Describe how to create and maintain an ethical organization as per the research done by the Ethics Resource
Center.
Research from the Ethics Resource Center (ERC) suggests that organizational
culture has more influence than any other variable on the ethical conduct of individual
employees. According to the ERC, key elements of a strong culture include displays
of ethics-related actions at all levels of an organization and accountability for actions.
The impact of these elements can be dramatic.
ERC research showed that companies behave differently during economic difficulties.
The decisions and behaviors of their leaders are perceived by employees as a
heightened commitment to ethics. As a result, employees adopt a higher standard of
conduct for themselves.
ERC research further supports the need for senior manager commitment by showing
that when employees perceive more management commitment, they tend to be more
fully engaged. More engaged employees are much less likely to behave badly, and
much more likely to report others who do, which dramatically lowers the risk for the
company.
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