THE IMPORTANCE OF ETHICS TO ORGANIZATIONAL CULTURE

1. The importance of ethics to organizational culture

Ethics in the workplace means knowing the difference between right and wrong and making good choices in how you act. It’s about being honest, fair, and treating others with respect. By following ethics, you can build trust, create a positive work environment, and avoid conflicts or problems.

 Source: TEDxTalks 

Topic: "Creating ethical culture in business"

Author: Brooke Deterline, Corporate Director (Heroic Imagination Project) at TEDxPresidio

1.1. Professionalism as a Value

Professionalism is often regarded as a fundamental and inseparable core value of a company. Core values are the essential beliefs and principles that shape an organization’s culture and determine how it behaves both internally and externally. Professionalism can play a significant role in defining these values in both contexts.

Source: Cecilia Chan (Holistic Competency and Virtue Education) Youtube Channel

Professionalism is more than just a trait; it is a core value that reflects a commitment to excellence, ethical behavior, and accountability in the workplace. It encompasses behaviors and attitudes such as integrity, respect, reliability, and dedication to continuous improvement.

Professionalism means acting in a way that shows you are: 

It's not just about your skills, but also how you behave towards others and how seriously you take your work. Professionalism includes being on time, being polite, and doing your job well.

Practical assignment 3.1. Read the given situation bellow very carefuly and complete it offline during your free time according to the instructions given below.  

Objective of the task: to help understand and evaluate key aspects of professionalism in the workplace, focusing on qualities such as responsibility, respect, capability, punctuality, and effective communication. The goal is to encourage you to reflect on how these behaviors impact both personal success and the success of the organization.

Practical task. Below are several statements about professionalism in the workplace. Read each statement and choose whether it is correct or incorrect.

Objective of the task: this test will help assess your understanding of professionalism, including qualities such as responsibility, respect, capability, punctuality, and effective communication

1.2. Leader-employee relationships

Every organization has a structure that reveals hierarchy and responsibility. In larger organizations, there are more leaders, making good interpersonal relationships among managers, as well as a clear understanding of responsibilities and duties, particularly important. The alignment of tasks and goals is also crucial. In smaller organizations, there is typically one leader, and here it is essential to consider the nature of the leader’s relationships with employees and how well employees understand their objectives and responsibilities. In such teams, employees are likely to know each other better, but there can also be a significant number of conflicts.

Key principles of ethical leader-employee relationships

1. Respect for employees:
   Leaders must respect the rights, dignity, and needs of their employees. This respect entails fair treatment without discrimination and ensuring equality in the workplace.

2. Integrity and transparency:
   Honest behavior from leaders is essential for building employee trust. Transparency in decision-making and clear communication help employees feel valued and understand the organization's goals.

3. Fairness and impartiality:
   Leaders should ensure fairness toward all employees, avoiding favoritism or discrimination. Equitable compensation, fair evaluations, and opportunities for career advancement are hallmarks of ethical behavior.

4. Responsibility for employee well-being:
   Leaders have a duty to care for their employees not only in a professional context but also to promote their personal and emotional well-being. Ensuring a balance between work and personal life is a vital element of ethical relationships.

5. Ethical leadership:
   Leaders must lead by example through their actions, encouraging ethical behavior among employees and addressing conflicts honestly and openly. Ethical leadership also involves providing constructive feedback aimed at employee development.

6. Involvement of employees in decision-making:
   Leaders should involve employees in significant decisions, encouraging them to express their opinions and participate actively. This inclusiveness increases employee motivation and commitment to achieving organizational goals.

Do take the following steps to become a better leader: 

Work on your weaknessess: 

Becoming a strong leader involves consistent self-reflection, developing emotional intelligence, and creating a supportive work environment. Striving to lead by example, empowering others, and maintaining integrity will set you on the path to success, while avoiding micromanagement, inconsistency, and favoritism will help you build trust with your team. By balancing these dos and don’ts, you can create a positive leadership presence that encourages growth and collaboration within your team.

Watch the video below to gain a deeper understanding of how emotional intelligence enhances leadership skills and fosters stronger team connections:

Source: UC Davis Continuing and Professional Education (UC Davis Executive Leadership Program) Youtube Channel

Practical assignment 3.3. Take this test to assess your understanding of essential leadership principles, including effective communication, accountability, and fostering trust within a team. Let’s see how well you know the dos and don’ts of aspiring leaders:

1.3. Characteristics of ethically strong organizations

What helps an organization remain ethically strong? Perhaps these principles of ethical organizational strength will help provide the answer:

Maintaining ethical principles is crucial for building trust within an organization and fostering a positive reputation externally.

By staying true to these values, an organization can achieve long-term success, as ethical behavior strengthens relationships, enhances employee morale, and attracts customers who share similar values. Ethical principles also help to navigate challenges and conflicts by providing clear guidelines for appropriate conduct.

Here are some helpful resources that can aid in improving both your professional ethics and brain function:

CogniFit Brain Training (offers scientifically validated brain games that target various cognitive abilities like memory, attention, and reasoning. These exercises help keep your mind sharp and may assist in better decision-making and emotional resilience).

1.4. Organizational ethical climate

The improvement of organizational ethics depends on three main factors:

1. Leadership goals and values:
   The ethical framework of an organization is heavily influenced by the goals and values set by its leaders. When leaders prioritize ethical behavior and establish clear ethical objectives, it creates a foundation for ethical practices throughout the organization.

2. Personal haracter traits of leaders and employees:
   The personal characteristics and integrity of both leaders and employees play a crucial role in shaping the ethical environment. Individuals who demonstrate honesty, fairness, and accountability contribute to a culture of ethics within the organization.

3. Organizational culture, beliefs, and experience:
   The existing culture and collective beliefs of the organization significantly impact its ethical standards. Organizations that have a history of ethical behavior and a culture that supports ethical decision-making are more like ly to maintain high ethical standards.

Management specialists provide the following ethical standards characteristic of leaders:

Practical assignment 3.4. Read the given situation and answer the test after it.

On February 5, 1995, the X individual store 'Pamiškė' was opened. The store sold food products and industrial goods. The products were of good quality, and there was no shortage of visitors, despite the higher prices compared to other stores. In the first year, the store made a significant profit. The owner of 'Pamiškė', feeling the 'big money', wanted even more, and began to disregard his employees: he reduced their wages, fired them without settlement, and so on. Workers started stealing. Noticing the shortcomings, the owner abolished self-service in the store, believing it to be the cause of the problems. However, this was not the solution, and the store's situation worsened rather than improved. Facing significant deficiencies and unpaid loans, the owner decided to liquidate the store.     

An unethical organization can incur significant losses

Morality, professional leadership, and work productivity complement each other throughout the work process. Employees' personal values and character play an important role in improving the ethical climate and culture of the organization.

If ethics are ignored and there is high employee turnover, organizations suffer losses due to significant:

- Costs of lost production until the vacant position is filled;

- Costs of hiring a new employee;

- Costs of training a new employee;

- Costs due to reduced productivity until the new hire becomes familiar with the job."

Practical assignment 3.5. Take the test to assess your understanding of how ethics influences organizational culture: