INTRODUCTION An organization’s culture is expressed through its shared values, beliefs and norms. Business culture is manifested in both formal channels such as a Code of Conduct, and a set of informal unwritten rules that guide business practices. Together, the
formal and informal systems establish the organization’s personality and distinguish companies in a competitive marketplace. Research shows that an ethical corporate culture contributes to reduced business misconduct and diminished risk profiles. Companies and
regulators are trying to shape ethical corporate cultures in order to reduce ethical failures and increase team performance. Most organizations point to culture to illustrate the positive traits that they want associated with their brand. However, organizational cultures are complex. Methods for measuring and changing corporate culture are evolving. This webpage will provide maps to the most efficient methods for measuring and shaping ethical corporate cultures. Intentionally
shaping an ethical corporate culture allows companies to gain control over the public and private values that guide corporate behavior. Promoting ethical corporate culture requires long-term commitment and ongoing examination. Organizational research on ethics can be used as a powerful tool for understanding and shaping organizational ethics. Organizational research will help businesses understand how to take advantage of key levers of systemic change within organizations. Sculpting
an ethical corporate culture can ultimately enhance the working environments for employees while also improving the organization’s bottom line. 1] Perceived features of the work environment [The Place] 2] Traits and values of the employees [The People] 3] Reputation of the firm [in the eyes of outsiders] 1] Direct measurement techniques [assume honesty of respondents] 2] Indirect measurement techniques [may be less vulnerable to “gaming” and self-presentational biases] 3] Objective data [does not require participation by employees]What to Measure
How to Measure
What to Measure [below are some of the constructs that have been studied in the research literature]:
How to Measure [below are some of the available methods for assessing the constructs listed above]
- Text analysis [e.g., of big data sets such as all internal emails]
- Earnings restatements [compared to peers in same industry]
- Ratings on GlassDoor.com and other ratings sites
TO LEARN MORE
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This page is edited by the team at Ethical Systems. Other researchers may have contributed content.
As people in this world, and good citizens, we are concerned not only with what actions are morally right and morally wrong, but what makes actions morally right or morally wrong. The key is to understand the reasoning that we employ in ethical decision making so we can become more proficient.
Ethical frameworks are perspectives useful for reasoning what course of action may provide the most moral outcome. In many cases, a person may not use a reasoning process but rather do what they simply feel is best at the time. Others may reflexively use a principle they learned from their family, peers, religious teachings or own experiences. The study of ethics has provided many principles that can aid in ethical decision making. Some of the most common are captured in the following 5 ethical frameworks:
- Virtue ethics : What is moral is what makes us the best person we could be.
- Deontology : What is moral is what follows from absolute moral duties.
- Utilitarianism : What is morally right is what generates the best outcome for the largest number of people.
- Rights-based Ethics : What is moral is that which is in accord with everyone's rights.
- Care-based Ethics : What is moral is that which promotes healthy relationships and the well-being of individuals and their interdependence.
The videos below provide a description of these.
Please remember that these and other ethical frameworks are considered differently by people from diverse societies around the world including Asian, African, Native American and others.
Virtue ethics : What is moral is what makes us the best person we could be.
[CrashCourse]. [2016, December 5]. Aristotle & Virtue Theory: Crash Course Philosophy #38 [Video]. YouTube. //www.youtube.com/watch?v=PrvtOWEXDIQ
Deontology : What is moral is what follows from absolute moral duties.
[CrashCourse]. [2016, November 14]. Kant & Categorical Imperatives: Crash Course Philosophy #35. [Video]. YouTube. //www.youtube.com/watch?v=8bIys6JoEDw
Utilitarianism : What is morally right is what generates the best outcome for the largest number of people.
[CrashCourse]. [2016, November 21]. Utilitarianism: Crash Course Philosophy #36. [Video]. YouTube. //www.youtube.com/watch?v=-a739VjqdSI
Rights-based Ethics : What is moral is that which is in accord with everyone's rights.
[CrashCourse]. [2016, November 28]. Contractarianism: Crash Course Philosophy #37. [Video]. YouTube. //www.youtube.com/watch?v=2Co6pNvd9mc
Care-based Ethics : What is moral is that which promotes healthy relationships and the well-being of individuals and their interdependence.
[UvA ComScience Microlectures]. [2017, October 15]. Alternative Paradigms: Care Ethics and Feminine Ethics. [Video]. YouTube. //www.youtube.com/watch?v=4iaCpAFypq8