Question

Define what is meant by an organizational ethical culture. Then, identify and describe the four primary benefits of business ethics.

Answer 1

The term Organizational Ethical Culture consists of three different terms Organization, Ethic, and Culture. These terms have different meaning that are:

Organization: The term organization is defined as the place or business where different people works together to accomplish a common goal or objective.

Ethics: The term ethics is defined as the set of rules and regulations which sets the boundaries for what is correct and incorrect, what is legal and what is illegal, what is good for others and what not.

Culture: The term culture is defined as the ideas, customs, and social behavior of a particular people or society.

The Organizational Ethical Culture is the that is to be maintained by the organization for the comfort of the employees. These ethical culture is to be maintained by the organization. This sets the rules for the employees to behave in the organization. This also sets the comfortable work culture of the organization.

These ethical culture builts positive working relationship between the superior and subordinate and promote healthy and positive work environment. This also defines the flow of communication within the organization. This is very important for every organization to maintain ethical environment.

The four primary benefits of ethical culture in the organization are as follows:

• A Ethical Code: These are the ethical standards in which every employee have to go through. These standards helps the organization in maintaining ethical code of conduct among the employees and also helps in positive working of the employees.
• Competitive Advantage: This term says that, Customers mostly prefer to purchase the product of those organizations those are ethically sound. Hence, the violation reduces the  organization's market share.
• Investment: Ethics also compliant organizations to attract investors, as many investors only invest in those organizations which are ethically sound, are trustworthy, shows integrity and a sense of responsibility.
• Reputation: Reputation of an organization is built in years, running the reputation hardly requires a single violation. A ethical organization is less pron to the same as it reduces scandals and disputes within and outside the organization.