Ethics and Governance for Organizations Cosmetic - myassignmenthelp

Question: Discuss about theEthics and Governance for Organizations Merely Cosmetic. Answer: Is Formal Ethics Training in Organizations merely Cosmetic The sentencing guidelines of United States of America have endowed the firms with incentives to develop formal ethics programs with a view to promote ethical organizational cultures for reducing corporate offenses. However, critics often term the ethical programs as cosmetic. After the implementation of the formal ethical training for two years, a single training session, the training proved to have positive impact upon the organizations ethical culture (Ruiz-Palomino and Martnez-Caas 2014). This essay shall outline the arguments that support the promotion of the formal ethics training and formal ethics programs. The essay further discusses about the social theories that talks about the comprehensive ethics training and signifies ethical culture that is, values, beliefs and behaviors. There are different kinds of studies that shows that implementation of formal ethical training in an organization is beneficial for the organization. Although the training programs are different in various organizations, but most of the programs include certain common ingredients such as business conduct, ethics officers, formal codes of ethics and ethics committee. Recently, the sentencing guidelines of the United States have been amended that requires that every employees of the organization shall be provided with formal training programs (Goetschn and Davis 2014). These programs provide the organizations with an opportunity to not only communicate the procedure and standards of the organizations but also about the various aspects of the compliance and ethics programs of the company. The formal ethical trainings aim at encouraging ethical behavioral conduct and at the same time discourage any form of unethical behavioral conduct. However, it is upon the organization to exhibit the type of due diligence that is usually expected from such organizations. The phrase organizational culture refers to the culture that is prevalent within the organization that reflects in the values, beliefs and in the behavioral conduct of the organization and its members (Huhtala et al. 2013). Although the sentencing guidelines do not provide a precise definition for the formal ethics training and programs, it makes certain recommendations that relates to the components existing in the ethics training programs. A code of ethics is considered as an essential component of company culture and it is the responsibility of the organizations to promote the ethical policies effectively in order to benefit from the advantages associated with such ethical organizational culture. The code of ethics is perceived as an administrative formality, the advantages of which can only be realized by the employee if they remain committed to the code of ethics that is prevalent in the organization. The organizations must adopt such formal ethics programs that lay more emphasize on the ethics, acquiescence, and that which uses communication as a source of communication and interpretation (Warren, Gaspar and Laufer 2014). These are the fundamental features of formal ethical trainings that enables an organization to maintain an effective ethical organization culture. Despite the structure of the organization, the persons holding the top positions must set out the behavioral conduct that they are expected to exhibit. Ethical awareness commences from the head of an organization and is followed by the remaining employees. In other words, if the directors did not undergo any formal ethical training or if the organization does not provide a scope for formal training, it cannot be expected that the employees of the organization would undergo such training either (Steele et al. 2016). The Sentencing Guidelines provided by the US offer incentives and disincentives with a view to ensure effective organizational self-regulated ethical conduct. The concept of sentencing guidelines is based on theory of responsive regulation. According to that theory, self-regulation is considered as an optimal process that can be replaced only if there is an additional formal control in the event the firm experiences failure. The underlying notion behind the adoption of this responsive regulation is that such stringent firm regulations is essential for the growth and development of an organization which can be achieved through the formal ethics programs. As discussed above, with the implementation of the formal ethical training in an organization, it has led to several positive impacts on the organization. It is evident from the fact that the application of the ethical training has created positive atmosphere in the workplace and has fostered a sense of trust among the workers. Further, such a positive working environment enhances the morale of the employees, which is essential for any organization as it encourages the workers to communicate and interact with each other thoroughly. An open and effective communication channel is an essential feature of the formal ethical training that encourages the employees to work together as a team with a view to achieve the goals and objectives of the organization. The implementation of the formal ethical training incorporates other essential values like accountability and integrity within the employees, which would further enable the company to attain its objectives. Several critics have raised questions about the ethical code as to whether ethical codes in organization actually work and assist the company to achieve higher goals. The use of the ethical code promotes ethical cultures in organizations that aim at guiding the employees and the management in making ethical decisions in the workplace (Kaptein 2015). The ethical code addresses different forms of issues in the organization that includes employee-management relationships, issues arising out of conflict of interests and other financial practices, etc. The term of code of ethics has been used as interchangeably with other terms such as code of business standard practices, code of conduct, etc. it is pertinent that the employees of an organization has a set of standard that they are required to follow in the workplace. Although several persons may not favor the implementation of formal ethical training in organizations as it is merely superficial and does not assists the employees to resolve any ethical issues, but it is also important for the employees to understand that they must take appropriate and reasonable steps to resolve such issues. The significance of formal ethical training lies in the fact that it acts as guidance for the managers and the employees while making any decisions relating to ethical issues (Medeiros et al. 2017). It also ensures the management of the fact that since the employees are provided with formal ethical training, they would maintain ethical organizational culture and act effectively towards the attainment of the goals and objectives of the organization. The implementation of the formal ethical training is subject to criticisms relating to the conflict of interests that might arise between the employers and the employees. The ethical training imparted to the employees requires them to comply with the ethical code that is in practice, within the organization and requires the management to be supportive of the ethical compliance program as well. In the event, the members of the management team decides to apply their own version of corporate ethics to manage the respective departments, it might lead to confusion in the workplace (Kashif, Zarkada and Ramayah 2016). For instance, if the management deals with sexual harassment or workplace bullying in a manner that does not comply with the ethical programs prevalent in the organization, it may set a precedent that would affect the entire organizational culture. Furthermore, the expenses incurred in formulating, applying and maintain the ethical training in an organization is high and the process is time-consuming as well. There is constant need to change and review the ethical policies of the organization as it grows, to signify the changes in the workplace culture and the laws of the organization. In order to administer the ethical program, it is necessary to appoint ethics office and requires commitment to the personnel resources and company financial (Ferrell and Fraedrich 2015). An organization is often compared to people because the organization often functions as a moral agent, which is accountable for its actions. The compliance programs are designed to avoid unlawful conduct and to act in conformity with the regulations that are exposed externally. Even though the organizational ethics refers to the image of the organization, it is the employees working in the organization, who exhibits illegal and unethical behavioral conduct. In regards to the issues that may arise in implementing the ethical training can be redressed if the management of an organization considers ethical culture in terms of a multi-system framework and must include both informal and formal systems in an aligned manner to support any ethical action and judgment. As discussed earlier, those who hold the top positions in the organization must set ethics as an effective management support as well as leadership is fundamental to encourage and motivate the workers to maintain the ethical culture within the organization (Kuntz et al. 2013). The formal system includes resources to implement programs that encourage ethical practices and the informal system includes the behavior of the leaders who demonstrates how the employees should maintain ethical culture within the organization. On one hand, the formal ethical training established by the United States, include policies, codes, selection systems, training programs and other formal decision pro cesses. On the other hand, the informal side includes the behavioral conduct, organizational rituals that prevent any form of unethical conduct within the organization. It is a fact that a formal ethical training does not assist the employees to handle every difficult situation in the organization, hence, should not be considered as an alternative for judgments made by individuals. The arguments suggest that ethical culture is perceived as multidimensional interplay between the formal and informal system of the organization that aims at promoting ethical or unethical behavior (Weaver 2014). It is also a fact that it incurs huge expenses to develop and implement the formal ethical training in an organization, but the outcome of the training enables the organization to provide an ethical workplace, which, in turns, encourages the employees to work more efficiently, and the result is the attainment of the company goals. Formal ethical training is not merely superficial but significant and it genuinely enables the employees and the managers to make ethical decisions ensuring that the employees are working towards the achievement of the goals and objectives of the organization (Crane and Matten 2016). The ethical training in any organization defines the values of the organization and strives to promote agreement among the organizational members, thus, strengthening the underlying culture in the organization. A formal ethical training actually enables an organization to achieve its aspired goals and objectives is evident from the fact that it enables an organization to pay more attention to the reporting and responding procedures within the organization. This is because it is important to clarify the process by which employees should report about any form of unethical behavior within the organization and it is also one of the essential features of a formal ethical training program to ensure that the employees of an organization is provided with a positive work atmosphere. Therefore, comprehensive ethical training defines unethical behavior and incorporates such behavior into the employees. After the implementation of the comprehensive formal ethical training and explication of the reporting process the employees would be engaged to report about any unethical behavior that they face within the organization (Hartman, DesJardins and MacDonald 2014). According to general training research, formal ethical training affects the organization in two possible ways. The theoretical perception consistent with the research on formal ethical training signifies that the impact of training disperses over time (Dane and Sonenshein 2015). The other theoretical view signifies that changes related to the training shall be self-reinstated, which would only strengthen the effect of the formal ethical raining. As per the general training research, the employees are required to be provided with training periodically as the trainings disperse over a long-term. From the above discussion, it can be observed that a willingness to behave ethically is related to the expectation that an organization shall appropriately respond to such ethical behavioral conduct. A positive perspective of organizational efficacy in redressing issues related to ethical behavior is related to the willingness of the employees to report about the unethical behavior. The organizations can self-regulates successfully when certain incentives and disincentives are provided and the implementation of the formal ethical training acts as a mechanism of strict self-regulation, which aims at promoting ethical organizational culture. The arguments pertaining to the features of ethical training itself, suggests that it is not merely cosmetic but it does significantly influences the decisions and the insight of the members of the organization. Reference Ruiz-Palomino, P. and Martnez-Caas, R., 2014. Ethical culture, ethical intent, and organizational citizenship behavior: The moderating and mediating role of personorganization fit.Journal of Business Ethics,120(1), pp.95-108. Goetsch, D.L. and Davis, S.B., 2014.Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Huhtala, M., Feldt, T., Hyvnen, K. and Mauno, S., 2013. Ethical organisational culture as a context for managers personal work goals.Journal of Business Ethics,114(2), pp.265-282. Warren, D.E., Gaspar, J.P. and Laufer, W.S., 2014. Is formal ethics training merely cosmetic? A study of ethics training and ethical organizational culture.Business Ethics Quarterly,24(1), pp.85-117. Steele, L.M., Mulhearn, T.J., Medeiros, K.E., Watts, L.L., Connelly, S. and Mumford, M.D., 2016. How do we know what works? A review and critique of current practices in ethics training evaluation.Accountability in research,23(6), pp.319-350. Kaptein, M., 2015. The effectiveness of ethics programs: The role of scope, composition, and sequence.Journal of business ethics,132(2), pp.415-431. Medeiros, K.E., Watts, L.L., Mulhearn, T.J., Steele, L.M., Mumford, M.D. and Connelly, S., 2017. What is Working, What is Not, and What We Need to Know: a Meta-Analytic Review of Business Ethics Instruction.Journal of Academic Ethics, pp.1-31. Kashif, M., Zarkada, A. and Ramayah, T., 2016. The impact of attitude, subjective norms, and perceived behavioural control on managers intentions to behave ethically.Total Quality Management Business Excellence, pp.1-21. Ferrell, O.C. and Fraedrich, J., 2015.Business ethics: Ethical decision making cases. Nelson Education. Kuntz, J.R.C., Kuntz, J.R., Elenkov, D. and Nabirukhina, A., 2013. Characterizing ethical cases: A cross-cultural investigation of individual differences, organisational climate, and leadership on ethical decision-making.Journal of Business Ethics,113(2), pp.317-331. Schwartz, M.S., 2013. Developing and sustaining an ethical corporate culture: The core elements.Business Horizons,56(1), pp.39-50. Weaver, G.R., 2014. Encouraging ethics in organizations: A review of some key research findings.Am. Crim. L. Rev.,51, p.293. Ford, R.C. and Richardson, W.D., 2013. Ethical decision making: A review of the empirical literature. InCitation classics from the Journal of Business Ethics(pp. 19-44). Springer Netherlands. Hartman, L.P., DesJardins, J.R. and MacDonald, C., 2014.Business ethics: Decision making for personal integrity and social responsibility. New York: McGraw-Hill. Dane, E. and Sonenshein, S., 2015. On the role of experience in ethical decision making at work: An ethical expertise perspective.Organizational Psychology Review,5(1), pp.74-96. Crane, A. and Matten, D., 2016.Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.