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    5 Steps To Creating An Ethical Organizatio Culture: October 7, 2019

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    The document outlines 5 steps to creating an ethical organizational culture: 1) Top management should lead by example to influence employee behavior positively. 2) Communicate clear expectations of good ethics through a code of conduct. 3) Offer formal ethics training to reinforce standards and address dilemmas. 4) Reinforce ethical behavior and consequences for unethical acts. 5) Provide protection for employees to report issues without fear of retaliation. Implementing governance processes and technology can help organizations investigate reports and maintain documentation.

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    5 Steps To Creating An Ethical Organizatio Culture: October 7, 2019

    Uploaded by

    hari
    734 views5 pages
    The document outlines 5 steps to creating an ethical organizational culture: 1) Top management should lead by example to influence employee behavior positively. 2) Communicate clear expectations of good ethics through a code of conduct. 3) Offer formal ethics training to reinforce standards and address dilemmas. 4) Reinforce ethical behavior and consequences for unethical acts. 5) Provide protection for employees to report issues without fear of retaliation. Implementing governance processes and technology can help organizations investigate reports and maintain documentation.

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    The document outlines 5 steps to creating an ethical organizational culture: 1) Top management should lead by example to influence employee behavior positively. 2) Communicate clear expectations of good ethics through a code of conduct. 3) Offer formal ethics training to reinforce standards and address dilemmas. 4) Reinforce ethical behavior and consequences for unethical acts. 5) Provide protection for employees to report issues without fear of retaliation. Implementing governance processes and technology can help organizations investigate reports and maintain documentation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    734 views5 pages

    5 Steps To Creating An Ethical Organizatio Culture: October 7, 2019

    Uploaded by

    hari
    The document outlines 5 steps to creating an ethical organizational culture: 1) Top management should lead by example to influence employee behavior positively. 2) Communicate clear expectations of good ethics through a code of conduct. 3) Offer formal ethics training to reinforce standards and address dilemmas. 4) Reinforce ethical behavior and consequences for unethical acts. 5) Provide protection for employees to report issues without fear of retaliation. Implementing governance processes and technology can help organizations investigate reports and maintain documentation.

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    Download as pdf or txt
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    The key takeaways are the 5 steps to creating an ethical organizational culture: 1) top management leads by example, 2) communicate clear expectations, 3) offer formal ethics training, 4) reinforce wanted behavior and don't reinforce unwanted behavior, and 5) provide protection for employees.

    The 5 steps to creating an ethical organizational culture are: 1) top management leads by example, 2) communicate clear expectations, 3) offer formal ethics training, 4) reinforce wanted behavior and don't reinforce unwanted behavior, and 5) provide protection for employees.

    Top management plays a key role in creating an ethical culture by leading by example and modeling ethical behavior that employees can observe and learn from.

    5 Steps to Creating an Ethical Organizational Culture | BoardEffect Page 1 of 5

    October 7, 2019

    5 Steps to Creating an Ethical Organizatio


    Culture
    Written by Lena Eisenstein

    The culture of a company influences the moral judgment of employees and stakeholders. Compa
    work to create a strong ethical culture motivate everyone to speak and act with honesty and inte
    Companies that portray strong ethics attract customers to their products and services.

    Customers are happy and confident in knowing they’re dealing with an honest company. Ethical
    also retain the bulk of their employees for the long-term which reduces costs associated with tu
    Investors have peace of mind when they invest in companies that display good ethics because th

    https://www.boardeffect.com/blog/5-steps-creating-ethical-organizational-culture/ 7/10/2020
    5 Steps to Creating an Ethical Organizational Culture | BoardEffect Page 2 of 5

    assured that their funds are protected. Good ethics keep share prices high and protect business
    takeovers.

    Creating an ethical organizational culture is possible for any company by taking the following 5 s

    1. Top Management Leads Ethics by Example


    One of the most noticeable ways that companies can demonstrate their commitment to creating
    organizational culture is to ensure that top managers and leaders lead by example. Employees lo
    behavior of top management as an example of the type of behavior that the company finds acce
    the workplace. Actions speak louder than words, so when top executives display ethical behavio
    a positive message to employees. Senior leaders need to be mindful of the fact that they’re bein
    and be sure to practice what they preach.

    Research backs up the notion of leading by example. Stanford psychologist, Al Bandura is known
    research on observational learning. Bandura’s stages of observational learning are:

    • Attention
    • Retention
    • Reproduction
    • Motivation

    The stages suggest that people pay attention to the behavior of others and retain thoughts abou
    they reproduce the behavior. After repeated times of having a good experience with behavior, pe
    motivated to repeat it.

    2. Communicate Clear Expectations of Good Eth


    Companies that create and disseminate an official code of ethics send a clear message of the
    expectations for their employees. A code of ethics or code of conduct clearly outlines the organ
    primary values and ethical rules that they expect everyone to follow. The code should indicate th
    applies to attire, attitudes, and behavior. Cultural norms and expectations are also inferred and a
    detected by observing the environment.

    While it’s good to have a written record of the code of ethics, means nothing if top management
    model ethical behavior. Employees are observant. They take note of whether the company is adh
    the ethical principles that it set or whether they are merely paying lip service.

    https://www.boardeffect.com/blog/5-steps-creating-ethical-organizational-culture/ 7/10/2020
    5 Steps to Creating an Ethical Organizational Culture | BoardEffect Page 3 of 5

    3. Offer Formal Ethics Training


    A formal ethics training program sends a strong message about a company’s ethical stance. Sem
    workshops, and other ethical training programs reinforce the organization’s standards of conduc
    clarify the types of behaviors that the company deems permissible or out of bounds. Situational
    help to address how to handle possible ethical dilemmas. Workshops can help employees to wor
    problem-solving skills. Trainings may include consultations from peers or mentors.

    4. Reinforce Behavior You Want, and Don’t Reinf


    Behavior You Don’t Want
    Corporate culture always begins at the top. Managers should be evaluated on their ethical behav
    of their annual performance appraisals. Their appraisals should include specific questions about
    decisions measure up against the code of ethics. Top executives should also be evaluated on the
    they take to achieve their ethical goals as well as how the means lead to the ends.

    Once again, research supports ethical principles. The principle of operant conditioning, by B.F. S
    represents that it’s possible to reinforce the behavior you want to see in others. The principle of
    conditioning also shows that companies shouldn’t reinforce behavior they don’t want to see in ot

    People who act ethically should be noticeably rewarded for their behavior and those who fail to a
    behave ethically should have consequences for unethical behavior. Rather than fire good employ
    demonstrate a single ethics violation, the company may choose to provide correct feedback for
    behavior along with a short probationary period. Correction should be conducted in the spirit of
    collaboration and education rather than punishment or chastisement.

    This step should encourage companies to offer their employees opportunities for rewards, reco
    and social reinforcements. Rewards and recognition should be thoughtfully considered taking ca
    deliver it with attention to detail to avoid unintended consequences.

    5. Provide Protection for Employees


    Most employees will want to do the right thing especially if they work for a company that has high
    and ethical standards. It can be difficult for anyone to report unethical behavior that they witnes
    people at the company. Shy or introverted employees may find it particularly challenging to repo
    unethical behavior. Almost anyone would feel intimidated if they felt the need to report the unet
    behavior of one of their superiors or someone in a senior management position.

    https://www.boardeffect.com/blog/5-steps-creating-ethical-organizational-culture/ 7/10/2020
    5 Steps to Creating an Ethical Organizational Culture | BoardEffect Page 4 of 5

    There are several ways that companies can assure their employees that they can safely report u
    behavior without fear of losing their jobs or getting some sort of punishment or consequence. A
    third party such as an ethics counselor, ethics officer, ombudsman, or ethics consultant can be
    these situations. An ombudsman can get the tools and resources to help with a consultation or
    investigation of a complaint about ethical behavior.

    Using Technology to Support Creating an Ethica


    Organizational Culture
    In the best-case scenario, your company will never have to deal with an infraction of your Code o
    policy. Unfortunately, that’s not the reality for many companies. Here’s where it pays to take a m
    approach to creating an ethical organizational culture. BoardEffect offers the perfect electronic
    for securely storing your code of conduct policies, reports, investigations, and the outcome of
    investigative results.  It provides a secure, confidential online space where a team can investiga
    communicate, and collaborate about ethical reports that have the potential to harm the compan
    reputation. In the event that an incident takes a legal turn, attorneys have quick access to the co
    code and all other documentation regarding the incident. The board administrator has the ability
    the users who can participate in such discussions.

    The best judgment you can use to protect your company is to implement modern governance pro
    with the help of a BoardEffect board management software solution.

    INTERESTED IN LEARNING MORE?

    Learn why 180k+ users are using BoardEffect for their board portal solution!

    REQUEST A DEMO

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