What is the relationship of constructive ethical practices to organizational performance?

Organizational performance is related to morale within sub-groups and throughout an organization. Members of an organization naturally function more efficiently when they feel good about the organization, its structure, mission/goals, and how they fit into it.

Constructive ethical practices support organizational performance. An example is fairness. A member who senses he/she is being treated fairly will more nearly feel good about himself/herself and the organization than one who is mistreated. The result is a more productive contribution to the organization.

Likewise, the opposite will produce the opposite. Lack of fairness will result in a less productive application of a member's resources to the mission of the organizationl

Hope this helps.

Great, well thought answer!