RMIT BUSM3115: Critical Review of Corporate Governance and Ethics

This report is a critical literature review of four academic articles focusing on corporate governance and ethical decision-making. The assignment analyzes articles by Jones and Ryan (1998), Gioia (1992), Monahan and Quinn (2006), and Sonenshein (2007). Jones and Ryan's work emphasizes the impact of organizational forces on individual morality and the need for moral approval. Gioia's article provides an insider's perspective on the Pinto fire case, highlighting unethical corporate decisions. Monahan and Quinn discuss organizational deviance and the role of environmental conditions and ethical strategies. Sonenshein's research focuses on how individuals respond to ethical issues at work, emphasizing the use of moral reasoning and the promotion of ethical behavior. The review compares and contrasts the arguments presented in these articles, focusing on the importance of ethical practices and their influence on employee motivation and organizational development. The report concludes that incorporating ethical decision-making into organizational activities is crucial for enhancing workforce performance and addressing ethical challenges.

Running head: CORPORATE GOVERNANCE AND ETHICS
CORPORATE GOVERNANCE AND ETHICS
Name of the Student
Name of the University
Author Note

1CORPORATE GOVERNANCE AND ETHICS
Individuals who have been serving business organizations are generally observed to have
been abiding by the ethical rules and procedures that have been incorporated within the given
business organization. Ethical decision-making activities generally refer to the decision making
activities that involve the use of the ethics within the workplace. The following paper attempts a
discussion on four academic articles that highlight the ethical decision making activities
alongside the importance of the corporate governance within the organization. The paper
summarizes the articles and thereafter proceeds to discuss the arguments stated in the articles
from comparative point of view.
Jones and Ryan (1998) in “The effect of organizational forces on individual morality:
Judgment, moral approbation, and behavior” sheds light on the lacking in the understanding of
the human morality as is demonstrated by individuals who have been present within the
workforce that have been serving the plethora of organizations that are present all over the world.
The article highlights the fact that there has been a proper linkage between the moral actions that
are undertaken by the individuals and the moral judgement that is demonstrated by them. The
corporate governance that has been highlighted by the concerned business organizations have
been observed to have an influence on the ethical behavior that is demonstrated by the
employees. The article highlights the need for the moral approval that is sought by the
individuals before embarking on any given activity. This also includes the corporate activities
that are undertaken by the corporate workforce members.
Gioia (1992) in “Pinto fires and personal ethics: A script analysis of missed
opportunities”
presents a first person account for the incidents that had led up to the infamous case of the Pinto
fires. The article presents the experience of an insider and thereafter discusses the unethical

2CORPORATE GOVERNANCE AND ETHICS
nature of the corporate decisions that were undertaken by the concerned organizational
management. The article highlights the fact that the organizational management and other
concerned departments were in the dark regarding the ethical overtones to the issues that had
been taking place within the organization. The article highlights the fact that the concerned
situations that are faced by the organization should consider the inclusion of the ambiguous
situations that are presented within the company in order to deal in given situations that are
presented within the given organization. The corporate governance activities that are undertaken
by the concerned organizations assist in the development of the organization as well.
Monahan and Quinn (2006) in “Beyond ‘bad apples’ and ‘weak leaders’ Toward a neo-
institutional explanation of organizational deviance” highlights two different cases that
highlighted the deviation from the corporate governance and the ethical factors that should be
maintained within the organization. The article highlights the fact that various environmental
conditions that are required in order to deal with the corporate governance within the
organization. The article discusses the inclusion of the ethical factors in terms of the
reprimanding of the criminal activities of individuals. The article discusses that are highlighted
the various strategies that are related to the ethical activities of individuals. The article highlights
the fact that the implementation of these strategies that are required for the balancing of the
effectiveness of the needs of the organization for the external legitimacy. The article highlights
the fact that the organizational policies need to be constructed on the basis of the ethical policies
presented within the organization.
Sonenshein (2007) in “The role of construction, intuition, and justification in responding
to ethical issues at work: The sensemaking-intuition model” highlights the fact that the
individuals tend to implement the ethical measures within the workplace activities as well. The

3CORPORATE GOVERNANCE AND ETHICS
article sheds major light on the use of the deliberate and the extensive amount of the moral
reasoning that has been undertaken by the given organizational employees as well. The article
further highlights the fact that the employees should be encouraged to maintain the ethical
activities that are presented within the workplace. The inclusion of the ethical activities that are
highlighted within the workplace refers to the promotion of the ethical behavior which in turn
has been assisting the increase in the employee motivation as well. The article further highlights
the fact that the increase in the ethical behavior within the organization would help in the
decrease of the issues that are highlighted within the organization.
Ethical decision making activities help the organization to implement the proper and
ethical measures within the concerned workplace. Jones and Ryan (1998) emphasize on the need
for the moral approval that is sought by the individuals before embarking on any given activity.
The inclusion of the ethical practices within the workplaces would help in the employee
motivation as well. Gioia (1992) on the other hand sheds light on the fact that the organizational
management and other concerned departments were in the dark regarding the ethical overtones to
the issues that had been taking place within the organization. The inclusion of the ambiguous and
the tricky situations in the composition of the organizational policies would further help in the
understanding of the ways in which the ethical policies should be implemented in order to deal in
the maintenance of the ethical conditions within the workplace. Monahan and Quinn (2006)
seconds that the implementation of the ethical strategies that are required for the balancing of the
effectiveness of the needs of the organization for the external legitimacy within the workplace.
Sonenshein (2007) argues that the promotion of the ethical behavior which in turn has been
assisting the increase in the employee motivation as well.

4CORPORATE GOVERNANCE AND ETHICS
In lieu of the above discussion, it might further be stated that the inclusion of the ethical
decision making within the organizational activities would help in the understanding of the
issues that are related to the overall development of the performance delivered by the workforce
members of the organization as well. The inclusion of the ethical activities that are highlighted
within the workplace refers to the promotion of the ethical behavior which in turn has been
assisting the increase in the employee motivation as well.

5CORPORATE GOVERNANCE AND ETHICS
References
Gioia, D.A., 1992. Pinto fires and personal ethics: A script analysis of missed
opportunities. Journal of Business Ethics, 11(5-6), pp.379-389.
Jones, T.M. and Ryan, L.V., 1998. The effect of organizational forces on individual morality:
Judgment, moral approbation, and behavior. Business Ethics Quarterly, 8(3), pp.431-445.
Monahan, S.C. and Quinn, B.A., 2006. Beyond ‘bad apples’ and ‘weak leaders’ Toward a neo-
institutional explanation of organizational deviance. Theoretical Criminology, 10(3), pp.361-385.
Sonenshein, S., 2007. The role of construction, intuition, and justification in responding to
ethical issues at work: The sensemaking-intuition model. Academy of Management
Review, 32(4), pp.1022-1040.