-1INTRODUCTION 1.1 What is Ethics Ethics can be defined as a branch of philosophy which seeks to address questions about morality, such as what the fundamental semantic, ontological, and epistemic nature of ethics or morality is (meta-ethics), how moral values should be determined (normative ethics), how a moral outcome can be achieved in specific situations (applied ethics), how moral capacity or moral agency develops and what its nature is (moral psychology), and what moral values people actually abide by. Simply put, ethics involves learning what is right or wrong, and then doing the right thing -but "the right thing" is not nearly as straightforward as conveyed in a great deal of business ethics literature. 1.2 What is Business Ethics? Business ethics is a form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Applied ethics is a field of ethics that deals with ethical questions in many fields such as medical, technical, legal and business ethics. In the increasingly conscience-focused marketplaces of the 21st century, the demand for more ethical business processes and actions (known as ethicism) is increasing. Simultaneously, pressure is applied on industry to improve business ethics through new public initiatives and laws (e.g. higher UK road tax for higher-emission vehicles). Businesses can often attain short-term gains by acting in an unethical fashion; however, such antics tend to undermine the economy over time. Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values. Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s, 1
both within major corporations and within academia. For example, today most major corporate websites lay emphasis on commitment to promoting non-economic social values under a variety of headings (e.g. ethics codes, social responsibility charters). In some cases, corporations have redefined their core values in the light of business ethical considerations. (e.g. BP's "beyond petroleum" environmental tilt) Note that many people react that business ethics, with its continuing attention to "doing the right thing," only asserts the obvious ("be good," "don't lie," etc.), and so these people don't take business ethics seriously. For many of us, these principles of the obvious can go right out the door during times of stress. Consequently, business ethics can be strong preventative medicine. Anyway, there are many other benefits of managing ethics in the workplace. These benefits are explained later in this document/report. 1.3 “10” Benefits of Managing Ethics in the Workplace1 Many people are used to reading or hearing of the moral benefits of attention to business ethics. However, there are other types of benefits, as well. The following list describes various types of benefits from managing ethics in the workplace. 1) Attention to business ethics has substantially improved society A matter of decades ago, children in our country worked 16-hour days. Workers’ limbs were torn off and disabled workers were condemned to poverty and often to starvation. Trusts controlled some markets to the extent that prices were fixed and small businesses choked out. Price fixing crippled normal market forces. Employees were terminated based on personalities. Influence was applied through intimidation and harassment. Then society reacted and demanded that businesses place high value on fairness and equal rights. Anti-trust laws were instituted. Government agencies were established. Unions were organized. Laws and regulations were established. 2) Ethics help maintain a moral course in turbulent times Attention to business ethics is critical during times of fundamental change -- times much like those faced now by businesses, both non-profit or for-profit. During times of change, there is often no clear moral compass to guide leaders through complex
1
Carter McNamara, MBA, PhD, Authenticity Consulting, LLC
2
conflicts about what is right or wrong. Continuing attention to ethics in the workplace sensitizes leaders and staff to how they want to act -- consistently. 3) Ethics cultivate strong teamwork and productivity Ethics programs align employee behaviors with those top priority ethical values preferred by leaders of the organization. Usually, an organization finds surprising disparity between its preferred values and the values actually reflected by behaviors in the workplace. Ongoing attention and dialogue regarding values in the workplace builds openness, integrity and community -- critical ingredients of strong teams in the workplace. Employees feel strong alignment between their values and those of the organization. They react with strong motivation and performance. 4) Ethics support employee growth and meaning Attention to ethics in the workplace helps employees face reality, both good and bad -- in the organization and themselves. Employees feel full confidence they can admit and deal with whatever comes their way. Bennett, in his article "Unethical Behavior, Stress Appear Linked" (Wall Street Journal, April 11, 1991, p. B1), explained that a consulting company tested a range of executives and managers. Their most striking finding: the more emotionally healthy executives, as measured on a battery of tests, the more likely they were to score high on ethics tests. 5) Ethics programs are an insurance policy -- they help ensure that policies are legal There is an increasing number of lawsuits in regard to personnel matters and to effects of an organization’s services or products on stakeholders. Ethical principles are often applied to current, major ethical issues to become legislation. Attention to ethics ensures highly ethical policies and procedures in the workplace. A major intent of well-designed personnel policies is to ensure ethical treatment of employees, e.g., in matters of hiring, evaluating, disciplining, firing, etc. 6) Ethics help avoid criminal acts “of omission” and can lower fines Ethics programs tend to detect ethical issues and violations early on so they can be reported or addressed. In some cases, when an organization is aware of an actual or potential violation and does not report it to the appropriate authorities, this can be 3
considered a criminal act, e.g., in business dealings with certain government agencies, such as the Defense Department. 7) Ethics help manage values associated with quality management, strategic planning and diversity management -- this benefit needs far more attention Ethics identify preferred values and ensuring organizational behaviors are aligned with those values. This effort includes recording the values, developing policies and procedures to align behaviours with preferred values, and then training all personnel about the policies and procedures. This overall effort is very useful for several other programs in the workplace that require behaviors to be aligned with values, including quality management, strategic planning and diversity management. Ethics management techniques are highly useful for managing strategic values, e.g., expand market-share, reduce costs, etc. and are also useful in managing diversity. Diversity is much more than the color of people’s skin -- it’s acknowledging different values and perspectives. 8) Ethics promote a strong public image Attention to ethics is also strong public relations -- admittedly, managing ethics should not be done primarily for reasons of public relations. But, frankly, the fact that an organization regularly gives attention to its ethics can portray a strong positive to the public. People see those organizations as valuing people more than profit, as striving to operate with the utmost of integrity and honor. Aligning behavior with values is critical to effective marketing and public relations programs. 9) Overall benefits of ethics Donaldson and Davis, in “Business Ethics? Yes, But What Can it Do for the Bottom Line?” (Management Decision, V28, N6, 1990) explain that managing ethical values in the workplace legitimizes managerial actions, strengthens the coherence & balance of the organization’s culture, improves trust in relationships between individuals & groups, supports greater consistency in standards and qualities of products, & cultivates greater sensitivity to the impact of the enterprise’s values & messages. 10) Last - and most -- formal attention to ethics in the workplace is the right thing to do.
4
-2BACKGROUND OF RESEARCH AND PROBLEM STATEMENT Unethical behaviour at workplace is a silent outbreak in the corporate world. It has been researched and evaluated widely over the years. Every person has some good and bad traits. So, there is always room for developing good ethics and improving character. Clients and customers know a company through its employees. A substantial number of complaints are being received by various government as well as private organizations regarding dissatisfaction of employees in working environment. Employees with ethical values and better character succeed in presenting a good impression of their company. Mature employees carry out smoother activities at work place. While the situation is reversed if the employees turn out to be unethical. Employees who are the flesh and blood of an organization must have comfortable business environment to work in but unfortunately it a phenomena world wide that the employees are being treated like another commodity. Especially female employees are prone to unethical behaviors from peers and colleagues including sexual harassment at work. This research proposal emphasizes the need for ever increasing demand of the work environment and that is the implementation of ethical standards in the organizations. In this project, we will review the contour and character of a workplace unethical behaviour and how to stop the work environment getting toxic in which such behaviour can crop up.
5
-3RELATIONSHIP BETWEEN BUSINESS AND ETHICS The relationship between business and ethics is intrinsically entwined. A successful company is one which can effectively recognize and cultivate the relationship which exists between the two. Businesses that exhibit and promote strong corporate codes of ethics are more prosperous in the long run because they show a commitment to an expectation of sound moral behavior. This demonstrates a dedication to society, customers, employees and the business itself. It also enhances a company's reputation if they become commonly known as an ethical company, and this brings more value to the organization. The highly competitive environment in today's global economy puts pressures on company leaders to remain profitable and to show a good return to stakeholders. Often this pressure can result in unethical decisions being made in order to deliver positive results. When this occurs it usually results in a pattern that gets passed down through the organization. As leaders show unethical behavior and perhaps even justify it even though they know to be wrong, this eventually becomes a part of organizational culture. People follow by example, and the lack of moral judgment will spread. It's easy to blame "the system", yet many fail to realize the "system" is comprised of decision making individuals. The relationship between business and ethics is inherently linked, but there are some who fail to make this connection. To determine "business is business" is not accurate as responsible (ethical) decision making is an important component of doing good business. Today's society is an instant gratification one and people expect immediate results. This is perhaps part of the reason why some companies exhibit bad business practices. Not the only reason, but perhaps a common one. Obviously one's individual moral compass impacts choices made in a business, and when the cultural environment nurtures sound moral philosophies and does not tolerate bad business practices, the immoral acts will decline. Granted the unethical companies may initially make significant gains financially and deliver the profits, but at what cost? When companies make unethical decisions it can result in 6
defective or rushed products, unsubstantiated firing of employees, and false presentations of products to consumers. Is this good for the company? The fact is it's an illusion. Yes, these factors will all cut costs and give the appearance of profit, but it's inevitable that poor choices will negatively impact the business and be more costly in the long run. In the long run, managers and leaders who promote an atmosphere with low ethical standards bring harm the business. While it may not necessarily shut the business down, it will impact the potential to increase revenues to the fullest potential. Good business practices starts with management setting standards of what's expected, and they should lead by example. The establishment of higher levels of ethical behavior within a business benefits the company in many ways. It displays strong values have been set for a commitment to company philosophy and mission. There is no good reason why a company cannot make ethically sound decisions and still turn a profit. Cheating and/or lying do not bring value to a business, and it also affects employee morale. Employees and reputation are two very valuable assets, and by promoting a morally sound environment for both employees and customers; this can only enhance those assets. Consumer trust and confidence in a business can only serve to benefit the company. Economic rules dictate that the larger a network, the more value is added to that network. If customers can accurately rely on the fair treatment, expertise and knowledge of a company, this will further expand their reputation as honest and as a result attract more customers. This ultimately economically benefits the company as well, and their network will grow. This being the case, it would be in a company's best interest to promote universal ethically good behavior in the workplace. A positive reputation leads to higher profits and provides better service for the public. Ethics and business go hand in hand and cannot effectively be separated. Ultimately implementing a strong ethical policy is a win-win situation for all.
7
-4OVERVIEW OF ISSUES IN BUSINESS ETHICS 4.1 General Business Ethics
Issues regarding the moral rights and duties between a company and its shareholders: fiduciary responsibility, stakeholder concept v. shareholder concept.
Leadership issues: corporate governance.
Political contributions made by corporations.
4.2 Ethics in Human Resource Management The ethics of human resource management (HRM) covers those ethical issues arising around the employer-employee relationship, such as the rights and duties owed between employer and employee.
Discrimination issues include discrimination on the bases of age (ageism), gender, race, religion, disabilities, weight and attractiveness. See also: affirmative action, sexual harassment.
Issues affecting the privacy of the employer: whistle-blowing.
Issues relating to the fairness of the employment contract and the balance of power between employer and employee: slavery,[4] indentured servitude, employment law.
4.3 Ethics in Accounting Information
Executive compensation: concerns excessive payments made to corporate CEO's and top management.
Bribery, kickbacks, and facilitation payments: while these may be in the (short-term) interests of the company and its shareholders, these practices may be anticompetitive or offend against the values of society.
4.4 Ethics in Sales and Marketing Marketing, which goes beyond the mere provision of information about (and access to) a product, may seek to manipulate our values and behavior. To some extent society regards this as acceptable, but where is the ethical line to be drawn? Marketing ethics 8
overlaps strongly with media ethics, because marketing makes heavy use of media. However, media ethics is a much larger topic and extends outside business ethics.
Pricing: price fixing, price discrimination, price skimming.
Anti-competitive practices: these include but go beyond pricing tactics to cover issues such as manipulation of loyalty and supply chains. See: anti-competitive practices, antitrust law.
4.5 Ethics in Production This area of business ethics deals with the duties of a company to ensure that products and production processes do not cause harm. Some of the more acute dilemmas in this area arise out of the fact that there is usually a degree of danger in any product or production process and it is difficult to define a degree of permissibility, or the degree of permissibility may depend on the changing state of preventative technologies or changing social perceptions of acceptable risk.
Defective, addictive and inherently dangerous products and services (e.g. tobacco, alcohol, weapons, motor vehicles, chemical manufacturing, bungee jumping).
Ethical relations between the company and the environment: pollution, environmental ethics, carbon emissions trading
9
-5ETHICAL ISSUES AND APPROACHES Philosophers and others disagree about the purpose of a business ethic in society. For example, some suggest that the principal purpose of a business is to maximize returns to its owners, or in the case of a publicly-traded concern, its shareholders. Thus, under this view, only those activities that increase profitability and shareholder value should be encouraged, because any others function as a tax on profits. Some believe that the only companies that are likely to survive in a competitive marketplace are those that place profit maximization above everything else. However, some point out that self-interest would still require a business to obey the law and adhere to basic moral rules, because the consequences of failing to do so could be very costly in fines, loss of licensure, or company reputation. The noted economist Milton Friedman was a leading proponent of this view. Some take the position that organizations are not capable of moral agency. Under this, ethical behavior is required of individual human beings, but not of the business or corporation. Other theorists contend that a business has moral duties that extend well beyond serving the interests of its owners or stockholders, and that these duties consist of more than simply obeying the law. They believe a business has moral responsibilities to so-called stakeholders, people who have an interest in the conduct of the business, which might include employees, customers, vendors, the local community, or even society as a whole. Stakeholders can also broken down into primary and secondary stakeholders. Primary stakeholders are people that are affected directly such as stockholders, where secondary stakeholders are people who are not affected directly such as the government. They would say that stakeholders have certain rights with regard to how the business operates, and some would suggest that this includes even rights of governance. Some theorists have adapted social contract theory to business, whereby companies become quasi-democratic associations, and employees and other stakeholders are given voice over a company's operations. This approach has become especially popular subsequent to the revival of contract theory in political philosophy, which is largely due to John Rawls' A Theory of Justice, and the advent of the consensus-oriented approach to 10
solving business problems, an aspect of the "quality movement" that emerged in the 1980s. Professors Thomas Donaldson and Thomas Dunfee proposed a version of contract theory for business, which they call Integrative Social Contracts Theory. They posit that conflicting interests are best resolved by formulating a "fair agreement" between the parties, using a combination of i) macro-principles that all rational people would agree upon as universal principles, and, ii) micro-principles formulated by actual agreements among the interested parties. Critics say the proponents of contract theories miss a central point, namely, that a business is someone's property and not a mini-state or a means of distributing social justice. Ethical issues can arise when companies must comply with multiple and sometimes conflicting legal or cultural standards, as in the case of multinational companies that operate in countries with varying practices. The question arises, for example, ought a company to obey the laws of its home country, or should it follow the less stringent laws of the developing country in which it does business? To illustrate, United States law forbids companies from paying bribes either domestically or overseas; however, in other parts of the world, bribery is a customary, accepted way of doing business. Similar problems can occur with regard to child labor, employee safety, work hours, wages, discrimination, and environmental protection laws. It is sometimes claimed that a Gresham's law of ethics applies in which bad ethical practices drive out good ethical practices. It is claimed that in a competitive business environment, those companies that survive are the ones that recognize that their only role is to maximize profits.
11
-6ETHICAL VALUES; EMPLOYEE SHOULD ADOPT FOR BUSINESS SUCCESS Good business ethics based on a set of moral and ethical values. These work ethics values must be absolute - that is, one must take them seriously enough to override any human rationalization, weakness, ego, or personal faults. When all else fails, they will always look back to these core, work ethic values to guide them. Unfortunately, life is not that easy and there's always disagreement about what values should reign supreme. Besides business ethics training, it's about values. In a nutshell, their values are your values in the context of morals and ethics at work. It is about your integrity at work. Your freedom to choose your own ethical values is somewhat limited. Look behind successful, honest businesses and you will see a set morals and ethics at work values that have stood the test of time. Think about how these values are communicated in your organization and what you can do to support workplace behavior ethics. Here are some important values: 6.1 Honesty The old adage, "honesty is the best policy" is true today more than ever. It's not just lip service. Employee business ethics manuals from most scandalized corporations are likely to contain slogans touting its commitment to honesty and integrity at work. Claiming to be honest and have good business ethics in an employee manual is passé. You're either honest or not. Even if you haven't got caught yet, most people know who is & who isn't. 6.2 Integrity at Work Integrity connotes strength and stability. It means taking the high road by practicing the highest business ethics standards. Demonstrating integrity in the workplace shows completeness and soundness in your character and in your organization. It shows that you have solid workplace behavior ethics that matter in the real world that promote positive work ethics. 6.3 Responsibility Blaming others, claiming victimhood, or passing the buck may solve short-term crises, but refusal to take responsibility erodes respect and cohesion in an organization. Ethical people take responsibility for their actions. Workplace stress issues are no excuse.
12
Likewise, actions show the ability to be responsible both in the little and big things. Good work ethics show a deeper commitment to personal responsibility. 6.4 Quality Quality should be more than making the best product, but should extend to every aspect of your work. A person who recognizes quality and strives for it daily has a profound sense of self-respect, pride in accomplishment, and attentiveness that affects everything. From your memos to your presentations, everything you touch should communicate professionalism and quality. Don't let workplace stress issues rob you of striving for quality in everything you do. 6.5 Trust There's no free ride to good work ethics. Trust is hard to earn and even harder to get back after you've lost it. Everyone who comes in contact with you ors your company must have trust and confidence in how you do business ethics. Conflicts of interest in the workplace must not be on your radar screen. 6.6 Respect Respect is more than a feeling, but a demonstration of honor, value, and reverence for something or someone. We respect the laws, the people we work with, the company and its assets, and ourselves. 6.7 Teamwork Two or more employees together make a team. It is a business necessity to work openly and supportively in teams whether formal or informal. You need each other for effective problem solving in the work place. 6.8 Leadership How many hardworking, honest employees have been tainted and led astray by corporate leadership failings? Managers and executives should uphold the ethical standards for the entire organization. A leader is out front providing an example that others will follow. Problem solving in the work place must be your first response. The real test of these values comes from the resulting action. It takes a concerted, companywide effort, beyond inserting these words in an employee manual, to make it happen. First, management must lead by example. Good work ethics should be most noticeable at the top. Every employee must be accountable to the same rules.
13
Second, a corporate values or ethics initiative must be "sold" and "marketed" aggressively throughout a company. Every forum and medium should be used to spread the good message. Of course, it will only be credible if the company is practicing what it preaches. Third, ethics training must be provided to get everyone on the same page. It's easy to ignore a motivational speech or pass by a poster, but spending time learning about the issues will have a lasting impact. This must include integrated compliance solutions and promote integrity in the work place. Fourth, both you and the company must be in it for the long haul. The ethics training fervor should extend to the next generation of employees. The longer it lasts, the more ingrained the principles will become. Despite failings of some, there is plenty of room at the table for positive work ethics and profitable business to reside. Together they can lay the cornerstone for a secure and prosperous society. These values you can put in the employee manual and mean it.
14
-7SIGNIFICANCE OF THE STUDY In his recent and insightful article, Hosmer (1994) argued that ethics are a good business investment, essentially because they entail positive externalities. They are a prerequisite for building trust with various inside and outside stakeholders. Such trust, in turn, is a prerequisite for loyal and innovative long-term cooperation. Synergies are only possible through cooperation, and in areas where actions of others are difficult to supervise, trust built on long-term ethical behaviour becomes the only practical way to capture such synergies. Hostile and unethical behaviours at office by Professor Joel Neuman, Center for Applied Management, State University of New York at New Paltz are: 1. Talking behind back 2. Interrupting others while they are speaking or working 3. Being pompous, acting in an arrogant manner 4. Criticizing someone’s opinion in front of others 5. Never returning phone calls or ignoring memos 6. Giving silent treatment 7. Being abusive 8. Verbal forms of sexual harassment 9. Staring, dirty looks or other negative eye contact 10. Intentionally damning with faint praise 11. The need to control others through verbal threats and physical actions 12. Quicker to anger and sooner to use force than others A workplace unethical behaviour is always with a history of aggressive behaviour. The positive and negative habits and to maintain them or break them respectively need to be focused. Routine behaviours in the case of a bully become the chosen way to relate with people at work place. Such behaviour is toxic, vicious and often times, illegitimate. The workplace never promotes such behaviour, but there are some environments which become favourable for aggressive behaviours.
15
Our focus in this paper is on the ethical principles which relate to business and which are contained in the religion of Islam. Islam is generally misunderstood and it is often surprising to some that it contains an entire socio-economic system. In Islam, it is ethics that dominates economics and not the other way around (Naqvi, 1981). My purpose is twofold: (1) to share a perspective on business ethics, little known in the west, which may stimulate further thinking and debate on the relationships between ethics and business, and (2) to provide some knowledge of Islamic philosophy in order to help managers doing business in Muslim cultures deal with cultural differences.
16
-8LITERATURE REVIEW Studies have shown that ethics effect the employee performance in various ways. Imagine a female worker who is continuously harassed by her co worker. Will she be able to do her daily job comfortably if she is in continuous jeopardy of being sexually harassed by her colleagues? Imagine the case of an employee who is taunted and teased by his co workers just because of his colour or creed. It is not hard to imagine as to how that employee shall be performing at work. The famous Hawthorne Studies conducted by General Electric Engineers speaks volume about effect of ethics upon employee performance. General Electric Engineers conducted survey of a factory and divided the factory into two groups. One group was given good working environment and monetary benefits and the other group was denied the two things but was given their favourite to work with. In the conclusion it was concluded by GE engineers that workers who were given work with their favourites were happier and satisfied than those who were just given salary and good working environment. So the conclusion follows that a worker likes to be respected and give respect and money is although an important stimulant for work but if the same worker is not given respect and honour he would leave the job and reject monetary incentives. In work place if workers get a feeling of discrimination they loose interest in jobs. Absenteeism rises and worker do not come up to the expectations of the company. From religious point of view also the emphasis on ethics is obvious. Be it selling or hiring or letting moral standards should always be kept in view. There exists in most societies a relative scarcity of resources with unlimited claims upon them. A free-market capitalist economy uses market determined prices as a filtering mechanism to distribute resources. The use of the price system alone, however, can frustrate the realization of socio-economic goals. Under a system of state control, the allocation of resources is in the hands of a bureaucracy, which is cumbersome and inefficient. According to Chapra (1992), the market system should be maintained, but that the price mechanism be complemented with a device that minimizes unnecessary claims on resources. This device is the "moral filter." This means that people would pass their potential claims on resources through the "filter of Islamic values" so that many claims would be eliminated before being expressed in the marketplace. Resources would not be allowed to be diverted to the production of luxuries 17
until the production of necessities was ensured in sufficient quantities (Siddiqi, 1981). The definition of luxurious or extravagant is related to the average standards of consumption in a society, the idea being that large departure from the standards would not be permissible. Unethical decision-making behaviour within organizations has received increasing attention over the past ten years. As a result, a plethora of studies have examined the relationship between gender and business ethics. However, these studies report conflicting results as to whether or not men and women differ with regards to business ethics. In this article, we propose that gender identity theory [Spence: 1993, Journal of Personality and Social Psychology 64, 624–635], provides both the theory and empirical measures to explore the influence of psychological gender traits and gender-role attitudes on ethical perceptions of workplace behaviours. Statistical analyses of the data reveal that based on sex alone, no differences occur between men and women in their ethical perceptions. Yet, when a multidimensional approach to gender is applied, results show that expressive traits and egalitarian gender-role attitudes contribute to both men’s and women’s propensity to perceive unethical workplace behaviours as unethical. Many studies report sex differences in ethical perceptions of managers and future business leaders (i.e. business students). The general conclusion of this research stream is that men are more willing than women to behave unethically and women are significantly more likely than men to view certain questionable acts as unethical (Beu et al., 2003; Dawson, 1997; Mason and Mudrack, 1996; Smith and Oakley, 1997). Yet, other research finds no differences when comparing men and women (cf. Robin and Babin, 1997; Roxas and Stoneback, 2004). An explanation for these contradictory findings is that even though ethicality and moral reasoning are influenced by more than biology, the complex gender construct is measured as a dichotomous variable, which is sex. Substantial support exists for the argument that social, personal, individual and situational variables must be considered (e.g.,Bendixen et al., 1998; Bommer, et al., 1987; Damon, 1988; Gibbs, 1991; Roxas and Stoneback, 102 A. Catherine McCabe et al. Drake and Drake (California Management Review, V16, pp. 107-123) note that “an employer can be subject to suit for breach of contract for failure to comply with any promise it made, so the gap between stated corporate culture and actual practice has significant legal, as well as ethical implications.” 18
-9EFFECTS OF ETHICS ON EMPLOYEE PERFORMANCE “Do
all the good you can, by all the means you can, in all the ways
you can, in all the places you can, at all the times you can, to all the people you can, as long as ever you can” John Wesley According to a survey, 91% of all employed adults agreed that workers are more likely to behave ethically at work when their employer is good at communicating and promoting a strong work-life balance. "To attract and retain talent, it's imperative that employers provide employees with the means to attain a healthy work-life balance," says Sharon Allen, chairman of the board at Deloitte USA. "This isn't only key to job satisfaction and retaining your most valued employees, but it's also critical in fostering an ethical workplace culture," she says. A strong ethics program can reap many concrete benefits for an organization, from increasing customer satisfaction, to improving employee morale, to conserving resources and saving costs. Here’s some of the evidence that doing the right thing is also doing the smart thing. Following are some of the effects that ethical or unethical behaviour leaves on the employee behaviour. 9.1 Improving Employee Morale. Many businesses think that motivating employees to do their best without giving big rewards isn't possible. However, monetary rewards are rarely mentioned as ways to improve employee morale on a long-term basis. There are many great ways to get employees excited about their jobs without spending a lot of money. Organizations that support ethical decision making—especially organizations whose ethics programs focus on achieving high standards instead of simply complying with policy or law can expect to have happier, more dedicated employees. Three ethical behaviours that increase employee morale are: 9.1.1 Reward Great Work with Flexible Scheduling One of the ways to make employees happiest is to be flexible on scheduling. If it is possible for an employee to work from home one day or come in earlier to be 19
able to leave earlier, these are really great reward options. For a business where this type of schedule isn't possible, another option, such as allowing employees to work for 10-hour days and take a three-day weekend on a rotating basis, may work better. 9.1.2 Say Thank You to Keep Employees Happy Believe it or not, a simple thank you can mean more to an employee than money. The key to thanking employees is to be specific and timely. Don't just come up to someone three weeks or three months after he has done something and say something along the lines of "Keep up the good work." Instead, go to the employee as soon as possible and say, "David, thanks for your hard work on the ABC Company project yesterday. Your idea to have the company use a different vendor really helped them cut costs and showed them that we care about keeping them happy." Your employee will know that you truly do appreciate him because you mentioned a specific instance where he was helpful. 9.1.3 Offer Small Rewards It may be impossible to give your employees an all-expense-paid cruise, but a Rs. 5000/- gift certificate to a local discount store as a thanks for a good job or a Rs. 2500/- gift certificate to a local restaurant on their birthday is probably within your reach. Even small rewards can make a big difference to employees, because for most people, the thought really is what counts. Year-end bonuses are also always a great way to improve morale, even if they aren't very big. Poor ethical behavior decreases employee morale. Morale is the base of motivation. Motivation is a key component of productivity. Regardless of whether poor management is the result of incompetence or leadership deficits, employees refuse to exert effort for someone who is unable to manage projects or people. Lower employee productivity increases labor costs. Any organization that has low morale also has high turnover. The effects of turnover on the bottom line are well-documented: higher training costs and lower worker expertise. Recruitment becomes virtually impossible as word travels fast about a poorly run operation, especially in the Internet era. The quality of applicants is lower 20
and the human resource nightmare becomes a vicious money draining cycle. Low morale begets high turnover which causes higher costs which leads to an employee exodus that further erodes morale. Running in circles is a poor manager's legacy. 9.2 Increased Customer Satisfaction: In today’s competitive market place it’s hard to differentiate your product and service offerings from your competition. The technology available to both you and your competitors has made it easier to duplicate each other’s products and services. Because of this, it’s difficult to rely on features alone to differentiate your company from the competition. Excellent customer service is one of the few ways to achieve a sustainable competitive advantage. When organizations support ethical practices—for example, in hospitals by encouraging clinicians to actively involve patients in decisions about their health care—patients do better clinically and say they’re more satisfied with the care they receive. Same goes to other professional bodies. A satisfied employee breeds customer satisfaction. Customer flight decreases revenue. The money dries up and a company must cut costs in order to match the revenue decline. In most cases, the first place the cost cutters look is labor. People are furloughed or bought out with an early retirement package. The remaining employees sit nervously as their desks wondering if they're next. 9.3 Enhanced Productivity: A strong corporate ethics culture can improve not only employee morale but also performance, and help to improve an organization’s efficiency and productivity. An effective ethics program also makes it easier to recruit and retain quality staff. Instead of firing their employees, many leading companies use more innovative ways to boost productivity and cut costs. Experience has shown that the best ideas to cut costs and improve productivity are not found in corporate board rooms. The best ideas are found with those who are closest to the work. People on the front line already know what keeps them from doing their best. They know which procedures and processes keep them from providing good service. All they need is a system to get those ideas identified and implemented.
21
Peter E. Drucker said, "One has to assume, first, that the individual human being at work knows better than anyone else what makes him or her more productive . . . even in routine work the only true expert is the person who does the job." One Yamaha employee I knew of came up with one remarkable idea that saved the company close to a million dollars. Wainwright manufacturing averages 66 suggestions per employee per year. Strong ethical culture encourages employees to give their suggestions quite frequently which gives boost to the economic well being of the company. Recent approaches to management like Management by Objectives or MBO and employee empowerment has their roots in the improving ethical behaviours and have a strong ties with the employees. Thus strong ethical culture improves employee behaviour. Getting employees' ideas and getting their involvement is not an option anymore. If your workforce is going to be competitive, it's mandatory to involve the minds, hands, and ideas from everyone in your organization. This is particularly true with the college grads of today who want to take the reins now and are not concerned about waiting around for a retirement check. They want to contribute their ideas or they will take them somewhere else pronto. 9.4 Conserving Resources/Avoiding Costs: Ethics goes a long way in reducing costs. A satisfied employee performs more effectively thus reducing an organizational costs. In hospitals for example Effective ethics programs have been shown to improve quality of care and reduce length of stay of patients and costs. A dissatisfied customer will devour the profits of the company by not caring for cost cutting strategies of the company. In restaurants a dissatisfied can take revenge from his employer by throwing a tin of oil in the drainage which might cost Rs 700 per tin thus causing the employer Rs 21000 per month. A dissatisfied employee will not care about turning off air conditioner or light bulbs while leaving the office thus causing the energy costs of the employer manifold. 9.5 Improving Accreditation Reviews: In developed countries many NGOs conduct reviews on ethical standards and also set standards for the employers for behaving ethically with their employees. A strong ethics program can help ensure that the organization meets or exceeds those standards which in the longer run improves employees performance. 22
9.6 Reducing Risk of Lawsuits. Organizations that make strong commitments to ethical practices, such as being honest with employees, can reduce the risk of litigation and liability from the employee side thus reducing organizational costs. A female employee who is subjected to sexual harassment at work can sue her employer for not implementing strong security standards for female employees. An employee who is treated badly by his employer can sue his employer for loss of mental peace and calm and thus causing humiliation to the organization. On the other hand a strong ethical culture will make the same employee work more productively thus making the financial health of the organization stronger. 9.7 Sustaining Corporate Integrity: Integrity is consistency of actions, values, methods, measures, principles, expectations and outcome. As a holistic concept, it judges the quality of a system in terms of its ability to achieve its own goals. Ambiguity about values and priorities is one of the major sources of corporate deviance. Making ethics a clear priority in corporate culture helps to ensure good business practices throughout the organization thus improving employee performance. 9.8 Safeguarding the Organization’s Future. Lack of an effective ethics program can seriously jeopardize an organization’s reputation and even its survival. Creating structures and processes by which an organization can hold itself accountable to its core values and to ethical practices is an investment in the organization’s future. Since employee performance improves with ethical behaviour therefore it is like safeguarding the organizational future. 9.9 Cynicism in Workplace: Non ethical attitudes generate cynical behaviours. Cynicism can manifest itself by frustration, disillusionment and distrust in regard to organizations, authorities and other aspects of society, and can result from a negative evaluation of past experiences. If there is cynicism at workplace, there is a strong feeling of skepticism among employees who feel frustrated at work. They do not see any security at work and ultimately lose hope 23
and morale and thus become a burden on the organization treasury. Cynical attitude might lead to disputes and fights over workplace which too is disturbing for the employers and brings bad name to the organization also. 9.10
Distrust among the team members:
It also creates distrust among the team members. As mentioned above the cynical behaviour from peers has adverse effects upon the overall team work. Instead of seeing eye to an eye the team members become suspicious of each other and get the impression that their co workers want them to be removed from the company. 9.11
Communication between employer and employee is restricted:
When the employer and employee do not have strong ethical relationship, communication between the two gets restricted. This communication inhibition restricts the progress of the company and thus brings down the quality and profit margins of the company. In the present business world it is not important to have proper skills but being a human resource manager one also needs to be know interpersonal skills. 9.12
Adversarial Relationship Between Employer and Employee:
Unethical behaviours breeds hatred and animosity between employer and the employee which for obvious reasons has an adverse impact upon the overall financial performance of the organization. 9.13
Lack of self-respect:
When a work place fails to promote an atmosphere of self-respect toward and among its employees, all manners of discourtesy, resentment and aggression floats into the organizational structure. Self-respect is the right of every individual. When it is denied, people become victims of bad behaviours at work. Such environments are perfect for the toxic behaviour of bullies. When individual dignity is ignored, the mentality of the bully reigns. So it is the duty of the company to provide nurturing environments by applying certain rules which bound all employees at all levels. 9.14
Overlooking difficult employees:
A company that fails to create rules of conduct with regard to hostile behaviour, or other forms of unsatisfactory demeanour at work place, fails to protect its employees and 24
indirectly its customers. Both large as well as small problems which are dismissed denied or allowed to go unresolved become an inferno with time. Such pattern for an organization is destructive & illegal. Remember, the more productive an environment for the employee is the farther the company will grow and produce results. 9.15
Non encouraging behaviour:
Downsizing, increase in work load & reforming takes a toll on all employees. The stress involved needs to be acknowledged and employees need to be given the opportunity to adjust to whatever their individual circumstances become. This takes a commitment from management to be aware and pro-active during stressful transitions. Putting time, energy and money into viable programs goes a long way to assist employees to make the adjustments that will allow them to continue to be productive during difficult times of change.
25
-10RESEARCH QUESTIONS 10.1
Study Design
In this cross sectional correlation study the data on the independent variables and the dependant variable shall be collected from male as well as female employees of the organization through questionnaires and also from the employees of various organizations through electronic mails and direct one on one informational interview. 10.2
Data
This study is cross sectional and the data was collected through Questionnaire. 10.3
Data collection method
Questionnaires shall be mailed to all the employees of the organization and in case questionnaires are not responded in time reminders shall be sent to the employees. 10.4
Variables in the study
In this study, we take employee performance as dependent variable where as Ethical behaviour is an independent variable. 10.5
Population and Sample
The population of the study comprises of the employees working in various organizations therefore a systematic sampling procedure shall be used to include at least 10 companies / organizations within Lahore region e.g., Mobilink, Telenor, Nestle, Metro Cash and Carry, GC University Lahore, University of the Punjab, Forces Academy, Pace Lahore, etc. 10.6
A description of how the research findings will be used and/or disseminated
The research findings shall be compiled and distributed to the employees and the management of the organisation. 10.7
Questionnaire for Project 1. Do you maintain appropriate confidentiality? 2. Do you say “no” to inappropriate requests? 3. Do you show respect for copyright laws? 26
4. Are you honest when sharing information with others? 5. Do you balance organizational and personal needs? 6. Do you observe sexual harassment during your stay at workplace? 7. Are you able to manage your personal biases? 8. Do you think ethics play a vital role in improving performance of an employee? 9. Do you respect the diversity within your organization? 10. Do you utilize your authority properly? 11. Do you challenge yourself to “do the right thing”? 12. Do you challenge yourself to “do the thing right”? 13. Does favoritism ever enter into your decision making? 14. Do you follow orders regardless if they appear unethical? 15. In a given opportunity, would you like to participate in the ethical standards training programs? 16. Have you ever raised your voice against unethical behavior at any level? 17. Your competitor uses negative marketing techniques to promote its product or services. Will you also do the same? 18. Males are subjected to more unethical behavior. Agreed? 19. Females are subjected to more unethical behavior. Agreed? 20. Does your organization have a written ethics policy? 21. Does your company require it’s employees to sign a code of conduct statement? 22. Are ethical behaviors expected out of your leaders? 23. Are ethical behaviors rewarded? 24. Do the leaders in your organization act ethically? 25. Are the leaders in your organization honest? 26. Is the behavior of your leaders consistent with the stated ethics and values of the organization? 27
27. Do the leaders in your organization employ favoritism? 28. Does your organization offer training in business ethics? 29. Do the leaders in your organization balance the needs of the business with ethical issues appropriately? 30. Does your organization balance it’s short term business goals with it’s long term need for success? 31. Do the executives in your organization lead by example? 32. Do you think overtime improves employee performance? 33. Do you think ethics have positive impact on target achievement? 34. Have your company observed strikes due to ethical problems? 35. Do you think that your organization has perfect ethical behavior reward system? 36. Does your organization launch workshops on ethical behaviors? 37. Employee’s performance is mostly disturbed by leg pulling? 38. Employee’s performance is mostly disturbed by back biting?
28
10.8
Frequency Tables with Pie Charts and their Interpretation:
1. Do you maintain appropriate confidentiality? Response Usually Always Total
Frequency
Percent
14 7.8 166 92.2 180 100.0 Do you maintain appropriate confidentiality? Usually Yes/Always
Interpretation It is found that most of the respondents maintain appropriate confidentiality in their job i.e., 92% and remaining 18% usually do the same.
29
2. Do you say "no" to inappropriate requests? Response Usually Always Total
Frequency
Percent
14 166 180
7.8 92.2 100.0
Do you say "no" to inappropriate requests? Usually Yes/Always
Interpretation 166 persons say that they always say ‘no’ to inappropriate request at their work place which is 92% of total. Remaining about 8% lie is 2nd option that is they usually say no to such kind of request.
30
3. Do you show respect for copyright laws? Response Sometimes Usually Always Total
Frequency
Percent
53 99 28 180
29.4 55.0 15.6 100.0
Do you show respect for copyright laws? Sometimes Usually Yes/Always
Interpretation The answer shows that major part of employees do respect copyright laws as is obvious through green color in the pie chart.
31
4. Are you honest when sharing information with others? Response
Frequency
Percent
15 165 180
8.3 91.7 100.0
Usually Always Total
Are you honest when sharing information with others? Usually Yes/Always
Interpretation More than 90% employees have responded that they are honest when they share information with others.
32
5. Do you balance organizational and personal needs? Response
Frequency
Percent
27 153 180
15.0 85.0 100.0
Usually Always Total
Do you balance organizational and personal needs? Usually Yes/Always
Interpretation 85 % of employees balance their organizational and personal needs and remaining 15 % do not balance the same.
33
6. Do you observe sexual harassment during your stay at workplace? Response Never Sometimes Usually Yes/Always Total
Frequency
Percent
24 91 30 35 180
13.3 50.6 16.7 19.4 100.0
Do you observe sexual harassment during your stay at workplace? Never Sometimes Usually Yes/Always
Interpretation A large number of respondents do say that they observe sexual harassment at workplace.
34
7. Are you able to manage your personal biases? Response Sometimes Usually Always Total
Frequency
Percent
14 47 119 180
7.8 26.1 66.1 100.0
Are you able to manage your personal biases? Sometimes Usually Yes/Always
Interpretation 66.1 % of employees say that they mange their personal biases.
35
8. Do you think ethics play a vital role in improving performance of an employee? Response
Frequency
Percent
Usually 17 9.4 Always 163 90.6 Total 180 play 100.0 Do you think ethics a vital role in improving performance of an employee? Usually Yes/Always
Interpretation A large portion of employees think which is almost 90% do believe that ethics play a vital role in improving employee performance.
36
9. Do you respect the diversity within your organization? Response Usually Always Total
Frequency
Percent
43 23.9 137 76.1 180 100.0 Do you respect the diversity within your organization? Usually Yes/Always
Interpretation 76.1 % of employees like to maintain diversity within the organization.
37
10. Do you utilize your authority properly? Response Sometimes Usually Always Total
Frequency
Percent
32 80 68 180
17.8 44.4 37.8 100.0
Do you utilize your authority properly? Sometimes Usually Yes/Always
Interpretation 44 % of the employees say that they usually but not always utilize their authority properly.
38
11. Do you challenge yourself to "do the right thing"? Response Never Sometimes Usually Always Total
Frequency
Percent
16 23 80 61 180
8.9 12.8 44.4 33.9 100.0
Do you challenge yourself to "do the right thing"? Never Sometimes Usually Yes/Always
Interpretation 44.4 % of the employees always challenge themselves to do the right thing.
39
12. Do you challenge yourself to "do the thing right"? Response Usually Always Total
Frequency
Percent
49 131 180
27.2 72.8 100.0
Do you challenge yourself to "do the thing right"? Usually Yes/Always
Interpretation 72.8 % of employees challenge themselves to do the thing right.
40
13. Does favoritism ever enter into your decision making? Response
Frequency
Percent
45 123 12 180
25.0 68.3 6.7 100.0
Never Sometimes Usually Total
Does favoritism ever enter into your decision making? Never Sometimes Usually
Interpretation 68.3 % of employees say that favouritism sometimes come in their decision making which is huge part of the employees.
41
14. Do you follow orders regardless if they appear unethical? Response
Frequency
Percent
79 98 3 180
43.9 54.4 1.7 100.0
Never Sometimes Usually Total
Do you follow orders regardless if they appear unethical? Never Sometimes Usually
Interpretation 43.9 % of employees say that they never follow unethical orders, 54.4 % say that sometimes they follow unethical orders.
42
15. In a given opportunity, would you like to participate in the ethical standards training programs? Response Sometimes Usually Always Total
Frequency
Percent
17 41 122 180
9.4 22.8 67.8 100.0
In a given opportunity, would you like to participate in the ethical standards training programs? Sometimes Usually Yes/Always
Interpretation A large proportion of employees which is 67.8 % showed their willingness to participate in ethical program.
43
16. Have you ever raised your voice against unethical behavior at any level? Response Never Sometimes Usually Always Total
Frequency
Percent
21 38 83 38 180
11.7 21.1 46.1 21.1 100.0
Have you ever raised your voice against unethical behavior at any level? Never Sometimes Usually Yes/Always
Interpretation 83 out of 180 employees raise their voice at various levels If they face unethical behaviour.
44
17. Your competitor uses negative marketing techniques to promote its product or services. Will you also do the same? Response Never Sometimes Usually Total
Frequency
Percent
86 71 23 180
47.8 39.4 12.8 100.0
Your competitor uses negative marketing techniques to promote its product or services. Will you also do the same? Never Sometimes Usually
Interpretation 47.8 % of employees say that they will never use negative marketing techniques to promote products.
45
18. Males are subjected to more unethical behavior. Agreed? Response Never Sometimes Usually Always Total
Frequency
Percent
79 69 25 7 180
43.9 38.3 13.9 3.9 100.0
Males are subjected to more unethical behavior. Agreed? Never Sometimes Usually Yes/Always
Interpretation 43.9 % of employees say that males are not more subjected to unethical behaviour which is a large portion of the employees however for the rest of the survey the response is mixed.
46
19. Females are subjected to more unethical behavior. Agreed? Response
Frequency
Percent
30 120 26 4 180
16.7 66.7 14.4 2.2 100.0
Never Sometimes Usually Always Total
Females are subjected to more unethical behavior. Agreed? Never Sometimes Usually Yes/Always
Interpretation 66.7 % of employees say that females are subjected to sexual harassment sometimes but rest of the reaction is a mix.
47
20. Does your organization have a written ethics policy? Response
Frequency
Percent
Never 31 17.2 Sometimes 70 38.9 Usually 46 25.6 Always 33 18.3 Total 180 100.0 Does your organization have a written ethics policy? Never Sometimes Usually Yes/Always
Interpretation A large portion of employees say that the have clear written ethical policy.
48
21. Does your company require it's employees to sign a code of conduct statement? Response Never Sometimes Usually Always Total
Frequency
Percent
37 42 63 38 180
20.6 23.3 35.0 21.1 100.0
Does your company require it's employees to sign a code of conduct statement? Never Sometimes Usually Yes/Always
Interpretation A large portion of employees say that their company requires to sign a code of conduct statement.
49
22. Are ethical behaviors expected from your leaders? Response
Frequency
Percent
Never 26 14.4 Sometimes 54 30.0 Usually 89 49.4 Always 11 6.1 Total 180 100.0 Are ethical behaviors expected out of your leaders? Never Sometimes Usually Yes/Always
Interpretation Almost half of the employees do believe that ethical behaviours are usually expected from their leaders.
50
23. Are ethical behaviors rewarded? Response Never Sometimes Usually Always Total
Frequency
Percent
24 47 71 38 180
13.3 26.1 39.4 21.1 100.0
Are ethical behaviors rewarded? Never Sometimes Usually Yes/Always
Interpretation A very small portion say that ethical behaviours are not rewarded whereas 21.1% of employees do believe that ethical behaviours are always rewarded.
51
24. Do the leaders in your organization act ethically? Response
Frequency
Percent
7 14 61 98 180
3.9 7.8 33.9 54.4 100.0
Never Sometimes Usually Always Total
Do the leaders in your organization act ethically? Never Sometimes Usually Yes/Always
Interpretation A large portion of employees which is almost 54.4 % do believe that leaders in their organizations act ethically.
52
25. Are the leaders in your organization honest? Response
Frequency
Percent
10 17 51 102 180
5.6 9.4 28.3 56.7 100.0
Never Sometimes Usually Always Total
Are the leaders in your organization honest? Never Sometimes Usually Yes/Always
Interpretation A large portion of employees which is almost 56.7 % do believe that leaders in their organizations act honestly.
53
26. Is the behavior of your leaders consistent with the stated ethics and values of the organization? Response Never Sometimes Usually Always Total
Frequency
Percent
12 17 65 86 180
6.7 9.4 36.1 47.8 100.0
Is the behavior of your leaders consistent with the stated ethics and values of the organization? Never Sometimes Usually Yes/Always
Interpretation Almost half if the employees do believe that their leaders are consistent with the stated ethics and values of the organization.
54
27. Do the leaders in your organization apply favoritism? Response Never Sometimes Usually Yes/Always Total
Frequency
Percent
87 50 23 20 180
48.3 27.8 12.8 11.1 100.0
Do the leaders in your organization employ favoritism? Never Sometimes Usually Yes/Always
Interpretation 48.3 % of the employees say that their leaders do not apply favouritism.
55
28. Does your organization offer training in business ethics? Response Never Sometimes Usually Always Total
Frequency
Percent
13 51 75 41 180
7.2 28.3 41.7 22.8 100.0
Does your organization offer training in business ethics? Never Sometimes Usually Yes/Always
Interpretation 41.7 % employees say that their organization usually provide training in business ethics and 22.8 % say that their organization always provide training in business ethics.
56
29. Do the leaders in your organization balance the needs of the business with ethical issues appropriately? Response
Frequency
Percent
Never 7 3.9 Sometimes 51 28.3 Usually 52 28.9 Always 70 38.9 Total 180 100.0 Do the leaders in your organization balance the needs of the business with ethical issues appropriately? Never Sometimes Usually Yes/Always
Interpretation 38.9 % of the employees replied in affirmative while 28.3 % said that it is usual and not always.
57
30. Does your organization balance it's short term business goals with it's long term need for success? Response Never Sometimes Usually Always Total
Frequency
Percent
24 21 49 86 180
13.3 11.7 27.2 47.8 100.0
Does your organization balance it's short term business goals with it's long term need for success? Never Sometimes Usually Yes/Always
Interpretation 47.8 % of the employees say that their organization balance its short term business goals with its long term need for success and there is a mix reaction from the rest of the employees.
58
31. Do the executives in your organization lead by example? Response Never Sometimes Usually Always Total
Frequency
Percent
12 47 34 87 180
6.7 26.1 18.9 48.3 100.0
Do the executives in your organization lead by example? Never Sometimes Usually Yes/Always
Interpretation A Major portion, e.g. 48.3 % of the employees, do say that their leaders do lead by example.
59
32. Do you think overtime improves employee performance? Response Sometimes Usually Always Total
Frequency
Percent
27 23 130 180
15.0 12.8 72.2 100.0
Do you think overtime improves employee performance? Sometimes Usually Yes/Always
Interprétation A large portion of employees believe that overtime improves employee performance.
60
33. Do you think ethics have positive impact on target achievement? Response Never Sometimes Usually Always Total
Frequency
Percent
17 17 56 90 180
9.4 9.4 31.1 50.0 100.0
Do you think ethics have positive impact on target achievement? Never Sometimes Usually Yes/Always
Interpretation 50 % of employees say that ethics have positive impact on target achievement.
61
34. Have your company observed strikes due to ethical problems? Response Never Sometimes Usually Always Total
Frequency
Percent
18 97 46 19 180
10.0 53.9 25.6 10.6 100.0
Have your company observed strikes due to ethical problems? Never Sometimes Usually Yes/Always
Interpretation 53.9 % employees say that their company observes strikes due to ethical problems.
62
35. Do you think that your organization has perfect ethical behavior reward system? Response
Frequency
Percent
Never 42 23.3 Sometimes 69 38.3 Usually 48 26.7 Always 21 11.7 Total 180 100.0 Do you think that your organization has perfect ethical behavior reward system? Never Sometimes Usually Yes/Always
Interpretation 38.3 % of employees say that their companies have ethical behaviour reward system but it is applied at times.
63
36. Does your organization launch workshops on ethical behaviors? Response Never Sometimes Usually Always Total
Frequency
Percent
93 33 38 16 180
51.7 18.3 21.1 8.9 100.0
Does your organization launch workshops on ethical behaviors? Never Sometimes Usually Yes/Always
Interpretation More than 50% employees say that their organizations do not launch workshops on ethical behaviours.
64
37. Employee's performance is mostly disturbed by leg pulling? Response Never Sometimes Usually Always Total
Frequency
Percent
9 18 46 107 180
5.0 10.0 25.6 59.4 100.0
Employee's performance is mostly disturbed by leg pulling? Never Sometimes Usually Yes/Always
Interpretation Almost 60% of employees believe that leg pulling disturbs employee performance.
65
38. Employee's performance is mostly disturbed by back biting? Response Never Sometimes Usually Always Total
Frequency
Percent
14 15 36 115 180
7.8 8.3 20.0 63.9 100.0
Employee's performance is mostly disturbed by back biting? Never Sometimes Usually Yes/Always
Interpretation 63.9 % of the employees do believe that back biting is injurious to employee performance.
66
10.9 Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
16.
17.
18. 19. 20. 21.
Descriptive Statistics: Questions
Do you maintain appropriate confidentiality? Do you say "no" to inappropriate requests? Do you show respect for copyright laws? Are you honest when sharing information with others? Do you balance organizational and personal needs? Do you observe sexual harassment during your stay at workplace? Are you able to manage your personal biases? Do you think ethics play a vital role in improving performance of an employee? Do you respect the diversity within your organization? Do you utilize your authority properly? Do you challenge yourself to "do the right thing"? Do you challenge yourself to "do the thing right"? Does favouritism ever enter into your decision making? Do you follow orders regardless if they appear unethical? In a given opportunity, would you like to participate in the ethical standards training programs? Have you ever raised your voice against unethical behaviour at any level? Your competitor uses negative marketing techniques to promote its product or services. Will you also do the same? Males are subjected to more unethical behaviour. Agreed? Females are subjected to more unethical behaviour. Agreed? Does your organization have a written ethics policy? Does your company require it's employees to sign a code of conduct statement?
N
Min.
Max.
Sum
Mean
Std. Deviation
Variance
180
3
4
706
3.922
0.269
0.072
180
3
4
706
3.922
0.269
0.072
180
2
4
515
2.861
0.658
0.433
180
3
4
705
3.917
0.277
0.077
180
3
4
693
3.850
0.358
0.128
180
1
4
436
2.422
0.951
0.905
180
2
4
645
3.583
0.633
0.401
180
3
4
703
3.906
0.293
0.086
180
3
4
677
3.761
0.428
0.183
180
2
4
576
3.200
0.720
0.518
180
1
4
546
3.033
0.909
0.826
180
3
4
671
3.728
0.446
0.199
180
1
3
327
1.817
0.534
0.285
180
1
3
284
1.578
0.528
0.279
180
2
4
645
3.583
0.659
0.434
180
1
4
498
2.767
0.916
0.839
180
1
3
297
1.650
0.697
0.486
180
1
4
320
1.778
0.829
0.688
180
1
4
364
2.022
0.634
0.402
180
1
4
441
2.450
0.982
0.964
180
1
4
462
2.567
1.042
1.085
67
22.
Are ethical behaviours expected out of your leaders?
180
1
4
445
2.472
0.815
0.664
23.
Are ethical behaviours rewarded?
180
1
4
483
2.683
0.954
0.910
180
1
4
610
3.389
0.794
0.630
180
1
4
605
3.361
0.870
0.757
180
1
4
585
3.250
0.884
0.781
180
1
4
336
1.867
1.022
1.044
180
1
4
504
2.800
0.874
0.764
180
1
4
545
3.028
0.912
0.832
180
1
4
557
3.094
1.061
1.125
180
1
4
556
3.089
1.004
1.009
180
2
4
643
3.572
0.740
0.548
180
1
4
579
3.217
0.965
0.930
180
1
4
426
2.367
0.804
0.647
180
1
4
408
2.267
0.949
0.901
180
1
4
337
1.872
1.036
1.073
180
1
4
611
3.394
0.862
0.743
180
1
4
612
3.400
0.937
0.878
24. 25. 26. 27. 28. 29.
30. 31. 32. 33. 34. 35. 36. 37. 38.
Do the leaders in your organization act ethically? Are the leaders in your organization honest? Is the behaviour of your leaders consistent with the stated ethics and values of the organization? Do the leaders in your organization employ favouritism? Does your organization offer training in business ethics? Do the leaders in your organization balance the needs of the business with ethical issues appropriately? Does your organization balance it's short term business goals with it's long term need for success? Do the executives in your organization lead by example? Do you think overtime improves employee performance? Do you think ethics have positive impact on target achievement? Have your company observed strikes due to ethical problems? Do you think that your organization has perfect ethical behaviour reward system? Does your organization launch workshops on ethical behaviours? Employee's performance is mostly disturbed by leg pulling? Employee's performance is mostly disturbed by back biting? Valid N (List-wise)
180
68
-11THEORETICAL FRAMEWORK In the instant case the variance in the dependant variable “Employee Performance” can be explained by the these independent variables: Disregard of professional ethics, Employees ethical codes, Mutual understanding between workers, workshops or seminars on ethics and its effects on work. Workers are losing interest in job due to lack of respect among their peers and officers. This has an adverse impact on the overall financial health of the organizations. This theoretical framework identifies some of the significant independent variables which has adverse impact upon the dependant variable. The research paper will focus upon these areas and form a basis of viable future organizational policy for improving and implementing ethical norms in the working environment.
69
-12HYPOTHESIS a) If employees are paid respect they would be working more effectively and efficiently thus bringing profits to the organization. b) Workshops on the effect of ethics on employee performance would reduce delinquent behaviors like sexual harassment and would enhance female participation in work. c) Implementation of ethical values shall reduce absenteeism and will reduce employee turn over. d) All the independent variables will explain the variance in employee performance with sound ethical working environment.
70
-13RECOMMENDATIONS The research findings shall be supported by recommendations as to what measures should be adopted to avoid these kind of untoward incidents and how to make the job experience of female employees at work more prolific and comfortable. The image of any industry or organization is formulated by the top management. It is the head who sets the attitude of / for the company starting from the vision statement to the treatment of employees at all levels. One of the most caustic working environments is one where major gaps exist between the company and its treatment of employees. So when unethical behavior and other forms of workplace harassments are not taken seriously at high levels it is understood that the HR and the managers do not take the behaviors and attitudes seriously. An ounce of prevention is worth a pound of cure for companies who see to it that their employees are trained to identify the potential signs of workplace unethical behavior and other violence. When companies do not educate employees about this problem, the early warning signs of problematic behavior go undetected. As fire drills are intended to train people on how to respond in case of fire similarly training employees about the warning signs of aggressive and hostile behavior offers them knowledge of how to respond and what procedures to follow. To fail to offer such training may result in overwhelming damage. Below are helpful tips for managers who recognize that a specific employee may be behaving in a bullying fashion in the workplace: •
Be sure to have several specific, documented examples of the employee’s negative behavior to present at the meeting. As you listen to his or her responses, be understanding (to a point) but firm, and make sure the employee understands that these actions are upsetting coworkers and disrupting their ability to do their jobs.
•
Never allow the employee to direct the conversation back to any employee(s) who may have lodged a complaint — make sure the person is aware that this meeting is about him/her.
71
•
Be crystal clear about the behavior you want halted. Should there be another incident after your meeting, inform the bully that his or her job may be in jeopardy if an improvement in behavior is not seen immediately. (Many managers put this warning in writing to drive home just how important the command is).
•
Talk with your superiors in the company about the issue. People who have been on the job longer may be able to offer some helpful insight into combating this kind of detrimental behavior and dealing with “bad apples.” Surely, everyone has had at least one on their staff at one time or another.
•
Be sure to check in with your other employees after you’ve had your meeting. Oftentimes the bully, out of anger or spite, will take the bullying outside the office, where he or she may feel immune to chastisement. This could present an even more severe problem, since the bully’s threats could become more serious.
72
-14-
REFERENCES 1. Ethics entry in the Stanford Encyclopedia of Philosophy 2. Ethics, 2nd edition, 1973. by William Frankena 3. Ethics Bites Open University podcast series podcast exploring ethical dilemmas in everyday life. 4. 'The Right and the Good (1930) by W. D. Ross 5. University of San Diego - Ethics glossary Useful terms in ethics discussions 6. Berenbeim, R. E. (1992, Spring). "The Corporate Ethics Test". Business and Society Review, 31(1), 77-80. 7. Brenner, S. N. (1992). "Ethics Programs and Their Dimensions". Journal of Business Ethics, 11,391-399. 8. Buchholz, R. A. (1989). "Fundamental Concepts and Problems in Business Ethics". In Madsen, P., & Shafritz, J. M. (Eds.) (1990). "Essentials of Business Ethics". New York: Penguin Books. 9. Carroll, A. B. (1990). "Principles of Business Ethics: Their Role in Decision-Making and in Initial Consensus". Management Decision, 28(8), 21-23. 10. Dean, P. J. (1992). "Making Codes of Ethics 'Real'." Journal of Business Ethics, 11, 285-290. 11. Deborah, B. (1991, January/February). "Asking for Help: A Guide to Using Socially Responsible Consultants". Business Ethics Magazine, pp. 24-29. 12. Francis, David R. (1991, June). "Prevent Trouble by Improving Ethics". Christian Science Monitor, p. 9. 13. Fulcrum Consulting Group, 1093 Snelling Ave. South, Saint Paul, MN 55116. Phone 1800-55-ETHIC. 14. Gandz, J. & Bird, F. G. (1989, Autumn). "Designing Ethical Organizations". Business Quarterly, 54(2), 108-112. 73
15. Genfan, H. (1987, November). "Formalizing Business Ethics". Training and Development Journal, pp. 35-37. 16. Kirrane, D.E. (1990, November). "Managing Values: A Systematic Approach to Business Ethics". Training and Development Journal, pp. 53-60. 17. Madsen, P., Ph. D., & Shafritz, J. M., Ph. D. (Eds.). (1990). "Essentials of Business Ethics". New York: Penguin Books. 18. McDonald, G., & Zepp, R. (1990). "What Should Be Done? A Practical Approach to Business Ethics". Management Decision, 28(1), 9-13. 19. Reynolds, L. (1992, July/August). "The Ethics Audit. Business Ethics Magazine", pp. 20-22. 20. Sims, R. R. (1991). "Institutionalization of Organizational Ethics". Journal of Business Ethics, 10, 493-506. 21. Thompson, T. (1991, Spring). "Managing Business Ethics". Canadian Public Administration, 34(1), 153-157. 22. Toffler, B. (1991, Winter). "Doing Ethics: An Approach to Business Ethics Consulting". Moral Education Forum, 16(4), 14-20. 23. L. T. Hosmer (1994). 'Strategic planning as if ethics mattered', Strategic Management Journal, Summer Special Issue, 15, pp. 17-34. World Wide Web Links: The following are links to Web sites about business ethics. 1. http://www.duke.edu/~wgrobin/ethics/surfing.htm 2. http://www.ethics.ubc.ca/resources/business/ 3. http://commfaculty.fullerton.edu/lester/ethics/ethics_list.html 4. http://ethics.acusd.edu/index.html 5. http://www.ethics.ubc.ca 6. http://www.ethics.ubc.ca/resources/business/codes.html 7. http://commfaculty.fullerton.edu/lester/ethics/listserver.html 74
8. http://www.helium.com/items/1269994-understanding-the-relationship-betweenbusiness-and-ethics 9. http://blog.rozee.pk/2009/03/24/stop-work-placeharassment/?utm_source=newsletter&utm_medium=email&utm_content=editorCh oice&utm_campaign=ROZEE_Weekly_e-Newsletter_24-03-2009
75
