Chapter 3 Summary
Chapter three of "Business Ethics Now" covers the topic of Organizational Ethics. Chapter three presents the idea that is important to recognize that organizational and business ethics are different than the general study of ethics because in an organization there are often outside parties affected by ethical behaviours and decisions. Also, quite frequently an individual may be part of an organization where his or her personal code of ethics differs from the organization's beliefs and values, which is referred to as "organizational culture". The chapter discusses the many ethical challenges that are faced by organizations in all types of industry. Chapter three reinforces the ethical views presented in chapter one of utilitarianism and universal ethics and how these are used within organizational structures.
Human Resources is an area in an organization where ethics often come into play. It is very important that all human resources personnel act with integrity according to their organization's code of ethics. Human resources professionals are ultimately responsible for ensuring that programs and policies are in place and that a concrete code of ethics is laid out and adhered to by all employees.
Finance is another area of organization where ethics is particularly important. Chapter three discusses the accounting function, which is the process of keeping track of money going into and out of an organization. Someone can do this internally or it can be done by an outside source. The auditing function is also discusses, which is having a third party look at an organizations financial statements for accuracy and certification. Accounting within an organization is governed by GAAP, which is the generally accepted accounting principles. This is a general set of guidelines that all accounting principles are expected to follow. If these principles are followed, it leaves less room for unethical behaviour. Sometimes accounting professionals within an organization use creative bookkeeping techniques to make the organization look like it is more or less profitable than it actually is. This creates an ethical dilemma as the accounting professional wants the company to look good on paper, however if it is not an accurate representation, it is unethical.
The final issue discussed in chapter three is conflict of interest within an organization. Many organizations run into this problem when employee's relationships or positions put them in conflict with another relationship or obligation. A conflict of interest also occurs when an organization is selling a product or service that could harm their consumers or the environment.
Overall the chapter addresses the idea that an organization must have a set of beliefs and values in place and it will run smoothly when all employees embrace the organizational culture which they are part of. Ethical challenges will occur in all businesses, big or small, but it is how these challenges are handled that can really shape the organization.
(Ghillyer, 2012)
Human Resources is an area in an organization where ethics often come into play. It is very important that all human resources personnel act with integrity according to their organization's code of ethics. Human resources professionals are ultimately responsible for ensuring that programs and policies are in place and that a concrete code of ethics is laid out and adhered to by all employees.
Finance is another area of organization where ethics is particularly important. Chapter three discusses the accounting function, which is the process of keeping track of money going into and out of an organization. Someone can do this internally or it can be done by an outside source. The auditing function is also discusses, which is having a third party look at an organizations financial statements for accuracy and certification. Accounting within an organization is governed by GAAP, which is the generally accepted accounting principles. This is a general set of guidelines that all accounting principles are expected to follow. If these principles are followed, it leaves less room for unethical behaviour. Sometimes accounting professionals within an organization use creative bookkeeping techniques to make the organization look like it is more or less profitable than it actually is. This creates an ethical dilemma as the accounting professional wants the company to look good on paper, however if it is not an accurate representation, it is unethical.
The final issue discussed in chapter three is conflict of interest within an organization. Many organizations run into this problem when employee's relationships or positions put them in conflict with another relationship or obligation. A conflict of interest also occurs when an organization is selling a product or service that could harm their consumers or the environment.
Overall the chapter addresses the idea that an organization must have a set of beliefs and values in place and it will run smoothly when all employees embrace the organizational culture which they are part of. Ethical challenges will occur in all businesses, big or small, but it is how these challenges are handled that can really shape the organization.
(Ghillyer, 2012)