Workplace Ethic [PDF]

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WORKPLACE ETHICS: PROMOTING AN ETHICAL CULTURE IN THE NIGERIAN WORKPLACE. Abstract Many modern organizations are today faced with numerous challenges such as illegal and unethical business practices in a number of business transactions. Most organizations have come up with codes of ethics in dealing with ethical issues challenging them. Code of ethics is the set of moral principles used by an organization to steer the conduct of the organization, and employees in all their business activities both internally and externally. The paper attempts a review of the relevance of workplace ethics and the need to promote ethical culture in workplace. Findings revealed that ethical behaviour has effects on the performance of an organization and that good ethical behaviour has a positive correlation with organizational performance. Suitable policy recommendations were offered which can help organizations promote ethical culture in the Nigerian workplace. Key words: workplace, ethics, workplace ethics, workplace culture

Introduction In the recent years, corporate reputations were largely determined by financial success. Businesses build trust by treating employees well, demonstrating ethical practices and placing customers ahead of profits, Today. The rapid rise of social media also is pressuring organizations to be more transparent—or risk exposure of unethical practices. More organizations are recognizing the value of creating ethical workplace cultures. The percentage of companies with "strong" or "strong-leaning" ethics cultures climbed to 66 percent last year, up from 60 percent in 2011, according to the National Business Ethics Survey of 6,420 employees. When companies value ethical performance, misconduct is substantially lower. In a world which can be increasingly described as a “society of organizations,” The role of organizations in determining the well-being of societies and the individuals that comprise them is incumbent upon organizational researchers to account for. Workplace ethics is a vital area of inquiry with potentially strong relevance to the well-being of individuals, organizations, and societies. (Mathew, 2006)

It is more crucial than ever to have an ethical workplace and it should be of importance on how to handle common ethical dilemmas one may face, both on and off the job essentially, individuals and organizations need to develop and refine their non ‘codes of ethics’. Defining workplace ethics is not as simple. But generally being ethical involves conducting yourself in accordance with accepted principles of right and wrong. Ethics is a matter of using integrity-based decision making procedures to guide your decisions and actions. In the workplace, being ethical may involve acting normally right, being honest, not cheating your employer. Co-workers, or customers, not stealing from the supply closet and generally treating your co-workers well. Workplace ethics and behavior are crucial part of employment, as both are aspects that can assist a company in its efforts to be profitable. In fact, ethics and behavior are just as important to most companies as performance; high morale and teamwork are two ingredients for success. Every business in every industry has certain guidelines to which its employees must adhere, and frequently outline such aspects in employee handbooks (Edelman, 2008). Workplace ethics are set of formal and informal standards of conducts that people use to guide their behaviour at work; these standards are partly based on core values. Such as honesty, respects, and trust, but they also can be learned directly from the action of others. For example, what people see their organizational leaders, managers, and coworkers do on the job can influence their views of what is acceptable or unacceptable behaviour. (NBES, 2000) Nigeria is currently facing a lot of developmental challenges which include among others educational, economic growth, physical infrastructures and security. These challenges have been further accentuated by the decay in the social values with the attendant repercussion in terms of financial, economic, moral, educational and political/electoral corruption. In the 1960s and early 1970s, the incidents of and frequency of public discourse on corruption were minimal. Though corrupt practices existed in these early times of the Nigerian nation, the current dimensions have far exceeded what they used to be. The recent financial scandals in 2012 alone include

pension funds (billions of naira), fuel subsidy (trillions of naira) and sale of OPL 245 oil fields. Corruption is now the top priority development challenge facing the three tiers of government in Nigeria. The work attitudes, integrity, self-discipline, teamwork, emphasis on quality, commitment and productivity of the Nigerian workers have painted a rather negative picture of an apathetic, uncommitted men and women, who are unresponsive to motivational techniques (Dori, 2014). The Nigerian workers have been described as indolent, apathetic and unresponsive to motivation and generally, not willing to put forth maximum productive efforts. Whichever way we look at it, the Nigerian workers are what we have; hence we must encourage them to make meaningful contribution to the development of the nation by becoming more productive. The urge to attain and maintain high level of productivity is a "sine qua non" for the establishment of commercial and business ventures. Ethical consideration in labour management relationship is a concomitant for organizational development. Hence, for high productivity, it is important that all stakeholders observe ethical conducts in their dealings with one another. This must be openly displayed through positive attitudes, committed teamwork, high integrity and self-discipline (Block, 2013). Culture is often seen as abstract and tough to measure. It's more than all those carefully drafted corporate values statements and ethics codes—it's the way things really work. Workplace culture includes how employees dress, how they work with customers and how they interact with their bosses. An ethical workplace culture is one that gives priority to employee rights, fair procedures, and equity in pay and promotion, and that promotes tolerance, compassion, loyalty and honesty in the treatment of customers and employees. The need for corporate ethics is strong. In a marketplace of unfair competition, underhanded practices, and consumer distrust, the company that emerges with its integrity intact becomes a preferred consumer choice. This due to the fact that the economic situation of Nigeria is very appalling and the sectors perceived to be booming have recently experienced some shortfalls which has affected growth and development. Some organizations have ended operations due to the poor socio-economic climate while

others have adopted stringent measures from mergers to downsizing amongst other ways of ensuring business sustainability (Michael, 2013). Hence, in the struggle to ensure continuity in operations, some unethical measures have been adopted. From outright dismissal to unpaid compensations and generally noncompliance to labour laws, this has raised several issues as well as legal suits. Employee misconduct in Nigerian firms is another big issue that calls for the need for ethical culture to be promoted. Some employees are lacking in ensuring acceptable moral behavior is exhibited in the workplace. Several confrontations emerge as well as distrust, resentment, abuse of power, disregard for superiors and disobedience to orders. This poor attitude at work tells heavily on workplace productivity. The desperation of the productive enterprise to achieve corporate goals and workers' desire for equity has naturally affected etiquette, integrity, self discipline and by extension the level of performance and productivity within the framework of employment relationship (Block, 2013, Dori, 2014). The advantages of a strong ethical culture are manifold. Studies repeatedly show that businesses with strong ethical cultures tend to have employees who are more engaged and committed. Turnover among workers tends to be lower and productivity higher. Employees feel less pressure to compromise company standards (and if they do observe misconduct, they are more likely to feel comfortable reporting it). A company is better protected from the risks of misconduct when its culture is ethically strong. It is important for staffers to focus on accomplishing key company goals and developing good working relationships in the office, but it is equally important to ensure ethical conduct among employees. Ethical conduct ensures that your business maintains a reputation for sound professional principles and values that are directly in line with the company mission. There are a few different ways we can promote ethical culture in the workplace. We shall discuss some of the ways by which ethical culture can be made more effective in the Nigerian workplace in the literature review. Statement of the Problem

Managers play a major role in determining whether employees embrace a company’s values. If mangers and top leaders don’t model ethical behaviour or enforce rules in a fair manner, employees loose trust. Sometimes good people can get swept into ethical behaviour, forced to cut corners to attain performance goals or given objectives that they believe are unattainable, therefore employees may feel pressured to compromise ethical standards and lose trust in their managers (Steven, 2014). At a time when many organizations are embracing risk taking, all executives should view ethics as more than a way to simply reduce risks. Rather ethical guidelines benefit organizations by steering employers away from ethical risk taking and into more productive and appropriate kinds of risk taking. It is fine to have a structure that tells people they need to report it when someone does something wrong, but that’s not the main reason to have an ethics program. Ethical guidelines, in the form of policies and practices give employees the basic tools they need to have inform risks on behalf of their organizations (Winter, 2000). Programs on ethics in the workplace are meant to affect how people think about and address ethical issues that arises on the job, but organizations seek to create a work environment where its okay for employees and workers to acknowledge that they have an ethical dilemma and resources are readily available to guide employees in working through such dilemmas before making the decisions by providing employees with ethics standards, training, and resources to get advice. Discussion of workplace ethics can raise sensitive issues some people in the organization may have difficulty or be uncomfortable discussing, managers and leaders in the workplace on the notion to please some employees, try to adopt a particular principle by not changing the laid down ethical construct in the workplace, but try to bend the rule, which may be detrimental to the status of the workers or subordinate and even affect the culture and the predetermine aim of the organization. For the workplace to lack an ethical standard, the employer risks losing valuable employees and customers and possibly more, once employees see others breaking rules without repercussions, they get fed up and leave the company which may have negative effect on the output of the organization. Literature Review Conceptual Clarifications Workplace The workplace is the physical location where someone works. Such a place can revenge from a home office to a large office building or factory. The workplace is one of the most

important social spaces other than the home. Constituting a central concept for several entitles; the worker and his/her family, the employing organization, the customers of the organization and the society as a whole (Jackson, 2004). Ethics Ethics is a set of principles of right conduct. It is also the rules of standards governing the conduct of a person or the members of a profession. Workplace Ethics This is a group of normal principles, standards of behaviour, or set of values regarding proper conduct in the workplace. It serves as a guideline to ensure that employees and employers maintain a certain level of acceptable moral behavior in the attainment of corporate goals. COMPONENTS OF WORKPLACE ETHICS Behavior All companies specify what acceptable behavior is, and what is not, when hiring an employee. Many even summarize expected conduct in job descriptions or during the interview process. Behavior guidelines typically address topics, such as harassment, work attire and language. Workers who don’t follow codes of conduct may receive written and verbal warnings, and ultimately be fired. Integrity A key component to workplace ethics and behavior is integrity, or being honest and doing the right thing at all times. For example, health care employees who work with mentally or physically challenged patients must possess a high degree of integrity, as those who manage and work primarily with money. Workers with integrity also avoid gossip and sneakiness while on the job. Accountability Taking responsibility for your actions is another major factor when it comes to workplace ethics and behavior. That means showing up on scheduled workdays, as well as arriving

on time and putting in an honest effort while on the job. Workers who exhibit accountability are honest when things go wrong, then work toward a resolution while remaining professional all the while. Teamwork A vital aspect of the workplace is working well with others. That includes everyone from peers to supervisors to customers. While not all employees will always like each other, they do need to set aside their personal or even work- related differences to reach a larger goal. In many instances, those who are not considered “team players” can face demotion or even termination. On the other hand, those who work well with others often can advance on that aspect alone, with teamwork sometimes even outweighing performance. Commitment Ethical and behavioral guidelines in the workplace often place a high amount of importance on dedication. Although possessing the necessary skills is essential, a strong work ethic and positive attitude toward the job can carry you a long way. Plus, dedication is often viewed in the business world as “contagious,” meaning employees who give a strong effort can often inspire their co-workers to do the same. BENEFITS & IMPORTANCE OF WORKPLACE ETHICS Workplace ethics are significant to business and provide numerous benefits. Asset Protection A strong ethical culture within business is important in safeguarding the assets of the organization. Employees who abide by the workplace ethics would be able to protect and respect the business’s assets. For example, they would avoid making personal long distance calls using the business’s lines. Workers can only respect company property when they are treated with respect and dignity, which makes them feel proud to be working for the organization, which increases employee pride and discourages them from stealing supplies or equipment.

Productivity and Teamwork Workplace ethics is integral in fostering increased productivity and teamwork among the employees. It helps in aligning the values of the business and the workers. Achieving this alignment requires that the employers must encourage consistent dialogue regarding the values of your business, which enhances community, integrity and openness among employees. Ethics enable the workers to feel a strong alignment between their values and those of the business, while this will help them show such feelings through increased productivity and motivation. Public Image You earn a lot of respect and cultivate a strong image in the public domain when you make ethical choices. For instance, you can fulfill your corporate social responsibility by reducing waste discharge from your business. The public would consider your business to be operating with honor and integrity while valuing people over profits. Building a strong public image through ethical conduct also earns you more clients. Customers would develop trust in you and do business with your organization. Decision-Making Ethical conduct in the workplace encourages a culture of making decisions based on ethics. It also enhances accountability and transparency when undertaking any business decisions. During turbulent times, a strong ethical culture guides you in managing such conflicts by making the right moves. It helps to introduce change successfully in the organization, which can be a challenge. Ethical conducts within the business sensitizes the employer and the employee on how to act consistently even in difficult times. ADVANTAGES & DISADVANTAGES OF ETHICAL COMPLIANCE IN THE WORKPLACE Ethical compliance within an organization is done for the benefit of the company and the employees. The use of ethical standards can both reduce the chances of a workplace

lawsuit and help to create a positive work environment. Before establishing corporate ethical policies, there is need to understand both the advantages and disadvantages of ethical compliance in an organization. Advantages Laws Local, state and federal laws help to guide part of a company’s ethical policies. For example, a zero tolerance corporate policy for sexual harassment is in response to the many laws that govern this kind of workplace activity. Ethical compliance helps companies to develop a work culture that abides by the workplace laws and reduces the costs associated with fines and lawsuits. Workplace Culture A policy of ethical compliance helps to create a workplace culture where all employees are treated with respect. Employees are given equal access to advancement opportunities and the workplace becomes a positive and nurturing environment. A strong ethical standard in the workplace helps to create strong working relationships between the staff and management. It reduces employee turnover, improves morale and has a positive effect on productivity. Disadvantages Lack of Management Support One of the disadvantages of an ethical compliance program is that it requires the comprehensive support of management to be effective. If members of the management team decide to apply their own version of corporate ethics to the way they manage their departments, then this clash of principles can cause confusion in the workplace. For example, a manager who tends to look the other way when his employees are committing sexual harassment sets a precedent that can start to undermine the entire corporate culture.

Costly Developing, implementing and maintaining an ethics compliance program within the organization can be expensive and time-consuming, according to attorney Michael G. Daigneault, writing for the Maryland Association of CPAs. Ethics policies need to be continually updated to reflect changes in workplace laws and changes in your company culture as the organization grows. Proper administration of an ethics program often requires the hiring of an ethics officer and the commitment of company financial and personnel resources. ROLE OF HUMAN RESOURCE MANAGER IN WORKPLACE ETHICS  Human Resource professionals help lay out the expectations for employees by developing written standards of ethical workplace conduct, providing training to make sure everyone is aware of the expectations and equipping managers to reinforce the company’s values through their actions.  Human Resource professionals are in a unique position to help to build an ethical workplace culture because their involvement in hiring, training and evaluating employees allows them to influence their organizations at many levels.  As guardians, they have a duty to protect their organizations employees, customers and clients from unethical conduct.  As champions, they can help their organizations flourish by promoting ethical values in daily operations and by building trust. Promoting an Ethical Culture in the Nigerian Workplace Having examined the benefits of workplace ethics, we shall examine workplace ethics a way to promote an ethical culture in the Nigerian workplace. Ways to Promote Ethical Culture in the Nigerian Workplace. 1. Train Employees

Once individuals are hired, ongoing training is critical to maintain a heightened level of awareness of ethical choices employees will face on the job. The problem with workplaces in Nigeria is that people are employed and provided with a handbook containing rules and regulations which are often not followed. The rules only exist in the books and misconduct in the workplace is not given the appropriate sanctions. You can't expect your staff to act ethically in accordance with your company's code of ethics if they don't know what that code is or why it's important. Hold regular sessions on ethics and how to approach ethical dilemmas among staff. The more training and resources you provide, and the greater emphasis you place on being ethical and acting accordingly, the more your staff understands exactly what you expect in the office. Sometimes good people can get swept into unethical behavior, and since workplace diversity involves different people from different backgrounds, it is important to train employees of the acceptable ethical conduct in the workplace. 2. Reward Ethical Behavior When bad things go unpunished or are ignored, that can lead to even worse behavior. It sends the message "We don't care." Far too often, companies simply expect ethical behavior; however, if you want to promote this as a prominent behavior among staff, then you need to show and prove, so to speak. Reward brings motivation and if you want to promote a strong ethical culture in the workplace, ethical behavior must be given appropriate reward. Very few organizations in Nigeria do this simply because of the cost of reinforcement and the need to maximize profit. They play down the advantages of workplace ethics and focus solely on the mission of the business enterprise. When a policeman in Nigeria refunds a huge sum of money and such officer is only given awareness through the media and a handshake from a public figure, how does that positively reinforce the officers of the Nigerian Police to do the same next time?

Provide rewards for solid ethical behavior; for example, if you have an employee that goes above and beyond to put her personal interests aside to always do what is best for her clients, that is considered ethical behavior and she should be rewarded and held up as an example for others to strive to do the same. The more you reward employees for sound ethical decisions, the more likely the masses will follow suit. 3. Lead by Example Leadership is a very crucial ingredient in promoting a strong ethical culture in the workplace and in Nigeria many leaders who are rule makers are the major rule breakers. They compel employees to resume early while they confidently stroll into the office late, they procrastinate work while paying attention to non-work related activities. It becomes increasingly difficult to enforce ethical behaviors when leaders are not committed to upholding the moral guiding principles in the workplace. To promote an ethical culture in the workplace, it begins with written standards of conduct that are well conceived, carefully crafted and effectively implemented. But to be meaningful, we need more than mere lip service to ethical values. Organizations with strong ethical cultures take steps to ensure that their standards are widely accessible, promoted and followed by their leaders and employees. When leaders clearly uphold and highlight ethical values and standards, they are setting an ethical “tone from the top.” Expect more of your management team; employees generally follow company examples set forth for them by management employees. Hold your managers to a higher ethical standard so that they are credible when they communicate expectations to their staffers to do the same. Challenge management staff to hold regular discussions with employees to work through potential ethical issues that may come up and find ways to brainstorm through them as a team. If everyone is on the same page, it is more likely that the team as a whole will adopt the same types of ethical behaviors. To encourage employees to follow expected standards of behavior, leaders

must themselves commit to the message that being ethical is more important than winning every time. In addition to becoming strong ethical role models, today’s leaders also need to identify and remove the cultural barriers that prevent their employees from behaving ethically at all time. 4. Consider Work-Life Balance Professional institutions and academia’s are beginning to promote the concept of worklife balance across the world. The working hours in Nigeria stipulated by organizations are often not followed and employees are made to work extra hours and even on weekends to ensure that they stay on the job. The unemployment rate in the country in on the high side and employees are without choices other than to take unfinished work to their homes. Break hours is shortened and often not observed and the annual leave are often converted into pay or a more flexible arrangement to ensure that the employee keeps working. When the employee suffers a health challenge, they are excused for a while just for them to recuperate fast and return to work. This is because employers of labour in Nigeria are still profit driven to the extent that their employees have very little time for other things aside from work. As a result, employee’s device unethical ways of absconding from work to take deserved rest or to attend to family related issues which cannot be left unattended. The truth is that employees are most likely to make good ethical decisions at work when they have a better sense of work-life balance. They will care less about work when they discover the employer cares less about their well being. It becomes important to pay attention to signs of burnout or discontent among staff, and take steps to address these types of issues when they present themselves. Employees have a life outside of work and the earlier we recognize and make provision for that, the better it is for organizations in Nigeria who intend to promote ethical behavior.

Review of the study by the Nigeria Business Ethics Survey, (2000) The 2000 NBES finds much that is encouraging for organizations that are putting their efforts into workplace ethics. For example, employees have high expectations for ethics within their organizations. More than nine in 10 respondents say that they “expect their organizations to do what is right, not just what is profitable.” This finding suggests that most employees are not so cynical about ethics at work. This should be encouraging news for all executives pursuing ethics initiatives. Most recognize that the long-term success of any program requires the active support of employees. Findings from the NBES also show that both formal ethics programs and informal ethics practices are related to key outcomes. Employees who work in organizations with ethics programs, who see their leaders and supervisors modeling ethical behavior, and who see values such as honesty, respect, and trust applied “frequently” at work generally report more positive experiences regarding a range of ethics outcomes that include the following:  Less pressure on employees to compromise ethics standards;  Less observed misconduct at work;  Greater willingness to report misconduct;  Greater satisfaction with their organization’s response to misconduct they report;  Greater overall satisfaction with their organizations; and  Greater likelihood of “feeling valued” by their organizations. These findings tell executives that a more positive ethical environment is strongly linked to a focus on ethics programs, to ethical modeling by leaders and supervisors, and to the “frequent” practice of key values such as honesty, respect, and trust. Importantly for association executives, the relationships described above are even stronger among employees in transitioning organizations - those that have undergone a merger, acquisition, or restructuring within the last two years. The findings suggest that

organizations and employees may draw the greatest benefits of ethics programs when times are toughest. However, this also means that the foundations for an ethics program need to be laid in good economic times when, ironically, some of the most valuable benefits of these programs may be least apparent. Theoretical Background Unitary theory Unitary theory believes that work organization exists on a unified goals and objective. This means that every going concern is an integrated and harmonious whole existing for a common purpose. It assumed that each workers of the organization identifies himself with the aims of the organization and with its modus operandi. Hence there is no conflict of interest those supplying financial capital and their managerial representatives and those contributing their labour and job skills. By this view the employer and the employees are but complimentary partners to the common aims of efficient production, high profits and good pay that is, they are value driven in which everyone in the organization has a stake. One can sincerely say that these theory preachers oneness, whether organization is privately owned, or like a professional football team in which no one should rock the boat. (Fox 1996) This perspective also clarify the role of management to include paternal towards employees at work or at the other hand more authoritarian with a suitable communication structure to keep employees informed about the activities of the organization. On their own side, the employees are excepted to remain loyal to the organization and to its management in pursuit of the organizational value (Okafor & Bode- Okunade, 2005) However, an important implication of unitarism is that factionalization is encouraged within the organization, or in a part of its, is seen as a pathological social condition. Indeed, subordinate employees are not expected to challenge managerial decisions or the locus standi to manage, while trade unionism is viewed as an illegitimate intrusion into the unified and cooperative structure of the organization (Ogunbameru, 2004) Based on these positions, it is assumed that industrial conflict cannot exist among the participants and where they do it is because any of the participants has failed in its expectation towards the organization e.g. faulty communication. Similarity, because of the non existence of trade union and assumed absence of industrial conflict, the

instrument of resolving industrial conflict like collective bargaining is no importance to the parties. Conclusion It must be emphasized that the challenge of ethical behaviour must be met by organizations if they are truly concerned about survival uprightness, integrity, and competitiveness. What is needed in today’s complicated times is for more organization to step forward and operate with strong, positive and ethical cultures. Organizations must ensure that their employees know how to deal with ethical issues in their everyday work lives. As a result, when the ethical climate is clear and positive, everyone will know what is expected of him or her when the inevitable ethical dilemmas occur. This will definitely give employees the confidence to be on the lookout for unwanted unethical behaviour and act with the understanding that what they are doing is correct and will be supported by top management of the organization.

REFERENCES George N. Root (1985), ethical compliance in an organization Sam Amico, (1993) workplace ethics and behaviour Paul Jackson, Reima Suomi, (2004) e-business and workplace redesign

Lynda Moultry Belcher, Demand Media Ways to Promote Ethical Conduct http://smallbusiness.chron.com/ways-promote-ethical-conduct-24132.html

Janice Block How to create an ethical culture at your company http://www.insidecounsel.com/2013/03/26/how-to-create-an-ethical-culture-at-yourcompany

Dori Meinert Ethical Workplace Culture http://www.shrm.org/publications/hrmagazine/editorialcontent/2014/0414/pages/0414ethical-workplace-culture.aspx

Kehinde Oladele Joseph EFFECTS OF ETHICAL BEHAVIOUR ON ORGANIZATIONAL PERFORMANCE: EVIDENCE FROM THREE SERVICE ORGANIZATIONS IN LAGOS, NIGERIA JOURNAL OF RESEARCH IN NATIONAL DEVELOPMENT VOLUME 8 NO 1, JUNE, 2010