Business EthicsCompany Values & Ethical Leadership

COMPANY VALUES

The policies which a company opts in it’s dealing and daily working

It is the perspective of seeing and dealing with situations in appropriate manner

ETHICAL LEADERSHIP

Ethical Leadership is the application of the set Company Values

It is related to taking actions which are just and are not biased in any case

In Ethical Leadership Company values are preferred rather than personal relationships or personal interests

Ethical Decision Making requires…

Recognize ethical issues

Analyze in terms of appropriate ethical principles

Objective of research…

The purpose of this paper is to:

review the literature on hospitality ethics codes

offer practical suggestions for practitioners for developing shared values within the organization

Business Decisions needs to be Ethical

Because:-

They affect guests, employees, suppliers, friends, and families (Peceri, 1997)

To deal with the differences in standards within the workforce (Kapoor, 1991)

Serve as frameworks for employees’ behaviorBecause traditional values have become less

prevalent, written codes of ethics may be necessary (Beasley, 1995)

Problems Associated with Company values & Ethical Leadership

Every individual is from different background and has been groomed differently due to which:

Each Employee a company hires has a different set of values which may contradict with the values of the company

Things which appear to be right for one employee may be considered unlawful by the other

Solution Regarding Company Values & Ethical Leadership Issues

Companies should well define their Company Values to the Newly Hired Employees in the Orientation

Frequent Workshops should be arranged for the Employees to remind them formally for what are the demands of the company and how they should be met in accordance with the Company Values

To Ensure Ethical Leadership all the inductions in the company should be on merit and strict check and balance should be maintained to minimize the biased hiring's

A written code of shared values can serve as a guideline for dealing with ethical dilemmas

Each Employee working Under or at lower level should be treated equally and none of them should be given extra privilege

Biasness should be avoided in any case because this could demotivate staff resulting in unethical leadership.

Benefits of Shared Values

Employee turnover can be reduced (Goli, 1990)

Result in more teamwork and long-term success (Lefever & Reich, 1991)

To maintain consistency within their organizations

COMMUNICATION

A key to good management

Sharing of standards in an understandable and clear manner

To cater the problems of communication that may arise between existing managers and young new hires

Necessary for ethical training of younger employees

ENTRY-LEVEL MANAGEMENT RECRUITS

Self-centered and may be easily influenced

Operational values are formed from the experience of success

Young and mature adults are persuaded by changes in environment

Rewarding may successfully change employees’ behavior

ETHICS CODES

Concern for others

Teleological ethical system: the ends are more important than the means

Deontological ethical system: the means are more important than the ends

Organizations’ ethics codes and ethics instruction must be based in operational realities and result in benefits for those who follow the rules.

ETHICAL SELF-ANALYSIS

1. What are our proclaimed ethical rules?2. Is management committed to the ethical rules?3. Do we hire people who will be able to live our ethical

rules?4. What are the consequences (negative and positive)

for following our ethical rules?5. Do we give raises and promotions for following our

ethical rules or for other reasons? If there are other reasons, what are they?

6. Is there a difference between what we say and what we do? If there is, what do we really want?

7. How does our organization stack up to the following Ethical Principles for Hospitality Managers?

• Honesty • Integrity • Trustworthiness• Loyalty • Fairness• Concern and respect for others• Commitment to excellence• Leadership• Reputation and morale• Accountability

Successful implementation of ethical code

1. Identifying the ethical dilemma in a case study

2. Determining possible solutions

3. Implementing the solution (Alderson)

IDENTIFYING THE ETHICAL DILEMMA

The dilemmas are the result of behavior that breaks ethical rules

A mean of convincing people to follow the ethical rules in the first place so that they will not find themselves or their employees in situations that have negative consequences

Companies can communicate their values to diverse workforces by encouraging discussions, asking questions, rewarding positive behavior, and modeling exemplary behaviors

Conclusion

Company’s values and Ethical Leader

Thank youThank you