ETHICS AND ORGANISATIONAL CULTURE :

ETHICS AND ORGANISATIONAL CULTURE

ETHICS :
ETHICS Ethics refers to a system of moral principles A sense of right and wrong, goodness and badness of
actions and the motives and consequences of these actions.

VIEWS OF ETHICS :
VIEWS OF ETHICS

FORMATION OF ETHICS :
FORMATION OF ETHICS

BUSINESS ETHICS :
Business ethics can be defined as written and unwritten codes of principles and values that govern
decisions and actions within a company. BUSINESS ETHICS Shareholder perspective Stakeholder
perspective

ORGANIZATIONAL ETHICS :
ORGANIZATIONAL ETHICS Organizational Ethics is the ethics of an organization, and it is how an
organization ethically responds to an internal or external stimulus. Organizational ethics is interdependent
with the organizational culture Organizational ethics express the values of an organization to its employees
and other entities irrespective of governmental and regulatory laws. Basic elements of an ethical
organisation written code of ethics and standards; ethics training availability for advice on ethical situations
systems for confidential reporting.

Understanding Ethical Decision Making :

Understanding Ethical Decision Making

ORGANIZATION CULTURE :
Organizational culture is the personality of the organization. Organizational culture refers to the general
culture within organization Levels of organization culture ORGANIZATION CULTURE

Dimensions of Organizational Culture :

Dimensions of Organizational Culture Service culture Safety culture

ETHICS AND ORGANIZATIONAL CULTURE :

The content and strength of a culture influences an organization’s ethical climate and the ethical behavior of
its members The organizational culture can also influence the ethical conduct of its employees Change of
culture in the organizations is very important and inevitable ETHICS AND ORGANIZATIONAL CULTURE

Characteristics of Organizations that develop High Ethical Standards :

Characteristics of Organizations that develop High Ethical Standards High tolerance for risk Focus on
means as well as outcomes Low to moderate in aggressiveness

What can management do to create a more ethical culture? :

What can management do to create a more ethical culture? Being a visible role model. Providing ethical
training Communicating ethical expectations

How Managers Can Improve Ethical Behavior in An Organization? :

Hire individuals with high ethical standards. Establish codes of ethics and decision rules. Lead by example.
Set realistic job goals and include ethics in performance appraisals. Conduct independent social audits.
Provide support for individuals facing ethical dilemmas. How Managers Can Improve Ethical Behavior in An
Organization?

IMPORTANCE OF ETHICS IN ORGANISATIONAL CULTURE :

Ethics corresponds to basic human needs Values create credibility with the public. Law can’t protect
society, ethics can. Benefits of managing ethics in workplace improve society sensitizes leaders and staff
to how they have to act cultivate strong teamwork and employee growth promotes a strong public image
IMPORTANCE OF ETHICS IN ORGANISATIONAL CULTURE

A STUDY: ORGANISATIONAL CULTURE THE KEY TO IMPROVING WORKPLACE ETHICS :

The National Business Ethics Survey, conducted by the Ethics Resource Center, found that despite rising
employee awareness of formal ethics and compliance programs, standards of ethical conduct remained
unchanged - or even worsened. Effectiveness of programs depends on the culture of the organization.
Strong ethical cultures are in part themselves a product of formal programs A STUDY: ORGANISATIONAL
CULTURE THE KEY TO IMPROVING WORKPLACE ETHICS

EXAMPLE OF THE CASE 1 :

Enron Corp., which in December 2001 became the largest-ever US bankruptcy, did not fail solely because
of improper accounting practices, but also due to a culture that pushed executives into unethical behavior.
Instead of rewarding new ideas, the company encouraged unethical corner-cutting There was a “yes-man”
culture among executives. EXAMPLE OF THE CASE 1 Enron and the Creation of an Unethical Culture

EXAMPLE OF THE CASE 2 :

Wipro has been awarded the “Ethics is Good Business” award for the Year 2002. Wipro has compiled
an "Integrity Manual" that defines the way Wiproites should deal with their customers. Wipro has also
introduced a helpline known as “Wipro SOS”. Wipro Infotech has launched its eco-friendly 'Greenware'
desktop range, manufactured with materials that are free from carcinogenic chemicals like polyvinyl chloride
(PVC) and brominated flame retardants (BFRs). EXAMPLE OF THE CASE 2 Wipro Infotech and the
Creation of an Ethical Culture