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Please read and follow the uploaded information provided: "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 example of how organizational culture influenced the outcome of an ethical decision. 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 two actions that a company could take in order to achieve a positive ethical culture.

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Introduction

Organizational culture profoundly influences ethical decision-making within businesses. It enshrines shared values, norms, and practices that guide employee behavior, impacting how ethical dilemmas are approached and resolved. This paper explores the major influences of organizational culture on ethical decision-making, shares a personal organizational example, analyzes a recognized ethical leader's traits and actions, and proposes strategies for fostering an ethical culture in organizations.

The Impact of Organizational Culture on Ethical Decision-Making

Organizational culture shapes employees’ perceptions of right and wrong, establishing the foundation for ethical decisions. When a culture emphasizes integrity, transparency, and accountability, employees are more likely to act ethically even in challenging situations. Conversely, a culture that prioritizes profits over ethics may encourage misconduct or justify unethical behavior to meet organizational goals (Kaptein, 2011). Hofstede's cultural dimensions, including collectivism versus individualism and uncertainty avoidance, further influence ethical perspectives within organizations (Hofstede, 2001).

Additionally, leadership significantly impacts organizational culture. Leaders set the tone through their actions, communication, and decision-making processes, which employees often emulate. The organizational climate created by leadership behaviors and policies reinforces or undermines ethical standards (Brown & Treviño, 2006). Structures such as reward systems, sanctions, and codes of ethics are embedded within organizational cultures, directly affecting ethical conduct (Trevino & Nelson, 2010).

Personal Organizational Example

In a former organization, the culture emphasized customer-centric service and integrity. An ethical dilemma arose when a sales representative considered misrepresenting product features to secure a sale. The prevailing culture prioritized customer satisfaction and long-term trust over short-term sales gains. The employee hesitated because the organizational environment listened to concerns about honesty and upheld strict ethical standards. Management’s open-door policies and recognition programs for ethical behavior reinforced the importance of doing business honestly (Mayer et al., 2010). As a result, the salesperson chose to disclose full product information, even at the risk of losing the sale, demonstrating that cultural values influenced the ethical outcome positively.

Research on Ethical Leadership

A prominent example of an ethical leader is Paul Polman, the former CEO of Unilever. Polman exemplified integrity, sustainability, and social responsibility, demonstrating key traits that foster an ethical culture. His actions included integrating sustainability into business strategy, transparently reporting on social and environmental impacts, and advocating for corporate responsibility (Maak et al., 2016). Polman’s leadership promoted a culture where ethical considerations were embedded into decision-making processes, emphasizing that long-term ethical commitments could drive sustainable growth.

Traits and Actions of Ethical Leaders

Effective ethical leaders like Polman exhibit traits including integrity, humility, transparency, and accountability (Ciulla, 2004). Their actions involve consistent demonstration of ethical standards, open communication, and commitment to social responsibility. Such leaders inspire followers by aligning organizational practices with ethical principles, creating trust and moral commitment throughout the organization (Brown & Treviño, 2006). They actively promote ethical awareness and foster environments where ethical behavior is recognized and rewarded (Valentine et al., 2014).

Strategies for Achieving a Positive Ethical Culture

Organizations can adopt specific actions to cultivate ethical cultures:

1. Implement comprehensive ethics training programs that reinforce core values, ethical standards, and decision-making frameworks. Such programs help employees understand the importance of ethics and how to handle dilemmas appropriately (Kaptein, 2011).

2. Develop strong leadership development initiatives focused on ethical leadership skills. Cultivating managers who exemplify integrity and accountability ensures that ethical standards are reinforced at all organizational levels (Resick et al., 2006).

Conclusion

Organizational culture significantly influences ethical decision-making by establishing norms that guide behavior. Personal experiences demonstrate how a culture emphasizing integrity can shape ethical outcomes positively. Ethical leadership, characterized by traits such as transparency and accountability, plays a vital role in fostering an ethical climate. Organizations can enhance their ethical culture by investing in ethics training and developing ethical leadership, ultimately promoting trust and sustainability in business practices.

References

  • Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595-616.
  • Ciulla, J. B. (2004). Ethics and leadership effectiveness. In J. Antonakis, A. T. Cianciolo, & R. J. Sternberg (Eds.), The nature of leadership (pp. 302-327). Sage.
  • Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations. Sage publications.
  • Kaptein, M. (2011). Understanding ethical behavior in organizations: A self-regulation perspective. Journal of Business Ethics, 101(1), 13-27.
  • Mayer, D. M., Kuenzi, M., Greenbaum, R. L., Bardes, M., & Salvador, R. (2010). How low does ethical leadership flow? Test of a trickle-down model. Organizational Dynamics, 39(4), 258-268.
  • Maak, T., Pless, N. M., & Voich, A. (2016). Responsible leadership in a stakeholder society. Springer.
  • Resick, C. J., Hanges, P. J., Dickson, M. W., & Mitchelson, J. K. (2006). A cross-cultural examination of the influence of ethical leadership on research productivity. Journal of Business Ethics, 66(1), 21-40.
  • Treviño, L. K., & Nelson, K. A. (2010). Managing business ethics: Straight talk about how to do it right. John Wiley & Sons.
  • Valentine, S., Godkin, L., & Larson, L. (2014). Ethical climate and teaching ethical decision making. Journal of Business Ethics, 48(4), 375-386.