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-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,
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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

Carter McNamara, MBA, PhD, Authenticity Consulting, LLC

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 organizations 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
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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 peoples skin -- its 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
organizations 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 enterprises values & messages.
10) Last - and most -- formal attention to ethics in the workplace is the right thing to
do.

-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.

-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
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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.

-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
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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

-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
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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.

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-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 pass. 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.

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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.

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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.

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-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 someones 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.

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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.

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-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
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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, 624635], 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 mens and womens 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.
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-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. Heres 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 makingespecially 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
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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 todays competitive market place its 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 others products and services. Because
of this, its 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 practicesfor example, in
hospitals by encouraging clinicians to actively involve patients in decisions about their
health carepatients do better clinically and say theyre 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 organizations 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 Organizations Future.
Lack of an effective ethics program can seriously jeopardize an organizations 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
organizations 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 its 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 its short term business goals with its 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. Employees performance is mostly disturbed by leg pulling?
38. Employees 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

Interprtation
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?

Min.

Max.

Sum

Mean

Std.
Deviation

Variance

180

706

3.922

0.269

0.072

180

706

3.922

0.269

0.072

180

515

2.861

0.658

0.433

180

705

3.917

0.277

0.077

180

693

3.850

0.358

0.128

180

436

2.422

0.951

0.905

180

645

3.583

0.633

0.401

180

703

3.906

0.293

0.086

180

677

3.761

0.428

0.183

180

576

3.200

0.720

0.518

180

546

3.033

0.909

0.826

180

671

3.728

0.446

0.199

180

327

1.817

0.534

0.285

180

284

1.578

0.528

0.279

180

645

3.583

0.659

0.434

180

498

2.767

0.916

0.839

180

297

1.650

0.697

0.486

180

320

1.778

0.829

0.688

180

364

2.022

0.634

0.402

180

441

2.450

0.982

0.964

180

462

2.567

1.042

1.085

67

22.

Are ethical behaviours expected


out of your leaders?

180

445

2.472

0.815

0.664

23.

Are ethical behaviours rewarded?

180

483

2.683

0.954

0.910

180

610

3.389

0.794

0.630

180

605

3.361

0.870

0.757

180

585

3.250

0.884

0.781

180

336

1.867

1.022

1.044

180

504

2.800

0.874

0.764

180

545

3.028

0.912

0.832

180

557

3.094

1.061

1.125

180

556

3.089

1.004

1.009

180

643

3.572

0.740

0.548

180

579

3.217

0.965

0.930

180

426

2.367

0.804

0.647

180

408

2.267

0.949

0.901

180

337

1.872

1.036

1.073

180

611

3.394

0.862

0.743

180

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 employees 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 youve 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 bullys 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.
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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
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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
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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

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