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Role of Organisational Culture in Ethics
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Role of Organisational Culture in Ethics

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  • 1. Role OOff OOrrggaanniizzaattiioonn CCuullttuurree IInn EEtthhiiccss
  • 2. OOrrggaanniizzaattiioonnaall CCuullttuurree  According to Linda Ferrel, Corporate culture is a set of values, beliefs, goals, norms and ways of solving problems by the members of the organisation.  Influences ethical cunduct at workplace.  Embedding ethical values in dominant cultures helps to guide employees of an organization.
  • 3. EEtthhiiccss  A branch of philosophy that involves Moral principles that govern a person's or group's behavior.  “Business Ethics” can be defined as the critical, structured examination of how people & institutions should behave in the world of commerce.
  • 4. OOrrggaanniizzaattiioonn CCuullttuurree iinn EEtthhiiccss  Each organisation develops its own culture partially based on the values its founder wants to transmit in workplace.  A set of assumptions that the members of an organisation share in common also forms the organisational culture.  Organisational culture differs from one organisation to another.
  • 5.  Strong cultural and ethical standards of an organisation results in positive ethical behavior of managers.  Ineffective organisational culture may result in unethical behaviour.  Admittedly, strong ethical behaviour may cost the organisation.  Top executives having strong ethical and social conscience inspire their subordinates to exhibit these values by their thoughts and deeds.
  • 6. How to create Ethical Organisational Culture?  Selecting the right leader  A clear purpose and strategy  A focus on doing the right thing  Hiring the right people  Firing the wrong people  Run ethical training courses  ‘Reward’ people for doing the right thing  Tolerate mistakes (but not when they are made repeatedly)
  • 7. My point of view  Fact: The National Business Ethics Survey, conducted by the Ethics Resource Center, found that despite rising employee awareness of formal ethics and compliance programs, standards of ethical conduct remained unchanged - or even worsened.  Statement: The so called unethical people are not necessarily ignorant of the ethical and moral values but are so because of the culture they follow in the organisation.  Eg': Curruption became a part of various government sectors because it was the culture that prevailed starting from polititians at the top level to the clerks and other bottom line workers.
  • 8. Q & A
  • 9. Thank You
  • 10. Thank You