An Empirical Study on Business Ethics in Manufacturing Sector

Ethics involves distinguishing between what is right or wrongthereby making a correct choice. An organization shouldtreat its internal as well as external stakeholders ethically. This research gives valuable insights on the prevailing ethicalclimate and potential organizational challenges in institutionalizingethics and its management in the manufacturingsector. The present study is designed to analyze four parametersof ethical climate in the manufacturing sector with referenceto different managerial levels, to identify the criticalfactor of the ethical code of conduct and to find correlationsbetween four parameters of ethical climate. Descriptiveresearch has been used and data are collected from 200employees of three Indian companies of manufacturing sectorusing a well designed questionnaire. Analyzing data withSPSS, It has been found that overall good number of peoplebelieve that MBE (Management of Business Ethics) processis well implemented. People are well aware and trained andinvolved in the ethical process. Senior management is verymuch committed to promote the ethical environment in theorganization and thus company values are well communicatedto the employees. Concern resolution mechanism iswell established in the organization. MBE in the organizationis more prevalent in higher-level employees. Senior managementcommitment and reinforcement is very critical for CoC(code of conduct). Correlation between all the 4 parametersis positive and significant. But the parameters are not highlycorrelated with each other. Organizations need to work upon these parameters to promote an ethical climate in the organizationby awarding or felicitating exemplary ethical behavior. More emphasis should be given on senior management commitmentand reinforcement of the ethical behavior across alllevels.