GE Business Ethics Compliance

Factors: Internal and External functions of ManagementGE has been in business since the year 1890, when the company began operating under Thomas Alva Edison (inventor of the incandescent light bulb). Since then GE has grown and matured as one of the greatest multi- innovator firms in business history, in addition GE has become an international company expanding its products and services around the world.

The GE Company is a wonderful example of how external and internal factors like globalization, technology, innovation, diversity, and ethics at national and international level will impact the way GE managers operate and comply with ethical and compliance issues. GE has established its business in 59 countries in all five continents of the world; in addition they keep innovating with products and services which adapt to the specific needs of other countries.

GE web site illustrates its business expanding with an example of the contract obtained with the Saudi Arabian electric company. GE will provide 19 GE frame 7FA gas turbine generators which will be used to provide electric energy to different territories of the Saudi population. In addition GE will offer, “Technical advisory services, customer on-site training and performance testing” (General Electric Web Site, 2007). Therefore, the four functions of management -planning, organizing, leading, and controlling- will have their individual impacts due to GE’s globalization.

GE uses their globalization to expand their ethics to others and in providing economic growth to other countries. GE will need to continue to plan and develop a team compose of Saudi Arabian electric company managers and GE managers, coming to understand the differences in the US and Saudi Arabian vision and strategies that might be a barrier to achieve GE’s goals. In organizing human force and information GE will be in the most part from Saudi Arabia, so managers will have to be trained to be able to achieve operations with a different culture.

Leading employees to their higher levels of performance will have to be done in teams; one to operate with Saudi Arabian employees and understanding their culture and ethics, as well as working with other teams with GE employees from overseas. And finally controlling which is very important to assure that everything is going as planned; both companies will have their issues such as lack of communication, cultural differences, and law obstacles.

This is one of the major reasons as to why GE has a serious need for an ethics and compliance program. GE managers will have to delegate an authority that will assert the essential ethics/ compliance rules to minimize such impact. By training employees and delegating authority GE managers it will benefit and take the pressure off their shoulders, letting employees know that their environment and culture take responsibility and pride in their work.

Technology is the second factor; GE has various teams of employees that work in the area of technological infrastructure acquisition that train to develop and implement ways that the company can offer a flexible solution that meets their technological requirements, their financial structures and their actualization needs. GE has been involved in a conglomerate with an increasing shift from technology to services, and with eleven main operating units.

By organizing GE puts in order the steps they want to follow so the main objective can be reach and to have a clear vision of the technological changes they need to implement. In leading, GE has to be aware of the changes that are going to be made and that every employee can produce with the motivation that technological changes can give to provide a better working condition by helping the team with a better attitude and more production.

When GE controls there operations this will provide a better way of controlling so that no problem will occur with the employees who cannot perform their work with more advance technology and that employees cannot develop in their work are with more desire. When GE wants to implement change a manager has to teach his team to adapt to the changes that can come from technological advances. This way the team can realize their responsibility independently because technology is an important factor for having a successful company.

This way the manager can have better control and dedication to the other functions of his position. GE is at the forefront of innovation in the technological and services field. With eleven different operating units that make GE a Fortune 500 Company, it has to be constantly working to create and implement new technology and better service for the clients they serve and the employees who service the clients. One example of its innovation prowess is that over the 110 plus year history of GE, it has amassed more than 67,500 patents and the firms scientists have been awarded to novel prices and numerous honors.

GE needs to be innovating constantly because it operates in more than 100 countries around the world and generates approximately 45% of its revenues outside the U. S. mainland. A manager at GE needs to put innovation to work and function for his or her team. In order to do that the manager has to plan ahead taking in consideration that innovation leads to changes and he and his team have to be prepared to undertake them with or without notice. At the same time GE needs to keep in mind the ethics and culture differences in the innovation and operation of the different units.

A manager at GE has to prepare an organization that is agile and well prepared to produce top notch results in a fast paced environment. A manager at GE needs to have control in a way that it does not hinder the innovation of producing the services and products GE is accustomed to. In order to lead a manager has to provide the example, motivation and encouragement necessary to produce a winning team that helps the company to grow every year. A manager also has a set of ethics or conduct that has to be followed to communicate with employees and subordinates.

A manager can delegate to his team when there is innovation going on because the more the team is involved in the innovation process the more they can perform independently and the manager then can focus on his or her attention on the more delicate and time consuming functions of his position for the better of the organization. GE Company is a very diverse company and it is made up of different cultures, opinions, ethics, economic and social backgrounds which allow the company to have a competitive edge. Diversity is a strong part of the company’s recruitment efforts.

The company is exposed to many cultures and learns about that culture/group. The diverse in backgrounds, skills and abilities improves the quality of the workforce. This diverse atmosphere has created a unique and very talented group of employees that generate creativity, flexibility, innovation and enthusiasms for new technology. With this diverse group of people GE has a need for an ethics/ compliance program. When working with diverse people, cultures clash and opinions on how things go are seen differently.

“GE’s goal is to be the global employer of choice and no matter where they work or do business they want to attract and retain the very best talent” (diversitycareers. com/articles, 2007). Organizing activities to attract develop and retain talent is important to GE. By GE being a leader they want to be a reflection of the markets they operate in. “They have seen the results by getting more leaders into the pipeline” (Bateman-Snell, 2007). And finally controlling which is important to make sure the goal of GE as a global employer of choice is met.

GE’s diversity impacts management and the ethics of the company directly. GE Company draws their strength from diversity. By hiring talented people to delegate authority and train the very best talents from the different places they do business. This is one of the keys of success that this company follows. GE is a company which has been around for 117 years it has been admired for its performance and imaginative spirit. GE’s has a strong reputation for its clear communication on policies, rigorous processes for detecting potential violations, which GE plans in every aspect of its corporation.

Ethics has a strong impact on the four functions of management planning, organizing, leading and controlling. All organizations have different ethical perspectives and standards. When planning, organizations must have full acknowledgement of laws and regulations in the country which they operate. GE has design a compliance based program that is designed to prevent or detect any illegal violations or any wrong doings. This program has been established to communicate legal standards and procedures. All employees must be fully trained and have complete acknowledgement before operating in the business.

When organizing employees must be aware of the company’s expectation regarding ethics and policies. GE also has the integrity based ethics program which is called” The Spirit & Letter. This is an integrity guide, each employees receives a copy and is used to commit the employees to its policies in every country in which GE conducts business. This code of conduct creates in people a sense of personal responsibility for ethical behavior. Ethics impacts leading the company in a strong way and managers are just as important to the organization as employees are.

Managers must set an example for ethical behavior, they must be true leaders. They must create a reputation of integrity and honesty; make employees feel they could communicate any wrongdoing and set an environment of moral awareness. In GE there are specialized training for leaders and a “Leaders Guide” setting forth the specific steps; GE leaders are expected to achieve a culture of compliance. GE organizes this with the use of e learning modules, an integrity website which help employees find policies, procedures and answers to the commonly questions.

Controlling is crucial when dealing with compliance; this has to be monitored and measured constantly. GE monitors compliance on daily basis, this allows GE to detect compliance problems at an early stage and determine the root causes and take corrective actions, early . GE’s ethics impacts directly, not only the four functions of management (planning, organizing, leading, and controlling) also the four factors (globalization, technology, innovation, and diversity) are closely related with. No one of those functions or factors can be realizing without the rules by which GE bases their ethics.

Ethics cannot be delegate the same way a manager delegates work for an assistant. An employee, no matter his/her position, that works to GE it has to represent the company policies and those policies are ruled by the company’s ethics. ReferencesBateman-Snell. (January 2007) Management: Leading and Collaborating in a Completive World Diversity / Careers in Engineering & Information Technology. Retrieved June 12, 2008 from http://www. diversitycareers. com/articles/pro/04-febmar/dia_ge. htmEthicsGE. com. General Electric. (2007). Building tomorrow. Retrieved June 12, 2008.