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Unit 13: Ethics in Performance Management

“Ethics may be defined as a process whereby we choose between competing moral and/or economic Notes
values.”
– Dave Kinnear 2002
Ethics is a process of rational thinking aimed at establishing ‘what values to hold and when to
hold them’.
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Did u know? Why ethics is a science?

Ethics is called a science, because it presents the principles of morality in a systematic form

and seeks to find the basis upon which they rest.
It requires the continuous re-alignment of values, reasoning patterns, thinking, and behaviour
in order to be ethical, and to remain ethical over time. Hence, ethics demand a willingness to
change.
Ethical behaviour of an organisation is a key essential for doing business in today’s competitive
market. Ethical behaviour plays an important role in the organisation’s overall success. Ethics
professor Brenner (1992) observed, ‘A corporate ethics programme is made up of values, policies,
and activities which impact the propriety of organisation behaviour.’

Notes Organizations defi ne a comprehensive ethics and compliance program as one that
includes six components:
1. Written standards of ethical workplace conduct

2. Means for an employee to anonymously report violations of ethics standards
3. Orientation or training on ethical workplace conduct

4. A specifi c office, telephone line, e-mail address or Web site where employees can get
advice about ethics-related issues
5. Evaluation of ethical conduct as part of regular performance appraisals
6. Disciplinary action against employees who commit ethics violations

13.2 Principles of Ethical Performance Management

The following are the key principles of ethical performance management:
1. An ethical performance management system directs its employees to respect the core
values of the organisation so that ethics practiced by the organization is in conjunction with
its environment. On the other side, the organization respects its employees and provide
good working environment.
2. An ethical performance management system is designed to make transparency in its
operation. All the parties involved in performance management system respect each
other’s needs, values, and preoccupations.

3. An ethical performance management emphasizes individual responsibility for personal
decision making, behaviour, and action rather than collective responsibility.
4. An ethical performance management system put emphasis on employees respecting and
actively considering the ethical concerns and issues of all stakeholders, rather than focusing
merely on shareholders alone.

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