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Although most organizations, especially non-profit-making ones, do not focus much on ethics and social responsibility, the concept has an enormous bearing in the organizations’ success. For an ideal organization, it must embrace ethics when investing in all its stakeholder’s interests so that a balance is obtained. A lot of case studies have been done to show the need for an ethical oriented policy and strategy in an organization in its quest for an attractive return on investment. This paper looks at what an ideal organization should look like as well as discuss the roles and responsibilities of the leaders in ethics and social responsibility (Eriksson-Zetterquist, 48).
Explanation of Relevant Textual Concepts and Examples
For an organization to be sensitive to its environment and meet its customers’ needs, it needs to develop its products based on information from all its stakeholders. The information should be accessible by the public in order for them to build trust in the product. Such information should not be discriminative or cause discontent among some of the members of the public that might result from such discrimination. All these are ethical practices that can eliminate vices in the society such as racism and discrimination. Unfortunately, these practices seem to have been overlooked in the potential unveiling of an application for navigation by Microsoft which uses information to help users reach their destination safely. A good product should envision all the people in the society and create a balance between all the peoples’ needs. Microsoft hopes to create an application that guides people through the streets using pre-set information (Eriksson-Zetterquist, 48).
The ideal organization must have measures in place to maintain the trust it has with the customers in order to keep its share prices attractive. Measures should also include a program that places the consumers’ safety first in the company’s products. Like Johnson and Johnson, the management and the workers must work hard to restore their name and reputation with the customers even after a mistake in the quality of the products. Organizations should have a quality control department that ensures that all its products meet quality standards and do not endanger consumers like was the case in Johnson and Johnson, where a product was defective and unsafe to customers (Stephen, 103).
Depiction of an Ethical Organization
Being a CEO in a non-profit making organization, I have had to carefully strategize business operations. The aim is to develop a good working environment that has the ethical standards as the core principle guiding the workers’ actions. My organization features ethics in its core values as well as mission and vision statements in its business operations, which is to offer financial services to all members given that members have equal interests and voting rights. In my organization, ethics form a crucial part in shaping the success of the organization’s operations, since these practices shape the organization’s image and reputation which in turn attracts more members who form the backbone of the organization’s strength (Daft, 25).
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In my organization, the constitution features a code of conduct which specifies what each member is expected to observe while transacting for the organization. Members are treated equally, and each member has one vote in general meetings while selecting the leaders and making any important decisions. This ensures that the members have the absolute say in the running of the organization, i.e. members own the organization. The organization’s policy has a strategy of ensuring that all its services are quality and consider the greater good to the environment. Members are included in all decision-making processes by their voting rights. As a result of this, only able leaders are chosen who, in turn, set good ethical examples in leadership that is emulated down to all members. All the major organizations’ decisions in spending its resources must be approved by members’ voting, thus ensuring efficiency and effectiveness while eliminating fraud and embezzlement of funds. As a guide, our leadership uses the Fraud Triangle to guard against the causes of malfeasance in the office. The Fraud Triangle outlines the causes of fraud and by careful planning, the management can prevent by embracing good office practice (Daft, 25).
Leadership Roles and Responsibilities
As a leader, I strive to positively influence all the other members of the organization so that, by winning their support, organizational tasks are accomplished, in this case organizational goals and objectives. In as much as a leader I may have formal authority and power over my subjects, these should be used objectively and moderately in view of influencing the subjects instead of forcing them. I am always looking for ways to give people something to act as their inspiration, so that once they believe in my leadership, they will be motivated to work hard towards desired goals (Thatcher, 72).
As a leader, I have always preferred and used transformational leadership that creates awareness and acceptance of the purpose and mission of the organization as well as getting employees set their eyes on the greater good of the organization. In this leadership, my goal is to create in my subjects a clear vision which will transform them to perform better than they were intended to, even more than their own expectations. This leadership has been very effective even in the financial performance of the company. Letting workers nurture the habit of doing the work by themselves builds a long-lasting culture of independency and trust that wins the worker pride and fulfillment from what they do. We don’t want the workers to work under pressure from their colleagues as well as from us as bosses since such pressure forces them to put in unnecessary strive that might include unethical practices in an effort to achieve to our expectations, just as illustrated in the Stanford University Experiment, where participants lost their “normal” nature and resorted to bad practices (Daft, 25).
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It will be paramount for a leader to deliver the organizational goals, and promote ethics in the workplace if he/she had quality subjects under him/her. Therefore, our human resource department recruits and hires the best available crop of staff. This starts with the management team which includes board members. As a CEO, I require the support of a wise board of directors in order for me to put in place a culture of ethical practices that workers can emulate. The management theory requires that workers should be adequately rewarded and, where necessary, punished to discard tendencies for bad behavior (Stephen, 103).
My leadership has an education and training program for all workers. The aim of the program is to eliminate ignorance of the importance of ethics in the organization as well as foster a tradition where workers carry out their work accountably without conflicting ethical standards. With such a program, workers are able to understand what is the organization’s stand on what is good and bad as well as what is at risk should they behave unethically.
My organization is transparent about its finances to their funders as well as to workers. Most ethic issues revolve around money and it is the leaders’ task to keep good and accurate financial records of how they spend the organization’s resources. A clear financial report wins the organization a good name which sets a stage for general pride and satisfaction among members of the organization, hence their efficiency and effectiveness in achieving organizational goals while taking into account ethical standards (Williams, 24).
In order to eliminate an unhealthy and at-risk working environment, the management of my organization has developed a positive corporate culture which aims at achieving each stakeholder’s welfare. In this culture, workers feel free to give true information to the management on any issue regarding the conduct of fellow workers. Apparently, workers have often hesitated to communicate to leaders on such issues for fear that nothing might be done about it or that they may be rebuked for reporting on what had happened. As leaders, we also take into account the input of employees in decision-making so that they also feel as a part of the system. This is in line with the participative theory where all members should be included in the general equation of the organization. The relationship theory also emphasizes the need for a good connection between employees in the organization that is geared towards success. In addition, employees are encouraged to absorb and believe it organizational principles and policies as set out in the vision and mission statement (Stephen, 103).
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In conclusion, the importance of ethics to the organization cannot be overlooked. These are the values and principles that govern the activities of individuals in the organization with a crucial outcome on the overall output of the organization. Each organization should have in place a code of conduct that guides its policies, programs and decision-making processes. Leaders should foster a culture of ethics in their actions so as to set an example to the rest of the workers to follow suit. As it has been demonstrated in the various case studies, the philosophy of ethics adopted in an organization has a direct positive relationship with the image of the organization (Daft, 25).