Explain the common causes of Loss of Ethics and Values.

Common Causes of loss of Ethics and Values Unclear Policies in some cases: Managers and employees exhibit poor ethical behavior because the company does not offer a clear model of ethics. Some businesses have no formal ethical policy documents and offer no guidance at all. Others have policies that are unclear, vague, inconsistent or not consistently enforce. Conflict between Organisational & Individual Goal: When the Organizational & individual Goal overlap it becomes difficult to balance things. The problem arises when one thing has to be sacrificed for the sake of others. To achieve Organisational goal, has to be compromised and vice versa so this leads to Ethical Dilemma. Cultural Value & Background: Every individual decision is based on background. For some people it may be ethical to give priority for self and then decide about others but for some others it may be others way round. Thus background of value system creates the ethical Dilemma. Situation when a decision is taken by a manager: It may be so that situation demands him to decide on certain things which dealing with ethical dilemma. Each Company's culture is different, but some companies stress profits and results above all. In these environments, management may turn a blind eye to ethical breaches if a worker produces results, given the firm's mentality of "the end justifies the means." are not beneficial for all but will benefit the company alone. Example- Automation of a plant. Dynamic & Different Human nature: Ethical Dilemma arise due to difference of the opinion among the group of people. Whatever is ethical for one person, may be unethical for another. Ambition and Discrimination individual workers may be under financial pressure or simply hunger for recognition. If they can't get the rewards they seek through accepted channels, they may be desperate enough to do something unethical, such as falsifying numbers or taking credit for another person's work to get ahead. Though diversity is an important part of business, some people may not be comfortable with people from different backgrounds and possibly be reluctant to treat them fairly. This kind of discrimination is not only unethical but illegal and still remains common. Pressure from Management: Each company's culture is different, but some companies stress profits and results above all. In these environments, management may turn a blind eye to ethical breaches if a worker produces results, given the firm's mentality of "the end justifies the means". Whistle-blowers may be reluctant to come forward for fear of being regarded as untrustworthy and not a team player. Therefore, ethical dilemmas can arise when people feel pressurized to do immoral things to please their bosses or when they feel that they can't point out their co-workers' or superiors' bad behaviours. Negotiation Skills: While these factors can cause ethical dilemmas for workers within their own companies doing business with other firms can also present opportunities for breaches. Pressure to get the very best deal or price from another business can cause some workers to negotiate in bad faith or lie to get a concession. Conflicting Values: Ethical dilemmas may occur because of conflicting values between two or more people in an organization. One manager may value product quality over quantity while another may value thriftiness. These managers may discuss charging to a cheaper supplier for a material used in production because of the potential to save money. However, the first manager may object because he knows the cheaper material will produce a product of lesser quality, which is not good for customers. Without a culture of shared values, the least ethical choice may be approved. Organisation for economic Co-operation and Development (OECD) has also described various principles on "Corporate Governance" one of these Principle includes Disclosure and Transparency, which states "the corporate Governance" framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company"