Introduction
It is universally accepted that illegal and unethical activities of businesses and companies could lead to a significant negative impact to the welfare of the society (Schwartz, 2001). In addition, following or embracing a proper business ethics is also a necessary element in the success of the businesses, organizations and companies. In general, the success of every business, organization or company is based on the trust between the employees, customers and the public. People commonly do not trust an organization which does not follow a universally accepted code of ethics (Matthews, 1987). In most cases, it is recommended that the organizations should demonstrate integrity and ethics in the business in order to gain the trust of not only the customers and the general public but also their employees.
The social costs of corporations and other businesses are high. However, some of the employees are unwilling to take actions if they recognized or observed some illegal and unethical activities of businesses and companies (Davis & Rothstein, 2006). According to the study conducted by the Ethics Resource Centre, over 30% of the employees had observed illegal and unethical activities in their respective work. These illegal and unethical activities have violated some of the laws and policies regarding business or company policies (Kickul, 2001). However, of these employees, more than half of them did not report these illegal and unethical activities to the authorities or organizations regulating these types of activities. Some of the illegal and unethical activities have violated environmental laws and laws associated to racism.
These types of studies suggest that business ethics have nothing to do with the employee behaviour. However, these studies did not have a deeper understanding of the role of business ethics to the employee integrity and the behaviour of the workers. The objective of this research paper is to analyse the possible relationship between business ethics and employee integrity.
What is Business Ethics?
Business ethics are considered set of guidelines or code or morals which should be embraced or adopted by a business organization or company (Kickul, 2001). These codes of morals are standard or conduct and are universally accepted by organizations around the world. They could also be referred to as code of morals or set of guidelines which should be expected to them by the general public. These set of principles should guide business organizations to their success. It is a way in which business organizations could gain the trust of the customers, the general public and other stakeholders. Some of the other stakeholders include government authorities, shareholders, employees, suppliers and other parties which commonly interact with the business organization.
The concept of business ethics covers a wide range of activities in order to provide a healthy workplace and a proper corporate responsibility (Kickul, 2001). It covers activities such as taxation, environment considerations, employee training and enhancements of responsibilities and obligations (Ford et al., 2012). The business ethics could be influenced or dictated by the conventions, moral obligations, culture and traditions. In addition, business ethics could also be dictated by the local and federal government policies including the policies which are regulated by government organizations. For example, business organizations should follow the environmental policies which are regulated by the Environmental Protection Agency as a part of their business ethics. In the modern times, several corporations, organizations and professionals which are contributing to the development of the business code of ethics. In most cases, business ethics could be explored by ethical concerns and case studies.
What is Employee Integrity?
In most cases, employers hire employees with integrity (Viswesvaran & Deshpande, 1996). It is considered as one of the most important values of an employee. Employees with integrity could demonstrate proper ethical and moral principles in the workplace (Kickul, 2001). In addition, employees with integrity also have a good relationship with their co-workers, with the customers and with the other stakeholders (Paine, 1994). Some of the central or fundamental elements of integrity include honesty and trust. Employers could easily trust employees with integrity. Other central or fundamental elements of integrity include truthfulness and honour. In most cases, employees with integrity draw the other people to them since they could be easily trusted (Davis & Rothstein, 2006).
Every person in the workplace such as employees, employers, managers and business leaders could benefit from the employee integrity. The employees with integrity do not only understand what is morally right and what is morally wrong but they also practice it in all their activities in the workplace. The employee integrity could build a successful foundation for the relationship of every stakeholder in an organization or business. Practicing integrity in the workplace could avoid any disturbance and conflict that could distract and offend others. In most cases, employees and employers could display integrity in the workplace in order to set an example for every practitioner in the workplace.
Relationship between Business Ethics and Employee Integrity
There are many aspects or elements to consider when evaluating the possible relationship between business ethics and employee integrity. One could simply argue that business ethics could help employees to display their integrity within the workplace in order to remain at the company or at the business (Parry & Proctor-Thomson, 2002). However, social corporate responsibility and economic situations could also affect the behaviour of the employees. In analysing the relationship of business ethics and employee integrity, one could also evaluate why employees comply or does not comply with the corporate code of ethics or business ethics. In this case, the relationship of business and ethics and employee integrity could be analysed based on the behaviour of the employee.
One of the main reasons why employees do not comply with the corporate code of ethics or business ethics is the self-interest. In general, companies could not easily influence or modify the self-interests of their employees (Viswesvaran & Deshpande, 1996). Employees who are greedy or the ones with more economic or financial needs could be difficult to influence when the employers only rely to their integrity. Some of the employees believed that minor breaches within the corporate code of ethics could not harm the company. For example, excessive use of long distance calls and additional drinks could not easily harm the company. In most cases, these employees do not comply with the corporate code of ethics (Schwartz, 2001).
There could also be a solution to these problems. Managers and business leaders could strictly implement or execute the corporate code of ethics in most of their activities (Ford et al., 2012). For example, they could provide additional incentives for employees who properly follow the corporate code of ethics. In addition, they could also avoid giving incentives to people who are violating minor breaches to the corporate code of ethics. In this case, the business ethics could be enforced to the employees as long as it is implemented correctly and effectively. The employees could also be instructed to display their integrity at all times through proper implementation of the corporate code of ethics.
Another reason for the non-compliance of the employees to the corporate code of ethics is the dissatisfaction in the work place. According to the study conducted by Schwartz (2001), there is a high correlation between the employee’s dissatisfaction in the workplace and the non-compliance of corporate code of ethics. In most cases, employees who are dissatisfied with the workplace do not display their integrity (Ford et al., 2012). Employee integrity and business ethics come along when talking about the satisfaction of the employee in the work place (Ford et al., 2012). Employees who are satisfied with their work place could easily display their integrity and could easily comply with the corporate code of ethics which are implemented in their company.
Another possible relationship between business ethics and employee integrity could be associated with the compliance of the employees with the code of ethics (Schwartz, 2001). Some of the reasons of the employees why they comply to the corporate code of ethics are related to their values or to their integrity. For example, some employees comply with the corporate code of ethics is their personal values. Proper personal values are one of the main reasons why employees comply with the corporate code of ethics and one of these values is the employee integrity.
In most cases, the company could not influence the employees to change their personal values. What they could do is that they could utilize their hiring process in order to avoid the unethical employees (Koh & Boo, 2001). They could also force the employees to display these personal values such as the employee integrity through proper implementation of the corporate code of ethics. Employees with proper personal values are also commonly having fear of discipline. They comply with the corporate code of ethics in order to avoid sanctions for violations or proper disciplinary actions for non-compliance of the business ethics.
How Code of Ethics Influence Employee Behaviour?
There are many studies which could correlate the concept of business ethics and employee integrity. Some experts believe that business ethics could directly influence the behaviour of the employees and could affect their practice of integrity. The study of Schwartz (2001) analyses the nature of the relationship between business ethics and employee integrity and behaviour. The researcher evaluates the response of the employees and analyses the nature of the relationship between the corporate code of ethics and the behaviour of the employees. According to his study, corporate code of ethics of business ethics could have a potential influence towards the behaviour of the employees. The author summarizes the reasons into eight themes.
The first reason is that the corporate code of ethics could be set as a rule-book in the workplace (Clark, 1998). The business ethics or the corporate code of ethics could be used to clarify the behaviour which should be expected from the employees. In this case, business ethics could influence the employees to display the behaviour which is expected from them by their employers. Second reason is that business ethics or corporate code of ethics could be used as a sign-post for every employee (Schwartz, 2001). It could be used by every employee in order to consult the other individuals to determine if their behaviour is appropriate. In this case, employee integrity could be easily enforced in the workplace through the use of business ethics or corporate code of ethics.
Third, the business ethics could also provide the employees a way in order to confirm if their behaviour is acceptable in their company (Paine, 1994). In most cases, employers wanted to have employees with integrity. In this case, business ethics could influence how employees see themselves within their workplace. Fourth, the corporate code of ethics could warn the employees to be more careful with their actions or activities. With the use of corporate code of ethics, the employees could be warned about unethical and immoral actions which could lead to their termination of their contract within the company (Parry & Proctor-Thomson, 2002).
Fifth, the corporate code of ethics could allow the employees to challenge and resist unethical and immoral activities within their workplace. The corporate code of ethics commonly indicates things which should not be done by the employees within the work setting. Sixth, the corporate code of ethics could also be used by the employees to warn other people in their workplace about inappropriate behaviour (Matthews, 1987). They could also convince other people to display integrity in their workplace since it is indicated in the corporate code of ethics. In general, the corporate code of ethics is used by managers and business leaders to promote appropriate behaviour within their company.
Seventh, the corporate code of ethics or business ethics could be used by the employees and the employees to contact the authorities regarding violations and inappropriate activities or actions. In most cases, corporate code of ethics also indicates guidelines or rules when the employees have recognized violations and inappropriate activities or actions from stakeholders or people around the work place (Viswesvaran & Deshpande, 1996). Lastly, the implementation of the code of ethics could force the employees to comply with the provisions and regulations embedded in the code and influence their behaviour. These are the eight reasons why corporate code of ethics or business ethics could influence the behaviour of the employees.
How Corporate Culture Influence Employee Integrity?
Most studies suggest that corporate culture could influence the behaviour of employees. If a business organization strictly follows its corporate code of ethics as well as the laws and policies which are set by the government, there is a high probability that their employees also possess positive personal values. One of these positive values includes employee integrity. On the other hand, business organizations which allow unethical and unlawful activities or actions tend to have employees which have negative personal values (Schwartz, 2001). Companies or business organization usually implements corporate code of ethics in their work place in order to display their corporate culture and corporate responsibility.
Corporate culture is also considered as the centre of strong ethics and compliance to corporate code of ethics (Davis & Rothstein, 2006). The organizational values could easily influence the personal values of their employees. If managers, supervisors and business leaders display integrity and promotes good corporate culture, there is a high chance that their employees also display employee integrity. In general, there are two elements of a strong corporate culture. One is the high level of agreement regarding the corporate code of ethics and the other one is the high intensity of displaying those values. Employee integrity is often regards as one of the personal values which are central to a strong corporate culture.
How Economic Situation Affects Employee Integrity?
One of the possible factors which could greatly affect the employee integrity is their economic or financial situation. There are many instances where the integrity of the employee could be tested due to financial or economic needs (Parry & Proctor-Thomson, 2002). Some employees tend not to comply to the corporate code of ethics when they knew that they job could be in jeopardy. For example, employees tend not to report any violations in the workplace because of the fear of losing their job. In this case, the integrity of the employee is not displayed and the corporate code of ethics is not considered.
Job commitment of the employees is also low during economic uncertainties. Some of the examples of times of economic uncertainties include depression, economic crisis or when the company is experiencing bankruptcy. In this case, some of the employees tend not to display employee integrity. They become irresponsible and not truthful to their work. They also tend not to comply with the corporate code of ethics. In general, economic situation can greatly affect how employees do their work. In most cases, it could also affect how employees display their integrity in the work setting.
How Business Ethics Help Over These Problems?
Corporate culture and economic situation could greatly affect employee integrity partly in a negative way (Matthews, 1987). However, these problems could be solved through the proper use of corporate code of ethics or business ethics. The corporate code of ethics could be implemented fairly to the employees in the company. Companies or business organization usually implements corporate code of ethics in their work place in order to display their corporate culture and corporate responsibility (Clark, 1998).
There are many aspects or elements to consider when evaluating the possible relationship between business ethics and employee integrity. One could simply argue that business ethics could help employees to display their integrity within the workplace in order to remain at the company or at the business. However, social corporate responsibility and economic situations could also affect the behaviour of the employees(Koh & Boo, 2001). Proper implementation of the corporate code of ethics could solve the problems related to corporate culture and negative economic situations and its effects of employee integrity.
Conclusion
The success of every business, organization or company is based on the trust between the employees, customers and the public. People commonly do not trust an organization which does not follow a universally accepted code of ethics. Business ethics are considered set of guidelines or code or morals which should be embraced or adopted by a business organization or company. These codes of morals are standard or conduct and are universally accepted by organizations around the world. On the other hand, employee integrity is considered as one of the most important values of an employee. Employees with integrity could demonstrate proper ethical and moral principles in the workplace.
In analysing the relationship of business ethics and employee integrity, one could also evaluate why employees comply or does not comply with the corporate code of ethics or business ethics. There are many aspects or elements to consider when evaluating the possible relationship between business ethics and employee integrity. One could simply argue that business ethics could help employees to display their integrity within the workplace in order to remain at the company or at the business. However, social corporate responsibility and economic situations could also affect the behaviour of the employees.
References
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