TQM (total quality management).
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Traditionally organizations have adopted the objective of maximizing profit for the business itself and for the welfare of the business only. In the new generation managers of organizations (whether it is a corner store or a large multinational corporation), they are expected to maximize profit and at the same time act as 'good' corporate citizens for the welfare of society. Society expects managers to adopt the concept of TQM (total quality management.) Due to this change from traditional management responsibility to modern manager's responsibilities, ethical factors and social responsibility have become important aspects of managing an organization. Ethics outlines the standards of an organization of what is morally 'good' or 'bad'. The ethical dilemmas with in an organization can create concerns among employers and employees as it conflicts with their individual personal beliefs. This raises the issue of whistle blowing, which is when "individuals report unethical practices by their employer to outsiders". The reason for whistle blowing is that the whistle blower believes that unethical practices are being performed and he or she is willing to preserve the ethical standards in our society. ...read more.
The organization must also realize that it is their responsibility to act socially responsible to act for the self interest of the company and the interest of the external stakeholders. Whistle blowing helps organizations to be socially responsible, which is in itself an ethical issue. There are many reasons why an organization would want to act socially responsible. The public expects organizations to be socially responsible in today's society. Consumers have increased their social expectations today than ever before, which makes it hard for organizations not to be socially responsible. From this social expectation it allows an organization to achieve long run profits more easily and securely as there is better community, and business relations. This also creates a more positive business image. A business should also feel that they have the ethical obligation and conscience to do the 'right thing' to be socially responsible. Whistle blowing encourages this through moral values and beliefs. Companies must also realize that whistle blowing can also enhance their public image as it shows that they have an ethical workforce, working for their organization. It displays to the public that the strict chain of command of the organization does not affect what an individual wants to express, whether it is whistle blowing on an unethical issue or something regarded as not as important. ...read more.
A manager's decision making can affect the organization itself, the environment, economy and many more things. E.g. If a manager decides to package products using paper, and he/she decides to use new paper which is made by using trees from forests, it affects the environment as it destroys natural resources. The product inside the packaging may be non recyclable which is used in land fills, and is once again affecting the environment. This example shows that managers' decisions can affect the whole society and is important to think ethically and act socially responsibly. A whistle blower could report this information to the public and, the public could place pressure on the organization to become environmentally friendly. Whistle blower is the voice of ethical people in a way and can help create an ethical workforce in our society. Whistle blowers require more protection from retaliation acts by managers which is a concerning issue that needs more attention. Whistle blowing should be regarded as a valid method to control ethical behavior in our workplace and to ensure that the organization is performing in a socially responsible way. Whistle blowing may be a disadvantage for the organization in the short term but in the long term it is an advantage for both the organization and society. ...read more.
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