Unethical and Ethical Standards of any Organization - Research Proposal Example

Communication in The Corporate Sector- The Positive and Negative Effects on Employees and the Organization

Author Note

Literature Review

In order to curb unethical behavior and uphold the ethical standards of any organization, an instrument is most frequently utilized that is known as the corporate code of ethics. Although most of the large companies all over the world have corporate codes, there have also been reports of ethical malpractices in few of these companies. Management of corporate ethics is traditionally based on the 3P approach which is ‘Printing of a corporate code of ethics, posting it on the wall and praying that people read it.’ Ho (2010) has argued that in order to have any effect on the ethical behavior of employees, maintaining a code of contact is a necessary but not a sufficient condition. A lot of time has been put for revising the constituents and for the examination of the efficiency of codes. However, till date there is no significant empirical evidence regarding the fact that the code of conduct leads to the prevention of unethical behavior.

Several organizations, academicians and governments failed to efficiently communicate the corporate code of conduct with that of the codes embedded in the culture of the organization. The code of contact is usually a company document included in the documents of public relations. In the year 1991, the Sentencing Commission of the US delivered some federal sentencing guidelines for organizations (FSGO) which quoted the factors that are necessary for ensuring the efficiency of the instrument of corporate ethics. The requirements of the FSGO included educating the employees about the ethical code of companies and setting of the mechanisms for communication and enforcement of the values of organizations.

Communication and Change in Attitude

According to Dawkins (2005), attitude is the amount positive or negative impact that associated with certain psychological object. This statement was interpreted by Cornelissen (2017) who defined psychological object to be any symbol, phrase, person, slogan, ideal, institution or idea regarding which people would be able to differentiate among taking up a positive or a negative stance. Van Riel and J. Fombrun (2007) had a belief that attitude is like a predisposition for responding either positively or negatively towards attitude object. The most recent perspective about attitude is that it is an overall construct which is a representation of the feelings of an individual towards the evaluation of any particular object. Such feelings are capable of producing psychological tendencies with a certain amount of evaluation that comes directly after facing an object. After the establishment of any such tendency, the formation of an attitude towards the particular object takes place.

Du, Bhattacharya and Sen (2010) had a belief that attitude resulted from affective, cognitive and behavioral processes. Attitudes depend on affective and cognitive aspects which is much different from personality which leads to their instability. It is possible to change attitude through persuasion and the change in attitude should be comprehended as a reaction to communication. Communication has been derived from the Latin word communis which means common and therefore, it represents the process of establishment of unity of thoughts amongst two parties. Instability is observed when there is no consistency between the attitudes of individuals towards any object and their knowledge about the object. The provision of new information to individuals is capable of changing the cognitive aspect which would in turn result in attitude changes of the individual toward the object.

Communication of a Corporate Code of Ethics in Organizations

There have been numerous evidences over many decades which support the arguments regarding the coexistence of formal as well as informal communication means in organizations. In reality, both the mechanisms of formal and informal communication require to be incorporated with the communication systems of organizations.

Definition of Formal and Informal Communications

Kalla (2005) observed that formal communication contains modes like oral communication, written memoranda and departmental directives. Formal communication is the most regularly used communication means in organizations. On the other hand, informal communications, as pointed out by Kalla (2005) does not abide by the chart of organizations and has a tendency to be more private, for example, discussions regarding work with co-workers, seeking for help from some friend from a different work unit, etc. Informal communication existing in workplaces have been known to satisfy several employees, particularly the social and sensitive ones. This type of communication does not depend on the positions occupied by individuals in organizations. There are usually two methods by which information is delivered which are formal and informal channels of communication.

Kalla (2005) explained the formal communication channels and information sources as the enduring organizational characteristics that are reflected in the ways units and positions are distributed across an organization and their relationship with one another. An important implication of this definition is that the roles that are attached to the positions in the organization are capable of specifying the persons to be communicated with and the procedural requirements of the communication.

Kalla (2005) considered that the informal communication channels are capable of taking up any form. A distinctive example of an informal channel of communication is the grapevine. The informal information sources vary and the nature of information communication is individualistic and dynamic.

Communication of Ethics-Related Information across Organizations

Ho (2010) performed an examination of the studies made by other eminent researchers on the usage and efficiency of corporate codes in the period 1977-2008. It was found that efficient communication is very important for ensuring the effectiveness of ethical code of conduct. Ho (2010) confirmed that there exists an interrelationship between the effectiveness of code and communication. It was claimed by the author that efficiency of the code is ensured by the effectiveness of communication. Trevino, Weaver and Reynolds (2006) made a discovery that employees have the best understanding of the right and wrong things in the organization where there exist corporate codes that are well communicated. Few studies had reflected that the usefulness of codes is directly proportional to the familiarity of the content. Employees cannot internalize the ethical concepts present in codes if they are not fully aware of the codes. Ho (2010) had a belief that the manner of communication of ethical codes has direct contributions to its consequent success or failure.

The Ethics Resource Centre had made studies over 4000 US employees and found that above 50 percent of them had committed some kind of workplace misconduct which had violated the legal conduct or the ethics policy of the company. Out of the employees who had committed the conduct, very few reported their activities to any appropriate person in the organization through a formal communication channel. Studies by some other researchers are indicative of the fact that the formal channels are mostly unable to reflect several significant aspects of communication in the organization. Moreover, making use of formal communication channels and formal information sources do not totally satisfy the information requirements of the employees. Trevino, Weaver and Reynolds (2006) showed that the effectiveness of formal communication is lesser than that of informal communication made through the usual social network. As a result, there is development of informal communication channels amongst employees and obtain the information from other sources if they cannot do so from the formal sources.

Kalla (2005) had conducted an empirical study whose findings reflected that the informal communication channels are usually valued very highly by employees. Employees consider the informal channels to be better than the formal channels for the purpose of communicating the entire organizational mission. However, this study by Kalla (2005) did not emphasize on the communication of information related to ethics to the employees.

Effective Communication for Corporate Sector

Communication has always been a significant medium for ventilating one’s feelings and sharing their emotions with other people. The corporations of the 21st century face difficulties of survival unless they receive efficient output from their employees. Employees actively take up the responsibilities for they behave as well as try for developing and learning to communicate information regarding their jobs. Employees do this through making use of their empowerment for shaping solutions to the basic problem. Employees best understand that for excelling in their performances, there is a need for efficient and better systems of communication. For nearly more than twenty years, many communication tools have been used by business leaders such as focus group, organizational survey, management by walking around the employees and few other for conveying and also gathering information that is required for bringing any kind of organizational change (Mishra, 2015). With the correct use of these techniques, the processes of learning and communication can be inhibited. Moreover, the employees understand that their failures to emphasize on the organizational objectives will lead to compromise on their capabilities of moving ahead. Companies with high levels are performance are very disciplined and they take time for documenting their communication plans, developing metrics for assessing their success and identifying the areas in which they need to improve. These companies efficiently adopt the organizational measures that would help them to develop superior business goals through communication advisory groups.

All organizations conspicuously lack employee communication programs (ECP), which is a program where bilateral communication amongst the management and the employees is encouraged and the policies of the management are ventilated. Another term known as Employee Value Proposition (EVP) or ‘employment deal’ refers to the employees’ future expectations from the organization and the organizations future expectations from the employees (Mishra, 2015). Employee Value Proposition (EVP) is a set of association and offerings that are provided by any organization in return for the employees’ skills, capabilities and experiences. The EVP can be seen as an approach that is centered around employees and is aligned to the existing and integrated planning strategies of the workforce. This is because the EVP is informed by the existing workers and the external target audience. An EVP must have its uniqueness, relevance and should be compelling for acting as an important driver of attraction of talent, engagement and retention (Mishra, 2015).

The concept of EVP is closely associated with employer branding as the term is used for defining the underlying ‘offer’ on which the employer brand of an organization and its activities of management are based. EVP is also referred to as Employer Brand Proposition (Mishra, 2015). Considering the perspectives of employees, the employment deal is inclusive of pay and benefit programs, professional development, opportunities and a pleasant work environment. Amidst the fluctuating market conditions and tough economic conditions, many organizations have taken steps for controlling costs and protecting their businesses. These steps are inclusive of modification and drastic elimination of the employee programs and the ways in which such programs are organized. Reduction of staff, freezing of salaries, suspension of the contributions of the company to retirement benefits, shifting of higher benefit costs to the workers, mandating furloughs and addition of all of alterations have personal effects on employees. During the times when employees are able to perceive that the EVP is undergoing changes, the organization gets an opportunity of re-aligning their talent with that of the organization’s direction and can also re-engage the talent that the organization has. A highly efficient communication system is potential of explaining and communicating their EVP. More number or companies require to include the message of the EVP as a part of the strategies of employee communication of the organization (Mishra, 2015).

A major portion of efficient communication lies in ensuring that the employees have a clear understanding of the reward programs offered by the organization. Very few managers have the realization that typical tools of communication such as employee surveys and focus groups lead to the discouragement of learning. Companies with high levels of performance are good at communicating the combined worth of reward programs in the most comprehensive way. During the communication of the aggregate health value and benefits related to wealth, highly efficient communicators are much more likely than less efficient communicators to have a coordinated and branded approach. Adoption of such an approach leads to an increase in the appreciation of the employees of the compensation packages offered and helps the organization to retain its employees through tough times (Mishra, 2015). Very less employers feel that the employees have an understanding of the value of the compensation that they receive and the benefit programs.

Positive and Healthy Communication

Lack of proper communication in the relationships shared by humans leads to loneliness resulting from social isolation. Such a situation has been referred to by James Lynch as communication disease. Communicative diseases have negative effects on the heart as well as the cardio vascular system which can ultimately result in premature death. Positive and healthy communication is a very important element for working in a coordinated way (Mishra, 2015). Moreover, working in a coordinated way takes place when there exists co-operative work attitude amongst workers that depends on healthy and open communication. This type of communication is in turn based on truthfulness. Communication resulting from core values and beliefs is anchored in individual integrity and moral character.

Many researchers have confirmed that employees having an understanding of the worth of their rewards are more likely to gain satisfaction with them (Mishra, 2015). There is necessity and opportunity for improving if organizations desire to engage their employees in a better way and try for building support as well as recognition. For ensuring the efficient communication in any organization, it is very important that the communication is made flexible, open and progressive. The leader and management heads of an organization have critical roles to play in assisting the delivery of messages and engaging employees (Mishra, 2015). They require to have the knowledge of leadership along with integrity in order to fight the tough times. Organizations must step beyond just providing the managers with information. The organizations require to prepare their managers in such a way that would help them to lead their employees through critical changes.

Internal Communication

One channel of communication that is sometimes underestimated by organizations during the promotion of their corporate responsibility is the organization’s employee base. Often the primary interface with certain group of stakeholders, and considering that there exists a credible information source, employees are more powerful advocates of the corporate responsibility program of any company. Corporate responsibility is a significant consideration for most of the employees. Nearly nine in ten workers in Britain consider that it is necessary that their employer is accountable to the society as well as the environment (Welch & Jackson, 2007). This makes corporate responsibility a potential factor in the talent war through attraction and retention of the most suited people.

Employees are usually interested in being informed about the responsibilities of their employers, for example, nearly 65 percent of employees have expectations about seeing the social report of their employers (Welch & Jackson, 2007). This provides the companies with an additional potential audience of stakeholders for their reporting of corporate responsibility, although modified communications make use of familiar channel that are often more helpful to the employees. It is very important that consistent information is provided at both the internal and external areas so that the employees are well equipped for answering the queries of the stakeholders on whether the organization is actually serious about the issues (Mazzei, 2010).

Corporate responsibility his potential of increasing the motivation of employees and enhancing their opinion about their employers. A study was made among employees that belonged to six big corporations from different sectors of the industry and among employees that were involved in the community activities of their company. It was found that the advocacy of the employees regarding their own companies was at a substantial higher level than that amongst the employees who were unaware of the community activities of their employees (Mazzei, 2010). The capability of employees to reach the stakeholder audiences as a communication channel should never be underestimated. The most efficient channel of communication to the society with respect to generation of recognition of the responsibilities of companies are informal communication channels like word of mouth.

One more issue of internal communications prevalent in many companies is the generation of cross-functional involvement in the management of corporate responsibility (Mazzei, 2010). With respect to communications, the engagement of people across business owning the relationships of companies with many groups of stakeholders is vital to win the space for corporate responsibility. This is of course inclusive of corporate communications as well as public affairs but its functions also range from marketing to management of human resources to relations with investors. Therefore, employees act as an important potential channel of communication for the corporate responsivity of companies since are capable of reaching wide than other groups of stakeholders and they are considered to be credible sources of information (Mazzei, 2010). Messages of responsibility are potential of engaging employees and efficient internal communication of corporate responsibility programs is important to win powerful advocates.

Impact of Organizational Communication on Employee Performance

Positive Impacts

Communication is very important for the efficient working of any business. Organizations need to communicate for carrying out their regular business activities. Researchers have indicated that organizations are unable to meet their objectives unless they are efficient at communicating. In the triumph of any particular organization, the relationship shared by managers and subordinates plays an important role. In any business operation, the managers have a significant role to play (Bakker & Schaufeli, 2008). Communication is the aspect that binds together the management and the officials. Effective communication is obligatory in order to ensure success and superior performance of organizations.

Communication assists the members of the organization to develop goals at both organizational and personal levels. Communication also helps them in coordinating on the internal organizational activities. If any organization has a less effective system of communications, its performance is also likely to be less effective. For example, the new orientation program for employees is the foremost and a very important step for an organization that is working towards effective communication. Orientation programs help the employees to gain a sense of confidence which in turn has a positive impact on their performance (Bakker & Schaufeli, 2008). In this regard, the responsibilities of the managers cannot be overlooked as there arises several problems when the directions of the organization are not well mentioned. The organizational managers should be good communicators as he is responsible of communicating the messages to any particular individual or group.

Effective communication leads to the increase in the efficiency and output of any organization as well as helps the employees to gain satisfaction. Researchers have illustrated that effectual and organized means of communications is related positively with job satisfaction, employee performance and positive attitudes. The concepts related to communication are not measurable in modern day management and these concepts seek a clearer understanding between the managers and the employees (Vakola & Nikolaou, 2005). The concepts of communication provide an explanation that employee communication deals with infect exchange and a transparent provision of information, commands and directions that are present between the employees and the heads of management. Communication ensures the efficient working of any organization and that the employees bare well aware regarding their responsibilities and obligations.

Communication can be seen as an action course where there is sharing of information from one individual or group to others through the use of common symbols. Although, the technologies of science and technology have become very advanced nowadays, even then it is not possible to ignore the element of human communication. This is because within organization communication is preferred by all businesses and nit acts an essential factor for the establishment of a healthy working environment (Vakola & Nikolaou, 2005). Communication can be seen as a pervasive activity with the help of which people are able to know one another in a better way and are able to combine their collective efforts.

Negative Impacts

Employees and managers do their best works in a kind of environment that promotes enthusiasm and motivates them in achieving their objectives and targets. Positive channels of communication are symbolic of positivity in working environments, while negative effects of communication are capable of derailing organizations. Communication with negative effects in workplaces is accountable for any decrease in the performance, enthusiasm and innovativeness of employees (Fedor, Caldwell & Herold, 2006). Negative effects of communication can result in stress that can trigger illness among employees which is further potential of impacting organizations through absenteeism. All these repercussions can transform into losses in performance and profits for companies which allow the continuity of the negative effects of communication.

It is possible for organizations to prevent the financial losses that are associated with the negative effects of communication through the selection and development of leaders who are capable of providing healthy and productive feedbacks employees (Fedor, Caldwell & Herold, 2006). Such leaders help in fostering positive behaviors within the employees and are able to build an organized workforce. On the contrary, a leader who has a negative style of communication and causes public degradation of employees gives out messages to the other teams that such kind of offensive behavior and style of leadership is acceptable in that organization employees (Fedor, Caldwell & Herold, 2006). Once such a kind of negative behavior is considered to be acceptable in any organization, it gets embedded in the organizational culture. Once any such behavior gets included in the organizational culture, attempts of changing it turns out to be a huge undertaking. Leaders lead by setting examples and therefore should be very careful about how they behave and communicate in the organization.

The productivity of organizations is dependent on how actively the employees are engaged. Negative effects of communication irrespective of whether they are coming from the superior management heads or peers, is potential of leading to rapid disengagement. Employees can get stressed from situations which might pose impacts on their attention to detail and can make them more prone to making mistakes employees (Fedor, Caldwell & Herold, 2006). Employees who experience negativity in the workplace tend to be focused on the elimination or avoidance of the problem source and do not actively think of the responsibilities that they have towards their job. In businesses, the consequences can mean losses in financial assets. In cases of healthcare organizations, the consequences can be threatening to life.

The workplace culture is representative of its behavioral standards. Positive communication leads to positive outcomes as well as serves as a motivating and creative source. Negativity that is generated by an employee can pose negative effects on the working culture (Vakola & Nikolaou, 2005). If the leaders do not take any action for preventing a repetitive occurrence, the other leaders and workers will accept the negative behaviors and might even start exhibiting similar behaviors. Organizations surely do not want to allow such negative behaviors to proliferate (Vakola & Nikolaou, 2005).