Marthins Harrison

Learner ID: 059390

Nexford University

BUS2300- Milestone 2
Impact of ethical practice on the culture and organization

Company culture and ethics are more like two different sides of the same coin. The ethic and

culture within an organization are critical to the success of that organization. These do not

just apply to how the business complies with statutory rules and regulations or how it

conducts its business with its customers, but it also significantly impacts how staff interact

and engage with each other, their commitment to doing the right thing and how it impacts on

the business's reputation and public perception. An organization that maintains strong ethical

standards that are aligned with its organizational culture makes it easy for employees to

uphold those ethical standards. Employee performance, efficiency, commitment,

collaboration, and responsible ethical behaviour are all by-products of a positive business

culture. You can be sure that an organization without a clear state culture, values, or

principles is a perfect environment for all kinds of unethical behaviour.

There are several ways how ethic impacts on the organizational culture.

Strengthen corporate culture

Because ethics and culture go hand in hand, a company can create a positive corporate culture

when it invests resources in creating policies and procedures that promote ethical behaviour.

Team morale increases when staff members believe, they are safe from being punished for

their personal opinions. These regulations include ones that prohibit discrimination, will

create a level playing field within the organisation, and provide equal possibilities for

advancement. Positive attitudes are more prevalent throughout a company when workers

enjoy their jobs. As a result, employees are more loyal and committed to the organization.

Exemplary leadership
Whilst ethical conduct, core values, rules and regulations all help to foster ethical corporate

cultures, people tend to be more influenced by what they see, hear and experience than what

is written. It is therefore important that leaders within the organization lead by example by

demonstrating commitment to the ethical practices of the organization in order to strengthen

its organizational culture. It is important that the conduct of top management and leaders

within the organization is consistent with the core values of the organization and that they are

indeed practising what they preach.

Ethics Improves business performance

Regardless of their nationality, religion, or cultural background, everyone has a sense of right

and wrong. It improves commitment, motivation, and teamwork inside the organization when

a company's ethical standards are in line with the personal values and ideals of its employees.

It helps to build better internal relationships, cooperation; understanding, dedication to one

another, and the overall effectiveness of the organization when employees feel that their

values are similar to their own and that they share those values.

Boost customers’ confidence

The customer is the pillar of every organization; without them, there wouldn’t be any need

for the business or service they deliver. And at that, it is important for an organization's

ethical standards and culture to incorporate customer satisfaction into its values. Word of

mouth is as important as the press and blogs are today. One single negative post or comment

on the product page can definitely impact customer confidence negatively. In other deepen

customer loyalty and enhance brand perception, business must maintain high ethical practise

in the business and therefor it is important for business to

Protect company from potential lawsuit

No organisation is exempt from being dragged to court. Either for unfair treatment by an

employee, an illegal dismissal, sexual abuse, an unsatisfied customer, or someone who feels

they’re being discriminated against. Having an ethical standard of practice that seeks to

address these events from happening or at least having a procedure to manage events like this

can protect the company from frivolous lawsuits that will impact negatively on the

company’s finances.

Workplace diversity

In today’s business environment, diversity has become an integral part of every organization

as a way of fostering inclusion in the workplace. An ethical response to diversity starts with

hiring a diverse workforce, upholds equal opportunity in all training programs, and is

successful when every employee is able to work in an environment that respects and honours

their contributions.

Ethical Principles

Integrity

Any work ethic or code of conduct must contain a vital element of integrity. Employees and

executives must always act with the utmost honesty when interacting with their colleagues

and customers. They must be sincere in their communication, because this will promote

customer loyalty and build trust within the company.

Accountability
Accountability occurs when individuals accept responsibility for their action. Accountability

necessitates that employees communicate and behave responsibly and ethically with one

another. Accountability extends to how employees interact with customers and stakeholders,

as well as the environment in which they function.

Respect

Respect is a quality that every person should have. Respect for other people's opinions, their

cultures, and their religions. Regardless of their position within the organization, everyone

must be treated with respect at all levels. To achieve this, everyone must be given a voice and

an environment where they feel included, engaged, and excited to be a part of.

Excellence

An organization that places a high priority on excellence will succeed. An organization that

practices excellence as a culture and ethical standard pays attention to the quality of its goods,

services, and human resources. It’s one that operate efficiently and attracts the best talents.

Reference
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