Analysis of Ethical Climate in an Organization

Topic 

Analysis of Ethical Climate in an Organization

Instructions 

What purpose does an ethical climate serve, and why is it important to an organization?

-How do biases impact our moral decision making? (Pick 2)

 (Please note: The biases that are required for this paper, are located in the Values, Ethics, and Character Chapter).

– Provide an example of one ethical issue.  Why is this issue unethical? What behaviors are occurring that are unethical?

-How could the ethical issue have been avoided?  In other words, what are some of the leadership actions that should have been implemented to establish an ethical climate?  (Note: think about the 5 components that help leaders “create and sustain an ethical climate,” that we examined in the week 2 discussion post. Just pick 1, from the list of 5 on p. 198).

Answer Preview 

First, it improves employees’ morale. A firm’s ethical climate is not influenced by policies but by how leadership conducts business. Once employees realize that an organization handles affairs in an honest, respectable and appropriate manner, they will be motivated to achieving their goals (Kaptein, 2017). Secondly, it enriches organizational commitment through identifying and resolving ethical dilemmas. Some issues often discourage the workers often leading to reduced commitment. For instance, instances of discrimination could sideline a particular section of the taskforce hence massively reducing their commitment. Therefore, when organizational affairs are handled honestly, employees tend to give their best which is reflected in their commitment. Lastly, by observing an ethical climate, the firm fosters an engaged and retained workforce. It is noteworthy to consider that unethical actions like harassment have always resulted in employee turnover (Trevino et al., 2014). However, appropriate ethical climate increases job satisfaction making an organization retain most of its employees.

Word Count: 1600