The Importance of Maintaining an Ethical Culture

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TheImportance of Maintaining an Ethical Culture

Ethicalculture represents a part of the whole civilization of theorganizations. Culture helps the workers to develop in theiroccupations. Consequently, ethical culture promotes ethical conductsamong staffs of the organization (Peterson, 2015). Maintaining awell-built ethical culture creates an organization that supportsworkers who behave ethically and make moral decisions on the dailybasis. The aim of this presentation is to educate leaders on theimportance of maintaining a healthy ethical culture. Specifically, itwill teach the meaning of sustaining ethical culture, analyze therole played by culture in universal business ethics, describe thesignificance and rationale for upholding an ethical culture andrecommend ethic guidelines in each area of maintaining the ethicalculture.


Maintainingethical culture in an organization means keeping it values throughleadership, the new worker on-boarding, reward systems, attraction,attrition and selection (Kotz, 2015). Through attraction, workers areattracted to the business using different values of the organizationsuch as innovativeness, interpersonal competition or teamworkcultures where employees can fit in. However, skills comparison isnot a perfect way of attracting staffs to the company. Other dominantattractions such as first remuneration count in and the company willthus use selection method to find those candidates that fit theirbusiness culture (Kurtz, 2014). Through selection ethical culture ispreserved by selecting employees with desired attitudes andpersonalities to suit the company culture rather than selectingemployees with specific skills of a certain occupation. On the otherhand, attrition process involves removing those candidates that donot fit in the corporate culture either through regular occurringturnover or hiring process. Thus, the organizations will attract,choose and retain those workers who share its core values and removethose who do not fit in.

Thenew employees will then be on-boarded to learn new behaviors, skills,knowledge and attitudes required to work efficiently in the business(Ferrell, 2014). Our organization will use formal orientationprograms such as written materials, videotapes and lectures to coachour new employees on our team culture as well as introducing them totheir new colleagues and jobs. This orientation will make them feelwelcomed and get the exact information to do their jobs effectively. Similarly, leaders play a significant role in maintaining the ethicalculture of the organization. Leadership style and organizationculture are always correlated. For instance, if a leader encouragesworkers via inspiration, the corporate culture will come out aspeople oriented or supportive (Kurtz, 2014). Thus, leaders directlyinfluence the organization culture through reactions to others’actions as well as role modeling. Lastly, the reward system can alsobe used to maintain ethical culture through rewarding results andbehaviors (Peterson, 2015).

Whileculture is the knowledge and characteristics of a particular groupdefined by arts, music, social habits, cuisine, religion andlanguage, ethics is a system of moral values and standards(Macdermott, &amp Mornah, 2016). Different countries have variedcultures which may affect the organization and running of anybusiness. Culture plays a significant role in global business ethics.It impacts on how values in local regions influence ethics of globalbusiness. The experiences sway every professional, social programmingand benefits they have engrossed since upbringing. These commonaspects affect how an individual sees an issue, and the associatedright or wrong conducts. For instance, while the global ethicsacknowledge treating all the workers equally in the workplace, somecultures will discriminate women without seeing it as bad behaviors(Macdermott, &amp Mornah, 2016). The culture of the particularcountry will determine which global ethics to be applied in anindividual state and which ones will not be applicable. Thus, theculture will always modify the universal principles to suits itssociety.

Itis important to maintain an ethical culture within the entireorganization because it creates an organization that supportsindividuals who perform ethically and makes good principled decisionson the daily basis. The rationale for maintaining ethical culture isto enhance business reputation, boost productivity and improve theoval profitability of the firm as well as retaining more experiencedpersonnel. Additionally, the sustained principled culture rewards theemployees that portray the ethical behaviors aligning with company’sethics codes (Kotz, 2015). As leaders of various departments, you canapply different methods to reward employees toward practices that areethical to business. These methods include encouragements ofcreativity and innovations, employee empowerments, financialincentives, learning opportunities, quality life and nonmonetaryincentives.

Encouragingemployee’s creativity and innovations are usually done by providingopportunities to your employees and allowing them to apply theirideas for improvement. This method will not only motivate them, butalso it will create a more flexible working environment (Peterson,2015). Furthermore, empowering employees motivates them throughextended responsibilities to make decisions within their control ofwork. Likewise, use of financial incentives has been mostly used tomotivate employees as result of increased productivity, reducedabsenteeism and generating cost-saving or process-improving ideas(Ferrell, 2014). However, you should always consider combingfinancial with non-financial incentives because the former isshort-lived. Non-financial incentives, on the other hand, include aletter of recommendation, occasions off from a job, responsibilityadvancement, recognition and praises for well-done jobs. Theseincentives when combined with financial incentives not only serve aslong-lasting motivators but also enhance employees-self-actualization.

Thefollowing ethical guidelines will be applicable in the areas ofleadership, on-boarding, reward systems, attraction, and selection.Under attraction, the leader should establish various values ofdifferent jobs that will attract the new employees. On the side ofselection, the manager should develop the attitudes and personalitiesof the potential employees to be selected to fit the corporate corevalues. During on-boarding, implement orientation programs to educatethe employees about the culture of the company. As well, you shouldfacilitate on-boarding through matching new workers with theirmentors (Peterson, 2015).

Underleadership area, leaders should establish whether the ethical cultureis people or performance-oriented to know how to motivate theemployees. Also, you should become a good role model by behaving bythe values and policies of the organization. It is worth noting thatyour behavior will indicate the wrong or the right action to befollowed by the workers (Peterson, 2015). Additionally, you shoulddetermine your reactions when your employees act differently. Forinstance, you can praise a well-performed job, forgive someone whoaccepts his’ her mistakes and warns or punish those who makecareless mistakes. Lastly, in reward systems, you should combinerewards for both results and behaviors and make clear indications onwhich practice to reward or to punish.


Ethicalculture promotes ethical conducts among staffs of the organization.Maintaining ethical culture in an organization means upholding itvalues through leadership, the new-fangled worker onboarding, rewardsystems, attraction, attrition, and selection. Ethnicity plays asignificant role in global business ethics. It impacts how values inlocal regions influence ethics of global business. These commonaspects affect how an individual sees an issue, and the associatedright or wrong conducts. It is important to maintain an ethicalculture within the entire organization because it creates anorganization that supports people who perform ethically and makesgood principled decisions on the daily basis. As a result, themaintained ethical culture will enhance business reputation, boostproductivity and improve the overall profitability of the firm aswell as retain more skilled personnel. Motivational methods includeencouragements of creativity and innovations, employee empowerments,financial incentives, learning opportunities, quality life andnonmonetary incentives. Various ethical guidelines will be applicablein the areas of leadership, on-boarding, reward systems, attraction,and selection.


Kotz,H. D. (2015).&nbspFinancialregulation and compliance: How to manage competing and overlappingregulatory oversight.Hoboken, New Jersey: Wiley

Kurtz,D. L. (2014).&nbspContemporaryMarketing.Australia : South-Western Cengage&nbsp

Macdermott,R. J., &amp Mornah, D. (2016). The Effects of Cultural Differenceson Bilateral Trade Patterns. GlobalEconomy Journal,16(4). doi:10.1515/gej-2015-0062

Peterson,R. A. (2015).&nbspBusinessethics: New challenges for business schools and corporate leaders.Armonk, NY [u.a.: Sharpe.

Ferrell,L. (2014).&nbspBusinessethics: Ethical decision making and cases.Boston: Houghton Mifflin Co.