Running head: ETHICS FRAMEWORK

Ethics Framework
Dion Meneley
MGMT 560/ Southwestern College
Dr. Roger Fuller
February 27, 2016

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Ethics Framework

Senior leadership must make ethical behavior a personal and organizational priority
(Millar & Poole, 2011). In todays constantly expanding marketplace, organizations need leaders
whose ethical standards are driven by more than simple compliance with laws and regulations.
The purpose of this paper is to define the concepts of corporate social responsibility,
environmental sustainability, globalization, ethical leadership, and global ethical corporate
citizenship, and explain the importance of having such a framework for understanding ethics on
the part of a global organizations leadership.
Ethics Defined
Ethics, as it pertains to business can be defined as coming to know what it right or
wrong in the workplace and doing what's right -- this is in regard to effects of products/services
and in relationships with stakeholders (McNamara, n.d., para. 8). In order to understand ethics,
it is important to understand what ethics is not. According to Andre, DeCosse, Hanson, McLean,
Meyer, Moberg, Shanks, and Velasquez (2015) ethics is not the same as feelings, religion,
following the law, following culturally accepted norms, and it is not science. Although all of
these can be considered components of ethical behavior; on their own, they do not define it.
Every persons definition of ethical behavior will likely be different because of the variation of
influences in their lives; however, as it pertains to an organization, every member of an
organization must act in accordance with the principles set forth by leadership. Ethics, in a
general sense, is a set of beliefs or rules that guide the behavior of a person or organization.

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Corporate Social Responsibility Defined

Corporate social responsibility is engaging in business practices that benefit society.

According to Yip, Van Staden, and Cahan, (2011) Increasing concern about the sustainability of
the world's resources has contributed to the rising importance of corporate social responsibility
(p. 18). Corporate social responsibility; however, is not limited to environmental issues.
It is a companys duty to operate in an honorable manner, provide good working
conditions for employees, encourage workforce diversity, be a good steward of
the environment, and actively work to better the quality of life in local
communities where it operates and in society at large (Thompson, Peteraf,
Gamble, and Strickland, 2014, p. 270).
In short, corporate social responsibility is operating an organization in a manner that ensures that
everyone and everything impacted by business operations are done so in ethical manner.
Environmental Sustainability Defined
Environmental sustainability refers to the usage of renewable resources that can be
sustained for an indefinite amount of time. Regardless of an organizations size, it is their
responsibility to ensure that they are operating in a manner that is respectful of the environment
surrounding them. In order for this to happen, the organization must agree on and develop goals
and objectives that drive environmentally sustainable practices throughout the organization
(Anderson, 2015). According to Hall and Slaper (n.d.), Environmental variables should
represent measurements of natural resources and reflect potential influences to its viability (p.
4).

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Globalization Defined

Globalization refers to organizations doing business around the world instead of staying
in one locale. The main dimensions of globalization are political, informational, technological,
administrative, and cultural (Pirnuta, 2013). Largely due to the internet and easy of travel, we
live in a worldwide marketplace. For instance, when a person sits down at their computer and
places an order using Amazon, the product they purchase may come from down the road or
around the world. From an organization standpoint, it is imperative that all laws and policies are
abided by when doing business globally.
Ethical Leadership Defined
Ethical leadership requires the recognition that the standards of compliance set by law
and regulation are merely standards and not measures of ethical conduct (Millar and Poole,
2011, p. 11). An ethical leader must exhibit a people-first attitude, have a humble spirit, have
values that they are committed to, and be able to articulate a clear mission and purpose to those
around them. Being an ethical leader has nothing to do with know what is right or wrong, but
being able to demonstrate what the right thing is in every situation. An ethical leader is able to
recognize an ethical issue, get the necessary facts, evaluate alternative actions, make a decision
and test it and then act and reflect on the outcome (Andre, DeCosse, Hanson, McLean, Meyer,
Moberg, Shanks, & Velasquez, 2015). Ethical leaders inspire those around them to willingly
follow the standards and objectives set before them.
Global Ethical Corporate Citizenship Defined
Global banks, hedge funds and corporations, as well as many governments,
intergovernmental and non-governmental organizations engage globally throughout the world, in
multiple languages and with a finely nuanced understanding of the cultural differences that

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divide or unite the many countries where they operate (Sen, 2015, p. 9). When operating
globally, organizations must not only respect the traditions and cultures of the communities they
are doing business in, but also introduce them to the traditions and cultures they bring with them.
Global citizenship, as defined by Sen is a demonstrated capacity and commitment to translate
the learning dispositions of international mindedness into action through global engagement (p.
9). The concept of corporate social responsibility, as covered previously, must still be put into
practice locally and globally. Integrating into communities can sometimes start off very easily;
however, over time the new wears off and differences tend to surface. It is vital that
organizations that do business globally continually work with local community leaders and other
members of the community to ensure that they are conducting business ethically as it relates to
environmental, cultural, and economic issues.
Conclusion
The purpose of this paper was to define the concepts of ethics, corporate social
responsibility, environmental sustainability, globalization, ethical leadership, and global ethical
corporate citizenship. In summary, an ethical leader recognizes what is right and does it as it
pertains to their organization and those that are affected as a result of their decisions. It is the
duty of a corporation to operate in a socially responsible manner and work to improve the quality
of life in communities it operates in. Due to the worldwide marketplace in existence today,
companies must be ready and willing to address the different dimensions that globalization
presents if they are to complete in the global market. The concept of global ethical corporate
citizenship is not a concept that is limited to communities and markets abroad. The concept of
understanding the traditions and cultures of the citizenry being serviced is important; however, it
is vital that one is willing to share their own culture with the people they come in contact with. It

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is absolutely imperative that a global organization have an ethical framework, as detailed above,
if it is to sustain long term success in a global market. Corporations such as Enron, AIG,
Coutrywide Financial, etc. enjoyed success for a period of time; however, their unethical
practices caught up to them and ruined the lives of people within and outside the companies for
years to come. Ethical leadership, in my opinion, is the only way to lead. There are many
corporate psychopaths that enjoy an tremendous amount of success, but I believe that ethical
leadership produces much more healthy organizations.

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References

Anderson, D. (2015). Organization development: The process of leading organizational change.

Thousand Oaks, CA: Sage.
Andre, C., DeCosse, D., Hanson, K., McLean, M., Meyer, M., Moberg, D., Shanks, T., &
Velasquez, M. (2015). A framework for ethical decision making. Retrieved from
https://www.scu.edu/ethics/ethics-resources/ethical-decision-making/a-framework-forethical-decision-making/
Hall, T. & Slaper, T. (n.d.). The triple bottom line: What is it and how does it work? Retrieved
from www.ibrc.indiana.edu/ibr/2011/spring/article2.html.
McNamara, C. (n.d.). Complete guide to ethics management: an ethics toolkit for managers.
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Millar, C. & Poole, E. (2011). Ethical Leadership: Global challenges and perspectives. New
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Prnuta, O. (2013). The security environment and the phenomenon of globalization: Dimensions
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accountid=13979
Prive, T. (2012). Top 10 qualities that make a great leader. Retrieved from
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Sen, G. (2015, Autumn). Global citizenship - the need for ethical distinctions. International
School, 18, 9-11. Retrieved from http://ezproxy.sckans.edu/login?
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Thompson, A., Peteraf, M., Gamble, E., & Strickland, J. (2014). Crafting and executing strategy:
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Yip, E., Van Staden, C, & Cahan, S. (2011). Corporate social responsibility reporting and
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