The Rule of Ethics: Organizations in Equilibrium

The Rule of Ethics: Organizations in Equilibrium

“Keep constant guard over the actions of you life.”
The Rule St. Benedict (Rule, 4)

Definitions of Business Ethics

Int’l Business Ethics Institute

"A Form of applied ethics. It aims at inculcating a sense within a company’s employee population of how to conduct business responsibility.”

Business Ethics Center of Jerusalem
“The value structure that guides individuals in the decision-making process when they are faced with dilemma of how to behave within their business or professional life. Usually the impact of that decision will be felt only on their immediate organizational environment.”

Create the Climate for Ethical Actions

Balance the natural desires of individuals and the imperatives of organizational action.
Leader’s job: build org. incentives, controls, disciplines, promotions, and hierarchy around the four most fundamental Benedictine management concepts:
◦Stability and cohesion
◦Obedience and humility
◦Fundamental equality and respect
◦Flexibility and innovation

Ten Steps Toward an Ethics- Based Organization
1. Explicit
II. Well thought out and limited
III. Clear
IV. Regularly and Formally Reminded
V. Properly designed Selection and Formation Process
VI. Leader: Highest Example of Ethical Behavior
VII. Equality in Rule and Moral Standard Enforcement
VIII. Clear Enforcement Mechanism
IX. Properly Designed Organization
X. Give importance to Survival of Organization

Competition and Fair Play
The ethical leader must ensure that there are no fraud, dishonesty and greed in business practice.
Giving emphasis to disciplinary acts.
Corporate cohesion

Recognize the Power of “Either/Or”

The use of either/or describes human condition. (S. Kierkergaard)
…life is a series of choices
Better choice of the proper path.

Summary
Business Ethics: part of broader mgt. system; involves either/or choices.
Ethics cannot be forced upon orgs.
Environment of choosing ethical choices.