ORGANIZATIONAL BEHAVIOR - Common Types of Ethical Issues Within Organizations

Common Types of Ethical Issues Within Organizations

by Neil Kokemuller, Demand Media

Though the ethical dilemmas faced by certain companies may be specific to their industry or company, other types of ethical issues are common to all types of companies. Handling ethical decisions with wisdom is especially important for small businesses, given the potentially devastating effects these companies may face if such issues aren't handled correctly.

Health and Safety

One area of ethical consideration for employers is how to balance expense control with the health and safety interests of employees. Manufacturing plants and other workplaces where employees use dangerous equipment or engage in physically demanding work should have strong safety standards that not only meet federal requirements, but that also make eliminating accidents a priority. Even standard office workplaces pose health risks to employees who are asked to sit or stand all day. Unfortunately, certain organizations opt to cut corners on safety controls, equipment and training to save money. This is both unethical and potentially damaging in the long run if major accidents occur.

Technology

Advancements in technology and the growth of the Internet in the early 21st century have produced a slew of ethical dilemmas for companies. Company leaders have to balance the privacy and freedom of workers while also maintaining standards that require that company technology use is for legitimate business purposes. Certain companies go so far as to monitor all online use and email communication from employee computers and work accounts. A company may have this right, but its leaders need to understand the potential concern about privacy and autonomy among employees.

Transparency

Prominent business and accounting scandals have made it imperative that companies operate with openness and transparency. For public corporations, this includes honest, accurate and complete reporting on mandated financial accounting reports. For large and small businesses, transparency includes communicating messages, including marketing messages, that aren't open to misinterpretation and that clearly represent the intentions of the company and its messages. Being caught in a lie or avoiding full disclosure may cause irreparable harm to small businesses.

Fair Working Conditions

Companies are generally expected to provide fair working conditions for their employees in the business environment, but being responsible with employee treatment typically means higher labor costs and resource utilization. Fair pay and benefits for work are more obvious elements of a fair workplace. Another important element is provision of a nondiscriminatory work environment, which again may have costs involved for diversity management and training.