Week 3 Organizational Ethics Essay Team Paper

Topics: Ethics, Business ethics, Applied ethics Pages: 6 (1042 words) Published: June 30, 2015

Organizational Ethics: Greyston Bakery
April 13, 2015
Linda Emmele

Organizational Ethics
One significant topic of discussion among various organizations is how organizational issues are being confronted by ethical principles. There are many ways that ethical principles can be applied that will strengthen the overall structure of an organization. Employees value an organization built on moral and ethical principles. This paper concentrates on the company, Greyston Bakery of Yonkers, New York and what role external social pressures have in influencing the organizational ethics of the company. Also, we will consider the relevance of these issues to personal and organizational decisions while comparing the relationship between legal and ethical issues (University of Phoenix, 2015). Greyston is known for their gourmet sweets, especially their brownies. Julius Walls Jr., President and CEO of Greyston Bakery, stated “there is more substance to the organization besides Greyston’s famous brownie recipe” (Liberty Mutual, 2010). He was referring to the social mission that the bakery implemented in order to give back and provide support to the community. Double Bottom Line

The organization conducts business concentrating on the double bottom-line business model. The use of this model allows Greyston Bakery profits to support Greyston Foundation whose ethical principles support a mission of social enterprise while making a profit (Liberty Mutual, 2010). Their goal is to employ the chronically unemployed which includes people with criminal pasts (Simon B. 2004). A portion of the funds from the bakery are used to profit daycare centers, scholarships, and counseling services (Simon B. 2004). Organizational Issues

The Greyston Bakery has been made famous through their efforts to impart valuable ethics. Spreading moral knowledge and instruction is vital for an organization to have a strong, aligned ethics culture (Trevino & Nelson, 2011). The bakery’s first organizational issue is its open-hire policy. The policy was established by the Greyston Bakery that hire’s poor and debilitated individuals. This program is special because it allows the Bakery to offer second chances to those with a criminal history which further assists their families. The program offers training where new applicants will be taught skills that will grant enhancement to their overall well-being. An employee’s ethical conduct is influenced by the organization’s environment (Trevino & Nelson, 2011). Profits from the sales of merchandise help fund the Greyston Foundation, which provides community development of childcare, healthcare, housing, and basic life training (Liberty Mutual, 2010). One vital concern of the community is childcare, which is a major concern of working parents. Guaranteed childcare provides a significant relief for working moms and dads. Greyston Bakery is setting an example of how work organizations can teach a community about ethics and guide them in an ethical direction to success (Trevino & Nelson, 2011). Role of External Social Pressures Influencing Organizational Ethics Ethical transformation of social networks and information age Medias has grown in popularity, an organization’s community involvement and environmental responsibility spreads quickly (Trevino & Nelson, 2011). Customer opinion and word of mouth can have an impact on the success and reputation of company and reputation can affect its financial stability. In the past, it was society and government that had the most influence. Yet, in recent studies, a business operating in a commitment to deliver excellence, believes in change, and conducts admirable corporate citizenship in the community gains the alliance of the people (Liberty Mutual, 2010). A code of ethics is a necessary element of an organizational structure because it helps stabilize the interest and rights of shareholders involved (Trevino & Nelson, 2011). The programs implemented by Greyston...

References: Trevino, L.K. & Nelson, K..A. (2011). Managing business ethics: Straight talk about how to do it right, 5th edition. Journal of Business Ethics Education, 7, 239-241. Retrieved from http://search.proquest.com/docview/869017568?accountid=35812
Liberty Mutual. (2010). Greyston Bakery: good business & poverty. Retrieved from: http://responsibility-project.libertymutual.com/films/greyston-bakery
Simon, B. (2004). Greyston Bakery: 60 Minutes. Retrieved from: http://www.cbsnews.com/videos/greyston-bakery/
University of Phoenix. (2015). ETH/316 syllabus. Retrieved from https://newclassroom3.phoenix.edu/Classroom/#/contextid/OSIRIS:48591675/context/co/view/syllabus/unit/4f233368-fe4d-4814-a67e-0acd6a8e09a1
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