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Ethics play a role in organizational decisionmaking from "summary" of Organization Theory and Design by Richard L. Daft

Ethical considerations are a critical factor in the decision-making processes of organizations. When faced with complex choices, leaders must weigh the potential consequences of their actions on various stakeholders, including employees, customers, and the broader community. It is essential for organizations to uphold ethical standards to maintain trust and credibility in their operations. Ethics guide the behavior of individuals within an organization, shaping their actions and decisions. Leaders set the tone for ethical behavior by modeling integrity and transparency in their own conduct. Employees look to their leaders for cues on how to behave, so it is crucial for executives to demonstrate a commitment to ethical principles in all aspects of their work. Organizational culture also plays a significant role in shaping ethical decision-making. A culture that prioritizes ethical behavior fosters an environment where employees feel empowered to raise concerns and address ethical dilemmas openly. By promoting a culture of ethics, organizations can create a sense of shared values and purpose among employees, leading to increased morale and motivation. Furthermore, ethical decision-making is essential for maintaining the long-term sustainability of an organization. Unethical behavior can damage a company's reputation, leading to legal repercussions, financial losses, and a loss of stakeholder trust. By prioritizing ethics in decision-making processes, organizations can mitigate risks and build a solid foundation for long-term success.
  1. Ethics are a fundamental aspect of organizational decision-making processes. Leaders must uphold ethical standards, foster a culture of ethics, and prioritize ethical considerations in their actions to ensure the sustainability and credibility of their organizations. By integrating ethics into decision-making processes, organizations can build trust with stakeholders, maintain a positive organizational culture, and secure their long-term viability.
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Organization Theory and Design

Richard L. Daft

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