Creating an Ethical Organizational Culture
The culture of an organization impacts the ethical judgment of employees and partners. Organizations that work to make a solid moral ethical organizational culture persuade everybody to talk and act with integrity and honesty. Organizations that depict solid morals draw in clients to their products and services.
Clients are confident and happy about realizing they’re dealing an honest organization. Ethical organizations also hold on to the main part of their employees for the long-term which decreases costs related with turnover. Investors have significant peace of mind when they invest into organizations that show great ethics since they feel guaranteed that their funds are in safe hands. Great ethics keep share costs high and shield organizations from takeovers.
Making an ethical organizational culture is workable for any organization by considering the following steps:
Top management leads ethics by example
One of the most recognizable ways that organizations can exhibit their responsibility for making an ethical organizational culture is to guarantee that top supervisors and leaders lead by example. Employees look to the conduct of top management for example of the kind of conduct that the organization finds acceptable in the workplace. Activities express stronger than words, so when top officials show ethical conduct, it sends a positive message to workers. Senior leaders should be aware of the fact that they’re being watched and ensure to practice what they preach.
Research backs up the thought of leading by example. Stanford psychologist, Al Bandura is known for his study on observational learning. Bandura’s phases of observational learning are:
- Attention
- Retention
- Reproduction
- Motivation
The stages recommend that individuals focus on the behavior of others and retain thoughts about it. At that point they reproduce the conduct. After repeated times of having a good experience with behavior, individuals are motivated to repeat it.
Communicate clear expectations of good ethics
Organizations that make and disperse an official code of ethics send away a clear message about the expectations for their workers. A code of conduct or code of ethics plainly outlines the company’s ethical rules and primary values that they expect everybody should follow. The code should show that it applies to attitudes, attire, and behavior. Cultural expectations and norms are also inferred and are easily recognized by watching the environment.
While it’s good to have a written record of the code of ethics, amounts to nothing if top management neglects to demonstrate moral behavior. Representatives are attentive. They observe whether the organization is sticking to the moral rules that it set or whether they are only offering empty talk.
Offer formal ethics training
A formal ethical training program sends a solid message about an organization’s moral position. Workshops, seminars, and other ethical training programs reinforce the company’s models of conduct and explain the kinds of practices that the organization considers reasonable or out of bounds. Situational models help to deliver how to deal with possible ethical dilemmas. Workshops can assist employees with working on their problem-solving skills. Trainings may incorporate consultations from friends or mentors.
Conclusion
Ethical consideration is important for an organization to incorporate in their culture which would also help them to position them better. Investors, customers would turn more to companies who conduct their practices ethically.
