What Does It Mean To Say That Greed Is Good
“Greed is good. Greed is right. Greed works.” (Gordo Gecko). Taking this particular belief system into consideration, it is evident that from an economic perspective, acting according to self-interest within a corporate environment, in turn significantly benefits the public. Enron however is a picture-perfect example of excessive greed not bringing about the above stated benefits to employees and society. Immoral behaviour and unethical leadership ultimately resulted in ethical scandals, major financial losses and the colossal downfall of a highly successful company. This situation could have been prevented through the right decisions being made by top management to lead the firm with ethical values integrated into their systems. This role
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of the leader in an organisation is further explored in this piece.
Before looking at the role of the leader in detail, it must first be established what an ethically lead organisation looks like. Ethical corporate legitimacy is achieved when the actions of individuals, namely leaders and employees, and relational dynamics are in line with the goals of the firm (Woermann, 2011). The behaviour of individuals in an ethical firm will be congruent with the rules of the organisation, whether spoken about or not. This is how goals of the firm are met. Every employee should have a clear understanding of what the morally correct behaviour in a firm should look like. This includes moral values such as honesty, integrity and behaviour which considers long term benefits for the firm that are not only financial, but ethical as well. Relationships should exist within the organisation that promotes openness and willingness to share information, negative or positive, so that a culture of communication is established. Leaders are also clear on the fact that they are role models to the rest of the firms employees, thus they are sure to practice a policy of constantly delivering on promises. They understand that there must be consistency between words and actions. (Woermann, 2011) Thereafter, ethical values must be reinforced. Unethical actions are not ignored and are dealt with swiftly so that further damage can be prevented. Rewarding of employees, for example promotions and bonuses, must be considered not only upon financial achievement, but also the behaviour portrayed leading up to these financial successes must be analysed.
As stated earlier the most important contribution that a leader can bring to a successful organisation is to be a role model to other employees.
This can be seen as rather emphasising the importance of ones actions rather than word, although words are still excessively important due to the integrated communication of the leaders with the employees. Furthermore, when communicating, it is important to focus on the actions and discussion of how these actions can be brought about in an ethical way. A leader must be able to cultivate trust among employees and also ensure that they know that their contribution to the firm is valued. They must know that their actions and behaviours are directly linked to the image of the firm. This can only be done by a leader that understands that implementing appropriate strategies to motivate ethical behaviour is essential in the success of an organisation.
Implementing ethical strategies will only be effective if the firm has employees which are naturally drawn to a decision that is morally correct. Thus it is essential that the firm originally employs people of high moral standards. This can be ensured through strategic interviews and interrogative questions which highlight these values and standards of the individual at first meeting
point.
With the knowledge that the firms employees are ethical people, the leader can feel more at ease in trusting them with important tasks. Responsibility must be laid upon the employee, so that they may feel part of the firm and understand that they contribute to its success. If ethical values are praised and reinforced, employees will strive to manage their responsibilities according to these behavioural standards. Furthermore, through this, trusted relationships are cultivated between leaders and employees that help to minimise conflict among people in the organisation due to individuals not meeting their responsibilities with integrity or honesty.
Consequences of unethical behaviour, intended or unintended, by employees could seriously affect the firm’s reputation, such as in the case of Enron who lost investors, money, and their good name. It is critical for the leader to be the example for the employees and to ensure that consequences are seen to and controlled.
A leader should set a clear example of what behaviour he expects from his employees; portraying values of honesty, integrity and trust. The only way to ensure employees display ethical behaviour is by long term delivery on promises by the leader. It is the leaders responsibility to ensure that new employees are trained to understand the ethical codes of conduct and that old employees are continually reminded of the codes through a refreshment course. Pressure is put on the leader to achieve economic goals, thus he must make sure that he has firm ethical standards in place for himself that he will not compromise on to attain these ideals.
For the leader to communicate with employees in the organisation is of critical importance so that no loop hole may exist in the network of information shared. Constant communication in the form of report backs and daily meetings will make sure that the leader is informed about all major decision makings within the firm. An environment is created where ethics are prioritised when reviewed on a regular basis. If multiple leaders manage simultaneously, it would be a good idea to focus on communicating exactly the same ethical expectations to employees from all leaders involved.
Although cultivating and ensuring an ethical organisation is a complex process, it is possible to achieve through rigid structures and rules that are continually enforced and monitored. A firm is an intricate network of individuals all possessing their own value systems and beliefs that may result in conflicting views and opinions. Thus it is essential to safeguard that the best possible combination of individuals are put together for the best net result in ethical behaviours. Furthermore, the pushing of ethical boundaries must at all costs be prevented so that ethical standards may stay constant in the long run. This ensures that employees are never uncertain about the nature of their behaviour. If all of the above mentioned strategies are put into practice, a situation similar to what happened in Enron is highly unlikely to occur in today’s organisational environment. Valuable lessons are learned through the Enron case study and this awareness about ethical dilemmas has helped firms to prevent firms from landing up in similar positions.
of the leader in an organisation is further explored in this piece.
Before looking at the role of the leader in detail, it must first be established what an ethically lead organisation looks like. Ethical corporate legitimacy is achieved when the actions of individuals, namely leaders and employees, and relational dynamics are in line with the goals of the firm (Woermann, 2011). The behaviour of individuals in an ethical firm will be congruent with the rules of the organisation, whether spoken about or not. This is how goals of the firm are met. Every employee should have a clear understanding of what the morally correct behaviour in a firm should look like. This includes moral values such as honesty, integrity and behaviour which considers long term benefits for the firm that are not only financial, but ethical as well. Relationships should exist within the organisation that promotes openness and willingness to share information, negative or positive, so that a culture of communication is established. Leaders are also clear on the fact that they are role models to the rest of the firms employees, thus they are sure to practice a policy of constantly delivering on promises. They understand that there must be consistency between words and actions. (Woermann, 2011) Thereafter, ethical values must be reinforced. Unethical actions are not ignored and are dealt with swiftly so that further damage can be prevented. Rewarding of employees, for example promotions and bonuses, must be considered not only upon financial achievement, but also the behaviour portrayed leading up to these financial successes must be analysed.
As stated earlier the most important contribution that a leader can bring to a successful organisation is to be a role model to other employees.
This can be seen as rather emphasising the importance of ones actions rather than word, although words are still excessively important due to the integrated communication of the leaders with the employees. Furthermore, when communicating, it is important to focus on the actions and discussion of how these actions can be brought about in an ethical way. A leader must be able to cultivate trust among employees and also ensure that they know that their contribution to the firm is valued. They must know that their actions and behaviours are directly linked to the image of the firm. This can only be done by a leader that understands that implementing appropriate strategies to motivate ethical behaviour is essential in the success of an organisation.
Implementing ethical strategies will only be effective if the firm has employees which are naturally drawn to a decision that is morally correct. Thus it is essential that the firm originally employs people of high moral standards. This can be ensured through strategic interviews and interrogative questions which highlight these values and standards of the individual at first meeting
point.
With the knowledge that the firms employees are ethical people, the leader can feel more at ease in trusting them with important tasks. Responsibility must be laid upon the employee, so that they may feel part of the firm and understand that they contribute to its success. If ethical values are praised and reinforced, employees will strive to manage their responsibilities according to these behavioural standards. Furthermore, through this, trusted relationships are cultivated between leaders and employees that help to minimise conflict among people in the organisation due to individuals not meeting their responsibilities with integrity or honesty.
Consequences of unethical behaviour, intended or unintended, by employees could seriously affect the firm’s reputation, such as in the case of Enron who lost investors, money, and their good name. It is critical for the leader to be the example for the employees and to ensure that consequences are seen to and controlled.
A leader should set a clear example of what behaviour he expects from his employees; portraying values of honesty, integrity and trust. The only way to ensure employees display ethical behaviour is by long term delivery on promises by the leader. It is the leaders responsibility to ensure that new employees are trained to understand the ethical codes of conduct and that old employees are continually reminded of the codes through a refreshment course. Pressure is put on the leader to achieve economic goals, thus he must make sure that he has firm ethical standards in place for himself that he will not compromise on to attain these ideals.
For the leader to communicate with employees in the organisation is of critical importance so that no loop hole may exist in the network of information shared. Constant communication in the form of report backs and daily meetings will make sure that the leader is informed about all major decision makings within the firm. An environment is created where ethics are prioritised when reviewed on a regular basis. If multiple leaders manage simultaneously, it would be a good idea to focus on communicating exactly the same ethical expectations to employees from all leaders involved.
Although cultivating and ensuring an ethical organisation is a complex process, it is possible to achieve through rigid structures and rules that are continually enforced and monitored. A firm is an intricate network of individuals all possessing their own value systems and beliefs that may result in conflicting views and opinions. Thus it is essential to safeguard that the best possible combination of individuals are put together for the best net result in ethical behaviours. Furthermore, the pushing of ethical boundaries must at all costs be prevented so that ethical standards may stay constant in the long run. This ensures that employees are never uncertain about the nature of their behaviour. If all of the above mentioned strategies are put into practice, a situation similar to what happened in Enron is highly unlikely to occur in today’s organisational environment. Valuable lessons are learned through the Enron case study and this awareness about ethical dilemmas has helped firms to prevent firms from landing up in similar positions.