It is hypothesized that leadership plays a vital role in establishing and sustaining an ethical culture that influences positive behavior of individuals.Additionally, the essay will discuss the advantages of implementing formal ethics programs, including ethics training and formal codes of ethics.
Research suggests that code of ethics can be an effective management tool under the right circumstances.
A study by Ford and Richardson investigated the correlation between codes of ethics and misconduct, concluding that there were fewer incidents within organisations that adopted formal ethics codes (Cleek & Leonard 1998).
Mayer Corporate indiscretion, wrongdoing, and corruption are perpetually the subject of media attention as well-known companies such as Enron, Tyco, World Com, and most recently the News of the World, have been found guilty of unlawful behavior; and the U. economic crisis has in part been blamed on unethical actions from Wall Street.
These corporate scandals and current financial woes have brought renewed interest to business ethics—namely, understanding the factors that promote ethical behavior in organizations.
Although conventional wisdom suggests that unethical behavior is the result of a few “bad apples,” there is mounting evidence that in addition to the personal values of employees, the organizational environment plays a critical role in encouraging ethical conduct.
If the organizational environment is important in promoting ethical conduct, how can such a context be created? How Leadership Impacts Organisational Culture Leadership has shown to be an effective management tool in fostering a positive workplace culture, showing to have a direct impact on ethical decision making in modern organisations (Ruiz Palamino et al. This powerful relationship between workplace culture and ethical behavior is explained in Zimbardo’s argument that there are no bad ‘apples’, just bad ‘barrels’.Zimbardo argues that the environment and contexts of an organisation establishes inherent cultures that promote or discourage moral standards and ethical behavior.This essay will argue that leadership is an integral factor in the development of ethical decision making in modern organisations.Literature proposes that organisational culture has a strong correlation with ethical behavior within an organisation, suggesting that situational factors such as workplace culture and environments are responsible for influencing behavior (Jones, TM & Ryan, LV 1998).Ethical leaders are both moral persons who have desirable characteristics and moral managers who influence employees conduct directly: Ethical practices are actions or activities related to ethics that are repeated and recognizable in organizations—they are what organizations actually do rather than just what is touted. Research demonstrates there are six critical organizational practices related to ethics: Although there is a human tendency to blame a few “bad apples” for wrongdoing in organizations, the inconvenient truth is that the organizational environment—including the leadership, practices, and climate—is the most critical factor in creating ethical organizations. These factors may be personal factors or organizational factors or environmental factors.1) Personal factors1.1) Family Can ethics be taught? People are not born with innate desires to be ethical or to be concerned with the welfare of others.The role of the family includes teaching children a code of ethical behavior that includes respect for parents, siblings, and others.The purpose of ethics in business is to direct business men and women to abide by a code of conduct that facilitates, if not encourages, public confidence in their products and services.But what is considered ethical behavior may depend on the factors that define and affect ethical behavior.