Culture is among the most influential factors that contribute to the ethical posture of an organization. Organizational leaders can use organizational culture in creating values that result in ethical or unethical behaviors. Organizational culture can either undermine or facilitate ethical decision making and other ethical behaviors. In the best circumstances, ethics are a social responsibility, in a similar way to and supported by values of an organization. In various other cases, professional as well as personal ethics can conflict with organizational values.
Cultural elements can contribute to unethical conducts, but there are strategies for inhibiting unethical practices in an organization and the creation of an organizational culture that promotes positive values. Consideration of a pragmatic approach to organizational culture can assist in identifying the ways in which one can influence an organization's culture. Organizational leaders have the responsibility of shaping as well as influencing corporate culture, resulting in ethical or unethical leadership. Leaders have the responsibility of being both effective and ethical as well. An effective leader is one who does well for the stakeholders of a corporation. Effective leaders are good at obtaining followers to their common goals as well as objectives in the most effective and efficient manner.
Ken Lay and Jeffery Skilling, for example, were effective in the way they tram formed Enron from a small oil and gas pipeline firm to one of the largest entities in its industry. They showed both, creativity, inspirational as well as imaginative skills and also motivated personnel to achieve (Treviño, & Kish-Gephart, 2014). However, since their ethics were flawed they never good for the organization in the long term. Organizations regularly revisit these cultural manifestations to fine-tune their organizational activities to their current organizational environment
References
Treviño, L. K., den Nieuwenboer, N. A., & Kish-Gephart, J. J. (2014). (Un) ethical behavior in organizations. Annual review of psychology, 65, 635-660.
