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Role OOff OOrrggaanniizzaattiioonn 
CCuullttuurree IInn EEtthhiiccss
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.
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.
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.
 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.
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)
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.
Q & A
Thank You
Thank You

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Role of Organisational Culture in Ethics

  • 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.