Why it is important for a company to understand, report and improve their ethical conduct?

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Employees who have integrity are transparent in their actions and willing to do the right thing, even if it means personal sacrifice.

A Brief Definition of Business Ethics

You can create an environment of integrity at the hiring stage, ensuring that your human resources department discusses this principle during employee interviews. Integrity is especially important in industries such as health care. For example, caregivers who work with mentally or physically challenged patients must possess a high level of integrity because of the amount of authority they have over those who depend upon their services.


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Business owners are often the last people to know that some members of their staff are behaving in ways that could negatively impact the long-term reputation of their companies. This is less likely to happen if you have a strong system in place that gives employees a means to report unethical behavior. A vital aspect of the workplace is working well with others.

That includes everyone from peers to supervisors to customers. To overcome this, you need another core emotional intelligence competency, empathy , which allows you to learn how to read others and truly understand what matters to them and what they care about.

This will, in turn, help you connect with people and gather their thoughts, opinions, and help when you need them. Leaders in the study repeatedly highlighted the positive consequences of speaking out and at least trying to resolve their ethical dilemmas by remaining true to their own personal values. If you find you need to speak up, there will be a number of choices to be made.

The Importance of ethics in business

Do you talk to the boss? Consult with peers?

The Limits of a Legal Compliance Program

Work with advisory functions such as legal, compliance or human resources? You can draw on your personal network for support and guidance on the right way forward within the context of your unique situation. The leaders in the study were clear about the consequences of taking these actions: increased self-respect, improved confidence in their ability to address future dilemmas, and a more ethical work climate.

Organizational ethics

And perhaps more importantly, taking brave action made them happier at work. Chris topher McLaverty advises companies on their capability architecture and leadership development programs. Harcourt, Gordon F. Practical Ethics. Cullen, J.

Implementing an effective corporate ethics policy

Organizational Dynamics. Freeman, R. Strategic management: A stakeholder approach. Marshfield: Pitman, Donaldson, T. Jones, T.

Stress the Importance of Integrity

Mitchell, R. Brass, D. Mazzola, P. Cascio, Wayne, F. Boston: McGraw-Hill Irwin, Greenberg, J.

Advances in organizational justice. Palo Alto: Stanford University Press, Campion, Michael A.

How to improve ethical decision-making | Praxity

Hinrichs, John R. Sears, Lindsay E. Fisher, Ronald P. Edward Geiselman.

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