The experiences of organizations such as Enron, Tyco, WorldCom, Andersen Consulting, Riggs Bank, ImClone, Martha Stewart, Qwest, Adelphia are noteworthy in the sense that unethical practices taken recourse to with the connivance and knowledge of the organization's leaders can spell doom for the organization in the long-run. Such practices create a negative climate in which unethical behavior thrives.
Unethical conduct by an organization's leaders can have far-reaching implications for the organization's external as well as internal stakeholders, i.e., its employees. It can affect corporate reputation, customer satisfaction, quality of products and services, corporate image, and eventually erode the bottom line. It can breed a negative work climate characterized by abominable behavior such as manipulation, backstabbing, lying, cheating, misrepresentation of facts, etc. All these behaviors and negative organizational dynamics erode the trust of employees, leading to loss of morale, loss of productivity, turnover, stress, etc. |
