Brent Simon
Professor Buckler
Intro to Business
November 25 2023
Company culture and organizational ethics are two common concepts that are imperative to the longevity and overall success of a company. Though often intertwined with one another, company culture and organizational ethics are two distinctly different things that form the foundation on how your company progresses throughout the years.
Company culture refers to the shared values, beliefs, and behaviors that define the way people within an organization interact with each other and approach their work. It encompasses the company’s mission, vision, and core principles, shaping the overall work environment and influencing employee attitudes and actions. A positive company culture fosters collaboration, innovation, and employee engagement, contributing to a sense of belonging and shared purpose. Organizational ethics, on the other hand, pertains to the moral principles and values that guide the behavior of individuals and groups within the company. It involves making decisions and conducting business in a manner that is ethically sound and aligned with societal expectations. Strong organizational ethics promote integrity, transparency, and responsible business practices. Together, company culture and organizational ethics create a foundation for a healthy and sustainable work environment, encouraging employees to uphold high standards of conduct and contributing to the overall success and reputation of the organization.
What are business ethics and why are they important to an organization ?
Well let’s first start off by defining what ethics are. Ethics are the basic moral ground rules by which we guide our lives by. It has to do with our conscience, a sort of self awareness or instinct that tells us what is right or wrong. A situation when good or bad ethics are being utilized within a company is usually known as an “Ethical Dilemma”. Ethical dilemmas that arise create opportunities to test your “Ethical Decision Making Skills”. With that being stated we must prepare for an ethical dilemma and answer them with ethical decision making skills.
What are some ethical dilemmas that can arise ? Let’s break down what an ethical dilemma is. An ethical dilemma are issues of conscience coming from outside your sphere of influence. Imagine a scenario where a manager discovers that a colleague is engaged in fraudulent activities to meet sales targets. The ethical dilemma arises as the manager must decide whether to report the wrongdoing, potentially jeopardizing the colleague’s career and damaging team dynamics, or to remain silent and compromise their own ethical principles. Another example can be an employee who faces an ethical dilemma when asked by their supervisor to manipulate financial data to present a more favorable picture of the company’s performance. The employee must weigh the potential consequences of refusing the unethical request, such as strained relationships with superiors or even job loss, against the moral implications of participating in deceptive practices.
Think outside of yourself when it comes to making decisions on ethical dilemmas. Your decision doesn’t only affect you but it can affect all individuals within your company as well as its stakeholders. How we choose to respond to an ethical situation can have an effect on ourselves and others physically , emotionally , and maybe even spiritually. Your career, reputation , family , safety & security is all at stake so choose wisely. Most of these opportunities reside in the way you deliver service or respond to crises.
An employee exhibits ethical decision-making skills by reporting instances of workplace harassment, despite potential backlash or discomfort, emphasizing their commitment to a workplace culture that values respect, inclusion, and the well-being of all team members. Another example , when faced with a choice between maximizing short-term profits and adhering to environmental sustainability principles, a business executive demonstrates ethical decision-making skills by prioritizing long-term environmental responsibility, even if it means accepting lower immediate financial gains. How you react to the policies and practices of your company, The choices you make personally and in team situations, How you fulfill your obligations to co – workers and customers, How you present your company and its products to customers and shareholders and How you deal with outside agencies , contractors, and vendors are opportunities to perform good ethical decision making skills regardless of internal or outside influences.When it comes to ethics , there is no on & off switch on when to act on and deliver good ethics in any situation. People are always watching you at any given moment so you must be aware and careful of how others perceive you and your actions.
Ethical behavior pertains to actions that align with a set of moral principles and values, reflecting what is considered right or good, even if not explicitly regulated by laws. Legal behavior, on the other hand, strictly adheres to established laws and regulations within a given jurisdiction, regardless of whether those actions are perceived as morally right or wrong. The Corporate Responsibility & Sustainability Committee is in charge of enforcing and upholding the legal behavior and policies when ethical behavior in itself cannot surmount to adhering to the company rules and guidelines.
A Corporate Responsibility & Sustainability Committee is a specialized group within an organization tasked with overseeing and advancing the company’s commitment to ethical business practices, social responsibility, and environmental sustainability. This committee plays a crucial role in shaping and implementing policies that align with the organization’s values and contribute to positive societal and environmental impacts. Its responsibilities often include developing strategies to minimize the company’s ecological footprint, promoting fair labor practices, and engaging in philanthropic initiatives. The committee serves as a driving force in integrating sustainability into business operations, ensuring transparency in reporting, and maintaining accountability for the company’s impact on various stakeholders. By fostering a culture of responsible business practices, the Corporate Responsibility & Sustainability Committee helps organizations navigate the complex landscape of corporate social responsibility, ultimately contributing to long-term success and positive contributions to the wider community and the environment.
One example of a company that has an corporate responsibility & sustainability committee embedded within its corporate structure is “Nike”. As stated in thomasnet website , Nike leverages the unifying power of sports to promote its CSR agenda in three key areas: diversity and inclusion, community investment, and environmental sustainability. Let’s start off with Nike’s diversity and inclusion program. In an effort to provide a healthy and tolerant work environment for all employees, Nike supports an environment that promotes celebrating diversity and inclusion. With two new programs like the Juneteenth learning initiative and their Unconscious Bias Awareness program to promote racial equality and social change. Also stated in thomasnet website , in 2020, Nike allocated $4 million to support diversity and inclusion in communities throughout North America through its Until We All Win program. Additionally, eight of Nike’s Employee Networks donated $25,000 a year to nonprofit organizations focusing on promoting social equality, regardless of race, gender, and sexual orientation. Throughout 2020-21, Nike laid out a five-year plan for creating more diversity in their workforce, which included a target goal of 50% representation of women and 35% representation of racial and ethnic minorities in their corporate workforce by 2025.[3] In conjunction with this initiative, Nike announced an investment of $125 million over the next five years to support businesses committed to “leveling the playing field.” Those that align to these opportunities presented to them can surely reap the benefits.
How about we take into account Nike’s sustainability program. Nike motto is if there “is no planet, there is no sport”. As stated in thomasnet website , through the Supplier Climate Action Program, Nike ensures their suppliers and manufacturers are committed to their goal of carbon neutrality by 2025. So far, the company announced that all of their North American facilities, as well as 48% of their global operations, are operating on 100% renewable energy, and 99.9% of manufacturing waste from their tier 1 suppliers have been diverted from landfills. Under this new program, there was also a 30% reduction of freshwater used in manufacturing textiles and materials in 2020.
Taking advantage of reusable energy and recyclable products, Nike has committed themselves to introduce sustainable materials into their product line. Nike is focusing on sustainable materials such as Flyleather, a material made with at least 50% recycled leather scraps. So far, over 4 billion plastic bottles have been reprocessed into polyester and other textiles that are used in their products.
In conclusion, Nike’s corporate social responsibility (CSR) efforts and ethical behavior showcase a commitment to sustainable and socially conscious business practices. Through initiatives such as the Supplier Climate Action Program, the company demonstrates a dedication to minimizing its environmental impact, promoting fair labor practices, and investing in communities. Nike’s transparency in reporting and ongoing efforts to address concerns in its supply chain underscore a commitment to ethical conduct. While challenges may arise in navigating the complexities of global operations, the company’s ongoing initiatives and emphasis on continuous improvement signal a dedication to ethical practices and responsible corporate citizenship. As Nike navigates the evolving landscape of CSR, it serves as an example of a major corporation striving to integrate ethical considerations into its core business strategy.