Ethical Behavior in an Organization

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Running Head: ETHICAL BEHAVIOR IN ORGANIZATION

Ethical Behavior in Organization

Introduction
Organizations are established to increase their market share and profitability by serving the society. To achieve these objectives, it is essential for the organizations to operate its operations in proper manner and behavior. The organizational behavior determines the behavior of employees within the organization. Ethical behavior guides a person towards right or wrong, legal or illegal activities at workplace (Furnham, 2005). It plays an important role in organizational growth.
Importance of Ethical Behavior in Organizations
Success of organizations depends on trustful relationship between management and employees. The understanding of ethical behavior in organizations is quite important. The importance of ethical behavior in organizations is as below:
Organizational Image: Ethical behavior of human resource in organization affects its image in market positively or negatively. Illegal activities lay-down the reputation of organization in market but legal behavior increases effectiveness and image of the business (Tenbrunsel, 2006). An activity in which, organization is paying bribe to get a contract in foreign country derives unethical reputation in market that may pose consequence of losing customers (Ginoa & Pierce, 2009). So, understanding of ethical behavior of human resource helps the organizations to establish ethical activities within the business through ethical policies, written code of conduct etc that creates a good image in market (Nelson, 2011). It also reduces the possibility of fraudulent activities within the businesses.
Employee Issues: Employees are key determinant for the success of an organization. Ethical behavior creates a balanced relationship between business objectives and employees' behavior at work place. Unethical activity of organization increase stress, dissatisfaction and turnover rate within the organizations. Similarly, unethical behavior of employee like personal use of company resources affects organizational growth (Gino & Margolisa, 2011). Therefore, ethics influence employees to behave in a right manner that create a healthy working environment. Ethical behavior of employees decrease fraudulent activities like bribery and facilitates appropriate use of the resources. It guides employees to discriminate in right/wrong, legal/illegal behavior effectively that increase organizational effectiveness (Nelson, 2011).
Customer satisfaction: Customers are basis for an organization's success in the current business ...