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Leadership, Decision Making & Ethics

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Decision making ethics are important in enhancing the realization of organization’s goals and objectives. However, for an organization that thrives well would be affirmed to deploy considerable managerial policies that enhance ethical decision making process by management, clients and employee welfare accordingly. However, it is prudent to restate that for a good ethics should be embraced so that an organization would thrive within the competitive markets, both domestic and international. Some of the ethical aspects that should be put in place include but not limited to understanding ethics is essential in decision making process to achieve fair trade, sustainability and team work due to equal consideration in decision making process. The essay will be focused on how leaders could ensure that that organization’s decisions are made ethically.

 

Ethics

The organizational ethics are core management values that a manager should put in place in decision making process within an organization; however, every person has spectacular obligations that are either personal or group based: there should be considerable understanding of moral principles of good leadership. Moral ethics principles could be related to distinction between wrong and right or bad and good organizational behaviour (Odom, 2010). In the contemporary world ethical principles are fundamental in decision making process within an organization. In order to effectively and efficiently embrace both individuals and corporate priorities in a business, the management should derive business practices that involve group participation in making sure that the employee fraternity (Neal, 2008).

Leaders should be consultative; in the process of making a workable decision, stakeholders who are part of the system should be contacted so that they would deliver their opinions on the issue. This would effectively lead to working processes that assist the whole organization in selecting a definite process for tackling problems. When leaders utilize this approach, it would possibly avoid the recurrence of the problems that often derails the working momentum and morale.

When there is a clear directive for example a plan, the whole team would be able to contribute during staff meetings. Unlike situations whereby there are no definite plans for the management to resort to as a guideline in accomplishing their roles and objectives accordingly. Preset agenda, mission and vision of an organization, or a team in an organization do not depend on the kind of leadership. Ambiguous leadership is more frustrating that a kind of leadership whereby the team leaders strive to be the best in the morning.

In an organization, problems are part of a real organization and the main issue that leads to distinct solutions is the process used to resolve the issues within and outside the organization. In this context a prudent managerial team would resort to application of ethical aspects so that an appropriate decision would be arrived at. Being that in a working environment, employees should be handled in a humane way, through the adoption of ethical approach to decision making it could be evident that such an organization is bound not to fail. It is practical that ethical approach to decision making has greatly enhanced progress in numerous organizations, for example: WorldCom, Enron and Nike Inc.

WorldCom Issue

Dated back to 1983, WorldCom when the plan to provide discounted long distance reseller services could not be realistic. This led to a merger in order to overcome the malady. However, through economies of scale the company ventured in telecommunication as well, but it was unrealistic that it becomes the largest corrupt filling in the history of the U.S.A (Flynn, 2009).

The use of improper accounting and file recording process jeopardised the future of a lucrative company, recording $3.8 billion as expenditure was actually a boost to the company’s operations, but  it resulted into great net loses. In the process of resolving the situation, WorldCom deducted the expenses from the revenue, and also reduced the book values for assets acquired from other companies which simultaneously increased the value of goodwill. From the look of things, all was fine and the company regained better financial stature in the quarterly reports (Flynn, 2009).

However, with acquisition of more company, accountants resorted to continuously readjust the value of expenses and assets. It was until the internal auditors came that the company realized that there were uncovered questionable financial liabilities has had sank the company into huge and questionable debts. According to the WorldCom issue, it is prudent that decision making process was not done with consideration of ethical aspects (Langlois, 2011). This resulted into worse situations than ever. Hence it can be reiterated that ethical aspects of decision making process is the basis for development within both the lower and high level of responsibilities.

Nike Inc

Nike Inc is proud of being an ethical company. The operation and management of the company is based on trust between stakeholder’s birth internal and external. Being formed through handshake, The Company’s management team spends much of their time in resource management so that time, money and resources would be effectively to reflect and fulfill ethical duty or functionality (Poulomi, 2004).

Ethically investment and business approach is focused on was through which a business can lower negative social effects while maximizing return on investment and profits generation (Olscamp, 2009). Both business ethics and investment ethics are great contributors to an organizations progress especially through a series of artefacts (Poulomi, 2004).

 Enron ethical issue, decision made and whether it was ethical or not

Enron as a company previously worked with jurisprudence. The level of integrity was encouraging since most of the services would be obtain from the company premised Enron Code of Ethics, 2014).. The company embraced key ethical aspects of decision making like communication, integrity, respect and excellence. When the company resorted to fraudulent activities, conspiracy, and money laundering, all the good values demised, customer trust  was eroded to its fill capacity (Enron Code of Ethics, 2014).

However, it seemed that Neuron’s plan targeted the executives; this could not have been the case since the plan enriched the leadership other tan deriving a wholesome beneficial strategy that the company and employees would benefit at the same time. Accordingly, it is prudent to reiterate that the decision was not made ethically hence failure of the lucrative company. Leaders should learn from such cases that they need to utilize the available resources to enhance better understanding and improved lifestyle (Enron Code of Ethics, 2014).

Ethical factors have to be integrated and influenced significantly on both the public sector and institutions so that appropriate decisions would be arrived at amicably. When the employee group is confident that they are also important in decision making process, this creates a good rapport between the management and employees hence increasing output production (Flynn, 2009). In modern management, concept of an ethical organization could be supposed to share problem that comprise of, but not limited to:

·         CSR (corporate  & social responsibility)

·         The bottom line'

·         Management of leadership and ethics

·         'Fair business (trade)'

·         Sustainability

·         Globalization

·         Corporate governance

·         Sustainability

·         Social enterprise

·         Mutual’s’, cooperatives, employee ownership

·         Micro-finance, and

·         Well-being at work and life balance, including the Psychological Contract.

The above listed aspects of ethical leadership are just among numerous ethically related aspects of good leadership in decision making process (Lawson, 2008). The term ethics entails a lot in leadership and decision making process due to broad area of applicability that any leader would implements to achieve beyond expectation. This is a fascinating consideration that integrates numerous ethical implications application in the contemporary society (Langlois, 2011).

Ethical Considerations in Leadership

Effective and efficient way for a leader to achieve the best in decision making process as far as an organization is concerned require an ideal ethical consideration in handling leadership could be based on western ethical philosophy which is further subdivided into three main types:

·         Guiding principles which are conduct based, this leads to greater benefit to an organization. It could be further referred to as utilitarianism.

·         Intrinsic worth (Virtues), for example generosity benefits to individual and society, charity, justice, it is frequently called Aristotle’s idea.

·         Morality and social online sites: this is human dignity based on rationalized respect for other rationalized people. In myriad situation, ethics of morality is supported by Kant.

In leadership it is possible to include ethos as a way to suggest relative component of ethics, “the widespread sentence tone people or community, in extending the other than the content covered by labour law and other distinctive standards”. A decision for a group to consider some aspect of life to be either ethical or not for example; media, market and customers. Both moral and ethical aspects are subjective and could be a reflection of civilization and society (Johnson Bob, 2012).

The significantly changing ethical aspects could dispute the law making body. However, the uncovered ethical aspects would be categorized as subjective judgment, although it is not exclusive but the majority views ethical implication to be a significant fact. Despite the decision and full responsibility, a manager would be considered vague based on the kind of judgment and decision making process derived by him/ her. A good manager should strive to retain respect in the quest to remain at the helm in an organization (Lawson, 2008).

Decision Making

Ethical implications in the works of life, opinion for instance; opinions that relates to large scale considerations like in the case of marketing, employee attitude and publicity as manifested through employee or customer behaviour (Langlois, 2011). This should broadly facilitate the managerial perception in regard to the required issue. Decision making process is considered as a make or break aspect in an organization. This affirms consideration of work ethics in the decision making process so that an amicable process would be adopted for deriving an all inclusive approach to decisions regarding an organization (Odom, 2010).

Despite the importance of law and order in an organization, it is prudent to reiterate that there has to be work ethics. Both law making and execution process require work ethics so that a powerful reality may not be dodged in situations that require large scale opinions. In a real life scenario, it is illegitimate to oblige slightly above the recommended speed, which varies with the road network (Flynn, 2009).

Business ethics plays a great roe in this area; employees would feel that they are essential to the progress of the organization. However, the other stakeholders are also essential to the organization hence should be well versed with the crucial issues that can be shared generally within the management’s jurisdiction (Stanwick, 2009). When an organization fully adopts a workable process, there would be success beyond reasonable doubt on the predetermined goals and objectives of the organization (Johnson Bob, 2012). Organizational management should be concerned with issues that deal with the following:

·         The Environment- This is concerned with both exterior and interior scopes within which an organization operates. Conducive working environment would enhance sustainable business processes for the benefit of both organization’s management and the stakeholders (Diane L. Swanson, 2008).

·         Sustainability- when implementing organizational plans, it is important to consider long term objectives so that the plan would be realistic to avoid blames from the environment, employees and stakeholders.  Unaccomplished organizational objectives negatively impact on performance of the management, ethically, management should ensure that the positive impact overrule in the process of accomplishing managerial and general welfare of the business organization (Neal, 2008).

·         Globalization Effects – How the national and international community views an organization is crucial; for example, employee exploitation, child-labour, Social and environmental damage anywhere in the world (Neal, 2008). The national and international organizations like National environmental management authority (NEMA) and United Nations Environmental Program (UNEP), are among numerous organizations that would not relent in the quest to enhance humane environmental conditions that guarantees for better healthcare and general good of the society. In case management within respective business organizations observe factors that hinders development, it would be very easy for an organization to develop beyond national levels (Neal, 2008).

·         Armed Conflicts, Corruption and Political Problems- when considering business ethics, issues of political intrigues, corruption, and armed conflicts are hindrances to business development. Most of the stakeholders in business inclusive of clientele and shareholders do not find it realistic to be involved in commercial activities which are marred with corrupt and insecure both to the customers and stakeholders as well, and finally the political instability since it scares away investors and customers within both national and international scopes (Odom, 2010).

·         Staff and Customers Relations- In order to effectively accomplish organization’s goals, it is prudent to reiterate that the management should foster conducive working relationship between the staff and customers. In addition, effective relations with stakeholders in an organization commences from good rapport within the organization’s management structure (Lawson, 2008). Work ethics should be embraced accordingly through effective communication between the employees and the management staff. The good rapport would be reciprocated to the customers since the employees embrace and enjoy positive workmanship with the management in general. Management can accomplish this through encouraging on job training, facilitating employee health and safety, and also duty of care (Langlois, 2011).

Social Impact, local community and other related issues.

Management should derive a mechanism that embraces the community’s welfare- This can be accomplished through initiation of cleaning services, sponsoring projects like building of churches, and other social and recreation centers (Stanwick, 2009). Ethically, the community members within the area that an organization operates should selectively employ a few staff from within, so that the community may feel to be involved in the business in one way or the other. This requires a manager with ability to understand the respective business considerations that could enhance good rapport in the general welfare of the business (Neal, 2008).

·         Remuneration- in any business the core value is often based on finance. Management just like employees and stakeholders are keen in monitoring and evaluation of financial capabilities of the organization. It is ethical to reiterate that employee payment and incentives should be taken into consideration (Langlois, 2011). This will boost work morale and enhance high output production in an organization (Johnson Bob, 2012). It is often evident that in most organizations, lack of appropriate remuneration and incentives directly impact negatively on employee morale leading to low output production. In such circumstances, organizations record maximum loss through wastage and intentional destruction and vandalism of organizational products, goods and services (Odom, 2010).

With good rapport developed through consistency in employee remuneration and incentives, which are not limited to promotion, financial rewards, tokens and organized employee thank giving parties; a manager could reap heftily from employees who would otherwise derail organization’s hope of prosperity in delivering objective production targets (Gasser, 2009).

It is typical that the above aspect can be interpreted with ethical consideration on organizational investment and general welfare. The rigorously changing world entails a cohort of activities that continuously change in ethical artefacts. However, in such a situation, it is adept to state that ideological perception on ethical reflection could be individual based (Olscamp, 2009).

Conclusion

 Organization, decision making and ethical aspects of businesses increase with protection and assurance of continued existence. Since all business activities are aimed at deriving both basic and secondary needs both nationally and internationally, the human tendency to befall less ethically bendy under danger is not possible. This implies that ethical behaviour is imperatively judgmental and subjective as well. Just like it may be impossible to compel one society’s ethical code on the other, business and organizational development sector also operate in the same way. Every organization’s management system has to derive their distinctive moral codes that would suite their relationship with employees, customers and stakeholders in general. Organizational management, decision making process and ethical consideration are essential factors that would enhance accomplishment of organization’s objective like in the cases of WorldCom, Enron and Nike Inc. Employee remuneration is essential in an organization. Through provision of tokens, better pay rates, promotion and employee appreciation parties among other, the management is capable of exhaustively gaining from deployed manpower.

A good manager should embrace business and organizational ethics in the process of executing assigned obligations and making crucial decisions within a set up or organization. Good rapport with both employees and stakeholders automatically leads to rapport with the communities around the organization’s premises. However, when recruiting employees, it is realistic to consider the area residence so that the community would embrace the presence of the organization amidst them.

 

References

Diane L. Swanson, D. G. (2008). Advancing Business Ethics Education: Ethics in practice . Berlin- Germany: IAP.

Enron Code of Ethics. The Smoking Gun Web site, http://www.thesmokinggun.com, accessed April 10th, 2014.

 

Flynn, G. (2009). Leadership and Business Ethics Volume 25 of Issues in Business Ethics. New York- USA: Springer.

Gasser, W. M. (2009). Impacts of Religious Biases on Leadership Decision Making. New York- USA: Universal-Publishers.

Johnson Bob, K. S. (2012). Decision Making for Educational Leaders: Underexamined Dimensions and Issues. London- UK: SUNY Press.

Langlois, L. (2011). The Anatomy of Ethical Leadership: To Lead Our Organizations in a Conscientious and Authentic Manner. Rome- Italy: Athabasca University Press.

Lawson, D. (2008). Investigating a Global Axiology: Looking for a Global Leadership Ethic . New York- USA: ProQuest.

Neal, H. E. (2008). Perceptions of Leadership Ethics in the Czech Republic: An Exploration of the Bio-adaptive Nature of Complementarity. London- UK: ProQuest.

Odom, L. (2010). Leadership Ethics: Is Doing the Right Thing Enough? . Berlin- Germany: Xlibris Corporation.

Olscamp, P. J. (2009). Moral Leadership: Ethics and the College Presidency-Issues in academic ethics. London- UK: Rowman & Littlefield.

Pettey, J. G. (2013). 2nd Edi. Nonprofit Fundraising Strategy: A Guide to Ethical Decision Making and Regulation for Nonprofit Organizations. Paris- France: John Wiley & Sons.

Poulomi, S. (2004, 11 08). "Nike develops a 'balanced scorecard' for ethics integration." Ethical Corproration. Retrieved April 04, 2014, from          <http://www.ethicalcorp.com/content.asp?ContentID=3117&ContTypeID=EC MIDDLE>

Stanwick, P. S. (2009). Understanding Businnes Ethics. Upper Saddle City,NJ: Pearson   Prentice Hall.

 

 

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