How Corruption Affects Ports and Terminals

Ethical behavior refers to acting consistently with what a community, society or individuals typically deem as appropriate. Ethical behavior provides proper control for business as it involves displaying activities and principles such as fairness, dignity, equality honesty, diversity, and respect for individual rights. A company can both benefit or get harmed by ethical misconducts in the industry. Listed below is an instance of the way a port and terminal business can benefit from confronting unethical decisions such as corruption (Lu et al. 209)

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Benefits of good ethical decisions to ports and terminals

Addressing problems such as corruption can help a business in the following ways. One, a company can display integrity in records required for financial reporting. For example, terminals reliably prepare and maintain all associated records which is critical in management decisions and fulfillment of legal obligations as well as reporting requirements. Second. A business provides a high level of transparency to its shareholders by offering accurate and understandable information in line with the terminal tasks which is crucial in forging trust with the shareholder and thus improving cooperation (Lu et al. 215)

Additionally, addressing corruption issues in a port or a terminal can assist a business in creating a work environment that encourages employees to adhere to the set ethical behaviors. For example, when port authorities display moral conducts, employee get encouraged to subscribe to ethical practices such as keep organizational secrets, shunning and reporting unethical activities including corruption, respecting and adhering to the guiding authorities. As a result, employees tailor their actions towards the set objectives, mission, and the vision (Trevino et al. 137)

Conclusion

            Confronting misconducts in business can assist a company to move in the right way as the process is an essential tool for the transparency of operations in the ports. Moreover, addressing unethical behavior helps keep employees in line with their organizational target and in keeping activities according to the regulatory bodies.

Work Cited

Lu, Chin-Shan, and Chi-Chang Lin. “The effects of ethical leadership and ethical climate on employee ethical behavior in the international port context.”Journal of Business Ethics124.2 (2014): 209-223.

Treviño, Linda Klebe, et al. “Managing ethics and legal compliance: What works and what hurts.”California management review 41.2 (2009): 131-151.