Importance Of Ethical Culture In An Organization

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The following presentation is regarding the importance of maintaing an ethical culture in an organization. The pattern of the presentation will be as follows
We will start with brief description of organizational culture and the key descriptors that can influence and shape any organizations’ culture
Then we shall move to the ethical culture component of the organization, and describe the importance of a proper code of ethics for an organization
Then we shall see some ethic related actions and their expected outcomes in the behavior of employees.
Afterwards we shall explore the dimensions of ethical culture, and approaches to develop an ethical culture within an organization. after that we will discuss the various stages that an organization
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This helps the members of organization to better understand the behavior that is expected of them and act accordingly. A clearly written code is also important as it defines the overall ethical behavior of the organization.
There are four reasons for having a proper code of ethics identified by scholars
First is that a clear understanding of what actions can be performed under what situation will enhance the firm’s reputation by standardizing the acts
Secondly better and effective practices will emerge as all members will follow the written code rather than taking random decisions
Thirdly a written code will gather the employees around corporate culture by eliminating and discrediting the unwanted practices
And lastly a clear set of ethical actions will positively effect all stake holder as it will be easier to understand the actions of members for all stakeholder and expectations will also be set
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Congruency: this virtue refers to the importance of promoting ethical behaviors and discrediting unethical behaviors
Feasibility: this refers to the risk of unethical behavior occurring due to insufficiency of information, equipment, time or budget needed to fulfill the task
Supportability: according to this virtue employees who feel that they are taken seriously will behave ethically. Firms need to keep their employees motivated in order to implement the ethical standards
Transparency: this virtue refers to the level of transparency within the organization processes. In organizations having high transparency levels employees tend to adopt ethical values and correct any misbehavior
Discussability: refers to the raising and discussion of unethical issues by the employees
Sanctionability: firms can reward ethical behaviors and punish any unethical acts to build a more effective ethical culture within the

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