Nurturing an Ethical and Diverse Workplace

Nurturing an Ethical and Diverse Workplace

Building Trust in the Workplace

Introduction

In current scenario of recession, organizations resorted to shadowy decisions and unethical business practices which cause the lost of trust in employees. Deloitte conducted a survey and reported that a 68% percent of employees don't consider their leaders to be transparent in decisions and 48% don't trust their employers. Most employees also believe that their colleagues will behave unethically due the same issues. The leadership in the organizations has very little transparency which is leading to high employee turnover. In order to retain employees and improve trust between them and organization, value based culture is implemented by some organizations. Other organizations have taken similar approaches. They are empowering their employees and involving them in defining value of the company to establish trusted relationships with them and to strengthen ethics in the organizational practices.

Discussion

Effect of Leadership on the Workforce Productivity and Ethical Behavior

The recession has reduced two very important values ethics and trust which are associated with high productivity and job retention of employees. Employees don't feel that their job is secure due to the decision taken by their employers in recession and will be willing to leave the companies on the same bases. The prime factors for the employees looking for new jobs are lack of trust, lack of transparency, unethical and unfair treatment by employers. Employees feel that the companies are taking advantage of the down turn and exploiting to work on their terms. Employers and employees do agree to a greater level that they have work life balance in their lives (Deloitte LLP, 2010).

A study conducted by Leroy, H., Palanski, M., & Simons, T. (2012) concluded that authentic leadership motivates employee to remain with the organization. It is reinforced by the insight of leader behavioral honesty. If the leader shows authenticity, with behavioral integrity the follower becomes more committed to the organization. He proudly identifies himself as employee of the company who have leaders of exceptional values and who share valuable information with their employees. The follower is more inclined in promoting a positive image of company, handles changes well and actively take part in the improving the efficiencies of the organization.

Reinforcing of value based culture and establishment of trust by HRM.

Value based culture is about training everyone in the organization to do the right thing according to the values of the ...