Accounting

Power and Ethics in the American orporation

Power is very important to the managers or leaders of any organization since it is essential in the directing of its staff. However, the process of acquiring power and using it usually ruins the ethics and values held in the organization (Kelly, 1988 p.3). Discussion Power defines leadership in any company and by definition. leadership refers to the ability to direct a group of employees towards achieving the goals of an organization. Therefore, leadership has formed the basis of classifying managers into five groups or profiles, namely: leader, destructive achiever, builder, mechanic, and innovator (Kelly, 1988 p. 4). The leader refers to the ethical manager who effectively uses his charisma to lead other employees towards achieving organizational goals. The builder, on the other hand, refers to the manager who might be ethical but lacks charisma. Therefore, they are referred to as leaders with limited leadership potential. The destructive achiever is an unethical manager who, even though might have high potential, he or she will not contribute towards the achievement of the long term goals of the organization. The innovator is a very creative manager in his or her field but is not termed as a leader and is sometimes termed untrustworthy. Lastly, the mechanics refer to the persons that are competent in their profession but lack the personal impact towards settling of group issues. Therefore, they are not considered leaders or builders of the organization. From the managers listed above, it is evident that for any organization to be prosperous, it requires leaders who are ethical and have charisma which is essential in the realization of the long-term goals of the organization. Ethics is demanded by society in any given part of the world. Therefore, it has led to the classification of ethics into two groups: the ethics of integrity and ethics of social responsibility. The demand for integrity in the business came into existence following the arrival of the new millennium, which led to an increased number of accounting scandals that occurred in different parts of the world. The results were negative for example. many organizations lost their trust in the corporate world. The demand for social responsibility maintains safety to the society as well as the environment it operates (Jeurissen 2007, p. 3). According to ethics, the exercise of power must conform to the cultural standards as well as the legal standards of ethics. For instance, it has been termed unethical for any organization to use power for its own gain by engaging in illegal activities. For example, an HR assistant has the power of representing the services of the company to client companies as a process of obtaining customers. However, if he or she lies to the clients as a way of gaining more clients is an unethical behavior (Society for Human Resource Management, 2006 p.180). Many workers or employees of an organization have been in dilemma following the use of power by the seniors. Many employees have experienced tough challenges in choosing between what is good for the organization in terms of profitability and what is right according to the set ethical standards in the community. The findings of the research conducted among the graduates at Harvard revealed that young managers were being forced to make decisions, some of which were unethical by their seniors. Even though the actions were unethical, the young managers still complied because of fear of losing their jobs.

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