Importance of Ethics in Organizations

This assignment delves into the critical role of ethics in organizational settings. It analyzes literature on ethical decision-making, organizational culture, and the impact of ethical conduct on stakeholders. The provided references encompass diverse perspectives on ethics within organizations, including healthcare, construction, and public administration.

Ethics Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
1.Responsible Management and CSR.........................................................................................1
2.Values underpinned by Ethics..................................................................................................2
3.Exploring the company issues..................................................................................................4
4.Advising the Persimmons homes Plc.......................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Organisation ethics refers to that firm which responds to internal and external
environment. The ethics in organisation is mutually beneficial with all cultures of organisation. It
will help in express the values of an enterprise to its workers and other organisations are control
all laws and regulations of the company. Corporate social responsibility is the activity which take
responsibility for the organisation that will directly affects on both environmental and social
factors. As a consultant of this organisation, there are some role and responsibility for
maintaining ethical values and morale within an enterprise and also analyse general status that
implement to make activity which is need by modulate all environment covering teams in
effective manner (Sacconi, 2012). This report is based on Persimmons Plc which is British house
property firm and its headquarter is located in York, England. This organisation is listed on the
London stock exchange and it is constitutional of the FTSE index. It is public limited company
and its net income is approx. 606.3 million.
1.Responsible Management and CSR
Persimmons Plc adopt that approach which help in managing property and focus on their
five key themes which are discussed. These scenario will inform and make effective strategy
which is easy to convey with particular constituent of stakeholder. These are some factors which
assist in managing and controlling all functions of corporate responsibility that are as under: Customers satisfaction- They are common factors which manage all organisation
profitability and purchase various products and services. The main responsibility of
company is to satisfy their demand and wants of the buyers. The firm will offer quality,
values and services to them which assist in making best strategies. CRS activity also aid
an enterprise to manage all functions properly (Organisation, 2010). They provide
different types of house to their clients and show them best property. The main focus of
enterprise is to show quality homes which easily attracts customers. They usually meet
demand and wants of buyers base that includes first time clients who need more space for
accommodation for their growing families. Management of People- They are company employees who spread all activities and
functions of Persimmons house which attracts large number of customers towards their
services and property. An organisation workers can work for support buyers culture and
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also increase their skills and knowledge which assist in developing talent in long time
period. CSR also provide those employees who have high quality of knowledge and they
will increase in career development. Human well being- An enterprise will also assist health and security of their employees,
sub-ordinates, buyers and clients who come at their specific place. They provide them
food and other facilities which make feel better. Cited firm will also develop separate
guest house which provide to their customers (Lloyd and Mey, 2010). CSR activity help
in provide training to all employees and managers which includes sales, customer care
and office workers who required to fulfil well being program. The main roles and
responsibilities of employees is to protect health and safety of customers and also take
advice by their superiors managers. Provide Sound environment- Organisation will reduce environmental marks which help
in improving common barriers and operation exercises that required in minimising the
cost amount. This will done by using supply chain management. Persimmons need to
develop home where good and sound environment and which is liked by people. They
also create new house which are fit in environmental conditions effectively by using the
good design, suitable construction and provide large space that assist in reducing cost.
 Effective Community- The firm should analyse all common factors which arise in society
and community groups. They also bring the constitution and keep all flourishing and
sustainable gathering by using direct finance, cooperation and effective designs which
combine with the stakeholder (Pavlovich and Krahnke, 2012). Manager of the company
will also research whole market area that help in knowing financial position of firm
among tough competitors. The company will deliver high performance that meet the
demand and needs of customers and also make commitment to safe the whole country
environment.
2.Values underpinned by Ethics
Ethical theories provide ease in decision-making process, as these theories helps in
filtering the viewpoints and seeking the guidance to make and take decisions. But each theory is
not similar, it differs with different leadership styles and policies. Every company made policies
and rules which reflects in their principles, so that while taking decisions their should not be any
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confusions and delay. There are four basic goals which a decision maker follows to take ethically
correct decisions:
1. Beneficence: This goal tells a decision maker about what is right and good and enforce
him to do right and good thing (Demidenko and McNutt, 2010). As this theory principles
assumes that if large no. of people do good things than it will benefit most of the people.
2. Least Harm: This goal become active when the choice of beneficence is not available.
So the aim of this goal is try to do less harm to the people. So its the responsibility of
decision maker to do least harm as much as possible and to few people only.
3. Respect for Autonomy: This principle states that every individual has a right to take
decisions for his life or for his benefit. So its the duty of every decision maker to respect
these individuals and allow them to take decisions for themselves.
4. Justice: In this principle, decision maker should focus on taking fair decisions, like for
example if adapting a latest artificial intelligence is affecting loss of employment than it
is not a justice with these employees who had given there life to that company.
Thus by following these goal Persimmon Plc can achieve the sympathy of people and the
chances for getting more projects will increased. To employee the theory of ethics, Persimmon
Plc should lead them according to the principles within critical theory, these ethical principles
helps them to lead in the most correct ethically resolutions. There are two different Ethical
theories:
1. Deontology: This theory states that people should follow law and their obligations and
duties while taking decisions ethically. As there are many people who tries to play with
laws to fulfil their benefits especially lawyers do these practises. So a deontologist will
always follow the law and fulfil promises with clients. There are many critics to this
theory as what is more important: duty or law? Because many times a situation arises
when a person has to decide whether to follow his duty by breaking the law or not
fulfilling the duty by following the law (Greenwood and Van Buren III, 2010). This
situation makes the theory flaws, for example; reaching to the business meeting on time
is basic duty for every business man, but sometimes if he is running late and breaking the
laws by over-speeding is acceptable or not is a confusing situation and a big flaws. So
there's no logical and unbiased basis for deciding about the duties of an individual's.
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2. Utilitarianism: This theories states that it is depends upon person's ability to predict the
outcomes and results of an action. So a utilitarian will always choose those actions which
gives greatest benefit to most of the people as he thinks that giving benefit to large people
is ethically correct (Mohamed, Karim and Hussein, 2010). This theory is similar to
beneficence principle or say all those people who are following the principle of
beneficence are following the theory of Utilitarianism. There are two types of
utilitarianism:
1. Act Utilitarianism: In this type, a person will always acts to benefit the most people,
no matter if laws are follows or not and he is also ready to compromise his personal
feelings.
2. Rule Utilitarianism:This type is totally opposite of Act Utilitarianism, as it gives first
priority to law and fairness. It tries to follow the first type but not on the cost of
breaking the law and being unfair. So it is mixed of both goals which are beneficence
and justice.
Both types has their disadvantages. Like people can't give accurate prediction through their life
experiences, as it is not possible to give accurate prediction in this world full of uncertainty. And
this uncertainty will let his prediction wrong and wrong prediction will results in bad decision.
And this choice is not beneficial to most people , so the Act utilitarianism will be failed here.
On the other hand comparing various types of results and outcomes against their actions
is not always possible because comparing material gains such as money against intangible gains
like happiness is not possible or difficult (Dauwerse and et. al., 2011). Because money is not the
only source of happiness, or money can't give happiness every time.
Persimmon should also follow this theories of ethics, so that it can save itself from criticism and
bad image. As it already faced such a situations like:
1. Wiring up sockets which is dangerous to giving shock
2. Installing wobbly bannisters wrongly
3. laying turf on old laid soil rather than newly laid soil,
4. Radiators improperly fixed to the wall.
5. Bad after sale services.
These above criticisms are bad for their image, as it indicates that company is away from ethical
path which is not a good practice.
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3.Exploring the company issues
There are various types of issues and problems which arises within an organisation that
are discussed as under: Physical and weather related issues- In the country, there are continuous changes in the
environment and also ratio of weather consequence, specific disruption and overflowing
which can increase the interruption during construction process. Regulation issue- The change in rules and regulations of company are directly affects
performance of workers and also it reduces profit ratio within an enterprise ( Cox, 2015).
It will decrease planning and enhancing cost of development and construction cost of
firm. Finance relates problem- The main issues which occurs by finance loan which are given
to their clients. They will available home by mortgage and [provide insurance of house
that satisfy demand of customers. Dissatisfaction among employees- The major issue with firm is that workers are not
satisfied with their job because organisation can not provide extra benefits, incentives and
bonus amount to them. This will increase dissatisfaction among all employees and it
directly impact on enterprise growth and profitability.
 Health and security- It is major problem which spread by lack of cleanliness and staff of
security. The health of employees are damage with using effective techniques which
clean water and provide tough safety to their workers by hiring some persons.
These are issues which occurs during service provided to the customers. It is important
for examine because they will damage their whole system by creating some errors and barriers
which come from outside. Health and safety is prime sources of organisation which should be
managed and maintained by managers. Finance budgets also shows the actual financial position
of business in the market and regulation of specific rules and norms will be managed for increase
in employees performance (Campbell and Zegwaard, 2011). Also they are required to satisfy
their workers by providing various benefits such as bonus, incentives, appraisal etc. It is the duty
of company is to analyse entire environment situations and weather condition which create
changes in the business operations. It is necessary for evaluate that issue because it directly
affects firms sound working environment. This will be helpful in maintaining employees
satisfaction with their job and assist in increasing valuable customers who are interested to
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purchase homes from Persimmons Plc. The above issues directly affects the enterprise growth
and success so they will required to eliminate it in better manner. They face many companies
who give tough competition to the firm in the large market.
The stakeholder are those individuals or group of people who operate the business. They
are owners of the company and can be identified as stakeholder. It includes customers,
employees, business partners which affected by this financial issues. Stakeholder are generally
have strong voice which provide effective direction to the employees. Mainly business partners
are directly affected by this problem and issue because they invest money in business operations
and functions (Studdert and et. al., 2010). They usually participate in all activities and functions
and also make decision which are necessary for company growth and success. Also they take
major and tough decisions and manage financial budgets of the firm. On the other hand,
customers provide more income and cash to run the business operations and earn maximum
profit. They take part in community activities and give amount of donation, which create positive
image among common people of the society.
4.Advising the Persimmons homes Plc
The firm need to manage all these marketing and internal issues which are important for
analysis and researching the whole market. It is essential for business management to control
health and safety issue which retain employees for long time period. The examination of these
issue are an integral and fundamental elements of an organisation. Firm will doing CSR activities
which protect entire environment and their employees, customers, community and its basic aim
is to build sustainability, gainfulness and increasing administration profit properly (Man-Fong
Ho, 2011). In the office workplace, the heath and safety of the people is important and also
preserve whole environment by which managers will manage business operations.
There are various activities of CSR which required by health and safety environment that are as
under:
 Reduces environmental damages
 Operated within an organisation in effective manner
 Defend the heath and safety of persons or firm employees
 People should know their roles and responsibilities regarding environment
 Effective use of fund in the organisation activities and environment
 CSR help in solving problems relates to health and safety
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Corporate social responsibilities are necessary for business because they present both buyers and
media and then firm will take large interest in various finance issues which create problems
during investment of funds. The company will provide donation to voluntary sectors and also
society can be important for giving accurate cost includes charitable funds, ventures and goods
donations (Niebuhr, 2013). The CSR is necessary for identified every part of business operations
and also effects on undertaking the life changing process which provide effective growth and
success to organisation. There are various responsibility which has to be maintain reputation of
business that help in dealing with competitive advantage. The regulation can be an issue so that
should be help in operating all necessary activities and functions (Ethics organisation. 2017).
They will analyse whole activities and functions of organisation which required to promote all
products and services of cited enterprise.
An enterprise have powerful corporate social responsibility which has more involved
with workers. The aim of CSR is to satisfy employees for doing best work which help in
achieving targets and objectives. It will also assist in making good corporate responsibility and
improve all other functions of an organisation. This will increase workers growth and provide
success in their career. There are many ways by which Persimmons will grow their employees
social responsibilities which are as under:
 The personal development plan help in taking place for all workers
 Every employees required to identified job which provide growth in the career and also
offers incentives for extraordinary performance.
 Provide training and development opportunities and it is available for firm
 Non profit organisation will develop programs where employees are capable to support
poor people in the community.
 They are provide various types of projects at the same time to their workers
The main objective of corporate social responsibility is to analyse whole performance of
company which increase profitability and goodwill in all over the world. The CSR is not cut
down their programs with seeing other firms goals and targets. It is the major part of business
operations and objectives properly. The leaders and founders of the organisation such as
investors which help in planning the process of business scenario. There are different staff
members who set CSR objectives and create sound working environment. This will assist in
implementation and measures performance of enterprise. The firm required to manage corporate
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social responsibility programs of every workers. The company need to adopt various latest
techniques and equipments which help in enhancing growth and profitability. Also they provide
training sessions to their employees for know the functions of new methods and technologies.
They should also increase workers skills and knowledge properly.
The firm should eliminate all the issues such as financial, health and safety, regulations,
environmental and dissatisfaction among employees which directly affects on business
operations. The employee can be satisfied by using corporate social responsibility that will help
in developing and managing all activities and operations in better manner (Huimin and Ryan,
2011). It is ethical responsibility of every firm that they should make proper strategy which assist
in increasing growth and customer base. The basic suggestion to the cited enterprise is that they
will easily evaluate all problems and issues by using latest techniques and methods. The main
aim of these issues is to analyse and research on various factors which help in providing actual
position of the firm. By using CSR activities, company will boost their employees values and
performance. They organise program which help in encouraging workers towards providing
services and facilities. There are some issues which are discussed as above and that will assist in
removing all problems within an organisation.
CONCLUSION
From the above mentioned report it can be concluded that ethics in organisation is
mutually beneficial for all cultures of organisation. It will help in express the values of an
enterprise to its workers and other organisations are control all laws and regulations of the
company. CSR activity also aid an enterprise to manage all functions properly. They provide
different types of house to their clients and show them best house. The main roles and
responsibilities of employees is to protect health and safety of customers and also take advice by
their superiors managers. Manager of the company will also research whole market area that help
in knowing financial position of firm among tough competitors. Every company made policies
and rules which reflects in their principles, so that while taking decisions their should not be any
confusions and delay. The main objective of corporate social responsibility is to analyse whole
performance of company which increase profitability and goodwill in all over the world. The
CSR is not cut down their programs with seeing other firms targets goals and objectives.
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REFERENCES
Books and journals
Sacconi, L., 2012. The social contract of the firm: economics, ethics and organisation. Springer
Science & Business Media.
Organisation, N. Z. N., 2010. Code of ethics. Wellington, New Zealand: Author.
Lloyd, H. R. and Mey, M. R., 2010. An ethics model to develop an ethical organisation. SA
Journal of Human Resource Management. 8(1). pp.1-12.
Pavlovich, K. and Krahnke, K., 2012. Empathy, connectedness and organisation. Journal of
business ethics. 105(1). pp.131-137.
Demidenko, E. and McNutt, P., 2010. The ethics of enterprise risk management as a key
component of corporate governance. International Journal of Social Economics. 37(10).
pp.802-815.
Greenwood, M. and Van Buren III, H. J., 2010. Trust and stakeholder theory: Trustworthiness in
the organisation–stakeholder relationship. Journal of business ethics. 95(3). pp.425-438.
Mohamed, N., Karim, N. S. A. and Hussein, R., 2010. Linking Islamic work ethic to computer
use ethics, job satisfaction and organisational commitment in Malaysia. Journal of
Business Systems, Governance and Ethics. 5(1). pp.13-23.
Dauwerse, L. and et. al., 2011. Need for ethics support in healthcare institutions: views of Dutch
board members and ethics support staff. Journal of medical ethics, pp.jme-2010.
Cox, R. W., 2015. Ethics and integrity in public administration: concepts and cases. Routledge.
Campbell, M. and Zegwaard, K. E., 2011. Values, ethics and empowering the self through
cooperative education.
Studdert, D. M. and et. al., 2010. Ethics review of multisite studies: the difficult case of
community-based Indigenous health research. Med J Aust. 192(5). pp.275-80.
Man-Fong Ho, C., 2011. Ethics management for the construction industry: A review of ethical
decision-making literature. Engineering, construction and architectural
management. 18(5). pp.516-537.
Niebuhr, R., 2013. Moral man and immoral society: A study in ethics and politics. Westminster
John Knox Press.
Huimin, G. and Ryan, C., 2011. Ethics and corporate social responsibility–An analysis of the
views of Chinese hotel managers. International Journal of Hospitality
Management. 30(4). pp.875-885.
Online
Ethics organisation. 2017. [online]. Available through:
<http://smallbusiness.chron.com/importance-ethics-organizations-20925.html>.
[Accessed on 24th October 2017].
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