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Organisational Ethics

Ethically Transformed Organization

Adobe System Incorporated is considered an ethically transformed organisation after its effort to clean up the company were recognized by Ethisphere and placed fourth among the companies that have best ethical standards in the world (ASI SWOT Analysis, 2014). This is a multinational computer software business that has its headquarter based in California, USA (United States of America). Software companies are faced with great ethical challenges that range from customer satisfaction to security and social corporate responsibilities (Shadnam & Lawrence, 2011). Several factors have enabled the company to advance in its plans to become the most ethical company in the international level. The company has enforced great corporate compliance programs that have transformed the organizational culture to become more sensitive to ethical concerns (Company Spotlight, 2006).

There are strong policies on CSR (Corporate Social Responsibility) in the company (ASI SWOT Analysis, 2014). These policies have brought about great focus in social affairs that affect the company. The company is not just out to make profits, however, there is a great concern in its culture to ensure that it protects the rights of the community, and ensures a safe environment for peaceful co-existence of all biological organism.

The organization’s success in ethical standard has also been because of strict stand in cooperating with international labor laws and respecting trade and anti-trade laws (Company Spotlight, 2006). However, the company has received some criticism from its competitors like Kaspersky for producing unreliable products that are quite vulnerable to insecurity. This is against the laws that protect customers from possible exploitation by the manufacturers.

In order to be able to ascertain the organizations compliance to ethical standards, it is appropriate to make use of Kidder’s nine Checkpoints. This will involve observing any ethical dilemma that affects the company. In order for a company to be classified as one among the most ethical companies, there are several requirements that it must fulfill. These requirements includes zero tolerance to corrupt deals, zero pending cases in the court, proper mechanism, and policies that check ethical concerns, and strict measure for anyone who breaches the companies ethical regulations (Simha & Cullen, 2012).

Adobe System Incorporated has a great culture that upholds international ethical standards requirements (Company Spotlight, 2006). In the organization’s Code of Business Conduct, integrity, respect, and ethical compliance have been put in the center of its operation. The organization complies with other bodies that investigate all companies on various issues that might affect the society and the environment.

The company has a strong culture that protects its employees and ensures that their rights of employment are honored. This aspect has increased employees satisfaction in their employment leading to overall better performance. However, an ethical dilemma affected the company after an allegation that the company was spying on its customers and sending the customers data to other firm. The company explained its intension based on security concerns. As much as the customers have their right of privacy and protection of their information, the company is also at risk of piracy and hackers who might vandalize its activities. Therefore, the company is entitled to its own protection against such thing that might result in failure of its systems. However, it is not acceptable to spy on customers information who are entitle privacy and protection by the company.

Organization with an Ethical Danger Sign

Among the companies that can be identified as organizations with ethical danger sign is Total SA. An organization can be categorized in this category when it portrays some traits that suggest unethical. Total has portrayed great commitment in complying with international ethical standards (Lanaud & Gateau, 2005). However, there are many allegations that have been filed against the organization, compelling the public to think otherwise about the company.

There is a case in the courts of France and Belgian on a case where the company is alleged to have used slavery manpower to drive its project of pipeline construction. On another case, the management of this great company was accused of using corrupt deal to own oil field in Basilicata. There are also allegations of bribing that also affects the image of the company negatively. In 2013, Total was accused of bribing Iranian official with $60 to give the access to gas and oil fields that in the Sirri E and Sirri A (McKay, 2014). The bribe gave them an upper hand that enabled them to earn $ 150 million profits. Such allegation clearly indicates a company that is at risk of facing major ethical allegations that may jeopardize its development efforts.

Several factors help in identification of ethical danger sign in organizations. The following factors can help in identification of ethical dangers sign facing an organisation.

            Falsification of information. These a major strategy that is majorly used by many organizations that end up in ethical issues that affect their reputation. False information provided by the management in order to cover up what may not be transparent practice in the company clearly portrays some potential ethical danger in the organisation.

Destruction of Files. Organizations may decide to destroy files in order to hide vital information that might be available in the files. Such an act suggests lack of transparency in certain matters that an organization may be hiding. Not all the documents that have any important information about the organization should be tempered with without proper reasons and transparency. Any material that holds any vital information about an organization should be treated with great care and no individual should be allowed to take personal decision about such documents.

Scapegoating. This tendency can be identified when an organization refuses to take responsibility on matters that directly affect it, and instead result in pointing fingers at other stakeholders. In doing this, the organization tries to doge from certain allegations that might affect its reputation once they are exposed to the public.

Budgeteering. This is another common danger of an organisation that is likely to indulge in ethical issues. This involves careful manipulation of financial reports and documents in order to meet certain specifications. Some companies manipulate their financial report in order to be able to fit in the minimum requirement to win certain tenders. The organisation may not be having the capacity required to handle certain project but through forging financial documents, it may win the tenders. Such actions are clear indication of an organization that poses ethical danger that may result to great crisis if not handled appropriately.

In order to be able to overcome ethical issues that result from poor leadership, it is vital to have an integrity-based leadership (Shadnam & Lawrence, 2011). Integrity in leadership is an aspect of personal inner drive that compels a person to act in the right manner and condemn a person when he/she works otherwise. The most suitable leadership theory that can help the organisation to address issues related to ethics is behavioral theory. This theory object the fact that good leadership is an aspect that a person is born with, rather it claims that good leadership is a matter of training and commitment to necessary discipline. Despite the negative image the company may have, leaders in the company can rise to the occasion, face criticism and overcome it with integrity and transparency. The company can build up a culture of transparency and accountability by firmly supporting its ethical policy and core values.  

An International Organization

Dell is a greatly established multinational that handles computer technology through sales, supports, repair and other services related to computer technology (Dell Inc. SWOT Analysis, 2014). The organisation has commanded great influence in the international market despite the stiff completion in computer related services. The organisation faces several ethical issues in the global market.

One of the issues is compliance to Corporate Social Responsibility (CSR). Despite the computer services that the organisation provides to the global market, the organisation should comply with social responsibility in the host countries. Dell is a multinational company, which has branches in other regions in Asia and Africa. Therefore, the company is subject to social responsibility in the countries that host it. Social responsibility involves appreciating the culture and the traditions of the people where the company is established. The organisation must comply with the social laws that are found in the country where it establish its branch. This also includes respecting the nature and the environment of other nations though complying with pollution regulations and standards.

The stiff competition in computer products may compel a company to use corrupt ways in order to positioned itself at an advantageous position. This may include getting raw materials from disputed sources in order to lower the cost of production. Once the company gets involved in such actions, its ethical standard falls below international expectation and therefore, the company’s image in the public may be negatively affected. Basing the argument of ethics require in the organisation with biblical view, corrupt ways do not lead to success but it leads to a fall (2 Cor. 5:17 New International Version).

Another ethical issue that the company may face includes pollution of environment. Pollution of environment may take place through gases and fume released during manufacturing process of the computer product and through disposal of harmful chemicals in the wrong places. Some of the materials used to produce computer products are harmful to mankind and therefore proper disposal is required to ensure that the harmful substances do affect people’s health. In order to address this issue, the company came up with green initiative program. This program includes recycling of materials in order to avoid unnecessary disposal of materials. The company began a zero-carbon initiative to reduce its product carbon intensity by 15% (Dell Inc. SWOT Analysis, 2012). This initiative compelled its suppliers to produce carbon report on a quarterly basis. The company has well established methodologies that help in measuring its Corporate Social Responsibility results. The company’s culture promotes transparency and accountability through offering its financial reports to the public with high level of accuracy (Dell Inc. SWOT Analysis, 2013). The company’s participation in free share investment provides it a vital platform to exercise accountability and integrity.

The company has a routine procedure of using designed applications to promote CSR programs. Through these software’s it is easier to give financial reports, create customized analytics, uphold Human Resource Management (HRM) strategies and provide distance programs that are vital in ensuring human safety and environmental protection (Dell Inc. SWOT Analysis, 2014).

References

Dell Inc. SWOT Analysis. (2013). Dell, Inc. SWOT Analysis, 1-9.

Dell Inc. SWOT Analysis. (2012). Dell, Inc. SWOT Analysis, 1-9.

Dell Inc. SWOT Analysis. (2014). Dell, Inc. SWOT Analysis, 1-9.

Lanaud, R., & Gateau, P. (2005). Turning business principles into ethical behavior at total S.A. The Business Communicator, 6(4), 10-11. Retrieved from http://search.proquest.com/docview/221225838?accountid=1611

McKay, P. (2014). Total Desperation. Corporate Knights Magazine13(1), 30-31.

Adobe Systems Incorporated SWOT Analysis. (2014). Adobe Systems, Inc. SWOT Analysis, 1-9.

Company Spotlight: Adobe Systems Incorporated. (2006). MarketWatch: Technology5(11), 41-45.

Shadnam, M., & Lawrence, T. B. (2011). Understanding Widespread Misconduct in Organizations: An Institutional Theory of Moral Collapse.Business Ethics Quarterly21(3), 379-407.

Simha, A., & Cullen, J. B. (2012). Ethical Climates and Their Effects on Organizational Outcomes: Implications From the Past and Prophecies for the Future. Academy Of Management Perspectives26(4), 20-34. doi:10.5465/amp.2011.0156