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Writer's pictureSudhakar Raja

Establishing an Ethical Organizational Culture: Things to do



The organizational culture plays an essential role in the moral discernment of the employees and the customers. Organizations with well-built ethical culture encourage everyone to maintain honesty and integrity in their work and action. Only if the company seems to have strong ethics and values, the customers will trust the product and services offered by the company.

Ethical Organizational Culture

Customers’ confidence will increase when they know that they are dealing with a trustworthy entity. Ethical organizational culture also helps employees stay for a longer time period within the company thereby reducing turnover costs. Investors have a stress-free mind when they invest in companies that show good ethics because they feel the funds, they invested in the company are safe. Ethics is also related to keeping the shares high and protect from takeovers.


Management be the Role Model

The top management of the organization can lead by an example for the employees to follow and be on track to create an ethical organizational culture. Employees naturally follow the leaders when they are committed to following the ethics acceptable in the workplace. When the top managers dutifully follow the company ethics, it sends a positive motivation to employees, also they will take it more seriously the necessity to follow the rules and regulations in the workplace. So senior staffs have to mind that they are being watched and followed. There is a human dimension to company ethics and compliance, it has the power to cover the integrity, judgment, and competence of an entity’s topmost people.


Better Communication with Employees

Communication means clear and crisp frequent interaction with employees regarding the integrity standards and expectations to all stakeholders, including business partners. It is crucial to introduce mandatory ethics and compliance training for all employees. Company policy is everything. All the employees should get the opportunity to read and understand the company policy at the time of joining. Make everyone understand what ethics the employer expects from them and communicate what are the dos and don’ts in the organization. Make them clear on what actions will be taken against the person who violates the ethical policy in the workplace. People who act ethically should be appreciated and rewarded visibly and unethical acts should be warned and punished. The violation of the code of ethics can be reported on the TrstScore Platform. Depending on the severity of the doing, the employer can rate the employee or blacklist him/her which will act and a deterrent to others too.


Encourage Reporting Unethical Behavior

Employers should do everything to encourage speak-up culture and have to do proper investigations for all allegations that report. Most employees will be loyal to the employers if they find the workplace has high moral and ethical standards. Employees will be reluctant to report unethical activities in front of their eyes if the superiors are not supportive. Employees don’t like retaliation; a completely privacy-protected reporting system would be great. The employer has to ensure employees that you will keep the identity of the reporting person secret and protect who do come forward, and act on the information you receive. Ask superior managers to highlight the necessity of coming forward and your company’s commitment to zero retaliation to their employees. The more your employees feel comfortable and honest, the more likely you could save your organization from damage and a bad reputation.

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