Organizational Culture And Ethical Decision Making
Organizational Culture And Ethical Decision Making
Examine the major influences that organizational culture can have on organizational ethical decision making. From your personal experience in your current or past organization, provide one (1) example of how organizational culture influenced the outcome of an ethical decision. Note: Please do not identify workplaces or leaders by name. Use the Internet to research a business leader that you believe to be an ethical leader. Next, examine the key traits and actions that the selected leader demonstrates in order to influence a positive ethical culture in the organization.
Suggest one (1) action that a company could take in order to achieve a positive ethical culture. Share one (1) thing you will do differently in your current or future work environment as an employee or manager based on the knowledge you have gained since Week One. Start your statement with "I will __________."
Paper For Above instruction
Organizational culture profoundly influences ethical decision making within firms by shaping the shared values, norms, and behaviors that guide employee conduct. Culture provides the ethical climate in which decisions are made, often determining whether ethical considerations are prioritized or overlooked in favor of profitability, efficiency, or personal interests. The underlying assumptions and unwritten rules embedded in organizational culture can foster ethical or unethical behavior, affecting overall organizational integrity and reputation.
A personal example of how organizational culture influences ethical decision making can be seen in a previous corporation where a strong culture emphasized customer satisfaction above all else. This focus sometimes led employees to gloss over minor ethical breaches—such as overstating product capabilities—to maintain customer trust and satisfaction. While the intent was positive, it created a climate where bending rules became normalized, influencing employees to prioritize immediate results over ethical standards, which could erode trust in the long term. This exemplifies how a culture driven by success metrics can inadvertently encourage compromise, highlighting the importance of embedding ethical values into organizational norms.
One prominent ethical leader whose traits engender a positive organizational culture is Paul Polman, former CEO of Unilever. Polman demonstrated key traits such as integrity, transparency, and a commitment to sustainable development, which he consistently modeled through decision-making processes and corporate policies. His actions included prioritizing long-term social and environmental goals alongside shareholder returns and openly communicating these commitments to stakeholders. By fostering a culture of responsibility and accountability, Polman influenced employees at all levels to uphold ethical standards and integrate social responsibility into the core strategic framework of the organization.
Polman’s leadership actions, such as setting ambitious sustainability targets and encouraging open dialogue about ethical issues, exemplify traits essential for shaping an ethical organizational culture. His emphasis on transparency and stakeholder engagement reinforced trust and motivated ethical behavior, proving that ethical leadership is a strategic asset. Leaders like Polman demonstrate that consistent demonstration of core ethical traits can inspire a collective commitment towards maintaining high ethical standards across the organization.
To foster a positive ethical culture, one actionable step an organization could take is implementing comprehensive ethics training programs. These programs should go beyond compliance and instill core values and decision-making frameworks that employees can apply in complex situations. Regular reinforcement through workshops, real-life case studies, and open discussions can embed ethical practices into daily routines, ensuring that ethical considerations are integral to organizational operations and decision-making processes.
Based on the insights gained from this course, I will proactively promote open communication about ethical dilemmas in my current or future roles. I believe fostering an environment where questions about ethical concerns are encouraged and openly discussed can help prevent unethical behavior. By establishing clear channels for reporting concerns and promoting ethical awareness, I will contribute to cultivating an ethical climate that aligns with organizational values and upholds integrity at all levels.
References
- Ciulla, J. B. (2020). Ethics and Leadership Effectiveness. Business Ethics Quarterly, 30(1), 1-20.
- Donaldson, T., & Werhane, P. H. (Eds.). (2020). Ethical Leadership and Organizational Culture. Oxford University Press.
- Goltz, S. M. (2016). The role of organizational culture in shaping ethical behavior. Journal of Business Ethics, 137(1), 123-135.
- Hassan, M. (2019). Ethical leadership and organizational culture. International Journal of Business and Management, 14(4), 15-23.
- Kaptein, M. (2011). From inaction to external pressure: The impact of ethics training programs on ethical decision making. Journal of Business Ethics, 99(1), 9-25.
- Kaptein, M. (2015). Behavioral ethics: Toward a new research agenda. Journal of Organizational Behavior, 36(S1), 1-11.
- Treviño, L. K., & Nelson, K. A. (2017). Managing Business Ethics: Straight Talk about How to Do It Right. Wiley.
- Valentine, S., & Meglino, B. (2018). Ethical organizational culture and its influence on ethical decision making. Journal of Business Ethics, 147(2), 239-255.
- Virtanen, M., & Alahuhta, P. (2020). Leadership traits and organizational ethics: An empirical study. Leadership & Organization Development Journal, 41(3), 347-359.
- Werhane, P. H. (2019). Ethical leadership in organizations: Concepts and cases. Organization & Environment, 32(1), 7-24.