Managing Ethical Behavior in the Workplace

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  • 0:01 Ethical Behavior
  • 0:58 Managing Ethical Behavior
  • 3:17 Lesson Summary
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Lesson Transcript
Instructor: Jennifer Lombardo
Ethics are important in the business world. In this lesson, you will learn the techniques that managers use to command ethical behavior in the workplace.

Ethical Behavior

Today's business world is challenged with maintaining an ethical climate while remaining competitive and profitable. In this lesson, you will learn about managing ethical behavior in the workplace. Ethical behavior is acting in ways that is consistent with how the business world views moral principles and values.

The employees of Fizzy Soda are out of control. The CEO of the company has been criticized that his employees are unethical, dishonest, and manipulative with each other and their customer base. Just last week, the sales team was telling their retailers that Fizzy Soda has special properties that can help prevent colds. The CEO has fired the top manager and hired ethical Edward to retool the ethical behavior of the entire group of employees. Let's take a peek at how he is going to accomplish this task.

Managing Ethical Behavior

Ethical Edward, also known as 'Ed,' knows that in order for the employees to act ethically, he needs to establish a game plan on how to manage ethical behavior in the workplace. He will create a code of behavior, establish expectations and reasonable goals, and set up rewards and punishments for unethical behavior. Ed will conduct himself in an ethical way and establish an Ethical Code of Conduct, or guidelines on how people should act at work.

Ed has noted that as part of the code, company resources must be used for company business only. For example, the employees had been stealing work supplies, taking cases of Fizzy Soda home for personal consumption, and using company cars for long vacation trips.

Ed is utilizing another key way to manage ethical behavior in the workplace by setting attainable goals. Many of the employees have felt pressure to act unethically in order to reach their work goals. The sales team felt that they had to cut corners and act unethically in order to secure their sales quota.

Ed discovered that many sales representatives used bribes, such as sporting event tickets or free meals at expensive restaurants, to sell the soda to their clients. One of the first changes Ed made was lowering the sales quotas to a reasonable amount.

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