Importance of Maintaining an Ethical Culture in Business Gabriela Oliveros MBA 6301-15J-4, Business Ethics Columbia Southern University Importance of Maintaining an Ethical Culture in Business

What Does It Mean to Maintain an Ethical Culture Within the Organization? Incorporation of morality and employee motivation towards ethical conduct could be achieved with ethical culture within organizations. Focus 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). Morality and employee motivation are essential aspects implemented in organizations to achieve an ethical culture. Thus, social responsibility, effective operations and productivity could be attained with the appropriate standards of ethics utilized by the firm. Organizations that maintain an ethical culture could focus on social responsibility and fairness. Better working conditions could be attained with optimal ethics. Maintaining an ethical culture involves the effective management of ethical standards, creation of a 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). Hence, organizations with an optimal ethical culture could attain a higher level of integrity.

Why Are Ethical Standards Needed in Business? Better decisions are made by maintaining ethical standards. Effective operations. Employee loyalty and morale. Increased profitability. Better decisions are made by maintaining ethical standards in an organization. Principles and values are taken into account when decision making gtakes place; hence, ethics influences the culture of the firm. A high level of operations could be achieved with the utilization of ethical standards. Since good values and behaviors are promoted with ethical standards, members of the organization have a clear vision of their responsibilities to achieve the company’s mission. Thus, operations are carried on effectively and with compliance to regulations. Employee loyalty and morale is boosted up by attaining a safe and fair work environment resulting from the implementation of ethical standards. Employee performance is positively affected by these aspects, leading to the individualistic motivation to maintain ethical behavior and contribute towards the organization’s growth. Increased profitability could be reached for the level of integrity and high reputation acquired from ethical standards. Investors and consumers are attracted by good reputation and high integrity in companies.

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). A code of ethics is needed in organizations to set minimum standards of conduct for its members. Employee behavior could be effectively managed by the implementation of a code of ethics. Ethical dilemmas are handled with integrity and compliance preserved for the effective decision making in the organization. Organizations implement a code of ethics as a guide to an appropriate business environment. A safe and fair work environment could be attainable with the implementation of a code of ethics. Thus, working conditions are appropriate and compliance to regulations is met. Thus, he mitigation of risk and liability is accomplished. The mission and values of the organization are expressed in the code of ethics. Hence, an internal guideline is attained and the values of the organization are constantly expressed to maintaining a high level of integrity, social responsibility and an ethical culture in the firm. For example, a code of ethics “can impose behavioral expectations on employees” (Weaver, 1999, p.289). Employees and managers of organizations base their behaviors on a code of ethics which sets an expected level or integrity and ethical behavior. Therefore, a greater level of professional conduct is achieved and an effective organizational performance could be reached.

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). Best practices are an standard way of carrying in operations while maintaining compliance. The use of best practices in organization has the purpose of creating a solid foundation for an effective strategy of operations. Best practices are utilized as a point of reference to evaluate operations of a firm. Organizations could efectively assess their internal structure and operations. Attainment of standards could be reviewed and analyzed to improve the overall performance of a company. “Organizational practices lead to the creation of internal goods which in turn create societal benefits”(Yazdani & Murad, 2015, p.411). This statement refers to the achievement of satisfaction of internal members, social connection, and advancement of an organization as a result from implementing best practices. Thus, corporate social responsibility increases leading to business decisions with the purpose attaining effective operations and profitability while paying close attention to achieve a comprehensive good of society.

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. Culture is constituted by the values, attitudes, and objectives that are shared by a group or society. These factors influence the organizational culture of organizations leading to the forming of an efficient or deficient internal structure. Ethical policies differ between cultures for the difference in legal standards of regulations set by each culture. The perception adopted by each social group could potentially influence to obtain a diversity in ethical policies. The interpretation of right or wrong differs between cultures since the values and ethical standards of each culture are diverse. Thus, levels of compliance and integrity could be at different levels depending on the culture where the organization is carrying on operations. Decision making could be affected by cultural diversity. The ethical standards set by each culture are diverse and could result in a different ethical perception used to make decisions. A negative impact on the working environment could result from a difference in the compliance standards of working conditions set by cultures. Societies maintain different working regulations; thus, leading to a possible breach of compliance when organizations globalize branches to diferrerent market segments.

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. 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). This refers to the limitations set in ethical climates that newly emerge in organizations. These are influences by the cultural backgrounds of ethics in which the organization’s operations take place. Profitability could be potentially affected for the decrease of integrity and compliance resulting from cultural diversity within organizations that carry on global operations. Thus, the liability and risks faced by organizations could affect its financial performance and growth. The performance and operations attained by global branches of an organization could affect the firm as a whole. Cultural difference leads to diverse standards of operations leading to an inefficient consolidation of organizations.

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. Effective decision making is possible to be achieved when an ethical culture exists in an organization. Standards of compliance are highly sustained for the optimal decisions made with the implementation of ethics and high morals. Ethical culture in organizations is essential to achieve high profitability, mitigate liabilites, and meet 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). The effective management of a code of ethics and good practices is essential to achieve an optimal organizational structure. Firms could be lead the organization to success with constant improvement and changes in the ethical structure. An improved internal structure could be achieved by maintaining an ethical culture. Organizations with strong ethical standards could have an effective organization of objectives and strategies to reach its mission. Organizations could acquire a positive image from maintaining an ethical culture. Integrity and corporate responsibility are adopted as a result of having an ethical culture. Hence, the image perceived by external parties is one of high moral with a trustworthy reputation.

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. Possibilities of growth are attained by organizations that attract more consumers due to the improved image acquired form maintaining an ethical culture. Consumers and shareholders have preference towards companies that show corporate social responsibility and ethical behavior. Profit maximization is achieved through the implementation of effective standards of ethics to comply with regulations and mitigate risks. Hence, the liabilities due to lack of compliance and safety could be reduced when a good working environment is created. Effective fulfillment of the organization’ s mission could be achieved through the implementation of ethics in the firm’s culture. In this manner the corporate environment and strategy of operations could contribute to maintain the vision of the firm.

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. 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. Solicitation of employees’ feedback is necessary for the creation of an effective policy of ethical standards. Employees become highly motivated when their views are considered as factors towards the creation of codes of ethics and standards to meet the organization’s goals. Effective training is necessary to inform employees of the positive results towards the company’s growth and advancement resulting from good ethical behavior and the implementation of ethical practices. Standards of accountability must be expressed to employees in order to educated them about the implications of possible unethical behavior and lack of compliance. Information about accountability and professional conduct could potentially motivate employees to maintain the best ethical behavior to meet the company’s expectations. Leaders must maintain an ethical behavior as role models for employees. Since the adoption of ethics is assisted by the sustainability of good business practices and corporate social responsibility, leaders are in charge of relaying this message. “firms see higher-level managers as more responsible for implementing company ethical standards (or perhaps as more in need of reminders, because of their greater decision-making authority in most firms).” (Weaver, 1999, p.291). Hence, employees’ willingness to maintain the same behavior will be instilled by the high ethical standards followed by leaders.

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. The achievement of an organization’s mission and vision is an aspect of motivation for employers to maintain good business practices and ethical standards. A periodical update of information about the company’s performance could be a motivating aspect for employers. This could be used as a benchmark by employers to maintain or improve the current business practices in order to achieve effectiveness the organization’s goals. Creating a connection between the organization and society could become a motivating factor for employers to create societal benefits resulting from the effective operations of the firm. Recognition of advancements and effectiveness of employers’ strategies is an essential factor to keep a high morale in employers and leaders. Acknowledgement of the company’s improvements as a result of good leadership and ethical behavior, is an encouragement for employres ti maintain high standards and seek for the achievement of the company’s mission.

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. Recommended ethics involve corporate social responsibility, professional conduct, and individual ethical behavior. Corporate social responsibility must be maintained to achieve the goals of the organization with the implementation of ethical standards. Professional conduct is an important aspect that influences the effective operations of a firm trough the appropriate procedures and behaviors to comply with the code of ethics. Thus, an individual ethical behavior is adopted and implemented in the decision making process of every individual in the organization. Guidelines to maintain an ethical culture could consist of the following: Separation of powers and responsibilities must be enforced to avoid discrepancies in information and ineffective operations. The attainment of professional guidelines and avoidance of conflict of roles are factors resolved by the separation of roles and powers. Clarifying rights and obligations is a way of acknowledging the expected behaviors and responsibilities of members of an organization. The creation of a safe and compliant environment could be attained with the advisory of the rights of its members. Conflict of interests must be effectively managed and resolved by leaders and employees to maintain the organization’s ethical culture. A non biased perception and avoidance of self interest are essential factors that lead to the attainment of integrity and operational code of ethics.

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