The Millennuium University
ASSIGNMENT
ON
EXPLAIN THE ESSENTIAL STEPS TO ESTABLISH AN ORGANIZATION
PROVIDED EATHICAL LEADERS
Submitted to-
Bhaskar Chowdhury
Lecturer
Business Administration
Program: BBA
Dept.: Business administration
The Millennium University
Submitted by-
Muhammad Ibrahim Sohel
ID: 112 BBA 00 21
Batch: 16th
Program: BBA
Dept.: Business administration
The Millnnium University
Date of Submission:
04 September, 2012
Intro 
Starting an ethical business typically involves embedding details about
your core values into your business plan. As you organize and structure
your business, set up a code of ethics that includes standards for business
conduct at your company. By developing policies and procedures to train
your staff, you ensure that employees realize that they are personally
accountable for their actions.
How can an organization create the ethical
foundation?
FOUR STEPS TO A MORE ETHICAL ORGANIZATION
1. Set the Bar
First, use your organization’s “positive deviants” to establish a clear, specific
standard of ethical values, attitudes and behaviors. Positive deviants are highly
respected individuals who are consistent top performers and can typically be
identified simply by asking management who stands out. They model the ideal
ethical attitudes and best practices all others should achieve and are therefore
the primary creators and preservers of an organization’s ethics. Positive deviants
are motivated by a commitment to ethically creating a “social good” for their
customers and for their organization.
2. Motivate Ethics
Second, guide all personnel to firmly embrace the goal of ethically achieving the
positive deviant’s social good. When a positive deviant’s social good, or the
inspiration behind their work, is presented to others in an empowering manner,
it can be contagious for an organization. It naturally and organically spreads the
commitment to the social good, and its ethical foundation, quickly and
efficiently.
More specifically, once a strong understanding of the positive deviants’ social
good has been established, it can be packaged into a short, emotionally powerful
statement that excites and empowers other employees. To be successful, the
social good must be presented in a way that creates a sense of honor and dignity
(i.e., fair process). It must also cause people to naturally visualize themselves as
having the same personal standards and commitment as the positive deviants
(i.e., positive visualization). When these occur, people quickly embrace the
positive deviants’ perspectives, improving the ethics of the entire organization.
3. Sustain Ethics
Next, ensure that the commitment to ethics is sustainable, even in the face of
contrary pressures. True ethical behavior is profound and long term. It is a way
of doing business that is so engrained in the organization that people cannot
imagine functioning any other way.
The most effective means of generating this depth of commitment comes from
the neuroscience principle “neurons that fire together wire together.” All
profound learning is a change to the underlying neural structure of the brain that
occurs when neurons fire together around consistent concepts. If the concepts
are focused around the positive deviant ethics, new learning occurs that can be
so complete that people do not even recognize they were ever any other way.
What makes neurons fire together? The key to achieve this organizational depth
is simple — practice, practice, practice. Everything the organization does needs
to exercise and reinforce the mental commitment to ethics.
4. Scale Ethics
Finally, engage a critical mass of the organization quickly to ensure that ethics
pervades all aspects of the organization and becomes a true reflection of the
organization as a whole. At the same time, individuals must display ethical
behaviors in ways that are unique to their function and personality.
Persuasive technology — technology designed to “change what people believe
and do” — that incorporates the principle of mass customization can facilitate
widespread commitment to an organization’s ethics. Because this type of
technology can touch many people simultaneously, individuals function more
ethically and the organization as a whole builds a lasting foundation for ethical
behavior.
Contributing to Success
The notion of an ethical organization may seem abstract, yet people who work in
an organization with healthy ethics absolutely know it. They love their work, and
they ultimately create better, more successful institutions.
Essential Steps to Establish an organization Eathically 
Step 1
Document your intention for ensuring a culture of ethics and compliance at your
company. Your business plan typically includes an executive summary, market
analysis, company structure, product description, marketing strategy and
financial statements. In the company structure section, describe how you intend
to set up your governance structure. For example, assign responsibility for
managing privacy and data protection to your senior executives. Establish a team
to review regulatory compliance issues.
Step 2
Write a code of ethics document. Start by describing the purpose of the
document. For example, state that your document lists requirements as well as
guidance for behaving ethically on the job. Outline your company ideals. List the
basic rules. Describe how you intend to enforce these rules. Establish roles and
responsibilities for handling problems. Employees should be encouraged to ask
questions and identify problems without retaliation.
Step 3
Create policies and procedures. For example, develop policies for handling
conflicts of interest, bribery and corruption that could occur during your business
operations. Assess risks and develop mitigation plans to handle problems that
are likely to arise as you start up a company in your industry. Establish the
standard that all work must be conducted in a legally compliant and ethical way.
Step 4
Review your code of ethics and other relevant documents with key leaders in
your company. Ensure each one endorses the documents before publishing
them. Leaders should act as a good example for the rest of the organization. Ask
for input from selected employees at every level in your company.
Step 5
Distribute your documents to all employees. For example, publish them on your
company intranet website. Announce their availability in a company newsletter.
Create training materials, such as case studies, to show employees how to apply
the policies and procedures. Create role-playing exercises to help your
employees practice how to respond to difficult situations. Help your employees
make smart decisions by encouraging them to think about the impact of their
actions before making any choices.
Step 6
Review your code of ethics on an annual basis. Update it if necessary to include
new legislation or revisions to policies. To start a business ethically, maintain
values, ensure trust and respect for all and demand integrity from everyone to
allow your company to achieve profitable and sustainable results.
Conclusion----------------Many organizations have a moral foundation that enables them to make
ethically sound decisions even when faced with adverse short-term
consequences. Too many organizations are quick to put immediate
economic gain before ethics. While the unethical actions may be
expedient, they ultimately contaminate both the employees and the
organization. Maintaining high ethical standards is the only way to
produce sustainable success.
Refferene (web link):
http://smallbusiness.chron.com/start-small-business-ethically-2219.html
http://www.cerebyte.com/2010/07/21/four-steps-to-a-more-ethicalorganization