Creating and Sustaining an Ethical Business Culture - Research Paper Example

Creating and Sustaining an Ethical Business Culture Question 1 David Pinder has embraced ethical leadership by effectively managing people from different parts of the world such as Iran, Kenya and Somalia. Pinder consults before making any decisions. He has also laid out his philosophy and vision that would allow employees to have fun while coming to work and engage others in a meaningful way. Pinder also engages employees and treats them with dignity and respect. He also works with colleagues as a team member. Pinder has embraced ethical leadership by aligning his behaviors to ensure that his actions are ethical. Pinder’s values drive his behavior. In this case, his value for employees and workmates influence his attitudes and behaviors. This is shown in his willingness to work with other employees and consult them before making any decisions. Values are important in the formation of attitudes and ability to respond to situations (Treviño and Katherine 119). Pinder’s knowledge and wisdom helps him to take new information from the consultations and convert them to useful decisions. A prerequisite of ethical leadership is to obtain information and opinions from different sources. Subsequently, it is necessary to use such information to differentiate between wrong and right. Pinder also embraces ethical leadership by practicing fair guidance and justice as evident in his treatment of employees in a dignifying and respectful manner. This is evident in the rewards, incentives and recognition. The organization embraces positive consequences when one meets the goals or exceeds beyond expectation (Ferrel, Fraedrich and Linda 565). He values and embraces fair guidance and advice. Fair and just treatment of employees is also evident in his vision of working with happy and engaged employees. It means that employees receive fair assignment of tasks and fair returns for their efforts. Question 2 An important step taken by Pinder was laying out his philosophy and vision of how the plant should be run. This step was important because it outlined the standards he expected at the workplace. Outlining his vision and philosophy created an enterprise wide code of conduct that described appropriate acts and behaviors. His philosophy established the appropriate acts and behaviors as proactive solutions instead of reactions to missteps. It led to the creation of a team structure in the organization’s six divisions. It also enhanced the people’s ability to embrace diversity as evident in the “Big Story”. Pinder’s vision and philosophy also incorporated employee’s opinions and preferences. This showed that he was ready to cooperate and consult. The second step taken by Pinder was ensuring that employees are engaged and happy (Ferrel, Fraedrich and Linda 568). Pinder recognized that unethical practices happen when employees are not happy or engaged. In order to stem potential unethical practices, he described the plant as a clean facility that seeks to create the best working environment for its employees. Pinder’s vision and philosophy, and his focus on the welfare of employees focused the plant towards its three targets, which are employees, profitability and customers. The third step is the establishment of a training program. The aim of this program is to empower employees and enable them understand the importance of a strong ethical culture. Question 3 The two firms that are similar to Cardinal IG are Fleishman-Hillard and W.K. Kellogg. These firms are similar because they have established an ethical culture that is focused on their performance. Cardinal IG, W.K. Kellogg and Fleishman-Hillard have an ethical culture that is based on the integrity of employees. The leaders of these firms also helped in establishing codes of conduct based on their values, visions and philosophies. These codes of conduct provide employees with clear guidelines. The differences between the three firms are seen in the codes that define their ethical culture. W.K. Kellogg has codes that allow the firm to focus on the global environment based on ethical practices. The codes provide the firm with practical and balanced business advice that helps employees to act decisively and broadly. Cardinal IG’s codes focus the firm’s three pillars that are customers, profitability and employees (Ferrel, Fraedrich and Linda 569). The ethical culture of Cardinal IG is dependent on the firm’s abilities to form functional teams. Fleishman-Hillard’s ethical culture reinforces the firm’s attitude and ethical thinking in order to improve its service to personnel, vendors and clients. The most important step taken by Fleishman-Hillard in order to establish an ethical culture is the establishment of compliance training programs and allocation of resources to the program. The program incorporates activities such as training and annual policy reviews. Cardinal IG has taken steps such as the identification of its mission and integration of the mission into its network of teams (Ferrel, Fraedrich and Linda 570). Additionally, the firm has established training and leadership programs. W.K. Kellogg has taken training and communication steps. The firm has a training program that targets all its human resources. In addition, it ensures regular and continuing communication with its employees. These steps are motivated by the need to make information on ethics accessible to all employees. Question 4 Cardinal IG’s values and principles have crucial roles in shaping the ethical behaviors of employees. The values include safety, quality, service, training, leadership, teamwork, communication, cost awareness, respect for others, care for families and integrity. These values and principles have instilled a sense of accountability. Cardinal IG employees are considered as leaders. This means that they are accountable for their actions, individual performances and behaviors. They are also required to account for their team performances. The principle of mentoring has also shaped the ethical behavior of Cardinal IG employees. Mentoring programs remind employees of their objectives and performance goals. Employees are also reminded of important performance aspects and their need to follow the firm’s rules and codes. The firm’s leadership program also plays a crucial role in shaping the ethical behavior of its employees (Ferrel, Fraedrich and Ferrell 568). This program is intensive, formal, informal and continual. Managers are expected to serve as coaches and mentors. The principles and values have shaped the firm’s ethical culture through the prioritization of employee rights, equity and fair procedures. In addition, they promote compassion, loyalty, tolerance and honesty in the treatment of employees, customers and other stakeholders (Ferrell, John and Linda 219). The principles and values compel managers to respect organizational laws and treat stakeholders in a fair manner. As a result, employees trust their managers and willingly internalize the firm’s values as their personal values (Leigh 68). This helps in embedding ethics in the firm’s workplace. Question 5 Cardinal IG has empowered its employees to practice responsible and accountable leadership by aligning duties and work through responsibilities, tasks, divisions and departments. Each employee is considered as a leader who is accountable for the performance of a division, team or department. Cardinal IG is organized through integrated team networks that are embedded in its organizational framework. The teams operate throughout the firm and they ensure that all employees work towards the achievement of organizational goals. The organization of the firm into divisions, departments and teams helps to cut down on bureaucracy (Ferrel, Fraedrich and Linda 565). Employees are given opportunities to keep their decisions close while working. This creates a feeling of ownership of results. Cardinal IG empowers its employees by taking care of their welfare. The firm has a profit sharing plan and programs for the recognition of exceptional and excellent team members. Question 6 Cardinal IG is a plant that exemplifies ethical leadership. Cardinal IG employees are motivated to pursue the firm’s vision and mission, and engage in its ethical corporate culture. Additionally, Cardinal IG has solid principles, which are non-negotiable. For instance, the firm’s respect and fair treatment of its employees and customers are non-negotiable. Cardinal IG is also committed to the development of its employees. This is evident in its establishment and support of a leadership training program. The program uses Cardinal’s managers to serve as coaches and mentors (Ferrel, Fraedrich and Linda 567). The operations of Cardinal IG are supported by its hybrid type structure. The structure’s basic administrative functions such as marketing, sales and accounting are centralized. In addition, it has an integrated network of teams. These teams operate independently, and members are expected to be accountable for their behaviors and performance. Team members have the freedom to solve problems independently. It is vital to note the firm’s ethical considerations. Though employees are rarely terminated from employment, they are expected to abide by the firm’s ethical culture. This means that they must follow the firm’s codes. Instances where employees are fired are low because the mentoring and hiring processes are effective and strong. Question 7 Organizational managers play crucial roles in determining whether employees will embrace the values and principles of an organization. Managers and other leaders who do not model ethical behaviors provide opportunities for employees to deviate from the firm’s ethical culture (Swanson and Dann 69). Managers must ensure that they enforce rules fairly. After the hiring process, an organization must ensure that it has a mentorship and training program. Ongoing training critically maintains heightened levels of awareness. This program also introduces new employees to some of the ethical dilemmas they might face in the workplace. Some of the factors that lead to unethical behavior in a workplace include the presence of conflicting goals, rationalization, lowered thresholds and avoidance. Avoidance occurs when unethical practices go unpunished. Rationalization is a situation where an employee creates a mindset that other employees are working on a task. This leads to instances of negligence. In case managers lower the threshold of standards, employees might be motivated to act or behave unethically. Each unethical decision, action or behavior provides a platform for other employees to act or behave unethically. In case of conflicting goals, employees may be motivated to compromise ethical standards in order to accomplish a goal. Works Cited Ferrel, O C., Fraedrich, John. & Linda, Ferrell. Business Ethics: Ethical Decision Making and Cases. London: Cengage Learning. 2014. Print Ferrell, O C, John Fraedrich, and Linda Ferrell. Business Ethics: Ethical Decision Making and Cases : 2009 Update. Mason, OH: South-Western Cengage Learning, 2010. Print. Leigh, Andrew. Ethical Leadership: Creating and Sustaining an Ethical Business Culture. 2013. Internet resource. Swanson, Diane L, and Dann G. Fisher. Advancing Business Ethics Education. Charlotte, NC: IAP, 2008. Print. Treviño, Linda K, and Katherine A. Nelson. Managing Business Ethics: Straight Talk About How to Do It Right. New York: John Wiley, 2011. Print. Read More