The Challenge of Ethical Behavior in Organizations

Author(s): Ronald R. Sims

Source: Journal of Business Ethics, Vol. 11, No. 7 (Jul., 1992), pp. 505-513
Published by: Springer
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The Challenge of Ethical Behavior
in Ronald R. Sims
Organizations

ABSTRACT. This paper is designed to do three things

(3) The cha llenge of increased qua lity.
while discussing the challenge of ethical behavior in organi
(4) The challenge of employee motivation and commit
zation. First, it discusses some reasons unethical be ment.
why
havior occurs in organization. Secondly, the paper highlights a diverse
(5) The challenge of managing workforce.
the importance of organizational culture in establishing an
ethical climate within an the
(6) The challengeof ethicalbehavior.
organization. Finally, paper
presents
some for and an While these must all be met
suggestions creating maintaining challenges by organiza
ethically-oriented
culture. tions and managers concerned about survival and

competitiveness in the future, this paper will focus

on the of ethical behavior. More
challenge specifi
It has often been said that the only constant in life is this will some reasons' un
cally, paper (l) discuss
and nowhere is this more true than in the ethical behavior occurs in
change, organizations, (2) highlight
As one recent survey concluded, "Over the importance of culture in estab
workplace. organizational
the past decade, the U.S. corporation has been an ethical climate within the
lishing organization,
battered its own out-of-date and finally, (3) present some
by foreign competition, suggestions for creating
technology and out-of-touch management and, and maintaining an culture.
ethically-oriented
more a flood of and acquisitions.
recently mergers
The result has been widespread streamlining
of the
white-collar ranks and recognition that the old way
Ethics and the challenge of ethical behavior
of is no
business or desirable"
doing longer possible
(U.S. News & World Report, 1989, p. 42).
The imperatives of day-to-day organizational per
As the century approaches, compa
twenty-first formance are so that there is little time
nies face a variety of that will compelling
changes and challenges or inclination to divert attention to the moral con
have a profound impact
on
organizational dynamics tent of
and performance. In many ways, these will organizational decision-making. Morality
changes
decide who will survive and prosper into the next appears to be so esoteric and qualitative in nature
that it lacks substantive relation to and
will not. objective
century and who Among these
challenges
are the quantitative performance. Besides, understanding
following: the meaning of ethics and morality the
requires
(1) The challenge of international competition. distasteful reworking of long-forgotten classroom
new
(2) The challenge of technologies. studies. What could Socrates, Plato, and Aristotle
teach us about the world that confronts organiza
tions the century? Possibly
approaching twenty-first
a gap in exists between
Ronald R. Sims isAssociate Professor in the School of Business philosophical knowledge
Administration at theCollege ofWilliam andMary. His research executives and administrators of dif
organizational
interests include ethical ferent generations. Yet, like it or not, there has and
behavior, experiential learning, employee
and and and will continue to be a surge of interest in ethics.
management training development, organizational
transitions. His articles have
appeared
in a
variety of scholarly
The word "ethics" is often in the news these days.
and
practitioner-oriented journals. Ethics is a philosophical
term derived from the

Journal ofBusiness Ethics 11: 505-513,1992.

? 1992Kluwer Academic Publishers.Printed in theNetherlands.

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 506 Ronald R. Sims

Greek word
"ethos" meaning character or custom. ventures with employees' retirement funds, compa
This definitionis germane to effective in nies that expose their workers to hazardous
leadership working
in that it connotes an conditions, and blatant favoritism in and
organizations organization hiring
code conveying moral such practices occur
integrity and consistent values promotion practices. Although
in service to the their nonetheless
public. Certain organizations will throughout the world, presence
commit themselves to a in a formal serves to remind us of the
philosophy challenge facing organiza
pronouncement of a Code of Ethics or Standards of tions.

Conduct. done so, the recorded idealism is This is difficult because

Having challenge especially
distributed or shelved, and all too often that is that. standards for what constitutes ethical behavior lie in
a
Other organizations, however, will be concerned "grey zone" where clear-cut right-versus wrong
with answers may not exist. As a result, sometimes
aspects of ethics of greater specificity, useful always
ness, and
consistency.
unethical behavior is forced on organizations by the
defined, ethical behavior is that which is environment in which it exists and laws such as the
Formally
as as to Practices Act. For if
morally accepted "good" and "right" opposed Foreign Corruption example,
"bad" or "wrong" in a particular
setting.
Is it ethical, you were a sales
representative for an American
for example, to pay a bribe to obtain a business company and
abroad your foreign competitors used
contract in a
foreign country? Is
it ethical to allow bribes to get business, what would you do? In the
your company to withhold information that United States such behavior is it is
might illegal, yet
a candidate from in other countries. What is
discourage job joining your organi perfectly acceptable
zation? Is it ethical to ask someone to take a ethical here? in many countries women
job you Similarly,
know will not be career are
good for their progress? Is
it systematically discriminated against in the work
ethical to do personal business on it is felt that their is in the home. In the
company time? place; place
The list of examples could go on and on. Despite United States, again, this practice is illegal. If you ran
one's initial inclinations in response to these ques an American company in one of these countries,
tions, the major point of it all is to remind organiza would you hire women in important positions? If
tions that the public-at-large is that you did, your company might be isolated in the
demanding
government officials, managers, workers in larger business community, and you might lose
general,
and the organizations act accord business. If you did not, you might be violating what
they represent all
to ethical and moral standards. The future most Americans believe to be fair business practices.
ing high
will a renewed concern with The effective management of ethical issues re
bring maintaining high
standards of ethical behavior in organizational trans ensure
quires that organizations that their managers
actions and in the workplace. and employees know how to deal with ethical issues

Many executives, administrators, and social scien in their everyday work lives. Therefore, organiza
tists see unethical behavior as a cancer on tional members must first understand some of the
working
the fabric of society in too many of today's organiza reasons for the occurrence of unethical
underlying
tions and beyond. Many are concerned that we face a practices.
crisis of ethics in theWest that is undermining our

competitive This crisis involves business

strength.
people, government officials, customers, and em Unethical behavior: does it occur in
why
worrisome is unethical behavior organizations?
ployees. Especially
among employees at all levels of the
organization.
For a recent to
example, study found that employees The potential for individuals and organizations
accounted for a of retail thefts behave unethically is limitless. this
higher percentage Unfortunately,
than did customers (Silverstein, 1989). The study potential is too frequently realized. Consider, for
estimated that one in every fifteen employees steals how greed overtook concerns about human
example,
from his or her employer. welfare when the Manville Corporation suppressed
In addition, we hear about illegal and unethical evidence that asbestos inhalation was its
killing
behavior on Wall Street, pension scandals in which
employees,
or when Ford failed to correct a known
executives on business defect that made its Pinto vulnerable to gas tank
disreputable gamble risky

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 inOrganizations 507
Challenge of Ethical Behavior

explosions low
speed rear-end collisions would have been than the fines, and
following litigation greater

(Bucholz, 1989). Companies that dump dangerous litigation

would have diverted management
attention

medical waste materials into our rivers and oceans from firm operations.
also appear to favor their own interests over public
are cases appear to be instances of
safety and welfare. Although these examples Although both illegal
better known than many others, they do not appear corporate behavior, there is an important distinction
to be unusual. In fact, the story them. In the first case, execu
they tell may be far between
Allegheny's
more we would like, as one tives knew or should have known the firm's activities
typical than expert
estimates that about two-thirds of the 500 were is a clear violation of anti
largest illegal; price fixing
American corporations have been involved in one trust law. Further, the courts ruled that evidence
form of illegal behavior
or another (Gellerman, indicated the firm had engaged in the illegal act. In
1986). contrast, it is not clear that Harris Corporations'
unethical managers committed an act. Some areas of the
Unfortunately, organizational practices illegal
are
commonplace. It is easy to define law are very ambiguous, the area relevant
embarrassingly including
such practices as chemical wastes to this case, the
dumping polluted Foreign Corrupt Practices Act, and
into rivers, insider on Wall Street, over managers may not at times know what it or
trading legal
the for Medicaid services, and thus, a firm may in
charging government illegal; inadvertently engage
institutions like Stanford University inappropriately
behavior that is later defined as illegal or unethical
to a or to
using taxpayer money buy yacht enlarge (Baucus and Near, 1991).
their President's bed in his home as One answer to the of why individuals
morally wrong. question
Yet these and many other unethical practices go on commit unethical actions is based on the
knowingly
almost routinely in many organizations. Why is this idea that organizations often reward behaviors that violate
so? In other words, what accounts for the unethical ethical standards. Consider, for example, how many
actions of people in organizations, more business executives are expected to deal in bribes and
specifically,
why do people commit those unethical actions in payoffs, despite the negative publicity and ambiguity
which individuals knew or should have known that of some laws, and how good corporate citizens who
the organization was an unethical act? blow the whistle on may
committing organizational wrongdoing
An Baucus and Near fear being punished for their actions. Jansen and Von
example recently provided by
(1991)helps to illustrate this distinction. Glinow (1985) explain that organizations tend to

develop counternorms, accepted organizational prac

tices that are contrary to ethical standards.
a federal court prevailing
Recently, judge found Allegheny Bottling, Some of these are summarized in 1.
a Figure
Pepsi-Cola bottling franchise, guilty of price fixing.
The of 1 identifies
The firm had ended years of cola wars by setting prices top Figure being open and
with its Mid-Atlantic Coca-Cola honest as a prevailing ethical norm. Indeed, govern
major competitor,
mental regulations requiring full disclosure and free
Bottling (New York Times, 1988). Since evidence showed
most executives in the firm knew of the illegal price dom of information reinforce society's values toward
not only fined
fixing scheme, the court Allegheny $1 openness and honesty. Within organizations, how
it to three ? a
million but also sentenced in ever, it is often considered not
years prison only acceptable, but
sentence that was since a firm cannot be to more
suspended desirable, be much secretive and deceitful.
However, the unusual allowed the
imprisoned. penalty The practice of stonewalling, willingly hiding rele
to on
judge place the firm probation and significantly vant information, is quite common. One reason for
restrict its
operations. this is that organizations
In another no con may actually punish those
case, Harris Corporation pleaded
who are too open and honest. Look at the negative
test to a
charges that it participated in kickback scheme treatment are
involving
a defense department loan to the
Philippines experienced by many employees who
to blow the whistle on unethical behavior in
(Wall Street Journal, 1989). Although this plea cost the willing
firm $500,000 in fines and civil claims, Harris's chief their organizations. Also, consider for example, the
executive said the firm and its were not disclosure that B. F. Goodrich rewarded employees
employees guilty
of criminal conduct; he maintained that top managers who falsified data on quality aircraft brakes in order
pleaded
no contest because the costs associated with to win certification it
(Vandevier, 1978). Similarly,

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 508 Ronald R. Sims

has been that executives at game. As such, rules of morality are obstacles,
reported Metropolitan merely
Edison to withhold informa the way to bottom-line financial
encouraged employees impediments along
tion from the press about the Three Mile Island success.

nuclear accident (Gray and Rosen, Both inci A similar bottom-line the "political
1982). mentality,
dents represent cases in which the counternorms of bottom line," is also quite evident in the
public
sector.
and deceitfulness were and For example, when it comes to the
secrecy accepted sup spending money,
U.S. has no
ported by the organization. Congress equal. Although much of this
1 shows that there are many other expenditure is for purposes of national concern, a
Figure organi
zational counternorms that promote and sizable portion is devoted to Pork
morally pork-barreling.
refers to the a senator or
ethically questionable practices. Because these prac barreling practice whereby
tices are rewarded and accepted suggests forces Congress to allocate monies to
commonly representative
that organizations may be operating within a world
special projects that take place in his or her home
that dictates its own set of
accepted rules. This district. In many cases, the projects have little value

reasoning suggests
a second answer to the and represent a drain on the taxpayers. They do,
question
act ? create ? and ? in the
of why organizations knowingly however, jobs political support
unethically
home district. This practice is common,
namely, because managerial values exist that undermine because
In a recent members of believe itwill help them
integrity. analysis of executive integrity, many Congress
Wolfe explains that managers have developed some get votes in the next election.
ways of thinking (of which In some more extreme ? and
they may be quite definitely ethically
? such actions are
unaware) that foster unethical behavior (Wolfe, questionable situations, designed
to reward some in
1988). large-scale campaign contributors
One is referred to as the bottom-line the home district. A case in point is the Maxi Cube
culprit
mentality. This line of
thinking supports financial cargo handling system. Funds for testing the Maxi
success as the
only value to be considered. It pro Cube cargo handling system were written into the
motes short-term solutions that are immediately fiscal 1989 defense budget the final Senate
during
sound, despite the fact that they cause House Appropriations conference at the request of
financially
for others within the organization or the Rep. John Murtha of Pennsylvania. The $10 million
problems
as a whole. an unrealistic item was a
organization
It promotes specifically targeted for Philadelphia
to a monetary businessman toMurtha's
belief that everything boils down (and contributor campaign)
who was to manufacture the truck inMurtha's home
Sockstalnorm?or ethics oountanorma
Organizational district. The was that the U.S.
only problem Army
Be oponand honeat va. ^ Becret?ve
and deceitful had clearly said that it had "no known requirement"
for the handler. In response, Murtha was reported to
c
y\_rv
/ Followthe rule? Dowhatever it takes to \
be "mad as hell" at the "nitpicking" by the army. He
at all coat? the job
*^^ vn'_get done_ ^
pushed ahead anyway and used his position on the
committee to freeze a series of
Appropriations
. military budgeting requests until he got his pet

<? > project

And
approved.
Murtha is not Les Aspin
alone. of
Rep.
Wisconsin got the Defense com
Appropriations
<--I> mittee to include $249 million to continue
making
a
y\_l\ Be s^ team 1 ^^ creditforyourown>s. certain ten-ton truck (inWisconsin, naturally) that
>^ action?;grandstand^
the army was trying
to
phase
out. It, too, was
unneeded, but Aspin wanted the project for his
Source: E. and Von Glinow, M. A: 1985, 'Ethical
Jansen,
Is this
Ambivalence and Reward
home district. legal? Yes? Is it ethical? That
Organizational Systems', Academy
ofManagement Review 10(4), pp. 814?822. depends upon your point of view (Morgan, 1989).
it was appro
Clearly, Murtha and Aspin thought
1. Societal norms vs. counternorms: an
priate, given the realities of and
Fig. Organizational today's private
ethical conflict.
public organizations.

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 inOrganizations 509
Challenge of Ethical Behavior

Wolfe also notes

that managers tend to rely on an and Near's research
(see Figure 2), illegal behavior
? a view that encourages occurs under certain conditions. For example, results
exploitative mentality
in a way that promotes stereotypes from their research showed that (l) large firms are
"using" people
and undermines is a more to commit acts than small firms;
empathy and compassion. This likely illegal
highly selfish perspective, one that sacrifices con
(2) although the probability of such wrongdoing
cerns for others in favor of benefits to one's own increases when resources are scarce, it is
greatest
interests. In addition, there is aMadison when resources are is
immediate plentiful; (3) illegal behavior
Avenue mentality ? a that in stable environments but is more
perspective suggesting prevalent fairly
is if the can be convinced that in environments;
anything right public probable dynamic (4) membership
it's The idea is that executives may be more in certain industries and a history of repeated
right.
their actions are also associated with
concerned about appearing ethical than wrongdoing illegal acts; and,
their ? a relations the of chosen
by legitimate morality public (5) type illegal activity may vary
It is this kind of thinking that leads to the of environ
guided morality. according particular combination
some
companies
to hide their unethical actions (by mental and internal conditions under which a firm is

dumping their toxic wastes under cover of night, for operating (Baucus and Near, 1991).
or otherwise to and Near
instance) justify them by attempting Baucus also suggest that conditions of
as are antecedents
explain them completely acceptable. opportunity and predisposition of
It is not too difficult to
recognize how individuals That is, rather than tightening
illegal behavior.
can in unethical
knowingly engage practices with conditions creating pressure for illegal acts, itmay be
such mentalities. The on short-term that loosening conditions create oppor
overemphasis ambiguous
votes in the next election tunities to behave In terms of the model
monetary gain and getting illegally.
may lead to decisions and rationalizations that not in Figure 2, firm size provided more
presented large
hurt individuals in the threaten to engage in
only long run, but opportunity illegal
activities than small
the very existence of organizations themselves. Some size; the former condition may make it easy to hide
common rationalizations used to justify unethical activities. Rules, and other control
illegal procedures,
are of a firm,
behavior easily derived from Gellerman (1986): mechanisms often lag behind growth
** members with an oppor
the behavior is not really unethical providing organizational
Pretending to behave because no internal rules
or tunity illegally
illegal.
**
the behavior by saying it's really in prescribe such behavior.
Excusing indicates a tendency or inclination
the organization's or your best interest. Predisposition
** to select certain activities ? ones ? over
the behavior is okay because no one illegal
Assuming activities because of socialization or other
else would ever be expected to find out about organiza
tional processes. Baucus and Near (1991) avoid the
it.
** that a firm's managers or agents sub
assumption
Expecting your superiors to support and pro
tect you if
anything should go wrong.
Environmental
Munificence
Within the literature on corporate the
illegality, EnvironmentalDynamism^?^^
view is that pressure and need force
predominant Firm Size _
" -
*""-*
members to behave and ?-?- f Illegal
organizational unethically _ ,^
_._ _? Behavior
Industry- ^
develop corresponding rationalizations; however,
Three orMore PriorViolations- ^
to recent research this
according explanation only
Type ofViolation ?
accounts for acts in some cases
illegal (Baucus and
Near, In their data, poor and low
1991). performance
slack excess that remains once Source: 1991, Baucus, M. S. and Near,
J.
P.: 1991, 'Can
Illegal
organizational (the
a firm has Behavior Be Predicted? An Event
paid its various internal and external Corporate History Analy
constituencies to maintain were not sis',Academy ofManagement Journal 34(1), pp. 9?36.
cooperation)
associated with illegal behavior, and wrongdoing
occurred in munificent environments.
frequently Fig. 2. Modified model of the illegal corporation behavior
to the model from Baucus process.
According developed

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 510 Ronald R. Sims

*
scribe to a different set of ethical standards than the Personal self-interest
*
rest of that organiza
society. Instead, they recognize profit
* Company
tions, and industries, can exert a powerful influence efficiency
* Operating
on their members, even those who Individual friendships
initially have *
ethical standards. Team interests
fairly strong *
As noted above, organizations in certain Social responsibility
operating *
industries tend to behave unethically. Certain indus Personal morality
*
try cultures may predispose to Rules and standard procedures
organizations develop *
cultures that encourage their members to select Laws and professional codes
unethical acts. If an
organization's major competitors
in an are in part as a result As the prior list, the ethical climate
industry performing well, suggested by
of unethical activities, it becomes difficult for organ of different can different
organizations emphasize
izational members to choose In the & Johnson example just cited,
only unethical actions, things. Johnson
and they may unethical actions as a standard the ethical climate supported doing the right thing
regard
? of the cost.
of industry practice. Such a scenario results in an due to social responsibility regardless
? ? con
organizational culture that serves as a strong precipi In other
organizations perhaps
too
many
tant to unethical actions. The next section looks at cerns for may outweigh social
operating efficiency
the organizational culture-ethical behavior relation considerations when difficult decisions are
similarly
faced.
ship.
When the ethical climate is not clear and positive,
ethical dilemmas will often result in unethical
culture and ethical behavior behavior. In such instances, an organization's culture
Organizational
also can its members to behave unethi
predispose
For recent research has found a
"Do organizations vary in the 'ethical climates' they cally. example,
establish for their members? The answer to the between with a history of
relationship organizations
is "yes," and it is clear that the violating the law and continued
illegal behavior
question increasingly
ethical tone or climate of organizations some
is set at the (Baucus and Near, 1991). Thus, organizations
top. What top managers do, and the culture have a culture that reinforces illegal activity.
In
they
establish and reinforce, makes a
big
difference in the addition, some firms are known to
selectively
recruit

way lower-level employees

act and in the way the and promote employees who have personal values
as a whole acts when ethical dilemmas consistent with also may
firms
organization illegal behavior;
are faced. For there was no doubt in socialize employees to engage in acts as a part
example, illegal
anyone's mind
at
Johnson & Johnson what
to do of their normal job duties (Conklin, 1977; Geis,
when the infamous Tylenol took For instance, in his account of cases concern
poisoning place. 1977).
Company executives immediately pulled their pro ing price fixing for heavy
electrical equipment, Geis
duct from the marketplace ? knew that "the noted that General Electric removed amanager who
they J
& J was to do the refused to discuss prices with a competitor from his
way" right thing regardless of its
cost. What were was that the and offered his successor the position with the
they implicitly saying job
ethical framework of the company that that management believed he would
required understanding
they
act in faith in this fashion. behave as expected and engage in price-fixing activi
good
The ethical climate of an organization is the ties (Geis, 1977, p. 124; Baucus and Near, 1991).
shared set of about what is correct Pressure, opportunity, and predisposition can all
understandings
behavior and how ethical issues will be handled. This lead to unethical activities; however, organizations
climate sets the tone for decision at all levels must still take a proactive stance to promote an
making
and in all circumstances. Some of the factors that ethical climate. The final section provides some
be emphasized in different ethical climates of useful available to for
may suggestions organizations
are 1991; Schneider and amore ethical climate.
organizations (Hunt, creating
Rentsch, 1991):

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 in Organizations 511
Challenge of Ethical Behavior

an ethical climate: individuals and reinforced an deter

Promoting by organization
Some suggestions and strategies mines the kind of ethical behavior exhibited by
As a result, if business leaders want to
employees.
Recent literature has must accept more
suggested several strategies for promote ethical behavior they
ethical
behavior in (Adler for their
promoting organizations responsibility establishing organization's
and Bird, 1988; Burns, 1987; Harrington, 1991; reinforcement system. Research in ethical behavior
Raelin, 1987; Stead etal, 1990). First, chief executives supports the conclusion that if ethical
strongly
should encourage consciousness
ethical in their behavior is desired, the measurement,
performance
organizations from the top down ? they and reward systems must be modified to
showing appraisal
support and care about ethical practices. Second, account for ethical behavior
(Hegarty and Sims,
formal processes should be used to support and 1978, 1979; Trevino, 1986; Worrell et al,
1985).
reinforce ethical behavior. For internal to Nielsen
example, According (1988, p. 730):
involve the use of codes of
regulation may corporate In choose to do, or
many cases, mangers go along with
ethics, and the availability of appeals processes.
the unethical . . . because want to avoid the
ignore they
Finally, it is recommended that the philosophies of
of to rewards. . .
possibility punishments [or] gain
as well as immediate
top managers supervisors focus
on the institutionalization of ethical norms and and their managers must under
Organizations
that are into all stand that the above recommendations are
com
practices incorporated organizational key
levels. ponents in the
development and maintenance of an
The of
top managers as well as culture. Organiza
philosophies ethically-oriented organizational
immediate a critical tions can also enhance an culture
supervisors represent organiza ethically-oriented
tional factor the ethical behavior to
influencing of by paying particular attention principled organi
et al, over a
employees (Stead 1990). Research period zational dissent. Principled
organizational dissent is
of more than twenty-five years clearly supports the an
important concept linking organizational culture
conclusion that the ethical philosophies of manage to ethical behavior. dissent
Principled organizational
ment have a on the ethical behavior of is the effort in the to
major impact by individuals organization
their followers ? the status on
employees (Arlow and Ulrich, protest quo because of their objection
1980; Baumhart, 1961; Brenner and Molander, 1977; ethical grounds, to some practice or
policy (Graham,
Carroll, 1978; Hegarty and Sims, 1978, 1979; Posner committed to an
1986). Organizations promoting
and Schmidt, 1984; Touche Ross, 1988; Vitell and ethical climate should encourage
principled organi
Festervand, 1987;Worrell etal, 1985). zational dissent instead of punishing such behavior.
Nielsen (1989) has stressed the
importance of Organizations should also provide more ethics
behavior in to ethical or to their employees'
managerial contributing training strengthen personal
unethical behavior. According to Nielsen, managers ethical framework. That is, organizations must de

contrary to their ethical phi vote more resources to ethics to

behaving unethically training programs
a serious limit to ethical reason its members their ethical frameworks
losophies represents help clarify
ing in the firm. Much of the research cited in the and practice self-discipline making
when
ethical
above states that in difficult circumstances. What
paragraph implicitly and explicitly decisions follows is
ethical philosophies will have little impact on em a useful checklist that organizations
seven-step
are use to
ployees' ethical behavior unless they supported should help their employees in
dealing with
behaviors that are consistent with an ethical dilemma 1989; Otten,
by managerial (Schermerhorn,
these philosophies. represent 1986):
Managers significant
others in the lives of employees and
organizational
as such often have their behavior modeled
by
em
(1) Recognize and clarify the dilemma.
ployees. (2) Get all the possible facts.
One of the most basic of management ?
principles (3) List your options all of them.
states that if you desire a certain behavior, reinforce
(4) Test each option by asking: "Is it legal? Is it
it. No doubt, how ethical behavior is perceived Is it beneficial?''
by right?

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 512 Ronald R. Sims

concerns is established for internal

(5) Make your decision. procedure
(6) Double check your decision "How 1991).
by asking: ** problem-solving (Harrington,
would I feel if my family found out about Provide ethics training programs for all em
this? How would I feel if my decision was These programs should the
ployees. explain
in the local newspaper?" ethical and
(Drake and
printed underlying legal
and
(7) Take action. Drake, 1988) principles present practical
aspects of carrying out procedural guidelines.
**
An effective culture should en Understand that not all ethical situations are
organizational
courage ethical
behavior and unethical clear-cut. Like many basic business situations,
discourage
behavior. Admittedly, ethical behavior may "cost" the organization should recognize that there
the organization. An example be the loss of are grey areas where ethical trade
might ambiguous,
sales when a multinational firm refuses to pay a offs may be necessary. More importantly,
bribe to secure business in a some situations have no solution
particular country. simple
individuals be reinforced for be (Cooke, 1991).
Certainly, might **
(particularly if they do not
get Integrate ethical decision-making
into the
having unethically
In a similar fashion, an organization might performance appraisal process.
caught).
seem to actions. For example, a
gain from unethical In conclusion, even in
for a large corporation might be though ethical problems
purchasing agent continue to concern
bribed to all needed office from a organizations greatly society,
purchase supplies and the potential
are organizations, individuals, impact
supplier. However, such gains often
particular that organizational culture can have on ethical
short-term rather than long-term in nature. In the
behavior has not really been explored (Hellreigel
et
an cannot if its
long run, organization operate must
culture and values are not congruent with
al, 1989). The challenge of ethical behavior be
prevailing met if they are truly concerned
those of society. This is just as true as the observation by organizations
about survival and competitiveness. What is needed
that, in the long run, an organization cannot survive
in
today's complicated times
organiza is for more
unless it and services that society
produces goods tions to step forward and operate with
wants and needs. Thus an culture that strong, posi
organizational tive, and ethical cultures. Organizations have to
ethical behavior is not more com
promotes only ensure that their employees know how to deal with
patible with prevailing cultural values, but, in fact,
ethical issues in their everyday work lives. As a result,
makes good sense.
when the ethical climate is clear and positive, every
much remains to be learned about why
Although one will know what is expected of them when
ethical behavior occurs in organizations and creating
inevitable ethical dilemmas occur. This can
and maintaining cultures that en give
organizational the confidence to be on the lookout for
can benefit employees
courage ethical behavior, organizations unethical behavior and act with the understanding
from the following suggestions: that what are is considered correct and
they doing
** will be supported by top management and the entire
Be realistic in values
and goals regard
setting
Do not pro organization.
ing employment relationships.
mise what the organization cannot deliver.
**
Encourage input throughout the organization References

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