Ethics in Business

I was just asked to write a response to an article about ethics in business and then on the ITOL LinkedIn discussion group the issue of ethics came up again.

To consider ethics and ethical behaviour we also need to consider integrity and good practice. Good practice is based on beliefs, values and opinions, from which ethical behaviour stems. When we consider ethics within business we need to consider the organization’s culture as this will set the standards for decision making. In this context the written and unwritten codes will influence the organizations decisions and actions.

Beliefs are often unconscious patterned thinking processes and may, therefore, be hard to identify. Our beliefs will affect how we behave, and are part of our identity, therefore changing either our beliefs, or how we view ourselves, will affect our actions. This will include who we work with and how we work with them and whether our behaviour is ethical or unethical.

Most commonly ethics are considered in terms of dilemmas. For example, let’s take a real situation where the director of a charity that rescued children in war torn areas was approached by an arms dealer who offered to rescue some stranded children that no one else had been able to reach. However, the dealer would not rescue the adults who were with them. The charity's director had to make a very quick decision with no time to consult. In order to make this decision he looked at the organization’s core aims, its mission and purpose and decided that he would cooperate with the arms dealers as it was either the children or no one at that particular point. He subsequently wrote to the charity’s stakeholders and explained his dilemma and offered to resign should a substantial number of them disagree with his decision. They did in fact support him. (Leigh, 2009).

When someone has to make an ethical decision we have to consider the nature of the organization. To do this I have integrated Ernst’s OK Corral (1971) with Wickens (1995) with Krausz (1993). In summary we need to explore whether the organization is:

• I'm OK, You're Not OK, Anarchic, (Wickens), autocratic, paternalistic management style, competitive stressed organizational climate with unilateral problem solving, (Krausz). In this type of organization the workforce are less likely to take responsibility for their actions and there is less willingness to report ethical issues.

• I'm Not OK, You're OK, Alienated (Wickens), ambiguous management style, anxious, insecure climate, with reactive problem solving (Krausz). In this type of organization the workforce already feel alienated and any ethical boundary crossing only serves to further this alienation.

• I'm Not OK, You're Not OK, Apathetic, (Wickens) Laissez-faire, alienated management style, the organizational climate is apathetic and passive, with no problem solving (Krausz). People are unwilling to address ethical issues and, if others cross the ethical line this only serves to reinforce the apathy.

• I'm OK and You're OK, Ascendant (Wickens), democratic, participative management style (Krausz), the organizational climate is motivated, respectful and creative. Ethical problem solving processes are the norm.

Whilst there are individual 360° programmes within organizations there is also a need for an organization to give itself a 360° feedback process, taking comments from the workforce on a regular basis. In this way there are more likely to be opportunities for change in the culture so that people feel valued and supported, with clear boundaries and contracting processes in place. This is then more likely to lead to ethically congruent behaviour.

What do you think? Are ethics important in organizations? How do we compromise our own ethics when we work for organizations that are not a "fit" for us? Are we more or less likely to be stressed when we ignore or deny the mismatch between our own and the organizational ethics? Are ethics a luxury in today's world?

References: Leigh A. (2009), How Good is Your Integrity Compass? http://www.hrzone.co.uk/blogs/andrewl/straight-talking-andrew-leigh-maynard-leigh-associates/how-good-your-integrity-compass, accessed 2.3.2011
Krausz R. (1980), TA and Management Effectiveness, Transactional Analysis Journal, 10:1, 21-24
Wickens P. (1995), The Ascendant Organisation, Macmillan Business



To learn more about Organizational Transactional Analysis come on our Official Introduction to TA course on 14-16 June, or buy our upcoming book: Working Together: Organizational Transactional Analysis and Business Performance, to be published by Gower in July, 2011. Contact us for an informal chat about your own or your organization's coaching or training needs. +44 (0) 1455 824475, www.mountain-associates.co.uk

What Is Good Practice?

Good practice is based on beliefs, values and opinions, from which ethical behaviour stems. The dictionary definition of ethics is: philosophical study of the moral value of human conduct and of the rules and principles that ought to govern it. (The New Collins Concise English Dictionary).

Given the current issues surrounding MP's expenses in the UK, now is a very good time for those of us working in organisations to consider our own ethics.

There are few references to ethical behaviour in the management and organisational literature. Many refer to the values an organisation may hold, but not how these translate into action. This may be partly due to the fact that consultants and those working in organisations come from a variety of educational and professional backgrounds where these may not have been considered.

For example, if an organisation uses as its mission statement "We value people", how will that organisation find ways of demonstrating this? What are the implications for that organisation when this is not demonstrated?

The belief system is an important part of TA. There are many people who know the theoretical TA concepts but do not put the underpinning philosophy into practice, thereby making their actions and theoretical knowledge incongruent.

Beliefs are often unconscious patterned thinking processes and may, therefore, be hard to identify. The need to make meaning, find causes or maintain our identity, guides our beliefs, which by their nature, are not necessarily related to facts, even though we may act as though they are.

Our beliefs will effect how we behave, and our beliefs are part of our identity. Changing either our beliefs, or how we view ourselves will effect our actions. This will include who we work with and how we work with them.

There are some values that are deeply rooted and global and some that are dependent on circumstances. Organisations which have alignment of shared values increase employee commitment, confidence and achievement.

Codes of Ethics

The European Association of Transactional Analysis (EATA) and the International Transactional Analysis Association (ITAA) have Codes of Ethics to which all members of those organisations agree to adhere to. This offers clients a measure of protection.

The ethical considerations for those working in organisations can be ambiguous and as such are not always sufficiently addressed by either the national or international bodies. Those of us using TA in organisations need to develop our Adult awareness about our own ethical principles.

Awareness of three cornered contracting (English, 1975) is necessary as consultants have contracts with the commissioning agent as well as course participants. It is these relationships which can create the ambiguity. A one to one contract is not usually the case for an organisational consultant which means that these relationships can be complex and sometimes confusing, which has implications for boundary setting. It is therefore "........vitally important that the consultant have clear, conscious, and consistent ethical standards" (Garfield 1993).

References:

Dilts R., Hallbom T, & Smith S. (1990) Beliefs. Pathways to Health and Well-being.
English F. (1975) Three-Cornered Contract TAJ 5:4
Garfield V. (1993) Ethical Principles for Work in Organisations TAJ 23:2
van Hauen F. Kastberg B, Soden A (1999) Dare to Kiss the Frog

We are interested in hearing your comments on our blogs. Do respond using the link on this page
Mountain Associates train others both nationally and internationally as well as facilitate open workshops on Transactional Analysis including Developmental/Organisational TA. Please contact us for further details: www.mountain-associates.co.uk

Know Where You are Going

When we are going on holiday we have the route mapped out. We follow the sign-posts and hopefully get there without too much difficulty. On the odd occasion we might take a wrong turning but either our map-reading skills, our enquiries or our sat-nav. will tell us how to get back on the right route.

Somehow though we can be somewhat vague when thinking about life and where we want to get to. We even ask children what they want to do when they grow up, we don’t ask them what they want to create in their lives.

When we go on holiday we have some decisions to make and so it is with our lives. What do we want to create in our life? How will we get there? Will anyone go with us or will we do it on our own? If we get lost what will we do – feel annoyed, give up, become anxious or find the right way for us? All of these things are about choosing options and getting the balance between freedom and responsibility. Too much choice without a structure can be frightening for some, whilst too much responsibility can be overwhelming. Obtaining the right balance for us, as an individual, will help us to create what we want in life.

First we must choose our goal. Goals or visions are about what we want to create in our lives and how we want to be, including our values and ideals etc. When we have developed our vision we can decide what primary decisions we need to make to move toward that vision. When these areas are congruent we will feel in harmony with ourselves and with our life.

What do you want to create in your life?