Ethical Culture in The Organization

Ethical culture
Ethical culture can be defined as a set of experiences, assumptions, and

expectations of managers and employees about how the organization
prevents them from behaving unethically and encourages them to behave
ethically,.
Ethical culture is also part of the ethical context that incorporates multiple
components, including formal and informal systems. Formal systems are the
tangible organizational elements pertaining to ethics that are purposefully
designed and implemented (e.g., ethics programs), whereas informal
systems are the unwritten policies, practices, and values that are relevant to
ethics (e.g., ethical culture or climate).
Importance of Ethical Culture
Steps to Create an Ethical Organizational Culture
1.Top Management Leads Ethics by Example

• One of the most noticeable ways that companies can demonstrate their
commitment to creating an ethical organizational culture is to ensure
that top managers and leaders lead by example. Employees look to the
behavior of top management as an example of the type of behavior that
the company finds acceptable in the workplace. Actions speak louder
than words, so when top executives display ethical behavior, it sends a
positive message to employees. Senior leaders need to be mindful of
the fact that they’re being watched and be sure to practice what they
preach.
2.Communicate Clear Expectations of Good Ethics
• Companies that create and disseminate an official code of ethics send a
clear message of the expectations for their employees. A code of ethics or
code of conduct clearly outlines the organization’s primary values and
ethical rules that they expect everyone to follow. The code should indicate
that it applies to attire, attitudes, and behavior. Cultural norms and
expectations are also inferred and are easily detected by observing the
environment.
• While it’s good to have a written record of the code of ethics, means
nothing if top management fails to model ethical behavior. Employees are
observant. They take note of whether the company is adhering to the
ethical principles that it set or whether they are merely paying lip service.
3.Offer Formal Ethics Training
• A formal ethics training program sends a strong message about a
company’s ethical stance. Seminars, workshops, and other ethical
training programs reinforce the organization’s standards of conduct and
clarify the types of behaviors that the company deems permissible or out
of bounds. Situational examples help to address how to handle possible
ethical dilemmas. Workshops can help employees to work on their
problem-solving skills. Trainings may include consultations from peers or
mentors.
4.Reinforce Behavior You Want, and Don’t Reinforce Behavior You
Don’t Want
• Managers and Top executives should also be evaluated on the means
they take to achieve their ethical goals as well as how the means lead to
the ends.
• People who act ethically should be noticeably rewarded for their
behavior and those who fail to act and behave ethically should have
consequences for unethical behavior.
• Rather than fire good employees who demonstrate a single ethics
violation, the company may choose to provide correct feedback for the
behavior along with a short probationary period. Correction should be
conducted in the spirit of collaboration and education rather than
punishment
5.Provide Protection for Employees
• It can be difficult for anyone to report unethical behavior that they witness
in other people at the company. Shy or introverted employees may find it
particularly challenging to report unethical behavior. Almost anyone
would feel intimidated if they felt the need to report the unethical
behavior of one of their superiors or someone in a senior management
position.
• There are several ways that companies can assure their employees that
they can safely report unethical behavior without fear of losing their jobs
or getting some sort of punishment or consequence.
• An objective third party such as an ethics counselor, ethics officer,
ombudsman, or ethics consultant can be helpful in these situations. An
ombudsman can get the tools and resources to help with a consultation
or investigation of a complaint about ethical behavior.

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Ethical culture

Ethical culture can be defined as a set of experiences, assumptions, and

1.Top Management Leads Ethics by Example

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