Everyone talks about ethics, but nothing has changed

Everyone talks about ethics, but nothing has changed

Haaretz newspaper, The Marker economics supplement, 31.01.17.

Many organizations have recently established a code of ethics and invest great efforts and resources into developing and running training programs to instill the code and enhance its implementation. The assumption is that the training sessions and practice will lead the organizational culture in a more ethical direction. In the academic world as well, ethics studies have been adopted, and in the MBA programs, for instance, ethics courses are compulsory.

However, recent research in the field of organizational ethics shows that all these investments and efforts have not significantly affected organizational decision-making. Simultaneous analysis with other variables, such as climate and culture, found that the code and the training programs had little impact. It was found that the ethical code only becomes a significant factor when leaders and managers assimilate it into their decision-making processes and adhere to its enforcement. The frequent reports of deviation by senior managers from norms of ethics and professionalism confirm that courses alone cannot lead to a change in the perceptions of managers and how they manage the organizational ethics.

What could and should be done to make ethics a part of management practice?  Thomas Peters and Robert Waterman In their famous book In Search of Excellence (1985) claim that "the real role of managers is to manage the values of the organization".So why is it so difficult to apply this?

In order to move from the declarative level to the practical, there must be changes in the thinking patterns and paradigms of managers regarding their responsibility for assimilating and implementing the ethical code. Managers need to begin to "think ethics” – to look in the mirror, and ask themselves: “Does the way I manage the organization and convey messages to my employees indeed reflect the declared values?

 An examination of managerial paradigms and assumptions and their adaptation to the ethical code should lead to a change in the organizational structure, management patterns, and decision-making, so that the format of organizational activity reflects their adherence to the code and loyalty to values and priorities.

In a dynamic and competitive environment, pausing to "think ethics" may be perceived by managers as a hindrance to execution, a path might detract from goal achievement or rewards. This is a process that requires first of all adopting a systemic vision of the managerial role and responsibility – being aware of and sensitive to the effects and consequences of the choices and management decisions for the various stakeholders, including employees, customers, colleagues, the community and society.

"Thinking ethics" requires managers to learn how to balance different interests and" needs so that at the end of the day they can look in the mirror and tell themselves that the choices and decisions they have made are right, correct, and just.

"Thinking ethics" requires managers to be aware not only of the formal guidelines, but also of the informal aspect – the messages they convey and  the personal example they set during routine activities. When you ignore things and don’t say "no" where you should, it may be interpreted by your subordinates as a permissible and positive reaction even though it contravenes the ethical code.

When a manager crosses the organizational threshold in the morning he shapes the culture and its climate. The response or lack of response to events, how decisions are made and the means chosen for their implementation all determine the ethical or unethical direction of the organizational climate and norms. Employees learn very quickly what is important to the manager, and strive to conform to the manager’s priorities, especially when these are bolstered by incentives and sanctions.

Employee's behavior and conduct are a reflection of managerial values and priorities as practiced. Hence, neither workshops, training sessions, nor academic ethics studies can take the organizational culture in an ethical direction. In order to assimilate the code and lead to the desired change, managers must begin to "think ethics" and implement this thinking in their management practices. Managers – especially those in senior positions – should buy large mirrors and look at them many times during the day.

How many managers are truly prepared to stop and examine their choices, decisions, messages, and guidelines on a daily basis?

Dr. Tzippi Gushpantz

Lecturer in applied managerial ethics .

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