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To what extent do business ethics concepts (ethical culture, ethical leadership, ethical climate etc) explain the “systemic cultural issues” at SMRT? Critically discuss.

Subject:

The ethics of organisation are the policies and procedures that the employees and management follow to deal with controversial issues and difficult situations. The ethics subjects of the organisation include ethical culture, ethical leadership, and ethical climate that are not limited to the social responsibility, and discrimination among employees. This essay will explain the extent to which SMRT organisation is ensuring the ethical concepts in the systematic cultural issues. Firstly, this essay will shed light upon the extent to which culture of the SMRT is the ethical and ethical culture of the organisation is dependent upon the practices used by the employees as well as to extend to which employees respect the values of the organisation. Secondly, this essay will explain the issues in the context of leadership at SMRT. Moreover, the climate at SMRT will be explained as the ethical climate of the organisation refers to the corporate social responsibility that demonstrates the ethical behaviour that ensures the positive impact on the environment.

Ethical culture of the organization exhibits the extent to which organization respects its values and code of conduct. The SMRT is not showing the ethical culture in the workplace in the context of employees as there are many rules and regulations that are imposed on the employees (The Online Citizen 2017). Moreover, it is evident that SMRT employees are getting very little remuneration; so the culture of SMRT is unethical as the employees are not getting their rights (The Online Citizen 2017). Roozen et al. (2001) argued that organisation should behave ethically to the employees and respect for the rights of the employees as the increased satisfaction level of employees will increase their productivity. However, the Chief Executive Officer of SMRT took actions in order to resolve the cultural issues at SMRT. He believed that it is the responsibility of everyone from top management to lower-level management to grow the right culture in the organization (Tan 2017). In the 21st century, SMRT needs to upgrade the culture toward the values-based, as well as self-governance culture that establishes the trust of employees in order to do right things. Top management should respect employees and guide them core principles and values that motivate employees to perform their duties better. Weick (1987) recommended that organisation should develop trust on employees to improve the culture of organisation. The culture of the organization includes both the values and practices of management as well as the employees. Furthermore, the minister said at the media conference that he will look the management of SMRT in order to establish the right professionalism tone as well as excellence in order to have the right culture. According to Han Fook Wang the problems at SMRT are very complicated as they are not only technical and engineering in nature but they also belong to the cultural issues (Kwang 2017). Therefore, SMRT needs to resolve the cultural issues by treating fairly to employees and building trust on them as trust on employees will increase the motivational level of employees.

Ethical culture of the organisation is dependent upon the practices used by the employees as well as to extend to which employees respect the values of the organisation. It is identified that there are further developments are required in order to improve the culture of SMRT as there are some workers who had made the contradiction upon the work of good worker (Today Online 2017). The workers of SMRT blemished the reputation of the company as well as the reputation of Singapore. However, the majority of SMRT workers are honest, careful and dedicated to their responsibilities who work for day and night to provide the maximum transport services. They treated their passengers and commutators with respect. Moreover, the public transport network of SMRT serves a large number of commuters as daily bus services has increased by 30 % in the past five years (Today Online 2017). With the expansion of public transport system, more facilities, services, and equipment is ensuring in order to maintain and operate the transport system. Additionally, the workers, as well as the managers of SMRT, are using the high ethical practices to ensure the safety of passengers. Callan (1992) argued the ethical values that employees followed increased the satisfaction level of customers as well as good for the success of the company. To ensure the safety of passengers, drinking water and beverages is not allowed in the buses as it could cause spilling to wet the seats and cause other passengers to slip. Therefore, SMRT wants to prevent their passengers from accidents and ensure the safest ride for everyone.

The ethical leadership of the organization ensures the overall significance of ethics that includes standards and issues. Ethical leadership establishes the progressive environment with the help of productive relationships with the employees and overall organisation. According to the transport researcher Lee Der of National University of Singapore that SMRT is failed in the system of checks in order to identify the gaps (The Straits Times 2017). The leadership is inefficient in managing the things and giving right directions to employees as the flooding incident has occurred on the rail network that damaged the North-South Lane and approximately 250,000 passengers were affected with this incident (The Straits Times 2017). Toor and Ogunlana (2009) argued that the ethical leadership demonstrate appropriate conduct through interpersonal relations, actions as well as the promotion of code and conduct in the organisation. Moreover, it is found by the investigations that employees did not activate and maintain the pumps on the appropriate date. The water stuck in the tunnel that was very dangerous and people stuck in those tunnels. So, it was the mistake of leadership at SMRT that they empowered the unprofessional engineers who did not manage the pumps (Word Press 2017). However, the leadership style of Kuek Bak Chye Desmond at SMRT is ethical as he thought that leadership is the key to success. He believed that for the effective leadership, leaders should engage across the organisation in order to create the positive outcomes. Under the leadership of Mr. Kuel, the company implemented six core values that ensure the effective leadership (Mustshare News 2017). It is identified that ethical leadership is the form leadership that is comprised of integrity, fairness, ethical behaviour, and trustworthiness. Brown and Treviño (2006, p.597) identified that effective leadership is divided into two parts, the first one is the morality of managers whereas the second one is the morality of employees.

Ethical climate of the organisation refers to the corporate social responsibility that demonstrates the ethical behaviour that ensures the positive impact on the environment. SMRT is continuously making efforts to have the positive impact on the environment and communities. SMRT is highly committed to conducting its business in socially, environmentally, the economically friendly manner in order to maintain the interests of stakeholders. SMRT has made the strategy to ensure corporate social responsibility that is helpful to maintain greater empathy in corporate social programmes (Kokemuller 2017). SMART defined CSR by considering three fundamental principles that are concerned with advocacy, operational practices, as well as volunteerism. It is evident that SMRT supported the Wheeels@Ubin in order to bring approximately 120 beneficiaries for the persons with disability (SMRT Corporation 2018). Collier and Esteban (2007) recognized that corporate social responsibility is the responsibility of the organisation to behave ethically in order to work for the welfare of mankind. Moreover, many workers from SMRT work as volunteered to give rescue to the people. Also, SMRT provides awareness to the public of Singapore in order to cheer up individuals to provide accessibility to people with disability. Furthermore, SMRT is highly committed to adopting the sustainable practices for the environment as the company has launched the program named as ‘SMRT is green’ to ensure the sustainable practices in the company because the purpose of this program is to encourage green practices among the partners, customers and employees in the management, green resources. SMRT continued to expand green environment by accomplishing Toyota Prius Hybrid taxes that are efficient in reducing carbon emission. Moreover, additional features of Prius hybrid taxi provide more comfortable, smoother and soundless rides to passengers. Furthermore, it is analysed that climate practices at SMRT are ethical as Double Decker buses are introduced by the company to make the environment more friendly by reducing the harmful emissions. Also, SMRT company is recycling 85 percent material that is used in the manufacturing process of the buses (SMRT Corporation 2018). Therefore, the above practices used by the SMRT made the company socially responsible.

Ethical Climate of the organisation brings up the ethical and honest atmosphere of the work environment as well as the ethical level accomplished in the company. Moreover, there are five kinds of climates that are independence, instrumental rules, care, and law & order. Some factors such as harassment, discrimination, aggression as well as incivility produce the unethical climate that results in increased dissatisfaction of employees whereas ethical climate creates the positive ethical environment that results in increased satisfaction of employees (Wimbush & Shepard 1994, p. 679). The climate at SMRT is unethical as the wages are classified on the basis of Nationality, so it is the kind of discrimination among employees that is not acceptable under the Equality Act 2010. Moreover, SMRT has no written statement in the Employment Act that is necessary to ensure the Anti-discriminating practices of employment. Brief et al. (2000) identified that it discrimination among employees is very unethical behaviour. It is evident that employees of SMRT went on strike against the discrimination because they do not get fair wages (Singapre Alternatives 2012). Furthermore, the level of aggression among employees as well as drivers of SMRT is high due to discrimination of wages; therefore, the climate at SMRT is not ethical. It is also evident that bonuses are removed from the salary of drivers that caused the dissatisfaction of drivers. Additionally, the employees of SMRT were accused of secretly having the interest in other two organisations that is unethical practice made by the employees. Employees are not allowed under the act to accomplish the personal benefits by cheating their employers (Alkhatib 2017). The employees from Facilities Department at SMRT breached the rules and regulations and the leaders of SMRT were unable to protect staff from breaching of rules and regulations. Furthermore, SMRT has been failed in concealing the information in case of the crime being committed by employees. Also, SMRT is not providing the legal advice as well as training that prevent employees from. So, to resolve the systematic cultural issues, SMRT should treat fairly to employees and give them fair wages as well as to provide employees legal advice that prevents employees from crimes.

In conclusion, the SMRT is not showing the ethical culture in the workplace in the context of employees as there are many rules and regulations that are imposed on the employees. It is identified that there are further developments are required in order to improve the culture of SMRT as there are some workers who had made the contradiction upon the work of good worker. Moreover, from the above discussion, the essay concludes that leadership is inefficient in managing the things and giving right directions to employees as the flooding incident has occurred on the rail network that damaged the North-South Lane. Furthermore, it is identified that ethical climate of the organisation refers to the corporate social responsibility that demonstrates the ethical behaviour that ensures the positive impact on the environment. SMRT is continuously making efforts to have the positive impact on the environment and communities. SMRT is highly committed to conducting its business in socially, environmentally, the economically friendly manner in order to maintain the interests of stakeholders.

References

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