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Ethical and Unethical Leadership Practices: Impact on Reputation

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Understand that the success of any business is through the leader's ethical practices, ethics should be the foundation of any organization and/or business. Look for two articles (references); one on ethical practices, and the other on unethical practices. Summarize how each would impact the companies reputation in the marketplace and in public.

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Solution Summary

This response discusses ethical concern on judgment and corresponding decisions on what is right or wrong. In business, this involves important decisions for the company's stakeholders. Being ethical would mean high regard to the welfare of the consumers, employees, and the society as a whole. Being unethical would be the opposite. Both behaviors would impact company's reputation and consequently employee turnover and marketing and financial performance.

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An online source noted that ethics concern an individual's moral judgements about right and wrong. As applied to organizations, the decision to behave ethically is a moral one - employees must decide what they think is the right course of action. This may involve rejecting the route that would lead to the biggest short-term profit (http://businesscasestudies.co.uk/cadbury-schweppes/ethical-business-practices/the-importance-of-ethics-in-business.html#axzz3NnVnHCmz).

Another online source described companies that are abound with ethical practices - in fact, honoured as such. Such companies "understand the correlation between ethics, reputation and daily interactions with their brand". Kellogg, maker of Corn Flakes, Pop-Tarts and mini-wheats, has been awarded as one of the most ethical organizations. Ethisphere, the independent awarding company, describes them as companies that truly go beyond making statements about doing business ethically and translate those words into action. They "not only promote ethical business standards and practices internally, they embed the theory of 'conscious capitalism' into everything they do, every employee they hire, and every partner they bring into their network to ensure they ...

Solution provided by:
Elisa Valdez, PhD
Education
  • Bachelor of Science in Business Administration, University of the Philippines
  • Master in Business Administration, Saint Mary's University
  • Doctor of Philosophy in Education, University of the Philippines
  • Doctor in Business Adminstration (IP), Polytechnic University of the Philippines
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