Updated: Sep 22
Why is ethics vital to effective management in an organization?
Ethics is the process of making rules by which it is believed individuals, organizations, and communities should act. According to Paine (1994), ethics has everything to do with management, managers who do not provide proper leadership and implement systems that aid ethical conduct are also responsible when employees act in an unethical manner that will harm the reputation of the organization.
It is important that companies establish a culture built on ethics, values, and compliance as a control measure for the organization. Managers can build such a culture through leadership by example, conducting themselves in an ethical manner, this will encourage the employees of such an organization to be compliant with the ethics and values of the company.
Periodical training sessions can be held to communicate clearly the policies of the organization to the employees and a feedback tool should be made available for the employees to share their views and concerns.
There will be those that will resist some of the policies especially new joiners. When an organization is seen as a business with integrity, the society and its customers will have trust for the company and will want to continue doing business with such an organization.
Organizations with integrity easily gain loyal customers who trust in the quality of its product or services, the employers and employees will find it easier to make ethical decisions and thus will have sustained customer satisfaction.
A procedure for reporting and investigating ethical concerns in the organization should be set up by management. Effective management also involves taking care of employees' needs and giving them the opportunity to give feedback, employees are motivated when they know for a fact that they matter and are appreciated by the management of the organization and this results in improved productivity.
A business that is seen by the public as one with integrity will attract investors which are necessary for growth. An organization that acts with integrity spends less or nothing on lawsuits on misconduct. Managers should ensure that they are authentic in dealing with the team and customers, this helps in building the rapport in the team and with customers to a point where doubt is eliminated.
Management plays a key role in providing the right tools to ensure there is compliance with company policies. Employers, employees, and customers all gain when an organization carries out its operations with integrity.
The most effective way of building compliance with company policies is to make it a culture in the organization so that the staff sees it as a way of working or life. More than often we are all faced with ethical issues but it is how we respond to issues that help us to grow.
That is all folks.
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