Usually, as Lehman brothers play an active

Usually, managers and directors will act
ethically as a result of their internalized moral core values.  Whilst
establishing behavioural standards in corporations and written codes of conduct
to help strengthen moral values and encourage ethical organizational behaviour,
it is important to know that everyone will behave and act differently to the
specific guidelines within specific workplace areas. Codes of conduct would also affect the public for
example, McDonalds is perceived by the public to be ethically and socially
concerned which is honoured and respected by other individuals who have no
knowledge of its actual working.

According to Jamal and
Bowie, (1995) codes of conduct promote ethical behaviour in organisations. In
order for companies to build a sustainable employee culture it is essential to
set the expectations for employee behaviour. For example, the codes of conduct
for Lehman Brothers corporation, an investment bank which went bust during the
financial crisis in 2008. Their ethical policies were designed to transform their culture
by guiding the executives during the crisis to make strategic decisions and
communicate effectively with the employees.NS1 

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

According to Trevino and Weaver, (2003) ethical policies can
shape an employee’s behaviour positively thus influencing ethical decisions in
an organisation. This is further supported by Manley (1991) who stated that
codes of conduct are employed in firms to help workers feel more positive about
their company.

Although some companies have such policies to
promote good behaviour other firms such as Lehman brothers play an active part
to guide their employees to behave ethically, with a general consensus of
employees across organisations favouring to work for company’s who are
committed to values and ethics. This shapes the experience of the individuals
involved as it creates a an
atmosphere were values are meaningful and aligned with those of staff, people
are more motivated to work for you (Jenkin, 2018)

This is further supported by Solomon and Hanson (1985) who
argue that codes of conduct are vital for providing guidelines, stability, and
a point of focus for everybody in the organization. Prior findings by Murphy et al (1992) and Somers (2001) conducted in United States show that awareness
of unethical activity is less prevalent in corporations that have implemented
codes of conduct. This provides evidence to support the proposition that
employees in organisations who had adopted corporate codes of conduct were
significantly more aware of wrongdoing than were employee in organizations
without codes of ethical conduct. However,
according to Montoya & Richard (1994) in
some situations individuals can make wrong decisions which can be associated
with the individual’s morals.

McDonald and Nijhof (1999) developed a framework for
implementing an ethical policy curriculum designed to inspire individuals to
behave morally and responsibly in organisations which could increase the
ethicalness in the employees ‘actions and behaviour’.  However, communicating codes of conduct from the
upper echelons of order can sometimes lead individuals to flout the policy.
Trevino and Weaver (2003) found that in highly centralized organizations,
mandated codes were found to be ineffective because employees rejected the
attempts at top-down control. Creating ethical policies does not ensure that
ethical behaviour will occur; rather, ethical decision-making and the code must
be a part of the corporate culture and not mandated from the executive
suite. 

Ethics code will only work when
employees see that organizational actions are in line with the ethical policies.
Codes of conduct become structurally embedded when directors successfully
create and act in accordance to the organization’s culture using the code.
According to Adam and Rachman (2004), ethical policies can shape an
individual’s behaviour by discussing the core values with each other, thus
making the members realise that taking the right action will often require them
to have conversations with other individuals. Furthermore, Petersen and Krings
(2009) argued that codes of conduct significantly reduced “employer
discrimination”, however only when the ethical policies are part of a society
and has approval from a higher level. Ethical policies have a significant
impact on the managers behaviour in terms of their role, as having such
policies implemented forces the managers to behave “ethically right”. The moral
actions of a manager usually have the greatest influence on employees, this is
supported by Adam and Rachman (2004) who argued that ethical policies are more
effective when managers and corporate boards abide by the rules and set the
right tone, rather than providing ethical training to employees.

However,
ethical policies can fail if rejected by the culture of an organization.
For example, Enron’s ethical policies failed due to a number of reasons such
as; the company not being socially responsible to their stakeholders, betrayed
their investors and employees regarding their real financial status, despite
stating in their report that they aim to implement code of conduct to respect
others, assurance to non-discrimination, protecting the environment, human
health and natural resources etc. Perlow and Williams (2003) argued that having
ethical policies implemented may not always work if individuals feel like they
cannot communicate openly about wrongdoing.

Organizational
members react to clear and visible justice, so where managers’ or employees’
behaviours violate the code and no consequences are observed, the code will
fail. Nitsch,
Baetz & Hughes observed that frustration, cynicism,
and anger develop when code violations go unpunished (2005). NS2 Perceived
unfairness or unequal treatment also causes low trust in organizations and
weakens members’ commitment to the code (Kickup, 2005).

Usually, managers and directors will act
ethically as a result of their internalized moral core values.  Whilst
establishing behavioural standards in corporations and written codes of conduct
to help strengthen moral values and encourage ethical organizational behaviour,
it is important to know that everyone will behave and act differently to the
specific guidelines within specific workplace areas. Codes of conduct would also affect the public for
example, McDonalds is perceived by the public to be ethically and socially
concerned which is honoured and respected by other individuals who have no
knowledge of its actual working.

According to Jamal and
Bowie, (1995) codes of conduct promote ethical behaviour in organisations. In
order for companies to build a sustainable employee culture it is essential to
set the expectations for employee behaviour. For example, the codes of conduct
for Lehman Brothers corporation, an investment bank which went bust during the
financial crisis in 2008. Their ethical policies were designed to transform their culture
by guiding the executives during the crisis to make strategic decisions and
communicate effectively with the employees.NS1 

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

According to Trevino and Weaver, (2003) ethical policies can
shape an employee’s behaviour positively thus influencing ethical decisions in
an organisation. This is further supported by Manley (1991) who stated that
codes of conduct are employed in firms to help workers feel more positive about
their company.

Although some companies have such policies to
promote good behaviour other firms such as Lehman brothers play an active part
to guide their employees to behave ethically, with a general consensus of
employees across organisations favouring to work for company’s who are
committed to values and ethics. This shapes the experience of the individuals
involved as it creates a an
atmosphere were values are meaningful and aligned with those of staff, people
are more motivated to work for you (Jenkin, 2018)

This is further supported by Solomon and Hanson (1985) who
argue that codes of conduct are vital for providing guidelines, stability, and
a point of focus for everybody in the organization. Prior findings by Murphy et al (1992) and Somers (2001) conducted in United States show that awareness
of unethical activity is less prevalent in corporations that have implemented
codes of conduct. This provides evidence to support the proposition that
employees in organisations who had adopted corporate codes of conduct were
significantly more aware of wrongdoing than were employee in organizations
without codes of ethical conduct. However,
according to Montoya & Richard (1994) in
some situations individuals can make wrong decisions which can be associated
with the individual’s morals.

McDonald and Nijhof (1999) developed a framework for
implementing an ethical policy curriculum designed to inspire individuals to
behave morally and responsibly in organisations which could increase the
ethicalness in the employees ‘actions and behaviour’.  However, communicating codes of conduct from the
upper echelons of order can sometimes lead individuals to flout the policy.
Trevino and Weaver (2003) found that in highly centralized organizations,
mandated codes were found to be ineffective because employees rejected the
attempts at top-down control. Creating ethical policies does not ensure that
ethical behaviour will occur; rather, ethical decision-making and the code must
be a part of the corporate culture and not mandated from the executive
suite. 

Ethics code will only work when
employees see that organizational actions are in line with the ethical policies.
Codes of conduct become structurally embedded when directors successfully
create and act in accordance to the organization’s culture using the code.
According to Adam and Rachman (2004), ethical policies can shape an
individual’s behaviour by discussing the core values with each other, thus
making the members realise that taking the right action will often require them
to have conversations with other individuals. Furthermore, Petersen and Krings
(2009) argued that codes of conduct significantly reduced “employer
discrimination”, however only when the ethical policies are part of a society
and has approval from a higher level. Ethical policies have a significant
impact on the managers behaviour in terms of their role, as having such
policies implemented forces the managers to behave “ethically right”. The moral
actions of a manager usually have the greatest influence on employees, this is
supported by Adam and Rachman (2004) who argued that ethical policies are more
effective when managers and corporate boards abide by the rules and set the
right tone, rather than providing ethical training to employees.

However,
ethical policies can fail if rejected by the culture of an organization.
For example, Enron’s ethical policies failed due to a number of reasons such
as; the company not being socially responsible to their stakeholders, betrayed
their investors and employees regarding their real financial status, despite
stating in their report that they aim to implement code of conduct to respect
others, assurance to non-discrimination, protecting the environment, human
health and natural resources etc. Perlow and Williams (2003) argued that having
ethical policies implemented may not always work if individuals feel like they
cannot communicate openly about wrongdoing.

Organizational
members react to clear and visible justice, so where managers’ or employees’
behaviours violate the code and no consequences are observed, the code will
fail. Nitsch,
Baetz & Hughes observed that frustration, cynicism,
and anger develop when code violations go unpunished (2005). NS2 Perceived
unfairness or unequal treatment also causes low trust in organizations and
weakens members’ commitment to the code (Kickup, 2005).

x

Hi!
I'm Mary!

Would you like to get a custom essay? How about receiving a customized one?

Check it out