Wednesday, December 25, 2013

Creating a Learning Organization and an Ethical Organization

Gregory G. Dess
G. T. Lumpkin
Marilyn L. Taylor




Creating An Ethical Organization
•         Organizational ethics is a direct reflection of its leadership
•         Unethical business practices
•         Involves tacit, if not explicit, cooperation of others
•         Reflect the values, attitudes, and behavior pattern that define the organization’s operating culture
•         Driving forces of ethical organizations
•         ethical values
•         Integrity
•         Ethical values
•         Shape the search for opportunities
•         Shape the design organizational systems
•         Shape the decision-making process used by individuals and groups
•         Provide a common frame of reference, that serves as unifying force
Integrity-Based versus Compliance-Based Approaches to Organizational Ethics
•         Essential links between organizational integrity and individual integrity
•         Cannot be high-integrity organizations without high-integrity individuals
•         Individual integrity is rarely self-sustaining
•         Organizational integrity is beyond personal integrity, resting on a concept of
n  Purpose
n  Responsibility
n  ideals
Key Elements of Highly Ethical Organizations
•         These interrelated elements must be present and constantly reinforced
•         Role models
•         Corporate credos and codes of conduct
•         Reward and evaluation systems
•         Policies and procedures
Key Elements of Highly Ethical Organizations
•         Leaders are role models for their organizations
•         Leaders must be consistent in their words and deeds
•         Values and character of  leaders become transparent to an organization’s employees
•         Effective leaders take responsibility for ethical lapses within the organization
•         Provide a statement and guidelines for norms, beliefs and decision making
•         Provide employees with clear understanding of the organizations position regarding employee behavior
•         Provide the basis for employees to refuse to commit unethical acts
•         Contents of credos and codes of conduct must be known to employees
•         Inappropriate reward systems may cause individuals at all levels of the organization to commit unethical acts that they might not otherwise do
•         Penalties in terms of damage to reputations, human capital erosion, and financial loss are typically much higher than any gains that could be obtained through such unethical behavior
•         Policies and procedures can specify proper relationships with a firm’s customers and suppliers
•         Policies and procedures can guide employees to behavior ethically
•         Policies and procedures must be reinforced
•         Effective communication
•         Enforcement
•         Monitoring
•         Sound corporate governance practices

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