Ethics and Governance

Ethics is defined as a system of moral principles that governs a person or a group’s behaviour. Ethics refers to well based standards of right and wrong, and prescribe what humans ought to do. It is also the continuous efforts of striving to ensure that people, and the institutions they shape, live up to the standards that are reasonable and solidly based (Amundsen & Andrade, 2009). Ethics involves in doing “what is right” and “what is wrong”. However, most ethical dilemmas in workplace are not simply a matter of right and wrong. Organizational culture also can play an important role in the moral development of organizational members (Trevino, 1986). Organizational culture is the values and assumptions shared within an organisation (Mcshane, Olekalns & Travaglione, 2010). It involves the assumption of what is right and fair. In this essay, we will look into a few elements of both formal and informal organizational culture and how it will affect in creating an ethical workplace.
Formal System
The organizational formal cultural system are considered as concrete and direct measures that establish ethical behavior such as mission statement, code of conduct and ethical standards (Belak & Milfelner, 2011). The formal structure is primarily concern with the configuration in which how workers at all levels interact. It usually involves the organizational chart, hierarchy, and clear lines of authority for each level. It also shows clearly the flow of information to ensure everyone in the organization have access to it in order to perform their duty. The formal cultural system consist of other element and factors such as leadership, reward system, structure, policies and codes, orientation and training programs, and decision making process.

Leadership

Foremost in the creation of an ethical culture is the personal integrity of organizational leadership, this is essential for creating and sustaining an effective “tone from the top”. It is often said that a