is investigating over 150 companies, there is little sign of this “corruption eruption” is dying down. Corporations started doing this because the chances of being caught were small, while the rewards for going against the grain were big and immediate. Bribery isn’t necessary nor is it effective in the long run. IKEA is one of the many corporations to not conduct unethical business practices and to go to great lengths to fight interval corruption and even fight in different countries. The “efficient grease” hypothesis, of bribery speeding up the snail pace of bureaucracy, is believed to dismiss entire countries as corrupt, when in fact these countries have laws against this concept and combat against it. This hypothesis has actually been found to slow...

Words: 513 - Pages: 3

Ethics in Organizations

...TERM PAPER Deteriorating Ethics and Values in Organizations: In the face of Indian Reality - VATSAL  DUSAD   2010TT10971 ”Integrity has no need of rules.” --Albert Camus Ethics  and  Values  in  the  context  of  organizational  culture  have  been  a  topic  of  intense  research  and   arguments  over  a  long  period  of  time,  and  it  has  also  been  recognized  as  a  very  important  aspect  of   organizational  behavior.  In  this  paper,  I  would  be  discussing  the  deteriorating  ethics  and  values  in   organizations.   I   would   begin   with   elaborating   what   ethical   culture   means,   then   taking   it   over   to   highlighting   its   need,   pondering   over   the   reasons   -­‐   so   as   to   why   unethical   culture   prevails   and   then   study   about   ethical   leadership.   I   would   like   to   conclude   by,   bringing   it   to   Indian   context   and   laying   down  a  discussion  -­‐  on  how  prominent  and  prevalent  is  this  issue  in  our  own  land.       There  has  been  a  sudden  rash  of  corporate  scandals  and ......

Words: 2639 - Pages: 11

Use of Professional Organization by Nurse Leader to Stay Aware of Political Action in the Health Care Industry and the Importance of Doing so

...will have to show whether these demands might be too high for certain groups of students; specifically, students with a different cultural background or for students whose cognitive or communicative skills are weak (Veugelers & Vedder, 2003). Religion Furthermore, values are closely associated with morals and vary between members of society. The value a person places on ideas or acts determines the individual's sense of right and wrong. Some areas of concern expressed by parents are topics such as right to life, sexual orientation and lifestyle choices, as they fear that schools may teach values that contradict their own or compromise their religious beliefs (Richford, 2012). Unhealthy Family A family with poor family health status is likely to be described as dysfunctional. Dysfunctional families are commonly a result of a power struggle within a family. An example of how a family power struggle develops is when parents use totalitarian authority and do not welcome feedback from children during family communication. The children in the family may rebel against the parents, creating a dysfunctional family system (Fenell, 2012). Time Family values consists of ideas passed down from generation to generation. There are many activities that fall under these categories that define our values. All of them are important, and it takes work to balance these tasks. However, we often get caught up in work and other activities that interfere with the amount......

Words: 2393 - Pages: 10