Organizational Ethics Explained

Summary

In this insightful video, Dr. Ryan Bisel, a professor at the University of Oklahoma, discusses the importance of organizational ethics and why they matter for businesses. He explains how poor ethics can harm reputations and profits, while good ethics lead to long-term success. Dr. Bisel highlights the 'moral mum effect' in workplaces, where employees avoid discussing unethical behaviors, and offers five practical steps to combat this issue, including leading by example, building trust, and creating open communication channels to address ethical concerns. The conversation emphasizes the need for a culture of integrity in organizations.

Takeaways

• 😀 Ethics refer to widely shared standards of right conduct, and organizational ethics are those standards applied in the workplace setting.
• 😀 Organizational ethics are crucial because without them, organizations risk harming employees, customers, the environment, and their own reputation.
• 😀 Poor organizational ethics can lead to organizational failure, as exemplified by the downfall of Enron due to unethical accounting practices.
• 😀 Studies show that organizations with strong ethics tend to perform better in the long run, as demonstrated by airlines that handled post-9/11 challenges with compassion and transparency.
• 😀 Organizational ethics matter not only because they help the organization thrive, but because doing the right thing is intrinsically important.
• 😀 The 'moral mum effect' refers to the tendency of organizational members to avoid labeling unethical behavior as unethical, even if they privately recognize it.
• 😀 One reason the moral mum effect happens is that workplace culture often discourages 'ethics talk,' leading employees to avoid raising ethical concerns.
• 😀 Research reveals that despite knowing an action is unethical, only a small percentage of employees confront unethical behavior directly on ethical grounds.
• 😀 The moral mum effect can lead to ethical issues festering over time, escalating into larger, intractable problems that are difficult to address once they're public knowledge.
• 😀 To combat the moral mum effect, leaders should speak by example, avoid excessively philosophical language, and foster an environment where ethics can be discussed openly and comfortably.

Q & A

What are organizational ethics?

Organizational ethics refers to widely shared standards of right conduct within the workplace. It outlines the expected behaviors and ethical principles that guide decision-making and interactions among employees, customers, and other stakeholders.

Why do organizational ethics matter?

Organizational ethics matter because without clear ethical standards, organizations risk harming people, damaging their reputations, and potentially failing. Strong ethics help organizations thrive by fostering trust, promoting transparency, and improving business outcomes.

What is an example of a company suffering from poor ethics?

A classic example is Enron, which engaged in unscrupulous accounting practices that eventually led to its collapse. This resulted in significant harm to employees, investors, and the company’s reputation.

How can good ethics help organizations?

Good ethics can help organizations in the long term by building strong reputations, fostering trust among stakeholders, and driving positive business outcomes. For example, after 9/11, some U.S. airlines that acted compassionately toward employees saw better results a year later compared to those that did not.

What is the 'moral mum effect'?

The 'moral mum effect' refers to the tendency of organizational members to avoid labeling unethical behavior as unethical, even when they privately recognize it. This is often due to discomfort with discussing ethics openly in the workplace.

Why is it difficult to address unethical behavior in organizations?

It is difficult because employees are often uncomfortable discussing ethical issues and are concerned about potential retribution. This avoidance can lead to the normalization of unethical behavior, making it harder to address over time.

How do experiments in organizational communication demonstrate the moral mum effect?

Experiments show that even when employees recognize unethical requests (e.g., being asked to reimburse a personal expense), only a small fraction (about 10%) deny the request on ethical grounds. Most people avoid discussing ethics and instead provide operational or policy-based reasons for denial.

What are the consequences of not addressing ethical concerns in a timely manner?

When ethical issues are not addressed early, they can grow unchecked, leading to larger problems that are harder and more expensive to resolve. Over time, individuals may rationalize unethical behavior, and the issues may become deeply ingrained in the organization.

What are some steps to combat the moral mum effect in organizations?

Five key steps include: 1) Speak by example and use clear language about ethics, 2) Avoid excessively philosophical language, 3) Focus on practical, body-based language (e.g., 'What does your gut say?'), 4) Retell stories of heroes who spoke up, and 5) Build trusting relationships that encourage open ethical dialogue.

Why is building trusting relationships essential for ethical communication?

Building trusting relationships creates an environment where employees feel safe and supported in raising ethical concerns. When trust is established, individuals are more likely to speak up and engage in moral dialogue without fear of negative consequences.