Using the Waldorf Online Library, locate a scholarly article that discusses ethics and corporate culture. Article topics might include employee morale, creativity and innovation, ethical scandals, mergers and acquisitions, or company performance. Note these are ideas; please expand within the parameters of topics as they relate to ethics and corporate culture.
If you are unsure about a topic, then contact your instructor. Include the following information in your review:
Summarize the main point of the article and the reasons offered in support of the main point.
How does this article characterize the impact of corporate culture on ethical decision-making?
What role does corporate leadership have in establishing the culture according to this article?
How can you apply information in this article to your own field? Identify a real-world situation and explain how you could apply the information.
Full Answer Section
The authors provide several reasons to support their argument. Firstly, they cite research suggesting that a strong CEC leads to increased employee morale, creativity, and innovation. This is because employees feel more comfortable expressing themselves and taking risks when they believe the organization values ethical behavior. Secondly, they argue that a strong CEC helps to prevent ethical scandals by creating a culture of compliance and accountability. When employees know that unethical behavior will be punished, they are less likely to engage in it. Finally, the authors point to studies that show a positive correlation between CEC and company performance. Organizations with a strong ethical reputation tend to attract and retain top talent, which ultimately leads to better financial results.
Impact of Corporate Culture on Ethical Decision-Making:
The article portrays corporate culture as a powerful influence on ethical decision-making. The authors state that "corporate culture provides the context in which employees make decisions" and that "the values and norms of the organization can either facilitate or hinder ethical behavior." They emphasize that a strong CEC can create a "moral compass" for employees, guiding them towards ethical choices even when faced with difficult situations. Conversely, a weak or unethical CEC can lead to a culture of "moral relativism," where employees are more likely to justify unethical behavior based on situational factors.
Role of Corporate Leadership:
Aghaei Chadegani et al. (2016) place significant emphasis on the role of corporate leadership in establishing and maintaining a strong CEC. They argue that leaders set the tone for the entire organization and that their actions have a profound impact on employee behavior. Leaders who consistently demonstrate ethical behavior and promote ethical values are more likely to create a culture where ethics are valued and respected. Conversely, leaders who engage in unethical behavior or tolerate unethical conduct send a message to employees that ethical behavior is not important.
Application to Real-World Situation:
The information in this article can be applied to various fields and real-world situations. For example, in the healthcare industry, a strong CEC is essential for ensuring patient safety and preventing medical errors. Hospital administrators can create a strong CEC by promoting open communication, reporting of errors, and holding individuals accountable for unethical behavior. This can be achieved through initiatives like leadership training programs, ethics hotlines, and employee recognition programs that reward ethical conduct.
Similarly, in the financial industry, a strong CEC is crucial for preventing fraud and insider trading. Financial institutions can promote ethical behavior by establishing clear ethical guidelines, providing regular ethics training, and creating a culture of compliance and risk management. Additionally, they can implement whistleblowing programs and encourage employees to report any suspected unethical activities.
Conclusion:
The article by Aghaei Chadegani et al. (2016) provides valuable insights into the importance of corporate ethical culture and its impact on ethical decision-making. By understanding the role of corporate leadership and implementing appropriate strategies, organizations can foster a strong CEC that benefits both employees and the organization as a whole. By applying the principles discussed in this article, professionals across various industries can contribute to creating ethical and responsible workplaces.