Ethics is based on a set of ethical values and moralvalye. Ethical value denotes something amount of importance, with the aim of getting at least attempt to describe the value of different steps. It may be defined as treating actions themselves as abstract objects, putting value to them.These types of values must be absolute and must be take them seriously enough to overcome any human, personal faults, weakness, ego.When all else fails, you will always look back to these core values to guide you. Unfortunately, life is not easy and there are always disagree about what values should reign supreme. Ethical value denotes something degree of importance, with the aim of determining what step, or at least attempt to describe the value of different steps and action. It may be described as treating steps and actions themselves as abstract objects, putting value to them.
Ethics, in the long run, may be good business,to be ethical is to be motivated in a unique way- not be pleasure,fear, approval, social pressure, or whatis prudent; the source of your action is instead the rational fact that it is right. You do what you do because it is right.This is not endorse either dogimatism or fantacism; it is simply t say that to have character and integrity is to act on the basis of what is morally right.
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Ethics is all about the choices that we make,the wisdom we display through our decisions, and the ethics defines how we actually want to live in the organization, the standard of acceptable behavior that show world what is right. When we do right things we create strong, sustainable relationships with our stakeholders, creating positive value for everyone. In the organization.
Ethical importance in saving of company assets-
The employee ethics is all about how the employees protect their company assets. Those people who take part actively and plays important role in the the pride of company, the ethical standards all reflects pride and respect. It,s all about the indication of high levels of corporate in company.
Workers with ethical behaviour avoid things like:-
Making theft from the office or bank accounts.
Taking office supplies home.
Personal phone call on company account.
Inappropriate use of scanners and printers for personal use.
The role of Ethics and responsibility in business in long run are-
Ethics are talked about frequently. People dont hear about ethics when other peolple are engaging in ethical behavior.In real world Ethics are an individual belief system that contains of knowing what is right and what is wrong. Ethics can be vary person to person. Ethics is in part analyzing decisions, beliefs, and actions.
Business have good ethical values and moral value within and act socially responsible. The problem and difficulties is that ethics of a business is a combination of individual sets of ethics. It is also very important that when you are going to work somewhere that you feel like you share the values of those you work with. Ethics is not just talking about the right thing in the company. It is doing what which is right in every decision in the organisation
Examples of social responsible moral and value range from projects that raise money for research on diseases, raising money for the needy, requiring employees to volunteer within the a situation while the person who lost it could be potentially found. Powerful situational factors may cause people to compromise their values and resort to measures that they would not normally take. If someone is having financial problems, then they are more likely tobe steal. An individual get very angry with another person may have a hard time being objective and fair. There are innumerable ethical dilemmas that may arise in a business setting. Some of them are more obvious while some of them are more obscure. There is a simple basis that helps keep decisions in perspective. Businesses should operate in a manner that is legalethical, and within social norms. By being within social norms means that you need to use society to gauge if your decisions are appropriate. Some cultures would define what is ethical differently from other cultures. Due to the fact, all businesses need to be profitable, sometimes there is an over emphasis on making more money. Social norms should govern what is appropriate to compensate individuals as well as to charge customers. Profit expectations and goals should not require a business to cut corners in an unethical way or to misrepresent or twist facts.
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The biggest reason people are unethical is because they feel that they can gain from it, or that they need to hide something that can hurt them. There are many things that an organization can do to facilitate good ethical behaviors. One of the best things to do is to make sure that the underlying culture of an organization promotes strong values. People should not be punished for coming forward with problem. As fact, employees should be allowed to communicatethe problems. Some companies have a phone number to call or put problems in a suggestion box. Allow employees to share ethical concerns with the authority above them when there are ambiguities about the right thing to do.
Ethical Leaders are obligated to set a moral example for companies members and to be determine those companies activities which may be detrimential to the values of society. Ethical leaders encompasses more than the fostering of ethical behaviors that exists. For example, ethical business leadership requires not onlyputting money in the small trees and experimental hybrids that wouldn't yield a thing that in this quarter or the next, but that also caring for the soil that allow the investor to produce such a harvest in the first place.
Characteristics of Ethical Leaders
In today's turbulent world, ethics and values are present at a number of levels for executives and managers-leaders who devote their time and energy to leading the process of value creation. This broader concept of ethical leadership empowers leaders to incorporate and be explicit about their own values and ethics. The following list provides a framework for developing ethical leadership. It is based on the observations of and conversations with a host of executives and students over the past 25 years, and on readings of both popular and scholarly business literature. Written from the perspective of the leader, these ten facets of ethical leaders offer a way to understand ethical leadership that is more complex and more useful than just a matter of "good character and values."
1. Articulate and embody the purpose and values of the organization.
It is important for leaders to tell a compell and morally rich story, but ethical leaders must also embodied and live the story. This is a difficult task in today's business environment where everyone lives in a fishbowl. So many political leaders fail to embody the high-minded stories that they tell at election time, and more recently, business leaders have become the focus of similar criticism through the revelations of numerous scandals and bad behaviors in ral environment.
2. Focus on organizational success rather than personal ego.
Ethical leaders understand their place within the larger network of constituents and stakeholders. It is not about the leader as an individual, it is about something bigger-the goals and dreams of the organization. Ethical leaders also recognize that value is in the success of people in the organization.
In the same way, the founders of aerocraft JetBlue began a process of matching, from their salaries, employee donations to a charity. Today, their entire salaries go to the JetBlue Crew member charity, to assist staff with crises not covered by insurance. The point of these examples is not that ethical leaders donate their salaries to charities, but rather that the ethical leaders identify and act on levers, such as employee loyalty, that drive success of the organisation.
3. Find the best people and develop them.
These task is fairly standard in different models of leadership. Ethical leaders pay special attention to finding and developing the best people precisely because they see it as a moral imperative-helping them to lead better lives that create more value for themselves and for others. Finding the best people involves taking ethics and character into account in the selection process.
Many CEOs have said to us that judging someone's integrity is far more important than evaluating their experience and skills. Yet, in many organizations, employees are hired to fill a particular skill need with little regard to issues of integrity.
4. Create a living conversation about ethics, values and the creation of value for stakeholders.
Too often business executives think that having a laminated "values card" in their wallet or having a purely compliance approach to ethics has solved the "ethics problem." Suffice it to say that Enron and other troubled companies had these systems in place. What they didn't have was a conversation across all levels of the business where the basics of value creation, stakeholder principles and societal expectations were routinely discussed and debated. There is a fallacy that values and ethics are the "soft, squishy" part of management. Nothing could be further from the truth.
5. Frame actions in ethical terms.
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Ethical leaders see their leadership as a fully ethical task. This entails taking seriously the rights claims of others, considering the effects of one's actions on others, and understanding how acting or leading in a certain way will have effects on one's character and the character of others. There is nothing amoral about ethical leaders, and they recognize that their own values may sometimes turn out to be a poor guidepost. The ethical leader takes responsibility for using sound moral judgment.
Ques-2 "Within the business context, business are expected to have good ethical values and act socially responsible. The problem is that the ethics of a business is a mixture of individual sets of ethics. This is why it is important to have good individuals as employees. It is also equally important that when you go to work somewhere that you feel like you share the values of those you work with. Ethics is not just talking about the right thing. It is doing what is right in every decision that is made."
Answer- The ethical behavior of leaders have received significant interest in recent years due to the plethora of ethical scandals in corporations. In this paper, we developed a theoretical framework that maintains that employees' psychological empowerment mediates the relationship between leaders' ethical behaviors and employees' organizational commitment and trust in leaders
We are living in modern era, which demand good ethical leadr who can bring their values and ethical impact on the life of the people. People want to give and take more and more responsibility fron the organization for which they work and relate whether as customer, supplies and employers to gain more profit and importance from them. People want to hear more from the influencing persons and want to be inspired by ethical leader. So,, the importance of ethical behavior in leader is necessary.
Importance of ethical behavior are the following -
Importance of ethics in orgnaisation is that it establishes an entitity reliabilites and reputation with its clients and members. Ethics provide necessary boundaries which ensure opportunity s and fair practices for different organization in the business environment.
Insurance businesses as an example in universal. This type of organization deals with a lot of difficulties and problems that the client of the organisation. The importance of ethics in business, the insurance business is the implementation of the standards by which insurance transactions are measured in the organization.
Ethics is very important when it comes to dealing with clients and making relationships with them. Moral value and moral standards are very important in order for business and its outcomes to know where we can draw the line and know how to deal with the problems in the organisation that will come up more often than anybody.
Various business decisions in the business are also based on ethical standards, which is why companies have their own handbook that details how every employee is expected to conduct themselves. Entrepreneur leader should be able to familiarise themselves on how ethics would affect their business particularly when it comes to profit generation in the organization.
There are various ethical issues in businesses that are also under debate because of the difference in minds between different people in the organization. It is very important for an available avenue for people in the business area to be able to make changes and compromises when it comes to ethical problems and weakness that might proved be detrimental to various organization and companies in the open business environment.
Becoming an ethical leader-
We have been privileged to know many executives that we would classify as ethical leaders. What these executives have in common is a profound and deep sense of ethical principles, values, and character at the core of their leadership. They see their job as making others better, and enabling them to pursue their own hopes and dreams. They are able to get things done in complicated organizations and societies. But, it is their ethical core which pervades their relationships with followers, the skills and processes which they use in leading them, their analysis of the contexts, and their own sense of self.
Becoming an ethical leader is relatively simple. It requires a commitment to examining your own behavior and values, and the willingness and strength to accept responsibility for the effects of your actions on others.. Ethical leaders must consider and take responsibility for the effects of their actions on customers, suppliers, employees, communities.
Developing Ethical Leaders
The best way for organizations to develop ethical leaders is to engage in some of these questions. Viewing business simultaneously in economic and ethical terms helps to send the message that ethics isn't just an important set of rules not to violate, but that it is an integral part of what it means to work at your organization.
There are some concrete steps about how best to develop ethical leaders within the framework that most global businesses find themselves. The first step is to bring life to a conversation about how the organization benefits its stakeholders and about understanding the organization's values.
Many companies have leadership development programs. These programs need to be strengthened by adding the idea of "ethical leadership." It is not necessary to use the specific principles we have developed, but companies can make themselves better by engage participants in a conversation about what we see as "ethical leadership." Executives can develop shared conversations and conceptions of how "ethical leadership" can be implemented in their particular company.
Steve Odland(ethical leader), view on encouraging culture within the organization-
Steve odland speak to groups of employees about the importance of our company values, about how we want to treat each other, and about what we stand for as a company. The company culture can't just be mine, it has to be all of ours.
Employees must be free to push back, to report ethical violations, and to suggest changes-all without fear of retribution. Every employee's behavior is important to the company's success. We can't always look over their shoulders, so we need to depend on them to do what is right. And we need to put processes and mechanisms in place so that there are people they can turn to when they need support in discussing the difficult situations.