Formation of Organisational Structure

Running Head: FORMATION OF ORGANISATIONAL STRUCTURE
Part 1:
Definition of business ethics:
According to the author Crane et al., (2016), business ethics refers to the set of principles
and ethical code of conduct that is required to be followed by each of the individual operating
within an organization. This has been created to eliminate any activity that is illegal in the eye of
law.
Advantages of business ethics:
It improves the working condition of the business environment. On the other hand, it
hampers the individual objects to cause harm to the sentiments of another individual. It maintains
the formal decorum of the organization.
Ethics corresponds to basic human needs:
It is the ethics that create a positive, healthy working environment. It keeps the safety of
the individual employee on the line. Some other factors such as,
Equal income distribution among the same level of employees- This eliminated any unequal
distribution of income among the common group peers undertaking similar activities.
Equal reputation and justice- The individual is required to be paid with equal amount of respect
as they are the primary bodies that contribute towards the organizational goals (Gough et al.,
2015).
Ethics create credibility with the public:

1FORMATION OF ORGANISATIONAL STRUCTURE
It is the ethics because of which an individual arouse faith about another individual. In
our society from a very early phase of life, we have been told to follow a particular set of
principles, and the common people believe that every individual have a presence of this basic set
of ethics.
Ethics give management credibility with employees:
The management believes that since each of the individual employees is aware of the
corporate norms and policies, and since they have a basic set of ethics. The management arouses
some faith in regard to the functioning employees.
Ethics help in better decision making:
It is the ethics that aligns the individual mentality, thoughts and perceptions within the
positive path. Thus, it ensures that a legal decision making criteria is being carried out (Ferrell et
al., 2015).
Ethics and profits:
It is the ethics that make sure that the profit earning criteria of an individual employee
and that of the management falls in a positive path. It is the ethics that eliminates the negative
step of the individual towards the profit earning criteria.
Part 2:
Effluence of ethics on Human Resource management: