Characteristics of an Ethical Organization Characteristics of an ethical organization include ethical leadership, ethical corporate culture, ethical decision making, and a high degree of corporate social responsibility. Ethics are unique to each person but when individuals are members of an organization their ethical behaviors comprise the ethical behavior of the organization as a whole. The organizations ethical characteristics help shape the norms of behavior and values within the organization. …show more content…
Lawton and Páez reviewed articles that contributed insight into the characteristics of ethical leaders and the results of ethical leadership. Lawton and Páez found that ethical leaders behave according to specific virtues, including courage, temperance, pride, good temper, friendliness, and truthfulness. In addition, ethical leaders show a high level of integrity and authenticity. Lawton and Páez (2015) discovered three main results of ethical leadership. First, an increase in job satisfaction, commitment, performance, and perception of ethical environment was contributed to ethical leadership. Second, leaders themselves increased personal promotability when exhibiting ethical behavior. Third, group level performance and cohesiveness increased under the guide of an ethical leader. However, Lawton and Páez (2015) expressed that most organizations define leadership effectiveness based on organizational factors but ethical factors. This is interesting because it establishes that the goals and strategies of an organization take priority over the ethical standards of the organization. However, the evidence does suggest the leaders and managers within an organization shape the organizations culture and …show more content…
According to a study conducted by Valentine and Hollingworth (2015), when sound ethics and values are represented by the decisions made in an organization it conveys the importance of ethical standards to the members of the organization. Valentine and Hallingworth distributed 500 surveys to employees of a U.S. financial firm. Of the 500, 144 were completed and usable for analysis. The results of the survey supported the hypothesis that ethical decisions made by leaders in the organization projected the significance of ethical standards to other members of the organization. In addition, the survey results found that communication of organizational strategies to employees influence the positive perception that the organization operated under certain ethical standards and encouraged collectively made decisions. As a result, employee interest in ethical standards and behaviors was increased along with employee participation in decision making. The results are significant because they imply that a decentralized structure for decision making within an organization promotes ethical behavior and standards. In a decentralized structure decision making is done including all members of an organization from top management to lower level employees (Daft, 2016). One can then conclude that a decentralized decision making structure promotes employee involvement, ethical behaviors, and communication. These factors can contribute to the strength of the