I would like to begin with a quote from an expert in ethics: “ Managers are responsible for creating and sustaining conditions in which people are likely to behave themselves.” So managers are the one who must take active steps to ensure that the company stays on an ethical footing.
So in addition I would like to present the theory of three pillars that support the organization. Ethical Individuals
The first pillar is made up from managers who are ethical individuals. These managers possess honesty and integrity, which must be reflected through their behaviour and decisions in the organization. People must trust them. People can rely upon them and they treat people right and equally. They develop a high level of moral development. They are responsible to create a strong ethical climate for the others.
Second pillar is telling us that managers in the organization must be a role model for their employees. It has been proven that employees are aware of their bosses’ ethical lapses. So that means that if people don’t hear about values from top leadership, they get an idea that ethical values are not important in the organization. So it is very important that top managers communicate with their employees and discuss the values and ethical principles which are important for the company (Mercator). Also rewarding ethical behaviour is a critical component of providing an ethical leadership.
Organizational Structures and Systems
The third pillar is a set of tools that managers use to shape the corporate culture. Three of this tools are: codes of ethics, ethical structures and supporting whistle-blowers.
Code of ethics is a formal statement of the organization which tells the employees what the company stands for, what are their ethics and social norms.
Ethical structures are different systems that an organization can use to establish an ethical environment. These are: ethics committee,