There is an undeviating connection between organizational culture and ethics. Organizational culture can affect the way employees respond and react when they are placed in ethical dilemmas. The study of an organization’s culture can sometimes reveal the unwritten ethical standards that will direct employees in their decision-making. With this information, businesses can avoid risky ethical behavior by changing their organizational culture.
Organizational culture is the attitudes, beliefs and psychology within an organization. Not only does it encompass how employees interact with each other, but it also explains how they communicate with others outside of the organization. Ethical standards are known as code of conduct that is required by the organization for employees to follow. The relationships between organizational culture and ethics are organizational culture guides employees when placed in ethical dilemmas. If encountered by what they are required to do ethically, an organization can be put at risk based off of its employees if they are not operating ethically.
When an employee is faced with a decision that others within the organization deem as appropriate, though it is unethical, the employee may follow what is acceptable as per the culture. For instance, if the organization rewards employees for gaining the most contracts at any cost, an employee may start bribing potential clients in order to gain more deals. Once the corporate culture has gained the most contracts through normal techniques, an employee may not be as easily persuaded to do something unethical. It is this relationship between organizational culture and ethics that can get businesses into significant trouble in the long term. An organizational culture that supports risky decisions and unethical behavior will need to change its culture.
Changing a business’s organizational culture is…