The origin of the word “ethics” is derived from the Greek word “êthos” , which, in a more precise translation, might be better rendered as “image”. The science of ethics, as it became established in the eighteenth and nineteenth century, was concerned with the search for absolute standards of conduct guiding decisions and actions, and was closely tied to the concept of duties derived from core values . Since ethics itself, as moral philosophy, set out to establish generally accepted standards of right and wrong, the word ‘moral’ became interchangeable with ‘ethics’, although the former originally referred to the act and the latter to the abstract principle from which the act was derived. In the meantime, “being ethical or moral” has come to imply conforming with specific (generally acceptable) standards, whereby the initial agenda of establishing universally applicable moral principles has been replaced by the realisation that groups of people can also adhere to or deviate from a set of their own ethical standards. From this, it follows that such standards can be established by an individual, a corporation or a nation to help or guide decisions and actions. Schoen (1979 ) even sees the metaphors employed as vital to the framing of issues, since these guide both what is deemed to be a problem and the paradigms used in addressing them. This notion of defining problems and paradigms is clearly applicable to managers and leaders paid to make organisational decisions congruent with the organisational culture, whereby the choices they have to make may vary in terms of the perceived ethical solution selected from a range of alternative solutions. A general central part of management and organisations is its study of organisational culture, although this has, as yet, only received minimal attention – and even less in its relation to issues in moral psychology (Feldman, 2002 ). Yet since an individual’s identity comprises stable mental and physical characteristics, it would seem that understanding individual personality is a crucial step in managing oneself and others effectively (Weiss, 2001 ).
Organisational ethics often conjures up companies such as Enron, ImClone, Tyco and WorldCom, with their spectacular headlines on ethical failures at the very top of organisations. However, such executive management blowouts, while dramatic, are nonetheless rare.
Table of Contents
1.0 Introduction & Context
2.0 Literature Review - Theory
2.1 Organisational Ethics and its Components
2.2 Transactional vs. Transformational Directives
2.3 Ethical Dilemma Decision Model
3.0 Case Study Review
3.1 Clinical Ethics
3.1.1 Market Outcomes
3.1.2 The Commercial Moral of the Story
3.2 Business Ethics
3.2.1 Outcomes
3.2.2 What I learnt
4.0 Discussion
5.0 Conclusion
Research Objective and Core Topics
This paper examines the integration of personal ethical standards with organisational management by contrasting reflective professional experiences against current academic literature on moral behavior and corporate ethics. The study aims to highlight the challenges of maintaining integrity within competitive business environments and the role of corporate culture in fostering ethical decision-making.
- Theoretical frameworks of organisational ethics and moral decision-making models.
- The influence of transactional versus transformational leadership on ethical initiatives.
- Case study analysis of ethical dilemmas in medical device development and market entry.
- The relationship between corporate reputation, long-term integrity, and business performance.
Excerpt from the Book
3.1 Clinical Ethics
In summer of 1996, as a consultant to a Swiss investor, I spent several months developing a strategic plan for an emerging medical equipment company in North America, with operations scheduled to begin later in the year. The Swiss investor had set the goal of globally expanding his customer base and product offering via a digital x-ray system solution run by a new branch in North America. Prior to this engagement, I had been working for a Management Consulting company in Irvine (USA) and completed a study on the key challenges facing diagnostic imaging as a whole. From this previous research, I knew the digital x-ray market was set to experience rapid growth in the coming years and was a market totally dependent on connectivity in healthcare facilities. As yet, though, no company had worldwide market clearance for a digital x-ray system, or FDA approval for North America.
There were several prototypes already being tested, with clinical studies conducted in Germany, Switzerland & the USA. However – and this was the first challenge- many of the established medical device companies competing in the new digital x-ray market were facing considerable difficulties in offering digital x-ray services, since the devices at the time were not producing usable clinical diagnostic chest images. Secondly, with little digital connectivity in the USA and nearly none in Europe, there was a major outlay needed to set up connectivity within hospital settings – and this against a background of prohibitively high set-up costs, tight margins on the main frames offered, and a highly competitive HIS industry. Nonetheless, the investor remained convinced developing a digital x-ray system provided a corporate gain and opened up as yet untapped revenue opportunities, despite the problems of competing against conventional x-rays and establishing a foot-hold in the newly emerging market. Yet reviewing the clinical studies and R&D data for the new digital x-ray system only confirmed my initial concern: producing half-way usable digital x-ray chest images allowing a seamless view meant increasing radiation doses to an unhealthy level for the patient.
Summary of Chapters
1.0 Introduction & Context: Provides the etymological background of ethics and establishes the importance of moral psychology and organisational culture in leadership.
2.0 Literature Review - Theory: Outlines core ethical components, leadership styles, and established decision-making models for organisational learning.
3.0 Case Study Review: Analyzes a practical medical industry project where the author faced a conflict between professional ethical standards and commercial pressure.
4.0 Discussion: Evaluates the impact of ethical violations on corporate reputation and argues for the necessity of both transformational and transactional leadership.
5.0 Conclusion: Synthesizes the finding that corporate culture and integrity are vital success factors that align long-term business performance with ethical responsibility.
Keywords
Organisational ethics, corporate culture, moral behaviour, leadership, transactional, transformational, integrity, ethical dilemma, clinical ethics, medical technology, management, decision-making, reputation, compliance, business strategy.
Frequently Asked Questions
What is the primary focus of this paper?
This paper explores the role of personal and organisational ethics in a business context, focusing on how ethical dilemmas arise and how they can be managed through corporate culture.
What are the core themes addressed in the work?
The work covers leadership styles, ethical decision-making, the intersection of integrity and profitability, and the long-term consequences of unethical business practices.
What is the research question?
The author investigates how leaders can maintain ethical standards within organizations, particularly when faced with commercial pressures that potentially conflict with moral responsibility.
Which methodology does the author employ?
The author uses a reflective, case-study-based approach, mapping personal professional experiences against existing theoretical frameworks and academic literature in the field of business ethics.
What topics are discussed in the main body?
The main body discusses the components of organisational ethics, leadership theories, a detailed case study involving digital medical imaging, and the subsequent implications for business management and long-term sustainability.
How would you describe the key terms of this study?
The study is characterized by concepts such as integrity, transformational leadership, corporate governance, ethical safeguarding, and the balance between short-term financial gains and long-term organizational health.
How did the investor's pursuit of market advantage impact the project?
The investor’s prioritization of being "first-to-market" led to technical challenges, ethical concerns regarding patient safety, and eventually, financial losses when the product failed to meet commercial success.
What does the author suggest is the most common reason for ethical failure?
The author suggests that ethical failure often occurs when there is a lack of an ethical corporate culture, meaning a code of ethics exists only on paper rather than being integrated into daily operations and decision-making.
- Citation du texte
- MBA Andreas Keller (Auteur), 2004, Organisational Ethics - A Case study review, Munich, GRIN Verlag, https://www.grin.com/document/121276
