Organizational Ethics: Impact on Employment and Productivity

Organizational Ethics

Organizations have vision, mission and value statements that serve as guide for both employees and management on the kind of organizational environment and culture that they envision to have. These vision, mission or value statements are prepared and agreed upon by everybody and serve as basis for all interventions the human resource department will implement either as rules of discipline or as incentive programs. Although these are guides for both management and workers, the organization develops an ethical culture "where employees and management use values and not rules to self-govern and can only take root when executives, managers, supervisors and employees understand and embrace the company's principles and values and incorporate them into their daily conduct" (RP News Wires 2007).

Most common issues and violations affecting employees are non-payment of wages, wrongful dismissal, workplace harassment and other unfair labor practices. Organizations that afford to risk these violations also risk their ability to recruit and retain employees and submit to government sanctions, penalties and court cases.

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According to LRN survey in 2007 conducted among full time American workers as part of an omnibus survey from Opinion Research Corporation, “more than one in three employed Americans have actually left a job because they disagreed with a company's business ethics” (RP News Wires 2007).

There are also many ethical organizations that willingly seek to maintain good relations with employees regardless of government regulations because of the benefits they get out of good employee relations. They are able to hiring more qualified employees and maintain those that are already employed.

LRN survey also found that “companies with a commitment to ethical conduct enjoy distinct advantages in the marketplace, including attracting and retaining talent" (RP News Wires 2007) and that these companies also experience fewer ethical distractions and problems on human resource.

Reference

RP News Wires. (2007) “Survey: Ethics impact employment and productivity”. Reliable Plant. Retrieved 28 July 2008 from http://www.reliableplant.com/article.asp?pagetitle=Survey:%20Ethics%20impact%20employment%20and%20productivity%20;articleid=2236

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