Main Topic: Profession and Organization

Lesson Proper
WHAT IS A PROFESSION?
HISTORY

The original meaning of professional derived from the Middle English profes, an adjective
meaning having professed one's vows, which itself derived from Late Latin professus, past participle of
profitēri which meant to profess, confess. The idea was that professionals were those who 'professed' their
skill to others, and 'vowed' to perform their profession to the highest standard. In its original meaning, the
essence of being a professional was to have made a public commitment to a high standard of performance,
to integrity, and to public service. Although not always stated explicitly, there is an implied contrast
between ‘high standard of performance’ and financial gain. Indeed, Friedson (2001)--a life-long scholar
of the profession--included the following as one of his five characteristics which were characteristic of
professions—“an ideology that asserts greater commitment to doing good work than to economic gain and
to the quality rather than the economic efficiency of work.”

PROFESSION

A Profession is a disciplined group of individuals who adhere to ethical standards and who hold
themselves out as, and are accepted by the public as possessing special knowledge and skills in a widely
recognized body of learning derived from research, education and training at a high level, and who are
prepared to apply this knowledge and exercise these skills in the interest of others.

It is inherent in the definition of a Profession that a code of ethics governs the activities of each
Profession. Such codes require behaviour and practice beyond the personal moral obligations of an
individual. They define and demand high standards of behaviour in respect to the services provided to the
public and in dealing with professional colleagues. Often these codes are enforced by the Profession and
are acknowledged and accepted by the community.

-Australian Council of Professions, 2003

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 Being a member of a Profession, e.g. a ‘Professional ‘, is generally seen as an indicator of integrity,
ethics, trust and expertise.

WHAT IS A PROFESSIONAL?

Traditionally, a ‘Professional’ is someone

who derives their income from their specific
knowledge or experience – as opposed to a worker,
hobbyist or amateur without formal education. This
meaning still carries through today to areas such as
sport. However, in the Professions, a “Professional” has a broader meaning, typically around some moral
or ethical foundation within the practice of a specific and usually established expertise.

A Professional is a member of a Profession. Professionals are governed by codes of ethics and

profess commitment to competence, integrity and morality, altruism and the promotion of the public good
within their expert domain. Professionals are accountable to those they serve and to society.

-Evetts, J., ‘Sociological Analysis of Professionalism: Past, Present and Future’, Comparative Sociology 10, 2011

WHAT IS PROFESSIONALISM?

‘Professionalism’ is defined as the personally held beliefs of a Professional about their own conduct as a
member of a Profession. It is often linked to the upholding of the principles, laws, ethics and conventions of a
Profession in the form of a code of practice.

BEING A PROFESSIONAL

Acquiring a professional role in health care is important from the point of view of ethics. A
professional is committed to the principles and aims of the work and is aware of her own limitations and
values. The most important questions in acquiring high ethical standards in professional work are: 1) Why
is the work being done? 2) What are the necessary components of high quality? and 3) What is the
professional attitude? These questions concerning ‘good work’ can be summarized in the 3 E’s: excellence,
ethics and engagement.

Another way of looking at the professional working role is to ask what the virtues of a high-grade
professional worker are. Virtues mean acquired capabilities that enable excellence in the practice
according to its objectives, e.g. wisdom, justice, self-control and courage.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

Why and how?

Aims, principles and values direct the work, but it is also important to think about its functionality
and pragmatic dimensions. How are the aims of the work realized in the best way? And how is this done
without neglecting the key principles and values of the work? Pragmatism is not only about finding the
best solution for some concrete problem at hand, but also about connecting aims with means. If a certain
procedure is fast and efficient, but violates a patient’s autonomy and causes distress, it is not pragmatic,
considering not only the immediate task but the idea of producing good care.

It is a common mistake to think that professionalism is based only on personal competence of a

worker. The fact is that maintaining a high quality of work requires a lot more. Key factors are
continuing education, professional pride and good management. It is also essential that there is a
functioning work society and group dynamics with reasonable workload and reasonable resources.
Maintaining a high level of professionalism is a matter of cooperation in the work society, but also a
responsibility of the management and leaders.

PROFESSIONALISM

Professionalism is the conduct, aims or qualities that characterize or mark a profession or

professional person; it implies quality of workmanship or service. Every organization knows that a
professional reputation is the difference between success and failure and they seek to keep their most
professional staff. Professionalism is all about success and influence; having a reputation for excellence
and being thought of as someone who exhibits professionalism under any circumstances can open doors
for one either in the workplace or in one personal ambition.

Following are ten golden rules to being professional in service to one organization:

● Always strive for excellence; this is the first rule to achieving greatness in whatever endeavor
one undertake this is the quality that makes one and one work stand-out. Excellence is a quality of
service which is unusually good and so surpasses ordinary standards, it should be made a habit for
it to make a good impression on one bosses and colleagues.

● Be trustworthy; in today‘s society trust is an issue and any employee who exhibits
trustworthiness is on a fast track to professionalism. Trustworthiness is about fulfilling an assigned
task and as an extension- not letting down expectations, it is been dependable, and reliable when

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 called upon to deliver a service. In order to earn the trust of one bosses and colleagues, worth and
integrity must be proven over time.

Be accountable; to be accountable is to stand tall and be counted for what actions one have
undertaken, this is the blameworthiness and responsibility for one actions and its consequences-
good or bad.

● Be courteous and respectful; courteousness is being friendly, polite and well mannered with a
gracious consideration towards others. It makes social interactions in the workplace run smoothly,
avoid conflicts and earn respect. Respect is a positive feeling of esteem or deference for a person
or organization; it is built over time and can be lost with one stupid or inconsiderate action.
Continued courteous interactions are required to maintain or increase the original respect gained.

● Be honest, open and transparent; honesty is a facet of moral character that connotes positive and
virtuous attributes such as truthfulness, straightforwardness of conduct, loyalty, fairness, sincerity,
openness in communication and generally operating in a way for others to see what actions are
being performed. This is a virtue highly prized by employers and colleagues, for it builds trust and
increases one personal value to all.

● Be competent and improve continually; competence is the ability of an individual to do a job

properly, it is a combination of knowledge, skills and behavior used to improve performance.
Competency grows through experience and to the extent one is willing to learn and adapt.
Continuous self development is a pre-requisite in offering professional service at all times.

● Always be ethical; ethical behavior is acting within certain moral codes in accordance with the
generally accepted code of conduct or rules. It is always safe for an employee to ―play by the
rules‖. This is always the best policy and in instances the rule book is inadequate, acting with a
clear moral conscience is the right way to go. This may cause friction in some organizations but
ethical organizations will always stand by the right moral decisions and actions of their employees.

● Always be honorable and act with integrity; honorable action is behaving in a way that portrays
―nobility of soul, magnanimity, and a scorn of meanness‖ which is derived from virtuous
conduct and personal integrity. This is a concept of ―wholeness or completeness‖ of character in
line with certain values, believes, and principles with consistency in action and outcome.

● Be respectful of confidentiality; confidentiality is respecting the set of rules or promise that

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 restricts one from further and unauthorized dissemination of information. Over the course of one
career, information will be passed on to one in confidence – either from the organization or from
colleagues- and it is important to be true to such confidences. One gain trust and respect of those
confiding in one and increase one influence within the organization.

● Set good examples; applying the foregoing rules helps one improve one professionalism within
one organization but it is not complete until one impact knowledge on those around and below
one. One must show and lead by good example. Being a professional is about living an exemplary
live within and without the organization.

Professionalism is highly valued by every organization today and professionals are hardly out
of work. Apply the ten golden rules of professionalism and enjoy a wonderful, professional and
prosperous career.

PROFESSIONAL ATTITUDE

What is professional attitude? How can you obtain it? Can you choose your attitude, can you
change it, or can you develop it? Does your professional attitude change during your career?

Work attitude means continuous evaluations and reactions towards one’s work environment: co-
workers, patients, work society, tasks, and more. Building professional attitude can be described as an
adjustment process that begins by understanding what it means to be a professional and how a professional
should relate and react to her work environment. Health care professionals are in a position which they
can use to do good or harm depending on their work attitude. That is why ethical awareness is an integral
part of professional attitude and why it is necessary to take time for reflection-on-action.

One key ability in being a professional is a certain degree of value neutrality. This means that the
principles that guide the work should be always derived from the main purposes of the work. Any other
aims, ideologies, personal values, personal gain or religious beliefs should be omitted from the
professional role.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 WHAT IS ORGANIZATION

Organization is the foundation upon which the whole structure of management is built.
Organization is related with developing a frame work where the total work is divided into manageable
components in order to facilitate the achievement of objectives or goals. Thus, organization is the structure
or mechanism (machinery)that enables living things to work together. In a static sense, an organization is
a structure or machinery manned by group of individuals who are working together towards a common
goal. Alike ‘management’, the term ‘organization’ has also been used in a number of ways. broadly
speaking, the term ‘organization’ is used in four different senses:

As a process, as a structure of relationship, as a group of persons and as a system, as given below:

Organization as a Process:

In this first sense, organization is treated as dynamic process and a managerial activity which is
essential for planning the utilization of company’s resources, plant and equipment material, money and
people to accomplish the various objectives.

Organization as a Framework of Relationship:

In the second sense organization refers to the structure of relationships and among position
jobs which is created to release certain objectives. The definitions of Henry, Urwick,Farland, Northcourt,
Lansburgh and Spriegel Breach, Davis, Mooney and Reilyetc., come under this group. For example:
According to Mooney and Reily, “Organization is the form of every human association for the attainment
of acommon purpose.”

Organization as a Group of persons:

In the third sense, organization is very often viewed as a group of persons contributing their efforts
towards certain goals. Organization begins when people combine their efforts for some common purpose.
It is a universal truth that an individual is unable ability and resources.

Barnard has defined ‘Organization’ as an identifiable group of people contributing their efforts towards
the attainment of goals.

Organization as a System:

In the fourth sense, the organization is viewed as system. System concepts recognize that
organizations are made up of components each of which has unique properties, capabilities and mutual

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relationship. The constituent element of a system is linked together in such complex ways that actions
taken by one producer have far reaching effect on others.

In short, organizing is the determining, grouping and arranging of the various activities deemed
necessary for the attainment of the objectives, the assigning of people to those activities, the providing of
suitable physical factors of environment and the indicating of the relative authority delegated to each
individual charged with the execution of each respective activity.

CHARACTERISTICS / FEATURES OF ORGANIZATION

The main characteristics or Features of organization are as follows:

Outlining the Objectives:

Born with the enterprise are its long-life objectives of profitable manufacturing and selling its
products. Other objectives must be established by the administration from time to time to aid and support
this main objective.

Identifying and Enumerating the Activities:

After the objective is selected, the management has to identify total task involved and its break-
up closely related component activities that are to be performed by and individual or division or a
department.

Assigning the Duties:

When activities have been grouped according to similarities and common purposes, they should
be organized by a particular department. Within the department, the functional duties should be allotted
to particular individuals.

Defining and Granting the Authority:

The authority and responsibility should be well defined and should correspond to each other. A
close relationship between authority and responsibility should be established.

Creating Authority Relationship:

After assigning the duties and delegations of authority, the establishment of relationship is done. It involves
deciding who will act under whom, who will be his subordinates, what will be his span of controland what will be

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

his status in the organization. Besides these formal relationships, some informal organizations should also be
developed.

(BOOK: Values and Work Ethics)

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

Main Topic: An Introduction to the Concept of Ethics and Ethical
Behavior
ETHICS
Ethics is a set of principles or standards of human conduct that govern the behavior of individuals
or organizations. By these ethical standards, a person or a group of persons or an organization regulate
their behavior to distinguish between what is right and what is wrong as perceived by

others. Philosophically speaking, ethics is concerned with what is morally right and morally wrong in a
given field of human activity.

The Cambridge Encyclopedia defines ethics as that branch of philosophy dealing with the concepts and
principles of morality and including such theoretical questions as the source and foundation of morality,
the

status and justification of moral rules, the relationship between moral and other human objectives, and the
nature of the responsibility. In short, we can propound the following definitions for ethics:

◆Ethics can be defined as the discipline dealing with the moral duties and an obligation explaining what
is good or not good for others and us.

◆Ethics is the study of moral decisions that are to be made by us in the course of performance of our
duties.

◆ Ethics is the study of characteristics of morals and deals with the moral choices that are made in
relationship with others.

◆Ethics is concerned with truth and justice considering a variety of aspects like the expectations of the
society, fair competition, public relations, social responsibilities, and corporate behavior.

◆Ethics and morality The terms ‘ethics’ and ‘morality’ are not always used consistently and precisely in
everyday contexts, and their ordinary meanings do not always correspond with philosophers’ use of the
terms. Ethics is often used in connection with the activities of organizations and with professional codes
of conduct: for instance, medical and business ethics, which are often formalized in terms of exhaustive
sets of rules or guidelines stating how employees are expected to behave in their workplaces (such as in
respect of a duty of care or confidentiality that health-care workers owe to their patients; or the medical
ethical principles of beneficence, non-maleficence, respect for autonomy, and justice). Morality, on the

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

other hand, is more often used in connection with the ways in which individuals conduct their personal,
private lives, often in relation to personal financial probity, lawful conduct and acceptable standards of
interpersonal behaviour (including truthfulness, honesty, and sexual propriety). These ‘everyday’ uses of
the terms ‘ethics’ and ‘morality’ are not so much incorrect by philosophical standards, as too limited. The
philosopher’s interest in the theoretical study of ethics is with the idea of conduct that is right, fair and
just, does not cause harm, and that can be applied to a wide variety of cases. For our purposes, each of the
terms ‘ethics’ and ‘morality’ captures the essence of that idea sufficiently well. In what follows, then, it is
not really necessary to over-emphasize the distinction between ethics and morality; here, those terms may
be used interchangeably to refer to ideas about how humans ought to act.

AREAS OF ETHICAL STUDY THERE ARE THREE BROAD AREAS OF ETHICAL STUDY:

• Meta-ethics, which focuses on the meaning of ethical terms themselves (for instance, ‘what is
goodness?’), and on questions of how ethical knowledge is obtained (for instance, ‘how can I distinguish
what is good from what is bad?’), rather than on the more applied question of ‘what should I do in a
particular situation?’. Meta-ethics is therefore concerned with the nature of ethical properties, statements,
attitudes and judgments. Meta-ethics examines such themes as what moral questions mean, and on what
basis people can know what is ‘true’ or ‘false’.

• Normative ethics, in contrast, is the study of ethical acts. It therefore focuses explicitly on questions of
‘what is the right thing to do?’ in general. Normative ethics is concerned with questions of what people
ought to do, and on how people can decide what the ‘correct’ moral actions to take are.

• Applied ethics, which is concerned with how people can achieve moral outcomes in specific situations.
Therefore, it is concerned with the philosophical examination of particular – and often complex – issues
that involve moral judgments. Areas such as bioethics, environmental ethics, development ethics and
business/corporate ethics may be regarded as areas of applied ethics. (The distinction between normative
and applied ethics, however, is becoming increasingly blurred.)

SIGNIFICANCE OF ETHICS

Ethics correspond to basic human needs. These basic ethical needs compel the organizations and
corporations to be ethically oriented.

◆Ethics create credibility and image for the corporations with the public.

◆Ethics improve the employee morale and improve the credibility of the management with the employees.

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◆Ethics help better decision making.

◆Ethics improve the overall profits of the company.

◆Ethics protect the society and environment more than the law.

BEHAVIORAL ETHICS
Behavioral ethics is the study of why people make the ethical and unethical decisions that they do.
Its teachings arise from research in fields such as behavioral psychology, cognitive science, and
evolutionary biology.

Behavioral ethics is different from traditional philosophy. Instead of focusing on how

people ought to behave, behavioral ethics studies why people act as they do. Arguably, it is more useful
to understand our own motivations than to understand the philosophy of Aristotle.

Research in behavioral ethics finds that people are far from completely rational. Most ethical
choices are made intuitively, by feeling, not after carefully analyzing a situation. Usually, people who
make unethical decisions are unconsciously influenced by internal biases, like the self-serving bias, by
outside pressures, like the pressure to conform, and by situational factors that they do not even notice.

So, behavioral ethics seeks to understand why even people with the best intentions can make poor
ethical choices.

Ethical behaviour is characterized by honesty, fairness and equity in interpersonal, professional

and academic relationships and in research and scholarly activities. Ethical behaviour respects the dignity,
diversity and rights of individuals and groups of people. This definition is not a denial of the existence of
other ethical duties with respect to practice, professional service delivery, and research.

WHY IS ETHICAL BEHAVIOR IN THE WORKPLACE IMPORTANT?

It is important to understand that ethical behavior in the workplace can stimulate positive employee
behaviors that lead to organizational growth, just as unethical behavior in the workplace can inspire
damaging headlines that lead to organizational demise.

Simply put, organizational stakeholders that include individuals, groups and organizations of
various types enter into a relationship with a business organization for that business to protect their

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

interests in a specific way. Therefore, there is a mutual expectation that stakeholders and business
organizations act in an ethical manner and in each other’s best interest.

A decision to act unethically, by the organization or a stakeholder, can strain the relationship and
damage the reputation of the organization. The increased risk of reputational damage and harm from
negative headlines is often the catalyst for organizations to promote and encourage ethical behavior and
prevent and report unethical behavior. Furthermore, where many individuals are connected to social media
with mobile technology, the risk that unethical behavior will cause reputational damage to an organization
is arguably much greater that in decades past, as behavior is more easily recorded on video, captured in
photos, shared online and propelled into headlines.

However, there are benefits of ethical behavior in the workplace beyond the avoidance of
reputational harm. An organization that is perceived to act ethically by employees can realize positive
benefits and improved business outcomes. The perception of ethical behavior can increase employee
performance, job satisfaction, organizational commitment, trust and organizational citizenship behaviors.
Organizational citizenship behaviors include altruism, conscientiousness, civic virtue, sportsmanship and
courtesy.

WHAT CAN ORGANIZATIONS DO TO ENCOURAGE ETHICAL BEHAVIOR IN THE

WORKPLACE?

The good news is that organizations can take steps to create a good narrative around their reputation
by implementing measures that help ensure ethical conditions and perceptions of organizational support
are present in the workplace. Many organizations implement reactive systems to report unethical behavior.
However, the single most important thing organizations can do different to promote ethical behavior is to
implement a proactive employee voice system and use voice of the employee tools to proactively give
employees the capacity to be heard.

Voice of the employee systems that effectively promote ethical behavior and encourage reporting
unethical behavior meet five key criteria:

1. Elegance: be easily understood, applicable to the entire organization and all employees and
effectively diagnose issues
2. Accessibility: be easy to use, widely promoted, accessible to all employees

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 3. Correctness: be well-administered and include follow-up to complaints
4. Responsiveness: be timely, be responsive, be used by management and show results
5. Non punitiveness: be anonymous and be free of retaliation – managers and employees must be
protected

The challenge is that many organizations implement voice of the employee systems with good
intentions, but the voice of the employee tools used are not effective. Voice of the employee tools, like
interviews and surveys, that proactively seek to uncover and stop unethical behavior should be conducted:

• Using an Open-Ended Question: to ensure all possible issues are uncovered, voice of the employee
efforts should focus on asking an open-ended question about awareness of compliance issues.
Closed-ended questions do not provide the ability to uncover all possible issues or all details to
understand issues.
• Externally: to ensure accuracy, the research should be conducted through an independent third-
party to remove biases and remove barriers to employees feeling they can express their true
perceptions related to unethical conduct in the workplace. When conducted internally, it’s likely
that true perceptions aren’t revealed because employees aren’t being honest with the organization.
Employees may not want to risk burning a bridge or disappointing a manager. When conducted
externally, data is systematically collected and thoroughly reported.
• Using Mixed Methodology – Asking “Why?”: to obtain detailed reasons for perceptions of
unethical behavior, it is critical to use a mixed methods research instrument that asks “why?” in an
open-ended, qualitative manner to avoid limiting the scope of what can be learned from each
individual employee. Third-party researchers can offer high-quality telephonic interviews and web
interviews that capture in-depth qualitative responses in a systematic manner. In asking fewer
open-ended questions, specifically following up to ask why the participant perceives unethical
behavior, you obtain in-depth data and reveal the root causes of perceptions.
• Systematically: to track trends and progress, data should be systematically captured for use in
subsequent data collection and analysis. External research uses a consistent question set, data
collection technology and a dependable methodology to capture responses in a reliable system to
facilitate future reporting and analyses. This information can then be analyzed to identify issues
that might exist in specific employee segments, departments, job groups or even certain
supervisors.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 OTHER WAYS MANAGERS CAN ENCOURAGE ETHICAL BEHAVIOR

It is important for managers to focus on accomplishing company goals while developing good
relationships in the workplace but it is equally important to focus on ethical conduct among employees.
Unethical behavior in the workplace has been around since the beginning of time but that doesn’t mean
it has to be acceptable in your company. Every company should have a code of ethics in place that
represents the company’s values, responsibilities, and conduct expectations. It should act as a moral
compass that guides employees in handling ethical dilemmas. Ethical conduct will ensure that your
business maintains a reputation of professional principles and values. Here are a few ways managers
can promote ethical conduct among their staff.

Training

You can’t expect your employees to follow your code of ethics if they don’t know what it is. As
part of the onboarding process employees should be educated on your code of ethics and why it’s
important. They should also have a clear understanding of the ramifications if they fail to behave
ethically. Managers should also hold regular workshops on ethics and demonstrate how employees
can solve problems ethically. Use examples and role play to give employees opportunities to work
through various dilemmas. The more you train employees and place an emphasis on the importance
of ethical behavior the more your staff will understand what is expected in the workplace.

Rewards

Oftentimes companies expect ethical behavior but they fail to acknowledge it. If managers really
want to promote ethical behavior they need to reward it when they see it. If a manager catches an
employee doing something right, they should stop and thank them. Managers could also implement a
system where employees can anonymously submit examples of their colleagues behaving ethically.
Ethical behavior should be included in performance reviews and managers can encourage it by
showing gratitude when they see it.

Lead by Example

If managers want their staff to behave ethically then they must understand that it starts
with them. Employees generally follow the examples set forth for them by management. If managers

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 hold themselves to a high standard of ethical behavior then they have credibility when they expect the
same thing from their employees. If everyone is on the same page it becomes easier for the team as a
whole to adopt the same types of ethical behaviors.

Treat Employees Well

Managers really need to reflect on their current operating methods. If management is emphasizing
the importance of ethics at work but doesn’t treat its own employees fairly, it becomes
hypocritical. When managers are respectful to their staff they are able to develop a trusting
relationship that encourages ethical behavior. Therefore, managers need to consider the company’s
decisions to hire, train, promote, and pay employees. They also need to make sure that what they are
asking of their employees is reasonable. When managers show that they are invested in the success
and well-being of their employees, it creates a company culture that is built on ethical principles.

REWARDING ETHICAL BEHAVIOR

1. Use an ethics screen for job candidates. Behavioral information can be obtained from
resumes, reference checks, background checks, and integrity tests. Behavior is also a
function of attitudes. The most reliable attitudinal survey scales for predicting ethical
behavior measure conscientiousness, organizational citizenship behavior, social
dominance, and bullying. Job candidates also should be interviewed about how they
managed ethical dilemmas at their previous workplace and given an opportunity to
comment on any issues revealed from the behavioral information or attitudinal surveys.
2. During orientation, expose new employees to the organization's Code of Ethics, Code of
Conduct, and ethical decision-making process. An organization's codes serve as its
conscience and provide employees with a common ethical reference point. Reviewing a list
of ethical questions helps to unveil the ethics of any work situation that arises.
3. In the spirit of continuous improvement, require annual ethics and diversity training
workshops for all employees. Document and praise ethical strengths and accomplishments,
unveil weaknesses, and develop strategies for addressing those weaknesses. Diversity
success stories should be praised, shortcomings discussed, and continuous improvement
strategies developed. Commonalities among all diverse groups must be highlighted to help

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 all employees feel part of a cohesive team experience. Ethics and diversity training help to
further develop, and reinforce, a culture of trust.
4. Establish an ethics reporting system, such as an ethics hotline, in which employees can
confidentially raise ethical issues and receive ethical guidance. A failure in these internal
communication systems can result in external whistleblowing, which is damaging for both
the organization and the whistleblower.
5. The most important ethics reference point is an employee's direct supervisor or manager.
How a manager acts in response to an ethical issue has more influence on employee ethics
than any stated policy or words of encouragement. The manager's words and actions must
be aligned with the organization's Code of Ethics and Code of Conduct.
6. The work unit's ethics should be reinforced through work goals and performance
appraisals that reward ethical behaviors and punish unethical behaviors. Otherwise,
hypocrisy and moral confusion develops. Work goals should be specific, measurable,
aligned, time-bound, and challenging, yet attainable. Stretch goals can result in stretching
the truth. Performance appraisals should document employee accomplishments and
benchmark the distance an employee still needs to travel to become an ideal employee.
7. An ethical organization is a community of people where every employee is treated with
dignity and has a sense of organizational ownership and accountability. Team- based
participatory management, where employees provide meaningful input in the
organization's decision-making process, and share the financial gains associated with
improved performance, creates a sense of ownership, communal experience, and
accountability among employees.
8. Ethical organizations place a high value on appropriately managing the earth's scarce
resources and creating environmentally healthy workplaces for their employees.
Managers can achieve superior environmental performance by creating an Environmental
Management System (EMS) plan that documents relevant organizational procedures,
conducting an environmental risk assessment, using the Natural Step (TNS) objectives to
develop action plans, redesigning the product to achieve zero waste, operating in green
buildings that have earned LEED certification, and developing performance indicators to
measure continuous improvement, and reporting the results of these efforts.
9. An ethical organization aspires to be a model citizen, joining other stakeholders in
creating vibrant communities for the well-being of its employees and other residents.

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 Companies can give nonprofit and community organizations money, products or services,
and skills, and provide job opportunities for nontraditional employee populations. A
systematic giving program would integrate all four areas. Employees should be involved
in the company's outreach decision-making process.
10. All of these ethics’ mechanisms require assessment and modifications based on feedback
from those they affect. Managers should benchmark their organization's management of
ethics to the best practices discussed in this essay.

Main Topic: Workplace Ethics

WHAT IS WORKPLACE ETHICS?

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 Workplace ethics are the set of values, moral principles, and standards that need to be followed by
both employers and employees in the workplace. It is the set of rules and regulations that need to be
followed by all staff of the workplace.

These ethics are implemented by employers to foster both employee-employee relationship and
employee-customer relationships. An organization may decide to put these ethics into writing or not—
they are however meant to be followed.

There exist some general workplace ethics that do not need to be defined by the employer, but are
common ethical behaviors employees need to exhibit. In the same vein, some organization-specific ethics
may need to be defined in a company handbook.

Ethics in the workplace is defined as the moral code that guides the behavior of employees with
respect to what is right and wrong in regard to conduct and decision making. Ethical decision making in
the workplace takes into account the individual employee’s best interest and also takes into account the
best interest of those impacted. The latter of the definition is often where individual employees struggle
to act ethically. Furthermore, ethical behavior doesn’t only apply to individual employees, the organization
itself should exemplify standards of ethical conduct.

Examples of ethical behaviors in the workplace includes; obeying the company's rules, effective
communication, taking responsibility, accountability, professionalism, trust and mutual respect for your
colleagues at work. These examples of ethical behaviors ensure maximum productivity output at work.
And could be pivotal for career growth.

• Obey The Company’s Rules & Regulation

At the start of an employee contract, companies may need the employee to sign various
documents, including the company rules and regulation agreement form. Also, the employee may be given
a handbook that may serve as a guide.

Some common rules are tardiness, inappropriate dressing, and language, etc. Due to the
excitement of getting a new job, some employees do not properly read these rules and may end up deferring
them in the future.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 Therefore, it is important that new employees properly read these rules & regulations in
other not to defer them.

• Communicate Effectively

Effective communication is very important to avoid misunderstandings when dealing with

issues in the workplace. Communicating effectively may mean different things to people at different points
in time.

Let us consider the hypothetical situation of an employee trying to relay information to a

French-speaking customer. The best way to communicate effectively with the customer is to have an
employee who can speak French relay the information.

Effective communication may also have an employee breaking one of the rules and
regulations of the company without getting penalized for it. An employee reaching out to HR that they
will be coming in late due to some unforeseen circumstances may be spared for coming late if the situation
is properly communicated.

• Develop Professional Relationships

Good professional relationships are not only a thing that fosters teamwork among
employees, but also help with individual career development for employees. Developing professional
relationships with coworkers or other professionals outside the workplace will also directly or indirectly
improve productivity.

Professional relationships between low-level and high-level employees will make it easier
for ideas to be shared and knowledge to be passed to junior employees. That way, the company can
confidently have an intern work on a tough project to meet a pending deadline due to the guidance from
older employees.

Salespeople, for one, need to build external professional relationships with professionals
from other organizations—especially those who are potential clients. These relationships will help create
a contact person in another organization in case they need to sell a product to them.

• Take Responsibility

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 It is important for employees to always take responsibility for decisions made both
individually and in a team. This is, in fact, a leadership trait that every employee who is looking to take
up a managerial position in the future should exhibit.

Understandably, employees may want to save their job and are therefore scared of taking
responsibility for a particular event. However, they shouldn't let this fear take them.out of the team.

For example, the communications team came up with a marketing strategy for the company
and it failed. The team members are to jointly take responsibility for this failure, not individuals coming
out that they weren't part of the decision making process. If the strategy has gone the other way round,
they wouldn't have said the same.

• Professionalism/Standards

There are professional standards that everything an employee does in the workplace. The
use of informal words in a formal workplace is highly unprofessional.

These standards should be held high and applied to every part of an employee's activity in
the workplace. This should include the way they speak, kind of work they deliver and their relationship
with coworkers and customers.

• Be Accountable

Accountability is also a very good trait of an employee. One of the things that may short
change a talented and responsible is the lack of accountability.

Lack of accountability may result in your boss thinking you have an "I don't care attitude"
to the company's project or worst take you as a liar and may lead to job loss in the long run. For example,
at the beginning of each year, a certain amount of money is allocated to each department.

The manager is meant to oversee how this money is spent. If at the end of the year, the
manager cannot make an account of how the money was spent, he may then be suspected of stealing
company funds.

• Uphold Trust

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 An employee should not do anything that may make his or her employee withdraw trust.
As an employee of a company, your employee trusts you to get work done perfectly on time.

Things like missing deadlines regularly or delivering work that needs to be revised over
and over again will deny you a promotion. It may even leave the employer not giving you tasks to complete
in the future—a nightmare for freelancers.

• Show Initiative without being told

Is the company running behind deadline and you feel you can stay a few extra hours after
work to finish up? Do it.

You are a freelance designer and your client wants a particular poster designed but doesn't
have a copywriter to write the content. If you can write the contents, do so. Don't delay a client's work
because of a few contents.

• Respect Your Colleagues

It doesn't matter whether you are dealing with the intern, a junior, janitor, etc. they should
all be treated with respect. As a manager, treating your team members with respect will help improve their
productivity.

Giving constructive criticism and saying kind words to them even when they are not able
to deliver perfectly will help them strive to do better in the future.

• Work Smarter

Don't just work hard, work smarter. The reason why you see an employee promoted to the
post of manager after just 2 years and a hardworking employee who has been with the company for 10
years failed to get a promotion is smart work.

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 Assume that these 2 employees are data scientists who collect data and analyze them. A
smarter employee will use the Form plus data collection tool to collect data and receive real-time data
analytics, while a hard-working employee will print paper-based forms and do the hard work of sharing it
to respondents.

UNETHICAL WORKPLACE BEHAVIORS

• Lies

Lying is a trait that is detested in and outside the workplace. It kills trust, affects relationships and
may even put people in trouble.

There are different situations where employees lie in the workplace—with just one lie opening the
floor for many others. It could be a sales manager lying about the number of clients they were able to get
in a month or an employee calling in sick just to attend another job interview.

A lot of employees start lying from their CV, by adding experiences they didn't acquire, and the
skills they don't have. Employees need to understand that lying about work may eventually get them in
trouble and needs to stop before they lose their job.

However, we notice that employees lie due to fear of their employer—an employee will call in
sick to go for interviews because companies frown against employees interviewing at another company.
HR should put up a friendlier culture that will encourage people to progress in their careers taking up other
jobs and even support them throughout the process.

• Taking Credit for Others Hard Work

It is very common for managers to take credit for their team member's hard work when reporting
to the management. A team member may have brought an idea that helped the sales team improve their
sales by 200%.

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 However, when giving a report, the manager doesn't mention the team member's name but claims
the idea as his. Employees need to reduce the use of "I", but embrace the use of " We".

By taking credit for another person's work, you will be denying the person a promotion, bonus or
commendation for a job well done. This will discourage the person from sharing ideas that will benefit the
company in the future.

• Verbal Harassment/Abuse

Employees need to stay away from using foul language on coworkers in and out of the workplace.
This is very important when dealing with customers.

Customers are known to get angry and may result in verbal abuse due to a bad product or service.
They may even get insult you when they are at fault.

As a customer care representative, salesperson or any other employee, it is beth important that you
don't use abusive words on customers no matter how provoked.

• Violence

Similar to verbal harassment, employees should not be violent when dealing with coworkers and
customers. Customers may likely provoke you, but it is better to keep shut and walk away rather than turn
violent.

• Non-Office Related Work

A lot of employees have side hustles which they use to supplement salaries. This is very good and
only very few companies are against employees working to make money outside work hours.

However, some employees still do non-office related work during office hours. Employees who
have side hustles should try doing them on weekends or employing other people to handle some of the
business logistics to avoid eating into office hours to get the work done.

• Extended Breaks

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 Companies give lunch breaks to employees and people take advantage of these breaks to do other
things outside office work like, go for interviews, meet with friends or even work on their side hustles.
They are free to do whatever they want these lunch breaks.

Employees, however, take advantage of these lunch breaks and extend them beyond time.

• Theft/Embezzlement

Some employees are known for diverting company funds into their bank accounts—padding
project quotations, invoices, etc. to deceive the company on how much was spent on particular projects.

This act is detrimental to the company because employees who steal sometimes replace quality products
with counterfeits which are cheaper but causes damage in the future.

• Sexual Harassment

Sexual harassment is an offense that is not limited to the workplace alone. An employee accused
of sexual harassment will not only face consequences in the workplace but also tried at a court of law.

Many companies have a zero-tolerance rate for sexual harassment in and outside the workplace. This may
tarnish the company's reputation and the only way to curb is to make an example of defaulters.

• Corrupt Practices

Some common causes of corruption can be seen during the employment process of an organization.
They invite so many people to send their CVs and come for interviews but only people with the same
political affiliation with them get the job.

This is also common with companies that ask for contractors to bid for a project but the employees will
only give them to their friends who may not even bid at all.

IDENTIFYING THE NEEDS TO BUILD CUSTOMER LOYALTY, TO RETAIN GOOD

EMPLOYEES, TO HAVE POSITIVE WORK ENVIRONMENT, AND TO AVOID LEGAL
PROBLEMS IN WORKPLACE.

1. To Build Customer Loyalty:

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 Consumers may let a company take advantage of them once, but if they believe they have
been treated unfairly, such as by being overcharged, they will not be repeat customers. Having
a loyal customer base is one of the keys to long- range business success because serving an
existing customer doesn‘t involve marketing cost, as does acquiring a new one. A company‘s
reputation for ethical behavior can help it create a more positive image in the marketplace,
which can bring in new customers through word-of-mouth referrals. Conversely, a reputation
for unethical dealings hurts the company ‘s chances to obtain new customers, particularly in
this age of social networking when dissatisfied customers can quickly disseminate information
about the negative experience they had.

2. To Retain Good Employees

Talented individuals at all levels of an organization want to be compensated fairly for their
work and dedication. They want career advancement within the organization to be based on the
quality of the work they do and not on favoritism. They want to be part of a company whose
management team tells them the truth about what is going on, such as when layoffs or
reorganizations are being contemplated. Companies who are fair and open in their dealings with
employees have a better chance of retaining the most talented people. Employees who do not
believe the compensation methodology is fair are often not as dedicated to their jobs as they could
be.

3. To Positive Work Environment

Employees have a responsibility to be ethical from the moment they have their first job
interview. They must be honest about their capabilities and experience. Ethical employees are
perceived as team players rather than as individuals just out for themselves. They develop
positive relationships with coworkers. Their supervisors trust them with confidential
information and they are often given more autonomy as a result. Employees who are caught in
lies by their supervisors damage their chances of advancement within the organization and may
risk being fired. An extreme case of poor ethics is employee theft. In some industries, this can
cost the business a significant amount of money, such as restaurants whose employees steal
food from the storage locker or freezer.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 4. To Avoid Legal Problems

At times, a company‘s management may be tempted to cut corners in pursuit of profit,

such as not fully complying with environmental regulations or labor laws, ignoring worker
safety hazards or using substandard materials in their products. The penalties for being caught
can be severe, including legal fees and fines or sanctions by governmental agencies. The
resulting negative publicity can cause long-range damage to the company‘s reputation that is
even more costly than the legal fees or fines. Companies that maintain the highest ethical
standards take the time to train every member of the organization about the conduct that is
expected of them.

Main Topic: Professionalism at Workplace

Lesson Proper
Professionalism is the conduct, behavior and attitude of someone in a work or business
environment. A person doesn’t have to work in a specific profession to demonstrate the important qualities

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

and characteristics of a professional. Professionalism leads to workplace success, a strong professional
reputation and a high level of work ethic and excellence.

In a recent study on Career Readiness conducted by NACE (National Association of Colleges and
Employers), employers who hire college graduates were asked which professional competencies were
essential to workplace success. Professionalism/work ethic topped the list with 97.5% of respondents
identifying it as either “absolutely essential” or “essential” for a new college hire’s success.

DEFINING PROFESSIONALISM IN THE WORKPLACE

• Displaying the types of behavior and traits that command the respect of colleagues and customers,
and make people want to be around you (for example, being courteous, helpful, persuasive,
responsive and polished)
• Taking work seriously, and being reliable, ethical, competent and mindful of others in the process
• Maintaining composure despite challenges
• Being able to build business relationships that can further skills development and support career
advancement

WHY IS PROFESSIONALISM IMPORTANT?

In the working world, your professionalism encompasses the way you carry yourself, your attitude
and the ways you communicate with others. Being professional can ensure a positive first impression,
successful interpersonal relationships and a lasting reputation within your organization and industry.

“Whether you’re preparing for an interview, starting your first day on the job or advancing in your
career, professionalism and workplace etiquette are always important,” explains Katy Curameng, director
of career planning and development at Brandman University. “Regardless of overall performance, careers
have been known to stall (or even fail to start) because an individual did not display these qualities.”

Generally speaking, etiquette centers on respect. In an office environment, it’s important to be

thoughtful when it comes to your interactions, acknowledging other people’s time and how you treat
your workspace. Workplace etiquette is important because it ensures that your presence won’t be a
burden on anyone else’s work experience.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

ESTABLISHING PROFESSIONALISM IN THE WORKPLACE

When working to clarify your expectations regarding staff professionalism, carefully set and
maintain the tone and atmosphere you want your office to embody upfront.

To craft clear standards and benchmarks, ask yourself:

• What culture and image do I want to have?

• What behavior is required of employees to achieve this?
• How am I communicating these aspirations to both new employees and employees who have been
with the company for a while?
• Are leaders modeling my desired behaviors every day?

Once you have those answers, work to not only communicate but also assess and – most
importantly – model those standards continuously. Remember: To succeed at nurturing workplace
professionalism, you must expect of yourself the same high, consistent standards you expect of your team.

WAYS YOU CAN DEVELOP AND PRACTICE PROFESSIONALISM:

1. Be productive
Use your time productively at work. Focus on your job responsibilities and avoid getting pulled
into social media, web browsing and phone activity while on the clock.
2. Develop a professional image
Project a professional presence and dress appropriately for your industry and organization. A good
rule of thumb is to dress in the position you aspire to have.
3. Take the initiative
Ask for more projects to be given to you or think of assignments that will meet your organization's
goals. You don’t want to be under-utilized.
4. Maintain effective work habits
Prioritize, plan and manage your assignments and projects. Follow up and follow through with
your supervisor and team members.
5. Manage your time efficiently
Establish priorities, set goals and create action plans to meet deadlines.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 6. Demonstrate integrity
Be accountable for your work and actions while behaving ethically at all times.
7. Provide excellence
Produce work and results that reflect a sense of pride and professionalism, often exceeding
expectations.
8. Be a problem-solver
When you run into problems and obstacles take the time to brainstorm a few solutions and
alternatives before you meet with your supervisor.
9. Be resilient
Develop coping skills to manage setbacks and challenges with a positive and constructive attitude.
10. Communicate effectively
Practice professional on-line, in person and interpersonal communication skills.
11. Develop self-awareness
Learn to manage your emotions and gain awareness of your emotional triggers so you can manage
your reactions positively and productively. Accept and reflect on feedback to assist as you learn
and grow.
12. Build relationships
Network with colleagues, customers and clients to build professional cordial relationships, work on
teams and collaborate effectively.

CONSEQUENCES OF UNPROFESSIONAL BEHAVIOR

Lack of professionalism in the workplace can lead to:

• Disgruntled or frustrated employees

• Low engagement and morale
• Toxic atmosphere
• High turnover
• Avoidable obstacles for recruiting, retention and succession planning
• Negative brand reputation among customers, vendors and industry partners – which may result in
lost business opportunities and reduced revenue

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

AREAS OF STRUGGLE FOR EMPLOYEES – AND WHAT YOU CAN DO TO HELP
1. Interpersonal skills
Common unprofessional behaviors

• Demonstrating resistance to working alongside others

• Inability to discern the feelings of others and adapt behavior according to these cues (lacking
empathy)
• Being inflexible: Change is a constant in the workplace, regardless of industry or the type of work,
and agility is a must.
• Adopting an inappropriate communication style for a particular audience: For example, an
employee may treat one of their colleagues like they would a personal friend, throwing casual slang
into conversation and broaching topics that may not be suitable for the workplace. It’s key that
employees understand all types of professional audiences and modify their communication
accordingly.

What you can do

Develop a robust “feedback culture” focused on delivering timely and accurate constructive
criticism – from both managers and peers – when employees exhibit unprofessional behaviors.

Keep in mind, however, that people tend to respond more to positive reinforcement. That’s why
you should also compliment employees when they do something well or when you notice an improvement
in a certain behavior.

Offer training centered on developing communication and interpersonal skills, as well as one-on-one
coaching. You can also pair employees who could benefit from additional training with a more
experienced mentor who can teach and model the desired interpersonal skills.

2. Image, conduct and attitude

Common unprofessional behaviors

• Failing to show up in appropriate, business-worthy attire: Whether your office requires a suit and
tie or allows jeans, your employees should still appear presentable and neat. For most businesses,
this means avoiding attire that causes unwelcome distractions, friction among team members or
doesn’t align with your company’s culture.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 • Flouting office rules and policies, such as constantly being late to work, and engaging in negative
talk
• Demonstrating unwillingness to be part of a larger team or participate in company events (whether
mandatory or voluntary)
• Expressing frustration with customers or other external parties
• Indulging in emotional outbursts, such as yelling or losing one’s temper
• Having a messy and disorganized office or email inbox: If an employee’s workspace appears
chaotic, people will wonder which tasks or details are escaping their attention and slipping through
the cracks. It just doesn’t reflect well.
• Portraying an undesirable image on social media: This is especially important on employment
related sites such as LinkedIn and Glassdoor, but it’s also becoming a more prominent issue on all
social networks including Facebook, Instagram and Twitter.

A special note about social media

Traditionally, employees have treated their social media accounts as private spaces outside the
purview of the workplace.

However, in recent years, employers increasingly view employees as extensions of the company
and monitor their online presence for behavior that doesn’t represent the company well.

The lines between personal social media use and work persona have blurred, and what
employees publish online can impact perception of them in the workplace.

What you can do

Striving to instill a desirable image, conduct and attitude in your employees starts with having
established policies. This is how you set expectations and remove any mystery about your company’s
requirements.

Policies, when applied consistently, also demonstrate your fairness to the entire organization.

Have written and consistently applied policies governing:

• Appearance
• Time and attendance

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 • Social media
• Office etiquette
• Media contact
• Remote work

Ideally, these policies are documented in your employee handbook. As part of your
formal onboarding process for new hires, you should review these policies in detail and have employees
acknowledge their receipt of the policy in writing.

In your social media policy, set parameters for how employees can talk about the company and
their work publicly. Discuss with them how to leverage their business acumen to determine what’s
permissible – and even wise – to publish for public consumption.

Cultivate an open-door culture in which employees feel comfortable asking questions to clarify
policies and proactively seek permission when they’re unsure about something.

Engage employees in one-on-one coaching. You’ll want to find out what’s going on with the
employee professionally or personally so you can pinpoint the root cause of the behavior. This will enable
you to address image or behavior problems most effectively.

If a personal issue is the cause of negative behavior, refer the employee to your employee
assistance program (EAP). You could also consider making a workplace accommodation.

However, if the problem is that the employee simply refuses to comply with office policies or make
improvements in their image, conduct or attitude, you need to document this and initiate the disciplinary
process.

3. Technology use
Common unprofessional behaviors

• Not knowing how to write a proper email, evidenced by:

o Engaging in too many back-and-forth exchanges
o Being overly verbose
o Making basic spelling and grammar mistakes

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 • Not discerning which modes of communication are best: Just as not every issue requires an in-
person meeting, using impersonal media such as email, text or instant messenger (IM) can flub the
delivery of a complex, more nuanced message.
• Excessive Internet or smartphone usage: This issue has gotten more complicated because of the
world we live in and our reliance on doing many personal tasks online. But there is a fine line
between an employee taking a short break to attend pressing personal matters (for example,
scheduling a doctor appointment) versus idling away hours shopping, playing games or perusing
social media.

What you can do

Provide training on proper email etiquette, and coach employees on the savvy application of
technology to communicate with others in an optimal way. Encourage your employees to rely on easily
accessible spelling and grammar resources online.

Establish policies on personal Internet and smartphone use. Document it and be consistent in its
application. If you decide to take a more relaxed, “as long as work is getting done, it’s fine” approach,
make sure people understand that work comes first.

If all else fails, enlist your IT department to enforce professional use of technology. Ask your IT
team to block access on office computers to certain categories of websites. Perform periodic, random
audits of employee Internet use to ensure fairness.

4. Leadership skills
Common unprofessional behaviors

• Lack of consistent treatment toward different team members

• Not being in tune with what’s going on with direct reports professionally and personally
• Setting a poor example by not following the company’s policies: Resentment occurs when
employees perceive laxer standards for business leaders.
• Demonstrating a lack of trust
• Becoming too chummy with direct reports: Be careful about blurring the lines between personal
friendship and the professional manager-employee relationship.

What you can do

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 Your leaders – particularly less experienced leaders – should undergo regular training. You can
also set up a mentorship program through which newer managers are paired with seasoned, more senior
managers. This can help develop more appropriate and effective leadership practices.

You can also ask employees how managers could improve, since employees experience manager
performance firsthand. Send out employee engagement surveys to see what’s working well, what you can
continue to build on, and what needs work.

With these assessments in hand, you can improve your work developing managers.

WHEN EMPLOYEES FAIL TO IMPROVE WORKPLACE PROFESSIONALISM

If an individual employee just isn’t “getting it,” you have to determine whether you’ve given them
all the support and assistance you can. After all, termination is often the costliest option.

If you’ve invested all the time and resources you can in an employee, however, you may need to
initiate discussions about continued problems with professional behavior. Ask them: Is this job the right
fit?

After this point, if things don’t improve or they’re engaging in behaviors that are seriously or
increasingly problematic, you may have to begin the disciplinary process leading toward termination.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

Main Topic: Business Ethics and Corporate Governance

Lesson Proper
WHAT IS BUSINESS ETHICS

Business ethics is called company could be an ethic variety of applied skilled ethics, that
show the moral objective, ethical and moral issues that arise in some very business surroundings.
It is applying to any or all access the business develop and has relevancy to organize of people and
full management. The ethics construct from people, structure statements or from the system. They
assist those businesses maintain an improved reference to their stakeholders. Business ethics refers
to up to date structure, values set that govern the actions and behavior of a private within the
business organization.

Business ethics refers to moral principles and social values that business should adopt in
its code of conduct. These are rules that businesses must accept and follow in its day to day
operations for the welfare of society and all its stakeholders. Business is termed as a social organ,
and therefore it should not indulge in any activity that is harmful to the interest of all its
stakeholders. It should not only focus on objectives like profit maximization, higher growth but
should work for the upliftment of its surroundings also. These ethics help the business in deciding
what is right and what is wrong for the business taking into account its circumstances.

Business ethics helps the business to maintain better and harmonious relations with society,
customers, employees, and the concerned industry sector. Ethics adopted by the business should
be followed strictly by each and every person working with the business. There should be a reward-
punishment system linked with business ethics for those violating these ethics and one who
properly abide by these ethics. Business ethics have an important role in raising the profitability
and productivity of a business and improves its goodwill in the market.

IMPORTANCE OF BUSINESS ETHICS

• Control Business Malpractices: Business ethics directly influence the operations of the
business. It is the one which helps business in deciding what is wrong and what is right.
These ethics set certain rules and principles to be followed strictly by business, and their
violation leads to a penalty. Implementation of these principles ensures that business does
not indulge in any unfair practices like black marketing, providing misleading
advertisement, frauds in measures and weight, adulteration, etc. Through business, ethics
works on providing better products to its customers at reasonable prices.
• Better Relation with Employees: Employees are an important part of the business and
necessary for the survival of the business. Business ethics ensures that business works for

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 the welfare of its employees working with it. The business should not only work for the
achievement of its objectives like profit maximization and higher growth but should also
focus on peoples working with it. These ethics ensures that business provides better
monetary compensation and good working conditions to its employees, active participation
in decision making, addressing complaints, and providing promotions as per their progress.
This helps in maintaining a good relationship with employees.
• Improves Customer Satisfaction: The consumer is termed as king in the market and is the
one who decides the success or failure of every business. It is important that the business
fulfills the needs of its customers. Business ethics provides principles for business
operations under which it is required to provide better quality products at reasonable prices.
It ensures that the business provides better customer support and redressal of all
complaints. This helps businesses in improving the satisfaction levels of its customers.
• Increase Profitability: Business ethics improve the productivity and profitability of every
business. It sets certain rules to be followed by every person working with the business.
Every employee is required to adhere to these rules and should focus on its duties with
sincerity. These ethics ensure that there is no wastage of resources, and every resource is
efficiently utilized. This eventually leads to an increase in business profit in the long run.
• Improves Business Goodwill: Business goodwill has an important effect on capturing the
market. Better goodwill businesses are able to attract more and more customers. By
implementing ethics in its operations business aims at providing better service to the
market. Businesses that work ethically operate at the low-profit base and with honesty.
This develops a better image in front of the public and is easily accepted by customers with
fewer efforts.
• Better Decision Making: Ethics in business helps them in making better decisions timely.
It provides certain rules and guidelines that every business needs to follow in its operations.
Every decision is taken in light of the moral principles and social values provide through
these ethics. It helps businesses in deciding what is right and what is wrong. Every person
working within the business is required to respect these ethics, violation of which would
lead to the penalty.
• Protection of Society: Society is very important for the success of every business. If a
business does not consider the interests of its society, then it will harm its survival. Business
ethics direct that business should work for the welfare of its society and take part in various
infrastructural development programs.
It ensures that business contributes actively to its corporate social responsibility. A business
should not perform any activity that creates a problem for the society in which business
exists.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

TYPES OF BUSINESS ETHICS

• Personal Responsibilities: Personal responsibilities refer to the personal code of ethics of

an individual which he follows firmly in his daily activities. Such ethics are: always
behaving honestly, respecting elders, performing accepted duties properly and timely,
promptly settling all dues, not indulging into criminal activities etc.
• Official Responsibilities: These are the responsibilities which comes with the position that
a person occupies. Every official position has certain rules and regulation that are meant to
be strictly followed in all situations. An individual holding such a position should follow
all standards and norms set for that particular official position.
• Corporate Responsibilities: Corporation is an artificial person which is treated as a separate
legal entity. They have their own moral responsibilities towards the society that is distinct
from personal moral ethics of managers running them. Such responsibilities are both
internal and external which assists in deciding matters related to employees, shareholders,
customers, creditors, society and government.
• Economic Responsibilities: These ethics are one which guides actions of an individual
which are of economic nature. Economic responsibilities consist of moral values which
directs toward the usage of resources. Every business should make efficient use of all
resources and try to enhance the profitability without involving in any fraud. They should
avoid any kind of wastage and contribute towards the welfare of society.
• Legal Responsibility: Legal responsibilities provides a framework within which a business
should operate. It shall abide by all the rules and regulations imposed by legal authority.
All unethical activities should be avoided as they are treated as illegal in eyes of law.
• Personal loyalties: It means the loyalties that superiors have towards thier subordinates and
loyalty that subordinates have towards their superiors. If a superior act honestly and treats
its subordinates fairly, then the subordinates will not face any problem. Similarly, the
subordinates having strong personal loyalty for their superior will turn blind eyes towards
the blunders of their superior.
• Organizational loyalties: This involves the loyalty of employees towards their
organization. Some employees develop a deep sense of loyalty out of love and affection
for the organization. Such loyalties are so strong that they even do not hesitate from
neglecting their personal interest for the sake of organization. They work efficiently toward
the achievement of organizational goals.
• Technical morality: Technical morality is related to state of technology implied by
enterprise for production of its goods or services. Every professional person having
technical morality shall not compromise with quality of goods. They should properly
adhere to all the ethical standards provided by competent bodies. Organizations focusing

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 on technological advancement are able to attain better efficiency and create more
challenging situation for competitors.

FUNCTIONS OF BUSINESS ETHICS

1 Protect consumer rights: Business ethics ensures that customers are treated fairly and
provided with their full rights. Organizations that implement ethics operates economically
and provide better quality goods at lower cost. They serve customers at a reasonable profit
without exploiting them. Customers are fully satisfied with services that makes them loyal
to such businesses for a long term.
2 Enhance relations with society: Relationship with society is must for survival of every
business organization. Ethics directs business to consider the interest of society and work
for their welfare. It should not focus only on its growth at the cost of exploitation of society.
Business should actively participate in corporate social responsibility and should contribute
towards infrastructural development programs for its society.
3 Safeguard interest of industry: Business ethics protects the small scale business from
exploitation by large firms in an industry. It provides them full rights to operate efficiently
and establish their position in market. Following of ethics in an industry ensures that all
firms works fairly without the exploitation of other players in market.
4 Improve business goodwill: Ethics play a key role in enhancing the overall image of
business in market. It monitors all operations of business and avoids any unethical
activities. Practicing of ethics maintains the legality of business thereby providing better
service to customers. All unfair trade activities are controlled and quality goods are
delivered. Customers are happy with the services which leads to create a positive image of
company.
5 Assist in decision making: Supporting in decision making of organization is an important
function played by business ethics. Ethics provides rules and guidelines to be followed by
business in its functioning. All decisions are taken in light of moral and social values
mentioned in these ethics. It guides in deciding what is right or wrong for business
organization. Every ethic need to be practiced properly and any violation will lead to
penalty.

CORPORATE GOVERNANCE

Corporate governance is the framework that defines the business relationships that exist
between company shareholders, management teams, the Board of directors, and all other key
stakeholders. The importance of corporate governance cannot be understated, and the
development of associated policies that are enforceable and applied consistently is also critical.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

 Corporate governance covers both the social and institutional aspects of a business.
Simply put, it is the system by which organizations are directed and managed. Corporate
governance influences how the objectives of a business are set and achieved, how risks are
monitored and assessed, and how internal performance is optimized.

Because of its broad scope, the general directives of corporate governance can be outlined as such:

• To act as a system of principles, policies, procedures, defined responsibilities, and

accountabilities used by stakeholders to work through the inherent conflicts of interest that
exist in the corporate form.

• To control the interaction between various participants in shaping a corporation’s

performance and the direction in which it is proceeding. These participants are usually a
Shareholder, a Board of Directors, and Company Management. Corporate governance aims to
determine the ways to reach the most effective strategic decisions.
• To ensure transparency, which in turn ensures a strong and balanced economic development
for the organization. Transparency also helps to keep the interest of all shareholders
safeguarded.

THE CORPORATE GOVERNANCE FRAMEWORK

The areas which corporate governance aims to encompass are:

1. The explicit and implicit contracts between an organization and the stakeholders, for the
distribution of responsibilities, rights, and rewards.
2. The procedures for reconciling the occasional conflicting interests of stakeholders, in
accordance with their duties, privileges, and roles.
3. The procedures for proper supervision, control, and information-flows to serve as a system of
checks-and-balances.

THE IMPORTANCE OF CORPORATE GOVERNANCE

Strong and effective corporate governance helps to cultivate a company culture of integrity,
leading to positive performance and a sustainable business overall. Essentially, it exists to increase
the accountability of all individuals and teams within your company, working to avoid mistakes
before they can even occur.

When a company has solid corporate governance, it signals to the market that the
organization is well managed and that the interests of management are aligned with external
stakeholders. As a result, it can provide your company with a strong competitive advantage.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

THE BENEFITS OF GOOD CORPORATE GOVERNANCE
Corporate governance refers to all laws, regulations, codes, and practices that define how
a company is administrated. It determines the rights and responsibilities of all active agents within
an organization, attracting talent and financial capital, boosting internal efficiency, and providing
economic value to stakeholders long-term.

The importance of corporate governance is made apparent by the positive impacts that
occur when risks are controlled, and organizational procedures are streamlined and consistent.
Organizations can see many direct benefits with good corporate governance, including:

• Efficient Processes – due to the repeatability and consistency of tasks performed.

• Visibility of Errors – this repeatability and consistently helps to quickly identify the
nonconformities in processes.
• Reduced Costs – when tasks are streamlined, companies can eliminate the waste from scrap,
rework, and any other costly inefficiencies.
• Smoother–Running Operations – regular disruptions from inconsistent processes are
eliminated, as operation specifics become either ‘conform’ or ‘non-conform’.
• Compliance – a culture that supports corporate governance allows for its product to reach the
market while meeting its intended specifications and working correctly.

THE 10 STEPS TO GOOD CORPORATE GOVERNANCE

Implementing effective corporate governance can be challenging to accomplish in its
totality right away, but there are ten specific aspects you can look to for guidance when
implementing corporate governance in your organization:

1. Ensure a Suitable Board.

The Board should be balanced, competent, and diverse if you are hoping to achieve success
through corporate governance. Aim to have directors who are qualified, and who understand the
business thoroughly but can also offer a fresh perspective.

2. Review the Board Regularly

The composition of the Board of Directors is critical and can make or break the success of your
organization’s corporate governance. Regularly reviewing your Board can help to identify any
possible shortcomings quickly, which then allows you to make timely improvements and keep
things on track.

3. Build Solid Foundations for Oversight

Overseeing the work of both the Board and management is critical. Develop a systematic
foundation you can use to establish, monitor, and regularly evaluate their roles and responsibilities.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

The Board needs to have visibility of management actions and be available during all key decision
making.

4. Aim for Long Term Value Creation

Gearing key performance indicators towards long-term value production, as opposed to short-term,
will ensure sustainable success for your company.

5. Prioritize Risk Management

Establish a risk management process and internal control framework that is both effective and
conducive to your business needs and aim to review its effectiveness periodically. Disaster
recovery plans are critical to any business endeavor, so regularly keeping yours up to date is never
a bad idea.

6. Ensure Reporting Integrity

Corporate reporting is critical, but so too is the insurance of its overall integrity. Aim to set up
safeguards throughout the reporting processes, such as conducting external audits of the
company.

7. Provide Timely and Balanced Information

Transparency with key stakeholders is essential, and this can only be accomplished when you aim
to provide information regularly, both in the good and bad times. This promotes stakeholders’
confidence in the business and eliminates the risk of them distrusting your proceedings and pulling
out.

8. Emphasize Integrity as a Whole

Practices of integrity do not stop at reporting. Be consistent in your promotion
of ethical behaviors and consult shareholders on their interests and concerns when it comes to the
integrity of your company.

9. Treat Stakeholders Equitably

Respect the rights of your shareholders and be open to changing your plans to suit them if needed
and appropriate.

10. Ensure Adequate Disclosures

This refers to the disclosure of all related parties’ transactions, and the other interests of all
director’s involved. If a director has external financial interests outside of the company, it could
influence their decision-making.

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE

PM 106- PROFESSIONAL ETHICS ‫ ׀‬2021 MODULE