Is it possible for an individual with strong moral values to make ethically questionable decisions in a business setting? Although not all strategic decisions can be played out in a public forum for competitive and confidentiality reasons, the outcomes of those decisions (changes to organizational structure, design, resource allocation, product direction etc.) should be communicated as thoroughly as possible including the rationale and criteria behind the decision to help employees understand the decision and make a better connection between the firm’s espoused values and those used to make important decisions.
Rather, all stakeholders must be seen as equally important for the organization to avoid a narrow economic focus which may lead to lapses in ethical behavior which in the end, lead to severe economic and legal consequences for the organization and its stakeholders (p. 4).
They should also immediately work to change their corporate culture and reinstate a sense of ethics, integrity and responsibility in their employees which probably entails changing senior management and the Board of Directors who have now demonstrated their inability to run their companies correctly.
When employees know the true how and why behind organizational strategy, decision-making, and performance management, they generally feel more trust toward the management of their organization and thus can become more committed and engaged in their work.
The creation and requirement for transparency and sharing of information in strategy, decision-making and performance management establishes an environment where goals, and the resources and behaviors used to achieve them, can be aligned for greater cooperation and performance.