Ethical Organizational Culture

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Organizational culture depicts how individuals in an organization behave, their values, mission and vision.

An ethical organizational culture needs to have trust, openness, objectivity, communication and most importantly transparency. Ethics in an organization can be viewed as Ethics of Values or Ethics of Compliance. The values approach is more liberal and focuses on expected behavior with high standard while the compliance approach is more rigid and focuses on how people are required to behave according to the law. The varying forms and intensity of ethics help to decide the progression of an organization. Money making, too is essential for the continuity of an organization thus it shouldn’t just be put aside. Shareholders are a large
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A moral person will demonstrate traits such as honesty, integrity and trustworthiness. Managers should be seen doing the right thing such as showing concern for people, treating individuals with dignity and living a personally moral life for a solid reputation. They also have to make decisions based on his values, fairness and care and concern for the society. Perceived fairness is especially essential for the building of a social exchange relationship (Konovsky & Pugh, 1994), mostly in the context of a leader–employee relationship (Pillai, Schriesheim, & Williams, 1999). When employees believe that they are treated fairly, they are encouraged to contribute more of themselves in support of their organization. Fair treatment creates satisfaction and loyalty among employees, making it less likely they will be motivated to harm their organization and instead be contributing towards the organization’s progress. However a moral person will only show employees how their leaders behave while combing it together with being a moral manager sets the tone right. Moral managers try to be visible role models of ethical conduct with open communications with the employees. (Trevino et al, …show more content…
The success of such can also be seen in the example of the University of Virginia where their pioneer founder, Thomas Jefferson, is still influential in the organizations decision making process even after he was long gone. Whenever a problem occurs, they would use the ‘What would Jefferson do?’ method to overcome it. This could only happen as Jefferson was a hero of champion’s integrity and stood up for what was right. This allowed for the continuity of the University of Virginia since 1819 till date and also ensured that they were one of the two universities in the USA with a Triple-A credit rating and were ranked 4th for endowment in the public universities in the USA. Thus it can be seen that Jefferson’s ethical nature set a path for the predecessors to follow suit which allowed the University to receive all the recognitions mentioned and to be ranked 72nd internationally in 2011.

Critics may argue that it is myopic to say that an organization should not focus on just money making as it is money that runs a organization. This can be supported by the contemporary perspective of Carroll in his ‘Carroll’s Pyramid of 4 Faces’. Under economic responsibilities, he mentioned that organizations engage in businesses to make an acceptable amount of profit and without adequate financial responsibilities, other commitments are

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