Abstract:
In recent years, the issue of management or governance of
ethics within organisations in the public and private sectors has
come to the fore. For several valid business reasons organisations
have been forced to become socially responsible, to act with
increased ethical sensitivity and to report on the organisation's
performance relative to its ethics statement to all stakeholders.
Organisations that recognise the strategic importance of ethics
within business and pro-actively manage ethics reap the benefits
of stakeholder confidence, public trust in the organisation and a
good reputation.
An increased awareness of the ethical dimension of the
governance of organisations has also shifted the focus away from
the approach that had to satisfy the owners only, to a more
inclusive approach focusing on the needs, rights and interests of
all the stakeholders or constituencies that are affected by the
organisation's decisions and activities. Improving governance
within organisations includes considering the ethical
implications of all actions undertaken and consistently striving to
improving the organisation's ethical health by formally managing
its business practices with ongoing reference to the stated ethics
of the organisation.
Managing ethics within an organisation is the responsibility of
senior management, who should buy into the fact that ethics can
and should be effectively managed. Senior management should
take a strategic decision to increase the ethical health of the
organisation by establishing a formal ethics management
process, building ethics into its strategy and identifying ethical
leaders to set the example and drive the process.
Organisations aspiring to "walk the ethics talk" should recognise
the fact that organisational ethics is much more than a code of
ethics with a few ethical platitudes to aspire towards.
Organisational ethics is about making ethics real within the
organisation by devising and implementing a formal ethics
management framework within the organisation. A formal ethics
management framework typically includes an ethical
organisational culture, ethical leadership, an ethics strategy, an
ethics management team (ethics officer, ethics committee,
integrity unit), and a formal ethics management process. All
these ethics initiatives should be effectively utilised to ensure an
improved organisational culture based on agreed ethics, applied
and monitored continuously to ensure sustainable ethical health
for the organisation.