Organizational Ethics: Examples of Ethical Business Practices

Organizational ethics encompass the code of conduct and ethical standards a company upholds. These business ethics represent a company’s values: agreed-upon principles that drive a brand’s work, understanding of itself, and role in the global marketplace. Organizational ethics can define brand identity and reputation. Stakeholders and higher-ups will maintain professional ethics, whose specificities and core values will attract certain kinds of workers and people.

Organizational ethics define a level of ethical conduct, which may bend to or work against common business standards. These ethical principles will vary from business to business and industry to industry. Still, these values will dictate how workers behave within an organizational culture and react to internal and external issues.

Organizational ethics are essential because they uphold a business's narrative, integrity, and reputation. Corporate values also present workers with a code of ethics to abide by, clarifying how employees behave and fulfill their role in their work environment and others’ work environment (clients’ offices, trade shows, workshops, etc.). Organizational ethics are vital because they provide a clear set of standards to power a cohesive company.

Establishing and encouraging organizational ethics in the workplace can have several benefits:

1. 1. Competitive advantage: Organizational ethics can offer a competitive advantage. Workplaces known for their ethical codes will attract more partners and clients.
2. 2. Employee satisfaction: A standard of ethics is good for company personnel; when businesses value ethical considerations, staff members are more discerning, fostering more ambitious work candidates.
3. 3. Public relations: When public relations issues arise, companies with existing and known clinical ethics may be more likely to weather the storm.
4. 4. Strategic planning: Ethical systems can be part of long-term strategic planning. Ethics protect a company's legacy, ensuring it stays well-regarded in the public eye.

There are a few ways in which organizational ethics manifest. These organizational values are often a part of a company’s mission statement, and employees practice them in the office and the broader economy. Consider the following elements of ethical practices:

1. 1. Activism: Today, companies play a more vocal role in standing up for justice and making their values known. Ethical organizations may see themselves donating to particular causes, sharing social resources online, and making statements in the face of unethical behavior in their industry or the world.
2. 2. Customer prioritization: Customers will face dilemmas, share feedback, and critique a company. How a brand responds to this will speak to its ethical values. Putting customers first is an integral part of admired business practices.
3. 3. Integrity: Businesses based on ethical decision-making will behave fairly in the marketplace, meaning they will be transparent, treat partners with respect, and won’t engage in any nefarious activity like lying, cheating, or stealing.
4. 4. Respect: Companies will treat their employees with respect and vice versa. Trust engenders trust, positive press, and good workplace conditions, so everyone feels empowered to do the best job possible.
5. 5. Risk-taking: Ethical decision-making does not have to be boring or static; instead, risk-taking is a value that other businesses and customers will admire, as long as companies execute risks while upholding company values.

Nonprofits and large companies lead ethical programs to maintain and promote the well-being of their business. See what organizational ethics may look like in the examples below:

1. 1. Looking after employees: A vital part of a company’s ethical behavior includes how it treats its employees. Earned time off, regular breaks, and access to a strong human resources team are incentives that promote a healthy, ethical culture.
2. 2. Maintaining fair business: Businesses should practice fairness when operating in the marketplace. For example, companies should avoid any conflict of interest. If negative situations, like audits, befall them, they should comply.
3. 3. Offering equal opportunity: Equal chances of employment and hierarchical advancement are vital ethical issues for a company. When hiring, companies should invite and share that all races, genders, and identities apply for positions and that these traits are not barriers to growing at the company. Those who practice forms of discrimination will face ethical problems.
4. 4. Practicing corporate social responsibility: Businesses should have a community and marketplace’s ethical concerns. For example, suppose a company knows some of its products are faulty. In that case, it should initiate a recall. Another example of corporate social responsibility would be if a plant has a gas or fluid leak that can cause harm to neighbors; it should practice bioethics by voicing concerns to the appropriate parties.

Organizations should lead by example, so employees know what cultural guidelines to follow. Consider the following ways to encourage organizational ethics:

1. 1. Ensure ethical leadership. Employees may witness unethical practices. Suppose someone breaks professional codes or is not practicing proper corporate ethics. In that case, there should be ways to communicate this behavior easily and structures to justly deal with those whose employee behavior infringes on others’ wellness. Without these systems in place, organizations can become corrupt and abusive.
2. 2. Hold regular workplace culture meetings. Workplace ethics can need enforcing or reminding now and then, so annual or semiannual meetings to review the ethics can be a way of instilling them more fluidly.
3. 3. Invite opinions. As society evolves, so do ethics. Employees should feel they have a voice in the expression of organizational behavior. Suggestions or meetings with human resources to discuss ethics can empower employees and help them feel part of the organization.
4. 4. Lead ethics training. Introductory ethics programs can be a part of an employee’s onboarding process. Human resources or supervisors can inform employees of cultural practices.
5. 5. Name values in job descriptions. Before a candidate interviews, let them know your values by writing a brief version of them in your job description so applicants know what to expect.

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