Thetwo distinct systems, ethical culture and ethical climate areincorporated together to form one term known as “ethical culture”.The ethical culture focuses on educating employees on the importanceof doing the correct thing in accordance with the expectations of theorganization. It incorporates elements such as organizational myths,punishment and rewards systems. Every organization has a collectivepersonality, and this is the main focus of the term “ethicalclimate”. Basically, it refers to the psychological perspective ofthe organization. It also focuses on the decision –making process,perceptions and attitudes that are ethically-linked.
Maintainingan ethical culture in an organization is basically implementing goodbehaviors. In the countenance of the dilemma, maintaining an ethicalculture is all about doing the right thing in an organization.Accordingly, the behaviors of employees are driven by the values thatare established in an organization. In practice, various departments,including the executives, managers, and board of directors amongothers collectively does the responsibility of maintaining thesevalues (Block, 2013).
Organizationsare better placed to compete effectively in the market if theiroperations are based on a strong ethical background. Furthermore, theculture within an organization is likely to empower employees byincreasing their dedication to produce the best work results andalso, be in a position to independently make solid decisions in thebest interest of the organization. Diversification within theorganization is vital given that people always have varied ideaswhich can be pooled together and effectively used in strategyformulation.
Employeeswith exemplary performance can be rewarded and as such, otheremployees will be motivated to achieve the same. Employees can onlycarry out activities are that in accordance with the policies of theorganization. The stipulated regulations set out by the organizationprevents the employees from engaging in acts of misconduct as theymay be liable to punishment.
Potentialfines on the employees or resulting from the organization being suedby other firms can be avoided by pursuing strict ethical standards.Failure to adhering to such standards can be costly to the company interms of their brand image, resources, customer loyalty andemployees. Additionally, an ethical culture in an organization isvital in decreasing vulnerability (Kelchner, 2017). For instance, asa firm develops its operations, both locally and internationally, itis imperative for the management to promote ethical practices thatare useful in helping employees in making ethical decisions. As aresult, the financial performance of the company is likely toincrease following their improved reputation and are able to accesscapital from different financial institutions (Chun etal.,2013).
Numerousmethods can be used in a company to motivate employees and employersin maintaining ethical business practices. A company should firstprovide a written code of conduct to act as a guideline for bothemployees and employers. Ethical training programs should beestablished within the organizations so that both the employees andemployees can dispense their duties in accordance with what they weretaught during training. Every organization should have an ethicalcommittee whose primary objective is to handle all issues that havean ethical perspective.
Thisethical committee will set out the standards to be followed andultimately reward those who have adhered to them. This will not onlymotivate the staff, but also act as a sign of appreciation. Employersin organizations should also lead by example through engaging inadmirable ethical practices.
Holdingregular meetings comprising of both the employees and their employeesenables unanimous conclusions to be attained regarding the ethicalpractices within the organization. This is because everyone will havea chance to make their voice heard, hence the personnel will not beforcefully subjected to regulations which are strange to them. Thereis a strong relationship between work-life balance and ethicalpractices within an organization. Inflexible schedules, long-workinghours and stress are the main reasons for conflict in anorganization, thus workers resort to unethical practices. As such,the management should provide a conducive working environment thatoffers work-life balance to offer work satisfaction among allemployees. Employers should create a working culture built on valuesthat thrive on high ethical standards.
Theethics guidelines that can be followed by leaders to manage theiremployees may have various effects especially on their loyalty andmorale. Four main virtues can be used in the ethical guidelines,these include honesty, integrity, loyalty and fairness.
Employeesneed, to be honest in all their actions and every communication theymake. When customers and suppliers realize the honesty of thedecisions that are being made by employees, they begin to gain trust,which is critical for the going concern of the organization(Kelchner, 2017).
Howemployees earn their trust in an organization is critical. Dependingon whom the employee is dealing with, they should maintain highlevels of personal integrity. In addition, they should demonstrateconsistent character which corresponds to their words, thoughts andactions.
Employeesneed to be loyal to their organization, colleagues and themselves. Itcan only be achieved by upholding high standards of ethicalprinciples. As such, it indicates that an employee highly valuatesthe interests of other employees and the organization as a whole,hence working for the betterment of the company.
Employeeshave to be fair in their interactions with clients, colleagues, andmanagement. This will create a conducive environment that facilitatesthe realization of the primary objectives of the organization. Itwill also eliminate conflicts among the workers.