Factors Shaping Ethical Behavior at Work
Ethical behavior at work is a crucial component of the overall corporate culture present in the company. There are many factors that help shape such a behavior. For example, the first factor consists of individual elements, which encompass personal values, knowledge, as well as morals, and personality.
Moreover, the supervisor’s behavior plays a crucial role in establishing the norms and standards, setting an example for the rest of the team (Chatain et al., 2022). Lastly, a code of ethics is an element that helps not only establish expectations for employees but also ensure a certain level of accountability (Chatain et al., 2022). However, some companies, despite having what appears to be ethical approaches, can be found to be deceiving and engage in immoral actions. One example of such companies is Enron, which was proven to be unethical in various areas.
Causes of Enron’s Ethical Failure
There were many reasons why Enron failed and caused significant concerns in the public. Instead of holding the gas or electricity itself, Enron profited by acting as a middleman between suppliers and consumers. At the same time, Enron’s accounting practices were unique due to the nature of its operations and the fact that it did not truly own the assets. As a result, it was exceptionally difficult to understand the profit declarations and other financial statements that listed the assets and liabilities of the company. In other words, the executives and many other employees were aware of creative bookkeeping that was deceiving.
Signs of a Company’s Ethical Culture
In order to determine whether the company has an ethical culture, it is crucial to first pay attention to the company’s corporate culture and how employees uphold their morals. Additionally, one can look at how the corporation treats its stakeholders, such as customers and employees. When the company is indifferent to the quality of its services as well as the treatment of staff members, it becomes evident that there are unethical approaches involved.
Reference
Chatain, P., Does de Willebois, E., Bökkerink, M. (2022). Preventing money laundering and terrorist financing (2nd ed.). World Bank Publications.