Organizations that are devoted to diversity are making an ethical undertaking to recruit as well as treat employees with fairness, for instance, Google. Particularly, in the board of directors this sets a leadership example and communicates to the staff that the firm is focused on providing equal chances for every individual. Diversity on the board is still not totally achieved in most businesses since the percentage of marginalized groups remains low. Corporations are struggling to comprehend the subtlety of intersectionality as they contend with how to establish techniques that offer opportunities for success and progression for all. From equality to pollution and accounting controversies, business ethics has been an issue of discussion ever as it is associated with corporate social responsibility, which plays an important role in ethical investing. This paper looks at business ethics and corporate social responsibility, theories of leadership, and how they can help in solving the issue of diversity in organizations.
Definitions
Corporate social responsibility is the policies and practices done by companies intended to have a positive impact on the environment. Business ethics refers to a form of professional or applied ethics that analyzes principles as well as moral issues that can emerge in a business setting (De Bakker et al., 2019). Diversity means the practice of including individuals from various ethnic and social backgrounds. In organizations, this can be seen when recruiting, hiring, and promoting employees.
Theoretical Background: Corporate Social Responsibility
Corporate social responsibility (CSR) is a model that aids companies in being socially accountable to not only themselves and the public but also to stakeholders. By practicing it, organizations can be conscious of the type of influence they are having on every aspect of the society, including social, economic as well as environmental. To engage in this practice means that a firm is operating in a manner that improves the society and its surroundings rather than negatively contributing to them. This is a broad concept that has the ability to take various forms depending on the industry or the company (Agudelo et al., 2019). Through the programs in CSR, a business can boost its brand or image and still benefit the community around them.
As essential as corporate social responsibility is for society, it is valuable for the organization. The activities can aid in forging a stronger bond between corporations and employees, uplift the motivations and help both employers and their juniors to feel more linked to the environment around them. For a firm to be regarded as socially responsible, it initially requires to be accountable to itself as well as its stakeholders (Agudelo et al., 2019). Those that adopt the CSR programs have usually improved their business to the extent whereby they can offer back to the community. Therefore, this is an approach that is implemented by large companies. The more successful and visible an organization is, the more responsibility they have to set the standards of ethical behavior for peers, rivals, and the industry.
Google’s corporate social responsibility efforts include its charity programs through google.org, which has already provided more than one hundred million dollars in investments and grants. Through the website, they seek to address global public health, climate change as well as global poverty. Additionally, the organization has included ethics and international environmental standards in its Supplier Code of Conduct in an attempt to address the stakeholder group of communities (Latapí Agudelo et al., 2019). These activities are related to the company’s ideology which suggests making money without doing any evil. Therefore, the firm’s efforts have great effectiveness in satisfying the stakeholders’ interests.
Business Ethics
Companies establish business ethics to foster integrity amongst their employees as well as obtain the trust of vital stakeholders, for example, consumers and investors. Whereas corporate ethics initiatives are becoming common, the quality differs. According to a survey conducted on the topic, less than one person in four in the United States thinks that their corporation has a well-implemented program (De Bakker et al., 2019). Nowadays, close to all companies have established or planning to have one. Partly, that is due to digital communication, and technology has made it easier to recognize and publicize ethical mistakes. To prevent the ramifications, firms are committing more of their resources to business ethics. In another study, fifty-five percent stated that they believe the significance of business ethics will grow gradually in the next three years (De Bakker et al., 2019). Additionally, they are creating workplaces that are ethical by recruiting and hiring the best talent.
Honesty and high integrity are the essential skills for a business leader. In the current times, business professionals have to understand the connection between success and ethics. Based on research, employees are more probably to use ethical reasoning when their organization illustrates the importance of ethics. More than ninety percent of the United States employees who experience a great ethical culture stated that they are prepared to handle issues (De Bakker et al., 2019). Corporations that advocate for this empower their workers to perform with integrity.
The initial step in creating this type of ethical culture is starting an ethics program. A complete ethics program must address every business function, including marketing, human resources, and operations. Gartner, which is an international research organization, advises leaders to incorporate their ethics program into operations. By doing that, they get a chance to capitalize on its impact by ensuring that ethical processes are part of their employees’ workflow. Organizations have an important role in developing good practices in terms of business ethics. However, educational institutions such as schools as well play a critical part in shaping the leaders (De Bakker et al., 2019). It is a fact that business professionals nowadays encounter some of the most significant issues which need critical thinking as well as ethical reasoning to address, for example, climate change.
Diversity
Diversity in the work environment is an issue that is greatly the human resource in recent times. Employers are seen prioritizing equity, diversity as well as inclusion programs and investing resources into ensuring that their teams are set to succeed. By focusing on this, they are not only proving to be smart but right too in terms of humanity. A company is said to be diverse if the staff consists of people with various traits, for example, religion, race, gender, age, sexual orientation, ethnicity, and education. Although there are challenges that may present when establishing and implementing diversity initiatives, the benefits an organization gets are many.
Google corporation’s latest diversity report indicates that in spite of the improvement in the number of African American workers, it remains behind in its objective of doubling the number by 2025. It is especially having problems retaining females from the black community (Roberson, 2019). It utilizes a scale it refers to as an attrition index, with 100 being the benchmark. The score for black women rose from one hundred and ten to one hundred and forty-six between 2020 and 2021 (Roberson, 2019). Among the Native females, the score was one hundred and forty-eight in 2021, which is twenty-five more than the previous year (Roberson, 2019). Last year’s figures were greater for both Asian and Latinx males and females.
The organization has made some progress in its diversity goals by hiring twice the number of African American workers to be part of its United States leadership team. The number of females as well has seen an improvement from twenty-six percent to twenty-eight percent (Roberson, 2019). Even with these efforts, the percentage of men stands at sixty-eight and thirty-two for women (Roberson, 2019). Fifty percent of the staff is white, forty-two percent Asian, and the other communities make up the remaining eight percent (Roberson, 2019). In 2021, Google faced much criticism for how it fired Timnit Gebru, a black artificial intelligence, after writing concerning risks related to implementing large language models. She accused the company of racial profiling her and encountered online harassment for an extended time after the incident. To be able to achieve diversity, Google needs to continue with great leadership approaches and principles.
Theories of Leadership
The contingency theory refers to an organizational concept which argues that there lacks an ideal way of organizing a company, leading it, or reaching decisions. Rather, the optimal course of action is dependent on both the internal as well as external situation (Abedin, 2021). Contingent business leaders have flexibility in selecting and adapting to concise approaches to fit the change in circumstance at a specific point in time in a corporation running (Offermann & Coats, 2018). This notion has its strengths, for instance, it is supported by a great body of empirical study and knowledge. This is vital as it shows that the concept is dependable, according to a variety of research and experiments.
The contingency notion is as well advantageous as it widens companies’ comprehension of leadership by convincing people to consider various effects of situations on a leader. Another benefit is its ability to predict, as it offers comprehension of the kinds of leaders that will be most productive in particular circumstances (Abedin, 2021). This concept is helpful as well since it recommends that a leader does not have to be effectual in every situation and that there are certain scenarios in which someone might not perfectly fit. Lastly, it gives adequate information about leadership styles applicable to corporations developing their profiles.
Google can make use of this theory to determine the ideal candidate for a particular set of employment requirements. This helps to determine the effectiveness of an individual in that role (Abedin, 2021). By measuring their LPC score, the company can predict if the person will be productive in a specific setting. Once a determination of the nature of the situation happens, the suitability between their leading style and situation can be assessed. This concept can be beneficial for the efforts of the company in the discussion of improving diversity.
Situational Leadership Theory
The situational theory implies that leadership style relies on the type of strategies that are ideal for the available task. It suggests that an effective leader is one that can adapt their approach to a situation. They look at certain cues that might lead to completion of the job, for example, the group’s nature and type of task. The basic principle of this model is that there lacks the best leadership style (Thompson & Glasø, 2018). The most impactful individuals are those that adapt their ideologies about leading to the performance readiness of those they are leading. Effective leadership differs with the followers and the task to be achieved.
Situational leadership theory is well recognized and often utilized to train leaders within companies. Practical application is how to select the best approach for a particular situation (Thompson & Glasø, 2018). This model is constructed around the notion that various workers are at another level of development or maturity phases which depicts the relative competence as well as the devotion of subordinates to a particular task. For a leader to be productive, it is important that they determine where subordinates are in terms of the maturity levels and adapt their styles in a manner that matches that of development level. The approach is mutually advantageous to both followers and leaders since the latter has the chance to save their energy and time by knowing the maturity levels of the former.
It is designed in a manner that increases the frequency as well as the quality of conversations concerning the development and performance between managers and those that work for them. The reason behind this is to ensure that commitment is obtained, competence is developed, and talented employees are retained. Leaders at Google can attempt to use this concept and set certain goals that will help the company improve in various aspects (Thompson & Glasø, 2018). For instance, developing knowledge on the interaction styles and how the model can aid in gaining much more insight into themselves. Another one realizes how their preferences can impact them and others. Third, knowing the significance of adapting own style of interaction to better their effectiveness. Lastly, knowing the adverse effect of excessive supervision as well as its inadequacy of it on the morale and performance of workers.
Transformational Leadership Theory
Transformational leadership refers to whereby someone in a leadership position works with followers or teams beyond their immediate self-interests to recognize the required change. Thus, they create a vision to guide the change via inspiration, influence as well as implementation in tandem with devoted group members. This elevates the maturity levels of those being led and their concerns for accomplishment. In this theory, the behaviors of one person have the ability to impact or affect those they are leading and motivate them to work and attain outcomes beyond their expectations.
Transformational leaders inspire individuals to accomplish unanticipated results. It enables employees’ autonomy over particular jobs and the capacity to reach decisions once they have received training. This causes a positive change in their attitudes as well as the organization. They perform various behaviors distinct and called the four I’s, including idealized influence, inspirational motivation, individualized consideration, and intellectual stimulation (Siangchokyoo et al., 2020). This concept serves to better the morale, motivation, and performance of a follower via various techniques. For instance, linking their sense of identity to a project and the general identity of the company.
It is essential to comprehend the traits that transformational leadership can cause in a particular work environment. It enhances the involvement, commitment, performance, and loyalty of those being led. The latter exert additional effort towards supporting their leader, emulate them to ensure they can relate to the situation of the leaders, and remain obedient without losing self-esteem. Management that chooses to apply this theory has the ability to adapt to various circumstances, which is something that Google should seek (Siangchokyoo et al., 2020). This concept has been applied in various contexts that are relatable to business as well. When studying leadership, it is critical that one researches some of the successful ones in the world and checks if their tenure matches the principles of the particular theory.
A case example of someone who applied or used this theory is Nelson Mandela, who is regarded as among the best leaders ever. He utilized some of the principles while aiming to eliminate apartheid as well as enforce change in his nation. In 1995, he paid a visit to Betsie verwoed at her home (Lo et al., 2018). The area was a reminder of the type of racism Africans persevered in the hands of white settlers. His emphasis on the idea of forgiveness led to the healing of the injustices in the country. He inspired many and explained that every one of them had the obligation towards a change since it required a collective effort.
Summary
The paper has shown that corporate social responsibility is the policies and practices done by companies intended to have a positive impact on the environment. It has as well explained that diversity means the practice of including individuals from various ethnic and social backgrounds. In organizations, this can be seen when recruiting, hiring, and promoting employees. A company whose workforce is diverse can be said to be practicing business ethics. This refers to a form of professional or applied ethics that analyzes principles as well as moral issues that can emerge in a business setting.
References
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