Measuring Ethical Business Performance and Organizational Values

Measuring Ethical Business Performance

Business or organizational ethics is based on the values defined within the organizational culture. These can be measured through various means:

• Training of ethics committees
• Mention of ethical code compliance in annual reports
• Conducting training programs on business ethics
• Statement of values that shape the organizational culture
• Identification of codes of business conduct

Evaluating Organizational Management in Applied Ethics

Management must evaluate the company by taking into account social, economic, and environmental factors. You must observe and measure different areas within the organization:

• Management area
• Relationships with human resources
• Relationships with clients and potential clients
• Relationships with suppliers
• Relationships with the environment
• Relationships with competitors
• Relationships with shareholders
• Relationships with the social context

Core Values for Area Evaluation

The following values are taken into account to evaluate the identified areas:

• Commitment of all people within the organization
• Accurate and timely communication
• Efficiency and competitiveness in activities
• Transparency of efforts
• Respect and motivation for subordinates
• Responsibility to the surrounding social environment
• Loyalty to customers

Relationship Between Values and Results

Companies should incorporate responsible purposes aimed at achieving ethical values, benefiting both employees and the community. Organizations must remain vigilant to act fairly regarding opportunities for all individuals who have a direct or indirect relationship with the company.

Furthermore, companies should avoid favoritism based on personal interests or misconduct that affects the integrity of executives. Managers must ensure that employees do not engage in such behaviors.