Analyzing Leadership and Ethics IssuesEssay

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¶ … ethics in an organization, and their association with organizational effectiveness. Organizational leadership skills and traits necessary for tackling ethical issues will also be examined.

Importance of Organization Ethics/Organizational Effectiveness

Ethics is being prioritized in organizations. In the present era, ethics isn't an option or a luxury. Society is becoming increasingly intolerant towards irresponsible and selfish behavior, which enriches crafty individuals whilst impoverishing others. Hewlett-Packard exhibited its dedication to ethicality during former Chief Executive, Carly Fiorina's leadership. She stated, of her time as CEO of the company (i.e., six years), that some among the most crucial choices she ever had to make was firing employees who behaved without integrity. By contrast, the R. J. Reynolds Tobacco Company came under fire for trying to cover up vital information concerning nicotine's addictive nature (Brimmer, n.d). Tolerance of bad behavior for improving organizational bottom line, followed by justifying the action as not being really illegal eventually gives rise to a corrosive climate. Aside from social responsibility, other compelling incentives exist for corporations to prioritize ethical values in the twenty-first century.

Ethics mustn't be given the mere status of a moral or legal obligation; rather, it must be accorded high priority in organizations. Organizational leaders should also constantly monitor their vision, mission, company culture, values, goals, and strategy. Amidst all the above elements, incorporating another element as a key priority is no easy task. There are several critical aspects within a company, with varying levels of importance; however, only some of these will be extremely crucial. Ethical values must be recognized as one of the most crucial and leading success factors for modern-day organizations. Ethics, as a priority for companies, will impact decision-making as well as, eventually, the culture of the organization (Brimmer, n.d). For achieving this ideal, a process of alignment is required, which combines business ethics and corporate vision, mission, objectives, values, and strategies. Ethics are principally of a social nature, and hence, this process of alignment will involve relationships as well as the outlining of relationship-based expectations.

Ethical Issue Faced by Organization

The U.S. and Chile outlets of Starbucks have been bombarded with labor discord; unionized workers of the coffee giant have initiated a solidarity campaign and protest for improved worker benefits and wages. The multinational coffee chain encountered its foremost worker protest at their cafes in Chile, following a mass walk-out of over two hundred unionized baristas on the 7th of July. Members of Chilean trade union, Sindicato de Trabajadores de Starbucks Coffee Chile have been demanding for a rise in wages to help them survive the inflation, increased contribution of their employer towards worker health insurance, and a stipend for lunch similar to that offered to managers (Yoshikane, 2011). Numerous union leaders intensified their efforts through the launch of a weekend hunger strike staged before Starbucks' Santiago office, for drawing out the company's representatives for negotiations.

The company, which began its business in Chile in the year 2003, currently has over thirty stores within the country. Approximately a third of its 670-strong Chilean staff is unionized. On a global level, 17,009 Starbucks cafes are primarily nonunion. From 2002-2010, the company was labeled by Fortune as one among the top 100 companies to be employed in. Also, from 2007-2010, Starbucks was ranked by Ethisphere as one among the most ethical organizations in the world. However, disputes between the company and baristas in relation to union activity have occurred in the U.S. According to a Reuters report, Starbucks cafes across the nation haven't closed down at the time of protests; instead, nonunion workers have substituted protesting workers. Jin Olson, a spokesman for Starbucks, informed Wall Street Journal, the international daily, that Chilean workers' wages exceeded industry standards; the total compensation for starting baristas was 30% more than industry average. Furthermore, Starbucks covers 70% of worker healthcare and offers them company stock (Yoshikane, 2011). A list presented by the protesting workers of what they desire from the company (comprising 25 items in total), includes bonuses for a newborn and for weddings; these lie well outside standard Chilean business norms. However, the union isn't ready to agree upon this. The Sindicato claims that workers have been denied a raise since 8 years. On the basis of consumer price index (CPI) adjustments, it asserts that employees received 31% lesser compensation… [END OF PREVIEW]

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