#💡 #🟡 # formal elements of ethical culture ![[calendar-plus.svg]] <small>Dec 07, 2021</small> | ![[calendar-clock.svg]] <small>Jan 02, 2023</small> 🏷️ [[ethics]] Officially recognized and recorded components of an organization's culture that influence moral behavior. - **Core Values** Values must be clearly communicated and continually reinforced through training, public meetings, annual reports, corporate videos, brochures, etc. to shape behavior. And leaders must walk the talk. - **Mission (Purpose) Statement** A mission clearly states an organization's reason for being, and, when combined with its core values, forms the [[core ideology]]. The mission statement should guide, inspire and promote moral behavior. - **Codes of Ethics** Codes of ethics describe how the code will be enforced and what the response will be to violations. Codes typically cover conflicts of interest, records, funds and assets, information, outside relationships, employment practices, and other practices like employee health and safety, use of technology, etc. - **Structure** Structure influences ethical behavior through authority, lines of accountability and allocation of decision-making rights. To reduce or prevent the risk of immoral behavior, employees should be encouraged to challenge orders, recognize how their activities relation to the organization's mission, consider how their actions effect others, and ensure that those closest to the ethical dilemma have input into decision-making. - **Boards of Directors** Boards have duty of loyalty and duty of care and select and oversee top managers who set the ethical tone. Their job is to make sure business is conducted in the best interests of the stockholders or supporters. - **Reward and Evaluation Systems** Reward systems are a powerful determinant of ethical or unethical behavior, so it's important that the right behaviors are noticed and rewarded. It's also important to be sure that systems are not reinforcing undesirable behavior. Avoid a bottom-line mentality that will lead to a situation where the "ends justify the means." How results are achieved should matter as much as the results themselves. - **Reporting and Communication Systems** Critical to have a reporting mechanism, like an ethics hotline, where employees can safely report unethical behaviors or request guidance on ethical decision. The system must have the support of top management, protect whistle-blowers, and promptly follow up on reports or requests. It's also important for organizations to constantly communicate, across multiple channels, about value, ethic codes, etc. - **Ethics Officers** Individuals who make sure that their organizations are in compliance with all applicable laws and codes of ethics. To be effective, they must have sufficient power and status to be respected by members and enforce ethical standards. They should also have sufficient independence to function without fear of being fired. Some would argue they should report directly to the board instead of to management. ## Sources [[Organizational Ethics - Johnson 2019]]