Question & Answer: Why do you think that organizations that have strong ethical cultures have the lowest…..

Organizational culture is nothing but the collection of assumptions, values and beliefs which gives the clear picture to people as how to behave in organization. These shared assumptions, values and beliefs influence the people in the organization to depict right kind of behavior in order to perform their jobs better.

Ethic culture is very important in business environment. It is very essential to make a right kind of environment at work place and do the right things. Managers play important role in determining whether the employees are living by the company’s values and expectation.

The role of leadership in development of ethical culture are:-

• Ethic should be made the part of workplace culture and leader should encourage its employees to work ethically.
• Guiding principle should be clear and a proper framework should be made by the leader to evaluate the ethical actions.
• Employees who behave ethically should be selected, trained and organization should focus on retaining those employees.
• Ethical behavior of employees should be considered important by the leader and should be included in business and performance review and should also be linked with rewards or incentives.
• Organization should focus on increasing moral sensitivity of different business perspectives like stakeholders reports, open discussions etc.
• Leaders should lead by example.
• Leader should communicate the importance of ethical standards to its employees.

Organizations that have strong ethical cultures have the lowest levels of misconduct because the leaders enforce and monitors organizational ethics very closely. They create formal program of ethics and conduct ethical training for all the employees regularly. Organization structure and resource focus on monitoring or being committed to ethical environment. Example- By providing regular coaching and feedback, training sessions, performance review etc. A complaint system ensures that people are filing complaint about ethical misconduct at workplace. This is done by compliance hotline numbers. They create ethical panelwho can take actions against ethical misconduct.