Establishing written codes of ethical conduct many

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Establishing written codes of Ethical Conduct Many organizations use written codes of conduct as guidelines for ethical and socially responsible behavior. Such guidelines continue to grow in importance because workers in self-managing teams have less leadership than previously. Regardless of the industry, most codes deal with quite similar issues. Developing Formal Mechanisms for Dealing with Ethical Problems Many large employers have ethics programs of various types. Large organizations frequently establish ethics committees to help ensure ethical and socially responsible behavior. Top-level leadership participation in these formal mechanisms gives them more clout. Accepting Whistleblowers A whistleblower is an employee who discloses organizational wrongdoing to parties who can take action. Whistleblowers are often ostracized and humiliated by the companies they hope to improve.
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Providing Training in Ethics and Social Responsibility Placing Company interests over Personal interests ETHICAL BEHAVIOR AND ORGANIZATIONAL PERFORMANCE High ethics and social responsibility are sometimes related to good financial performance. The relationship between social responsibility and profits can also work in two directions: more profitable firms can better afford to invest in social responsibility initiatives, and these initiatives can lead to more profits . Corporate social responsibility can sometimes increase profits because the socially responsible action is cost-effective. Being ethical also helps avoid the costs of paying huge fines for being unethical, including charges of discrimination and class-action lawsuits because of improper financial reporting. In short, a leader who is successful at establishing a climate of high ethics and social responsibility can earn and save the company a lot of money. Even sometimes, it will eat some profit.
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