Formal Ethics Training in Organizations-Free-Samples for Students

Question: Write an Essay on Is Formal Ethics Training In Organizations Merely Cosmetic? Answer: Introduction Ethics training has gained lot of importance since past few decades. Today, most business organizations conduct ethics training programs with an aim of inculcating ethical decision making in the organization culture (Valentine Fleischman, 2004). An ethical culture works as a roadmap for effective employee conduct, and other than ethics training organizations should also develop programs and policies that would ensure permeation of ethical guidance in the organizational culture (Valentine Fleischman, 2004). Ethics training has seen various changes since last decade. Globalization and technological advancements have also contributed in sophistication of the ethics programs. Ethics training programs are formed keeping in mind the decision-making theories and empirical researches which indicate the benefits of such training programs (LeClair Ferrell, 2000). Although, many research studies suggest that ethics training programs are effective in improving ethical-decision making of the e mployees and their conduct. However, it is argued that such ethics training program are merely cosmetic (Warren, Gaspar, Laufer, 2014). The paper aims at studying the effectiveness of ethics training programs by conducting a literature review. A critical review of the available literature suggest that, ethics training programs induce ethical thinking, provided the organization implements policies that facilitate permeation of ethical concepts in organizational culture. Based on the literature review and research findings, the paper argues that ethics training is not cosmetic, and that for long-term effectiveness of the ethics training, organizations must work towards internalization of ethics into the organization value system, through cultural adaptation of ethics. Effectiveness of Ethics Training Organizations adopt formal ethics training programs with a view of reducing unethical behavior. The ethics training program is designed to influence the behavior of employees. Warren, Laufer and Gaspar (2014) conducted a two-year study that assessed the influence of single ethics training session on the ethical behavior of employees (Warren, Gaspar, Laufer, 2014). The study found after first year of training session, employees showed positive effects, and by the second year also they showed signs of ethical behavior, however, after the second year the boost seemed to dissipated, which suggests that, mere ethics trainings are not enough, and cultural adaptation is required. Hence, to inculcate ethical behavior organizations must induce ethics in organizational culture (Warren, Gaspar, Laufer, 2014). A recent study conducted by Muel Kaptein (2014), examines the effects of ethics training programs in organizations. The research study also focuses on the components of the ethics program which induce less unethical behavior in organizations (Kaptein, 2014). The findings of the study suggest that organizations with ethics program face less unethical behavior than organizations with no ethics program (Kaptein, 2014). In this study Kaptein (2014) describes some important functions of ethics training program for the training to be effective (Kaptein, 2014). Firstly, the ethics training program must present a clear idea about the unethical behaviour (Kaptein, 2014). More importantly, the ethics program requires the senior management to be the role model and demonstrate ethical behavior. A successful ethics training program will provide resources for employees to behave ethically and foster a commitment among employees to behave ethically (Kaptein, 2014). A major function of the ethics tr aining program is to reinforce ethical behavior among employees. Hence, based on the findings of the study it is evident that formal ethics training programs are effective in reducing unethical behavior and inducing ethical organizational culture. Similarly, LeClair and Ferrel (2000) restate findings of Joe Murphy (1998) and suggest that an ethics training program which only says correct and ethical things, and only designs a code of ethical conduct, and impressive lectures from senior management and company lawyers, cannot be effective unless it does something substantive to prevent unethical behaviour, and deviations from ethical decisions making (LeClair Ferrell, 2000). The research study argues that ethical training can be effective provided organizations induce an ethical culture (LeClair Ferrell, 2000). The authors base their arguments on the basis of theories behind ethical decision making models, like that of Hunt and Vitell (1986) which suggests that ethical culture is an important component for ethical decision making, and that organizational culture is largely influenced by appropriate ethics training. Need for Effective Ethics Training Globalization and technological changes have changed the way organizations operate and even think, because, today innovation and creativity is key components for organizations to compete and sustain in the competitive markets. LeClair Ferrel emphasize the increasing pressures which require the organizations to undertake initiatives to develop and implement ethics training programs. The study highlights the results of a study undertaken by the society of Chartered Life Underwriters and Chartered Financial Consultants, which states that, around 50% of US employees have accepted committing an unethical behavior related to technology (LeClair Ferrell, 2000). Globalization and technological advancements have changed the traditional work environment and techniques, and currently employees and organizations strive to do more work faster and independently, and hence, there is greater risk of unethical behavior and illegal acts (Kaptein, 2009). Hence, today the characteristics of emerging professionals include perceived right of the professionals to make better choices which take into consideration both means and ends, and include a perceived obligation to provide service which gives very less importance to self-interest (Moore, 2005). Hence, to cope up with the changing demands of the globalization and technology related employee needs organizations are forced to rethink the training programs and redesign them to meet the demands (Kaptein Dalen, 2000). Hence, corporate training programs needs to be transformed from undervalued disciplines to fully integrated training programs (LeClair Ferrell, 2000). Moreover, the strict actions taken by l egal entities against unethical and discriminative behaviors in organizations has also pressurized organizations to include effective ethical training programs that enable employees to engage in ethical-decision making, and ethical behavior. Hence, there is a need for organizations to undertake formal ethics training sessions and ensure effectiveness of the training programs (LeClair Ferrell, 2000). Importance of Ethics Training In a recent international conference on Engaged Management Scholarship conducted in Baltimore (2015), paper presented by Rochelle Price (2015) asserts that ethical behavior the organization can be dramatically increased by conducting formal ethics training, and solidifying corporate culture and leadership (Abrhiem, 2012). Hence, it is evident that effective ethical training fosters ethical organizational culture. Similar findings are observed in a study that investigates interrelation between culture and ethics training (Graham, 2013). The study suggests that organizations face greater ethical problems during financial crisis, and formal ethics training can play a major role in inducing ethical behavior and promote ethical decision-making among employees (Graham, 2013). However, the study also suggests that ethical behavior is largely related to ethical climate and ethical culture of the organization. Formulating a static code of ethics will fetch nothing, and hence, organizations must supplement code of ethics with initiatives like regular trainings and creating an ethical organizational culture (Graham, 2013). Hence, it is evident that ethics training will inculcate an ethical organizational culture and stimulate ethical-decision making practices among employees and managers. It is evident that employees can involve into unethical behaviors during financial crisis, but organizations must understand that good business practice is important than financial bottom line (Graham, 2013). Ethical behavior leads to better corporate governance. Ethical corporate governance results into positive financial performance. Hence, it is evident that ethical training can foster ethical behavior and help organizations to improve financial positions (Graham, 2013). A review of the literature and empirical studies suggest that, formal ethics training is not merely a cosmetic, but it enables organizations to induce ethical organizational culture (Valentine Fleischman, 2004) (Warren, Gaspar, Laufer, 2014). The research studies have suggested that formal ethics training are effective in reducing unethical behavior (Kaptein, 2014), and that the organizations with formal ethics training and better ethics program face less frequent unethical behaviors than organizations without ethical training (Simha Cullen, 2012). It is evident that with the changing business organizations and technologies there is a need for employees to engage in ethical decision making and effective formal ethics training programs will enable organizations to develop ethical organizational culture and promote ethical decision making. Many research studies have argued about the effectiveness of the ethics training programs and have claimed that formal ethics training are effect ive for short-term and in order to make ethics training programs effective, organizations must develop ethical organization culture and achieve internalization of ethics into the organization value system (Warren, Gaspar, Laufer, 2014)(Graham, 2013)(LeClair Ferrell, 2000). The empirical research in the field of ethics training also suggest that, ethics training and ethical organizational culture are interrelated, and organizations must work towards developing better ethics programs to reduce unethical behavior and induce ethics (Kaptein, 2009). Formal ethics training will stimulate better corporate governance and enable organizations to reduce the cost of unethical behavior and improve financial position. Thus, based on research studies, it can be argued that, formal ethics training is not merely cosmetic. If Formal Ethics Training is Cosmetic In absence of an effective ethics training program, organizations will face more frequent unethical behavior and decision making. The organizations will face the costs of such behavior and it will be reflected in their financial performance. A study conducted by Jin, Drozdenko and Deloughy (2013) asserts that financial organizations that induce ethical decision-making and have fostered ethical organizational culture, achieve higher profits (Jin, Drozdenko, Deloughy, 2013). Also, Chan and Cheung (2011) by investigating the financial performance of organizations concluded that positive financial performance can be achieved as a result of better corporate governance (Chan Cheung, 2011). The study also highlights that corporate governance and ethical sensitivity are interrelated. The research studies suggest those organizations that engage in unethical practices and behavior dramatically increases the operational, marketing and other costs to organizations (Nelson, Weeks, Campfield, 2008). The organizations facing ethical conflicts suffer direct, indirect and long-terms cost (Graham, 2013). A major issue facing the effects of unethical behavior is the stress arising from ethical conflicts, which highly affects the morale of the employees, which finally leads to increased employee turnover, and burnout. Hence, lack of ethics training and ethical behavior will enable organizations to face the cost and hassles of frequent recruitment. Research studies also suggest that unethical climate and behavior and lack of ethical culture lead to lower job satisfaction among employees and also hinder the employee organizational commitment. Moreover, ethical behavior and culture is also directly related to empowerment and motivation of employees (Singh, 2011). Thus, unethical organizational practices will affect the overall governance of the organization, and the organization will face several short-term and long-term costs. Hence, if ethics training programs were cosmetic, they would not be effective in fostering ethical organizational culture and better corporate governance. Hence, merely cosmetic ethics training programs will affect the financial performance and organizations will face various employee attitude and productivity issues, which will lead to lower productivity and lower profits. The findings from research studies emphasize that merely cosmetic ethics training program will add to the various other costs to organ ization. Conclusion The paper concludes that formal ethics training is not merely cosmetic, but has tremendous effects on business organizations. The findings from the review of literature are utilized to support the argument and conclusion. The findings suggest that effective formal ethics training programs will enable organizations to develop ethical organizational culture and promote ethical decision making. Ethical organizations lead to better corporate governance which enables organizations to improve their financial performance and encourages employees organizational commitment. However, had it been that, ethics training programs were merely cosmetic, they would have added to the various costs to organization which would reflect lower financial performance and productivity. Hence, the paper suggests that, organizations today, must engage in designing and implementing effective ethics training programs. References Abrhiem, T. (2012). Ethical leadership: Keeping values in business cultures. Business and Management Review , 2 (7), 11-19. Chan, A., Cheung, H. Y. (2011). Cultural dimensions, ethical sensitivity, and corporate governance. Journal of Bauiness Ethics , 110 (2), 45-59. Graham, J. (2013). 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