Importance of Maintaining Ethical Culture

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Importance of Maintaining an Ethical Culture in Business

MBA 6301-15J-4, Business EthicsColumbia Southern University

What Does It Mean to Maintain an Ethical Culture Within the Organization?

It means enhancing employee morale and motivating themFocusing on social responsibility and fairness.Effective management of ethical standards, code of ethics, and best practices in business. According to Weaver (1999), “Companies that preach ethics, in short, may expect to be held to higher ethical standards” (p.289).

Why Are Ethical Standards Needed in Business?

To enhance the decision making processTo boost employee loyalty and morale.To improve firms performance and profitability.

Why Is a Code of Ethics Needed in Business?

Code of ethics is needed in organizations to set minimum standards of conduct.Guide to an appropriate business environment.Express the mission and values of the organization.For example, a code of ethics “can impose behavioral expectations on employees” (Weaver, 1999, p.289).

Why Are Best Practices Needed in Business?

Best practices are an standard way of carrying on operations while maintaining compliance.Point of reference to evaluate operations.“Organizational practices lead to the creation of internal goods which in turn create societal benefits”(Yazdani & Murad, 2015, p.411).

Role Played by Culture in Global Business Ethics

Culture is constituted by the values, attitudes, and objectives that are shared by a group or society.Ethical policies differ between cultures.Interpretation of right or wrong differs.Decision making could be affected by cultural diversity.Negative impact on working environment.

Role Played by Culture in Global Business Ethics

According to Yazdani & Murad (2015), “Different national cultures would moderate ethical climate nurturing in organizations in different ways by supporting some of the antecedents of ethicality in organizations” (p.410).Affected profitability for the decrease of integrity and compliance.Headquarter firms could be affected by the difference in operations from global branches.

Importance of Maintaining an Ethical Culture Within the Organization

Effective decision making with essential compliance.“Culture is the secret ingredient of corporate success but it needs to be managed consciously, shaped, moulded and constantly nurtured” (Chapter3, 2006, p.56).Improved internal structure.Organization could acquire a positive image.

Importance of Maintaining an Ethical Culture Within the Organization

Possibilities of growth by attracting more consumers.Profit maximization.Effective fulfillment of the organization’s mission and vision.

Methods for Adherence to Ethical Practices to Motivate Employees

Ethics programs are utilized to motivate employees to express their own ethical values in their decision making to achieve an ethical culture in the organization.Solicit employees’ feedback in the creation of policy. Provide effective training.State standards of accountability.Leaders must maintain an ethical behavior as role models.

Methods for Adherence to Ethical Practices to Motivate Employers

The achievement of an organization’s mission and vision is an aspect of motivation for employers to maintain good business practices and ethical standards.Updating information on company’s performance.Creating a connection between the organization and society.Recognition of advancements and effectiveness of employers’ strategies.

Recommended Ethics and Guidelines

Recommended ethics involve corporate social responsibility, professional conduct, and individual ethical behavior.Guidelines to maintain an ethical culture could consist of the following:Separation of powers and responsibilities.Clarifying rights and obligations.Considering conflict of interests.

ReferencesKleinman, G., Lin, B. B., & Palmon, D. (2014). Audit Quality: A Cross-National Comparison of Audit Regulatory Regimes. Journal Of Accounting, Auditing & Finance29(1), 61-87. doi:10.1177/0148558X1351612Weaver, G. R., Treviño, L. K., & Cochran, P. L. (1999). Corporate Ethics Practices in the Mid-1990’s: An Empirical Study of the Fortune 1000. Journal Of Business Ethics, 18(3), 283-294.Yazdani, N., & Murad, H. (2015). Toward an Ethical Theory of Organizing. Journal Of Business Ethics127(2), 399-417. doi:10.1007/s10551-014-2049-3.




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