Trust, Ethics, Integrity The Importance of Creating an Ethical Work Environment

Organizational Aspects of Trust, Ethics, Integrity  Culture – is a shared understanding of the beliefs and assumptions, which reflect the way members perceive the environment, its norms, roles, and values  Values – reflect the essence of organizational philosophy, what is important

Trust, Ethics, Integrity  Trust - reliance on the integrity, ability, or character of a person  Ethics – aligning oneself with the accepted principles of right and wrong that govern the conduct of a profession  Integrity - adherence to a strict moral or ethical code

Trust, Ethics, Integrity  Morals – arises from the sense of right and wrong, concerned with the goodness or badness of human action and character  Character - moral or ethical strength, often measured by a person's attributes or traits or public estimation of ones reputation

Trust, Ethics, Integrity  Principles – represent the moral or ethical standards, a fixed policy or mode of action  Gray - intermediate in character or position; “a gray area between clearly legal and strictly illegal”

Trust, Ethics, Integrity Factors that influence a work environment (D. Vidaver-Cohen, 1995)  Work climate  Culture  Senior executives  Perceived values of management are the best predictor of how employees handle moral dilemmas

Trust, Ethics, Integrity Why an ethical work environment is important  Promotes goodwill and respect within and outside the firm  Acts as a psychological constraint against unethical, and criminal behavior  Acts as a form of internally derived social control  Impacts viability and profitability