The term ethics has been defined by various experts in various different words. But the overall meaning of this word in terms of organizations can be understood by considering this word not only a term but a whole system. When we say system we should keep in mind that it can be in any form like facts, rules or principles available to the staff. It can be considered as an important aspect of the organisations’ culture and needs to be built in the organisations’ atmosphere.
The Oxford dictionary defines this system in the following words: “The science of morals; the department of study concerned with the principles of human duty” (Anderson B, 2004) In a bigger picture we can say that ethics is the ability of the system within the organization which makes the man leads his professional life in a way which is beneficial for the organization as well as his colleagues. Moreover it helps the employees take decision before they do anything in the organization.
It helps them decide whether to do it or not by considering whether their act will improve things by making something good or by making something less worse or are they going to do an act which will turn some good things into bad. In simple words ethics are the rules and principles for the conduct of their behaviour in the organization. In order to be seen by the subordinates as a good leader the manager should try to adopt the following qualities: • While making any decision consider multiple aspects of the decision and its consequences
• There should not be any bias about any one aspect regarding the decision. In fact one should be transparent about the decision as well as its outcomes and consequences. • All the decisions made should be based on the set of moral principles in the organization which are to be abided by all in the organization irrespective of their roles or levels. Social Responsibility The term social responsibility is one of the very few words which have different understanding for different people. In general the term social responsibility means one being good to the society.
But when we talk specifically of the organizations it means doing something which is beneficial for the welfare of the society as a whole, or preventing from something which adversely affects anybody in the society whether related or unrelated to the organization. There was a model build up by Keith Davis on the concept of corporate responsibility which shows five propositions that shows the reasons and the methods for following the idea of corporate responsibility by the organization. Proposition # 1: Social power gives rise to social responsibility
Proposition # 2: The business should be an open ended system that takes in things from the society and the environment and gives back appropriate things to the society and its environment. Proposition # 3: The social costs and benefits or consequences of any plan, product or decision should be considered before finalizing it. Proposition # 4: All the social costs of any plan or product should be borne by the customer. Proposition # 5: The organizations being a part of the society should be should be considerate about some social problems even if they are out of their routine business activities.