An ethics model to develop an ethical organisation

Abstract

<strong>Orientation:</strong> As background to the study it can be stated that the ethical conduct of employees in an organisation is of paramount importance to the successful operations of an organisation, both real and perceived. In recent times the ethical conduct of employees has received extensive publicity and, as such, has emphasised the impact of organisational ethics on the global competitiveness of organisations.<p><strong>Research purpose:</strong> The main aim of the paper is to analyse the impact of business ethics in the Eastern Cape Motor Industry Cluster (ECMIC) and the different perceptions regarding such ethics. This is based on the main research question, namely, whether a business ethics model should be developed to assist in creating an ethical organisation.</p><p><strong>Motivation of the study:</strong> The motivation for this study is based on the question of whether there is a dedicated drive within the motor industry to establish an ethical organisation and, if such is the case, what benefits would accrue to the organisations in ECMIC.</p><p><strong>Research design, approach and method:</strong> An empirical study was conducted within ECMIC to test the proposed ethics intervention model. A questionnaire, as the main measuring instrument, was developed and 150 questionnaires were distributed. Statistical hypothesis testing was used, with a significance level set at 5%. The aim of the hypothesis testing was to test whether the percentage responses in certain categories were significantly higher than a pre-determined test-value.</p><p><strong>Main findings:</strong> The research results substantiate the fact that the majority of the surveyed organisations do not implement specific ethics interventions. Nevertheless, the majority of respondents acknowledge the importance of ethical behaviour in the organisation, especially with regard to their financial positions.</p><p><strong>Practical/managerial implications:</strong> From this study it became clear that the implementation of a code of ethics would create a platform for ethical behaviour in organisations. It is also concluded from this study that all organisations must strive towards creating an ethical organisation which would have long-term rewards for the organisation, especially from a financial perspective.</p><p><strong>Contribution/value-add:</strong> This study highlights the fact that although ethics and ethical behaviour in organisations are emphasised and receive wide-spread media coverage, not enough action is linked to this task at hand. The results of this research clearly indicate where the shortcomings are, in the process of establishing ethical organisations and who should be seen as the custodians of such activities.</p><p><strong>How to cite this article:</strong> Lloyd, H.R., & Mey, M.R. (2010). An ethics model to develop an ethical organis...

Renewing and improving the business model toward sustainability in theory and practice

“…Leadership ethics tend to emphasise the leaders' behavior and their values (Liu, 2007;Kaptein, 2009;Lloyd & Mey, 2010;Bouckaert, 2011;Hoivik von Weltzien, 2014). Moral leadership is inspired by constitutive moral elements: innovation, intuition and imagination (Hoivik, 2014).…”

Ethical Leadership Essential for an Ethical Environment

“…(Lloyd & Mey, 2010;van Vuuren, 2002). 'Starting with the CEO, senior managers must continually demonstrate the company's core values and reinforce standards of behaviour' (Archer, 2008: 32).…”

“…In addition, the Ethics Resource Centre (ERC) has adopted the following key elements, based on the Federal Sentencing Guidelines for Organisations, as being necessary for an ethical environment to prevail (ERC, 2012): a specific office, telephone line, email address or website for advice about workplace ethics issues; a means for an employee to report confidentially or anonymously violations of ethics standards; evaluation of ethical conduct as part of regular performance appraisals and discipline for employees who violate ethics standards, a view supported by Archer (2008: 36) who purports that 'establishing standards of behaviour without being prepared to discipline will not promote compliance'. Furthermore, Lloyd and Mey (2010) argue that an ethics focused reward system is critical to institutionalising ethical behaviour.…”

Ethics in the State-Owned Companies in the Public Sector: A Thin Line between Corporate Governance and Ethical Leadership

“…It is therefore in the light of Joseph's assertion that indeed the application of ethics forms the crux of good governance. The observance of ethics is becoming more important as communities begin to realise its significance (Lloyd and Mey, 2010). According to Schoeman (2014), ethics should encompass all issues that are pertinent to accountability and transparency in the SOCs as this will serve as a guiding tool in the policy development within the company.…”