Ethical concerns are an essential area in business practices, which is applied within organizations to examine ethical principles and ethical dilemmas arisen. In order to form long-term ethical conduct within an organization, usually, a company would organize for ethical business policies, for example, establishing codes of ethics combined with training programs, or/and execute these ethical policies which means “leadership in delegation, communication and motivation of the company’s ethical position to employees” (Murphy 1988, p.907).

The comparison of the effects of these two approaches bring the question of which is more effective for shaping long-term ethical behaviors in an organization. Although codes of ethics are recognized as …show more content…

Second, codes should be living documents and revised periodically to reflect modern ethical problems. Since 1974, Caterpillar has updated its ethical code three times in light of recent events. Third, it must provide specific directions about ethical behaviors when the temptations to behave unethically appear. That is, firms should make their codes viable by giving specific practices and examples of interactions. Finally, the ethical codes also should leave room for a leader to settle the cultural sensitivity by his/her judgment. Furthermore, Corporate Social Responsibility （CSR） is just external constraints to the ethical behaviors of businesses and individuals. In order to work successfully, corporate self-restraint is essential, and individuals should hold moral conscience to work, that is, ethical leadership.

Another area of ethical processes in the conceptual framework of organizations is ethical training. It is not realistic to only relay on the individuals to carry out ethical practices without having involvement of training. Rampersad (2003) has suggested that the application of training programs could be taken as a means of institutionalizing ethics within corporate business practices. For instance, General Electric (GE) implemented a mature ethics training programme for all 320000 employees worldwide. It not only