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DOCUMENT NO. : BBG 08B

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WORKPLACE ETHICS
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UNIT-IV

WORKPLACE ETHICS

Ethics in the workplace is defined as the moral code that guides the behaviour
of employees with respect to what is right and wrong in regard to conduct and
decision making.

Examples of ethical behaviour in the workplace includes; obeying the company's

rules, effective communication, taking responsibility, accountability,
professionalism, trust and mutual respect for your colleagues at work. These
examples of ethical behaviour ensures maximum productivity output at work.
The ten work ethic traits: appearance, attendance, attitude, character,
communication, cooperation, organizational skills, productivity, respect and
teamwork are defined as essential for student success and are listed below.
What is workplace ethics?
Workplace ethics are the set of values, moral principles, and standards that need to
be followed by both employers and employees in the workplace. It is the set of rules and
regulations that need to be followed by all staff of the workplace.
These ethics are implemented by employers to foster both employee-employee
relationship and employee-customer relationships. An organization may decide to put
these ethics into writing or not—they are however meant to be followed. 
Factors influencing ethical behaviour at workplace
Ethical behavior in the workplace is affected by several factors, both internal and
external. Understand the ways individual factors, social factors, and situational
opportunities influence ethical behaviour in a business setting.
Individual Factors
Many individual factors affect a person's ethical behavior at work, such as knowledge,
values, personal goals, morals and personality. The more information that you have
about a subject, the better chance you will make an informed, ethical decision.

For example, what if you had to decide whether to approve building a new company
store? What if you did not have the knowledge that the store would disturb an
endangered species nest? Without the appropriate knowledge, you could be choosing an
unethical path.

PREPARED/REVISED BY : N VASANTHY REVIEWED & APPROVED BY : DR.T.MUTHUKUMARAN

DESIGNATION : ASSIST. PROF. – BBA DESIGNATION : HOD – BBA
DATE : 25/04/2022 DATE : / /2022
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DOCUMENT NO. : BBG 08B
SARADHA REV. NO.: R0 DATE: 25/04/2022
GANGADHARAN COPY :
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WORKPLACE ETHICS
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Values are an individual's judgment or standard of behavior. They are another individual
factor that affects ethical behavior. To some people, acting in an improper way is just a
part of doing business. Would you feel that it is ethical to make up lies about your
competitor just to win a contract? Some people's standard of behavior will feel that lying
for a business financial win is not unethical.

Morals are another individual characteristic that can affect an individual's ethics. Morals
are the rules people develop as a result of cultural norms and values and are,
traditionally, what employees learn from their childhood, culture, education, religion, etc.
They are usually described as good or bad behavior. Would you have good morals if you
pushed a product on a customer that you knew was not going to help solve a problem?

Many ethical work situations will also be affected by a person's goals. Which
characteristics do you feel are worthy to aspire to? Is financial gain ranked ahead of good
character or integrity? If your personal goals are about acquiring wealth no matter what
the consequence, then you might act unethical in the future.

Lastly, an employee's personality plays an important factor in determining ethical

behavior. Do you enjoy risk or do you prefer the safe route? Individuals who prefer to
take risks tend to have a higher chance of unethical conduct at work. For example, if you
are willing to risk dumping chemicals into a nearby water supply to launch a profitable
drug, then your riskiness could end up creating health issues in local citizens for the sake
of financial gain.

Social Factors - Cultural/ societal values Media influences

Cultural norms, the Internet and friends and family are three social factors that can affect
ethical behavior. Different cultures have norms that vary from place to place in the
business world. For example, you might have to face a request for a bribe in order to
conduct business in certain countries. This might be unethical to you but considered an
acceptable norm in their workplace.
Organizational factors
It include codes of conduct and the process of their implementation, rewards and
sanctions, peers and management, ethical training and organizational culture,
among others.The policies of the company also influence the determination of ethical
conduct. Standards of behaviour in an industry are often influenced greatly by the

PREPARED/REVISED BY : N VASANTHY REVIEWED & APPROVED BY : DR.T.MUTHUKUMARAN

DESIGNATION : ASSIST. PROF. – BBA DESIGNATION : HOD – BBA
DATE : 25/04/2022 DATE : / /2022
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DOCUMENT NO. : BBG 08B
SARADHA REV. NO.: R0 DATE: 25/04/2022
GANGADHARAN COPY :
COURSE GUIDE – BBA
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DOCUMENT TITLE
WORKPLACE ETHICS
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dominant firms in that industry. The authors of the company policy obviously have an
effect that is decisive.
Legal constraints (Government) Enforcement (Legal/ Professional )
One of the central purposes of the government is to enforce the law. The law
represents the will of the people who have their own cultural and ethical perceptions of
reality. As a result the government enforces the ethical and moral values of the people it
governs. The ethical climate of a country. If, it is poor, then only giant corporations and
large undertakings can stand competition and be viable; a small concern is apt to go
bankrupt, since business is concerned with employment of a large number of persons, it
has the obligation to see that it adheres to an ethical atmosphere. However, considerable
differences occur among managers as to what is ethical or unethical; and business truly
lacks a Code of Ethics.

Importance of ethical behaviour at the workplace

Employee satisfaction
When organizations express their commitment to maintaining high ethical
standards, they usually treat employees better and encourage staff to act laterally under
the same premises. These ethical standards help establish a certain expectation for how
organizational operations affect stakeholders' wellbeing and personal interests. When
organizations and stakeholders follow through in upholding ethical standards, they can
create a workplace environment where individuals feel respected, heard and satisfied in
their roles. With this higher rate of satisfaction, organizations can often reduce staff
turnover and more easily attract new, talented candidates to work for them.
Improved workplace culture
As stated above, when organizations act responsibly and ethically, leaders and
employers typically follow suit. This can help significantly improve workplace culture
overall. For instance, if an organization expresses their ethical commitment to diversity,
inclusion and equality, stakeholders may feel responsible for upholding the same ethical
standard. They may begin to hold organizational leaders accountable for ethically
discrepant actions or start to examine their own behaviors more closely.
Maintaining legal compliance
Often, the ethical standards that organizations set out for themselves correspond
directly with legal guidelines. For example, a manufacturing company that expresses a
strong commitment to eco-friendly practices sustainability may also be subject to
complying with legal guidelines for sustainable waste removal procedures to avoid

PREPARED/REVISED BY : N VASANTHY REVIEWED & APPROVED BY : DR.T.MUTHUKUMARAN

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DATE : 25/04/2022 DATE : / /2022
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DOCUMENT NO. : BBG 08B
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GANGADHARAN COPY :
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environmental pollution. Therefore, when organizations establish strong ethical codes of

conduct, they often fall in line with the legal regulations set out for them by official
governing bodies and receive the dual benefit of complying with their legal obligations.
Improved public reputation
When organizations set out clear ethical standards for their workplace, they can
typically enjoy an improved public image. In recent years, consumers and society more
generally have become increasingly concerned with how organizations treat their
employees and act accountably toward the public.
Customer engagement and loyalty
If an organization is client-facing, instilling specific ethical workplace standards
can help encourage increased customer engagement and loyalty. Often, customers will be
more willing to engage with explicitly ethical companies than those with fewer ethical
initiatives. As mentioned above, when companies serve their employees and stakeholders
with accountability and responsibility, they can garner a certain level of respect in their
public reputation.

With this, customers may feel more comfortable promoting an organization or

spending their money with such companies. Over time, as an organization maintains a
robust system of workplace ethics, their reputation may solidify. This can result in
heightened customer loyalty—when customers and clients trust an organization, they
will return to the organization repeatedly and engage on a deeper level.
Streamlined decision-making processes
When organizations establish ethical codes of conduct in the workplace, they
foster a culture designed to uphold such standards. These guidelines can help
organizational leaders make streamlined decisions and solve problems efficiently when
challenges arise. When leaders have specific ethical expectations set out for them, they
can use these expectations to direct their choices and manage conflicts with simplicity.
Such streamlined decision-making processes can lead to a high level of organizational
consistency in the long term.
There are a few examples of common ethics organizations may establish in the
workplace:
 Responsibility
 Equality
 Transparency

PREPARED/REVISED BY : N VASANTHY REVIEWED & APPROVED BY : DR.T.MUTHUKUMARAN

DESIGNATION : ASSIST. PROF. – BBA DESIGNATION : HOD – BBA
DATE : 25/04/2022 DATE : / /2022
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DOCUMENT NO. : BBG 08B
SARADHA REV. NO.: R0 DATE: 25/04/2022
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 Trust
 Fulfilling promises
 Loyalty
 Fairness
 Cooperation
 Dedication
 Discipline
 Professionalism
 Sustainability
 Legality

Stress at workplace

Stress is a feeling of emotional or physical tension. Work-related stress is a growing

problem around the world that affects not only the health and well-being of employees,
but also the productivity of organisations. Work-related stress arises where work
demands of various types and combinations exceed the person’s capacity and capability
to cope. Work-related stress is the second most common compensated illness/injury in
Australia, after musculoskeletal disorders.

Work-related stress can be caused by various events. For example, a person might feel
under pressure if the demands of their job (such as hours or responsibilities) are greater
than they can comfortably manage. Other sources of work-related stress include conflict
with co-workers or bosses, constant change, and threats to job security, such as potential
redundancy.

Workplace stress is the harmful physical and emotional responses that can happen when
there is a conflict between job demands on the employee and the amount of control an
employee has over meeting these demands.

Ways to reduce stress at workplace

PREPARED/REVISED BY : N VASANTHY REVIEWED & APPROVED BY : DR.T.MUTHUKUMARAN

DESIGNATION : ASSIST. PROF. – BBA DESIGNATION : HOD – BBA
DATE : 25/04/2022 DATE : / /2022
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DOCUMENT NO. : BBG 08B
SARADHA REV. NO.: R0 DATE: 25/04/2022
GANGADHARAN COPY :
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WORKPLACE ETHICS
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 Use guided meditation. Guided meditation is a great way to distract yourself from
the stress of day-to-day life
 Practice deep breathing.
 Maintain physical exercise and good nutrition.
 Manage social media time.
 Connect with others.

Guiding Principles of Managing Ethics in Your Workplace

1. Codes of conduct and ethics:

Codes of conduct specify actions in the workplace and codes of ethics arc general guides
to decisions about those actions. It specifies what is right and what is wrong. Code of
conduct include – preferred style of dress, avoiding illegal drugs, adherence to superiors
instructions, being reliable and prompt, prohibiting from accepting gifts etc. Codes
become more effective when the top management actively supports and applies it.

2. Open communication:
Many of the ethical problems arising in a business are ambiguous and uncertain.
Therefore there is necessary to create a work environment where an employee
understands that it is acceptable, to have an ethical dilemma.

Management should explain the purpose and contents of ethical policy. Training may be
required to sensitize employees to potential ethical issues. Necessary resources need to
be provided to help employees resolve ethical dilemmas.

3. Group decision making:

Ethical decisions can be made in groups and then made public as appropriate; It produces
better quality decisions by including diverse interests and perspectives and increases the
credibility of the decision process and outcome by reducing suspicion of unfair bias.

4. Integrated Ethics management:

Ethics need to be integrated into management policies and practices; Ethical values
preferred in the workplace should be included while developing the value statement

PREPARED/REVISED BY : N VASANTHY REVIEWED & APPROVED BY : DR.T.MUTHUKUMARAN

DESIGNATION : ASSIST. PROF. – BBA DESIGNATION : HOD – BBA
DATE : 25/04/2022 DATE : / /2022
 MANUAL TITLE
DOCUMENT NO. : BBG 08B
SARADHA REV. NO.: R0 DATE: 25/04/2022
GANGADHARAN COPY :
COURSE GUIDE – BBA
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DOCUMENT TITLE
WORKPLACE ETHICS
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during strategic planning. Similarly, ethical principles should be considered when

developing personnel policies and then design policies to produce these behaviours.

5. Grievance policy:
A grievance policy should be created for employees to use to resolve disagreements with
supervisors and staff.

6. Atmosphere of trust:
Creating an atmosphere of trust is critical in encouraging employees to report unethical
activities they come across, so, a suggestion bon may be installed so that employees may
report suspected ethical violations activities in an anonymous basis.

7. Cross-functional teams:
Cross- functional teams should be used when developing and implementing the ethics
management program so that employees feels a sense of participation and ownership in
the program if they are to adhere to its ethical values.

8. Ombuds person:
The ombuds person establishes a point of contact where employees can go to ask
questions in confidence about the work situations they confront and seek advice. In order
to institutionalize the moral values in the workplace, the ombuds person facilitates the
development of the policies and procedures.

9. Example from leadership:

Top executives and managers should endorse strict standards of conduct and also follow
it themselves. They must create an impression on employees that unethical behaviour
will not be tolerated.

10. Updating policies and procedures:

Policies and procedures concerning ethics at the workplace should be reviewed and
updated on a regular basis, to produce behaviours preferred from the code of conduct, job
descriptions, performance appraisal forms, management- by- objectives expectations,
standard firms, checklist, budget report formats, and other relevant control instruments to
ensure conformance to the code of conduct.

PREPARED/REVISED BY : N VASANTHY REVIEWED & APPROVED BY : DR.T.MUTHUKUMARAN

DESIGNATION : ASSIST. PROF. – BBA DESIGNATION : HOD – BBA
DATE : 25/04/2022 DATE : / /2022
 MANUAL TITLE
DOCUMENT NO. : BBG 08B
SARADHA REV. NO.: R0 DATE: 25/04/2022
GANGADHARAN COPY :
COURSE GUIDE – BBA
COLLEGE PAGE PAGE 1 OF 7
DOCUMENT TITLE
WORKPLACE ETHICS
Edition : 1

Questions
Part A
1. What is Workplace ethics?
2. What is ethical behaviour in workplace?

Part B
1. Explain the factors influence ethical behaviour at work?
2. Discuss the importance of ethical behaviour at the workplace?

Part C
1. Elucidate the guidelines for managing ethics in workplace?

PREPARED/REVISED BY : N VASANTHY REVIEWED & APPROVED BY : DR.T.MUTHUKUMARAN

DESIGNATION : ASSIST. PROF. – BBA DESIGNATION : HOD – BBA
DATE : 25/04/2022 DATE : / /2022