Case Business Ethics and Organizational Culture

Defining Organizational Culture

Organizational Culture consists of a set of norms of actions and behavior and the shared values of a particular group that keep those norms in place. Organizational Culture usually comes from the founders of the organization. Due to whatever reasons, they start valuing something and act accordingly which is helpful for the group's success. Culture does change with the course of time. Usually a strong member at the top of organization or any large enough group from anywhere in the organization feels that something is going wrong, figures out the problems. Then enlists the issues and changes with a vision and communicates it along the organization, upwards and downwards. (Kotter, 2012).

Culture is a consistent pattern of behavior in any organization. It is developed and shaped by incentives. Culture is a continuous flow of processes regarding sense-making in organizations. It carries the meaning of actions. It does not only explain 'What is” but also “Why is”. As Alan Adler said, “Organizational culture is civilization in the work place”. It's a comprehensive system of social control, which enforces, right behavior in the workplace (Watkins, 2013)

Influence of leadership and culture on Business ethics

Leadership determines values in an organization. It is the main factor in determining the ethical/unethical behavior of the employees. The organizational culture is originated by the top leadership. The way, they do things and want others to do, determines the culture of the organization. If leaders successfully identify and share their values, it will create trust among the employees. Business ethics always takes the same route. If the leadership of the organization has a code of conduct and accordingly ethical expectations, ethical behavior starts to grow throughout the organization. If the leaders are unable to live up to the published code of conduct of an organization, they will be a joke. Leaders that present ethical behavior are more likely to influence the actions of others. Organization leadership can chose these values for their organization: competency, individuality, ambition, service, equality, excellence, dedication, teamwork, accountability, compassion, optimism, persistency, discipline/order, generosity, security, dignity, collaboration, respect, diversity, improvement, dependability, independence, challenge, friendliness and many more (Heathfield, N.D)

In the contemporary period, organizational researchers are showing interest in “moral potential of leadership” (Turner, et al, 20012). Research suggests that leaders must, and do, affect organizational ethics (Trevino & Brown, 2004). The descriptive literature on business ethics has reported that leaders at the top of the organization set the ethical code and develop their formal and informal business ethics and culture. The role of executive leaders regarding communicating the organization's ethical standards and reinforcement of appropriate code of conduct has been very vital to the organization (Treviño, Hartman, & Brown, 2000). Although immediate supervisors have mild control on organization's procedures, but they are most likely to mould employee's perceptions regarding the organization and regarding the work they do. When leaders treat their employees nicely, they start a positive social exchange, which creates a sense of responsibility in subordinates, thus, ...