The institutionalization and management of ethics is an important task for today's organizations if they are to effectively counteract the increasingly frequent occurrences of blatantly unethical and often illegal behavior within large and often highly respected organizations. This section discusses the important roles and responsibilities of stakeholders in the effective management of organizational ethics.
Management of organizational ethics may sound ponderous, but its meaning is straightforward. It means getting ethics formally and explicitly into daily business life. It means getting ethics into company policy formation at the board and top management levels and through a formal code, getting ethics into all daily decision making and work practices down the line, at all levels of employment. It means grafting a new branch on the corporate decision tree a branch that reads right/wrong (Purcell and Weber, 1979).
3.5.1 What is Ethics?
Ethics is the basic, moral ground rules by which we live our lives. Good ethics is learning what is right and wrong and then doing the right thing. But Organizational ethics is understanding what is right or wrong in the workplace and then doing what is right.
3.5.2 Who Are the Stakeholders?
Stakeholders are those who effect change and those who are affected by it. The aim of inclusiveness makes the identification of Stakeholders important, excluding an important Stakeholder can undermine the process and successful implementation of the policies and programs of the organization. If we consider fully what a modern ethical organization is, we must inevitably take a far wider view in defining modern Stakeholders. A modern definition of 'Stakeholder' is broader than the conventional ideas about shareholders, investors and partners, etc.
A modern definition of a Stakeholder is any group which has an interest in, involvement with, dependence on, contribution to, or is affected by, the organization. Individuals are important Stakeholders too, but for practical reasons most organizations will necessarily view stakeholders as groups, and for the purposes of this explanation the term 'stakeholder' here also means a stakeholder group. A Stakeholder is any individual or group of people who could lose or gain something because of the actions of the organization. This is especially relevant in the context of
ethics, corporate responsibility, sustainability, etc.
3.5.3 Some Stakeholders in the Operations of the Central Bank of Nigeria
In defining important Stakeholders in the operations of the Central Bank of Nigeria, the following groups readily comes to mind:
Board of Directors
Top Management
Staff
the Nigerian Public/the Parliament
Contractors, Consultants, Suppliers
Retirees
Family members of Board, Management and Staff
Financial Services Sector Operators
Government Agencies, Ministries and Departments
Customers
Civil Society
The Mass Media
The International Business Community
Foreign Governments
Local and international businesses
Operators in the informal sector of the economy
3.5.4 The Stakeholders' Roles and Ethical Responsibilities
a. Following the Rule of Law
In every organization seeking to integrate good ethical management into its activities the expected roles and responsibilities of the Stakeholder must be properly defined and every Stakeholder would be expected to be guided in all action by the Rule of Law. The following rules must be clear to each Stakeholder:
1. You are responsible for obeying the laws and the spirit in which they were intended.
2. Satisfying the letter of the law is not enough. Your standards should be higher.
3. You should recognize and follow industry standards and practices, both written and non-written.
4. You are responsible for doing your homework. Ignorance of the laws is not an excuse.
5. You are responsible for behaving in an ethical manner as you work and conduct official business.
6. You should read and understand organizational guidelines, rules, codes, and procedures.
7. You should not knowingly help another person act unethically in the conduct of official business.
8. You are ethically responsible to yourself, your company, co-workers, supervisor, constituents, and your community.
b. Working for the Common Good
In all actions and decisions at all times the common good and progress of the organization must be the overriding motivation of the Stakeholder. The following rules can serve as useful guide.
1. Does it Suit a Common Purpose?
2. Does it make you Accountable/Responsible to anyone?\
3. Is there Probity in your Actions?
4. A tolerance for scrutiny 5. Appropriate disclosure
6. Are the results of your decisions and actions expected and welcome events to others?
c. Faithful application of the Ten Personal Values for Organisational Ethics Success The careful and consistent deployment of personal values in decision making and actions is central to the success of organizational ethics.These values are captured below:
1. Respect:Respect laws, people, and property.
2. Teamwork: Work openly and supportively with others, aiming toward common goals.
3. Leadership:Show leadership in areas where you are strong.
4. Citizenship:Build a workplace that protects health and welfare of employees, your community, and your environment.
5. Stakeholder Value:Build an effective andefficient organization that will have stability and sustainable stakeholder returns.
6. Honesty:Believe that honesty ISthe best policy and to live it.
7. Integrity: Always take the high road.
8. Responsibility:Take responsibility for your actions.
9. Quality: Strive for quality in every aspect of your work.
10. Trust: Build the trust of employees, superiors, your constituency, and the community at large.
d. Faithfully applying the Five Way Ethical Test
Additionally it is important that stakeholders put their decisions and actions through the five way Ethical Test at all times.
1. Is the action honest and truthful? .
Does the action break generally accepted moral principles of telling the truth?
Do you have to resort to rationalization to justify the action?
2. Is the action legal?
Does the action comply with organizational policies, approved practices, and organizational values?
If legal, is it also the "right thing to do"?
3. Can you do the action in good conscience?
Do you feel uncomfortable about doing this?
What is your "gut feeling"?
Can you do the action without looking back?
4. What are the consequences of my planned action?
How will it affect other stakeholders? Who, what, &where?
What are the real costs? Consider physical and emotional costs to both people and the organization.
What is the liability to you, the company, and to others?
Could there be any unintended consequences?
5. Would you do it if everyone knew about your actions?
Would you be proud of your actions if your spouse, children, pastor, or other respected individual knew about it?
Can you defend your action before your team leader, superior, peers, constituency, or community?
What will your manager, supervisor, or co-workers think about what you plan to do?
e. Avoid Irrational Rationalisations
Stakeholders must at all times avoid unethical rationalizations for unfair decisions and actions such as:
Everyone is doing it.
If it is legal it is OK.
I really need it.
I've got it coming.
Nobody will be hurt.
It is my Payback time.
I'm not getting anything out of it.