Ethical Behaviour in Organizations

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In recent years, there have been many cases of corporate frauds and scandals which have caught the attention of many eyes. One of the world’s prominent cases would include the downfall of Arthur Anderson, which its management disregarded its ethic policies so as to enhance profit. So what are the causes of such behavior in the workplace? Could it be the influence of individual or organisational characteristics? This essay first proceeds to examine ethical decision making model. In this essay, I will be focusing on Locus of control, cognitive moral development (CMD) as part of individual charactacteristics, and rewards system, code of ethics as organisational characteristics in workplace. Finally the essay will examine factors that promote ethical behavior at work. According to Jones and Ryan (2001), ethical decision making model comprises of 4 stages, individual pass through the process of these stages in engaging either ethical or unethical behavior. The process starts with individual recognizing moral issue which lead to moral judgment, individual will then establish their moral intention and finally engage in moral behavior. There are two major factors that will affect employees’ ethical decision mainly, individual and organisational characteristics. Organisational characteristics are defined as organisational context that influence individual to make particular behavior. System of rewards serves as an incentive in many organisations. In today’s context, many organisations have offered commission for salesperson so as to enhance more sales. However many organisations seems to have forgotten that rewards has its implication for ethical behavior. This was primarily due to sales commissions that are tied to their basic pay and that the fact that relationship managers are oblige to meet monthly target (Tan 2008). Thus it is apparent that reward could contribute to unethical behavior. However in another prospective, the use of reward for whistle blowing may avert...
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