Essay Sample on Ethical Climate of an Organization

Published: 2021-08-11
1160 words
5 pages
10 min to read
Vanderbilt University
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Over the past years, the concept of ethical research has been a topic of much research. In today business world, the organizational ethical climate has been defined as the general moral environment of the workplace. It entails the moral codes and behavior practiced within a business company or instead of an organization. The level of ethics, as well as law and order within an organization, add up to what is defined as the ethical climate (Das, 2010). Various agencies and business companies have put in place laws and regulations that employees, as well as employers, should follow and consider in carrying out their daily duties. The level of ethics practiced in a company plays a significant role in promoting and establishing the given business carried out in that organization. Similarly, business ethics in a work environment help run the organization services.

Additionally, ethical climate in an organization entails the culture as it defines the right and wrong deeds in that business firm. It gets its foundation from governance, habits, and norms that are valued and exist in a particular organization. The ethical climate of a group is created by the top management team. Thus, it is right to argue out that both history and leadership of an organization play a significant role in shaping and implementation of the ethical climate.

Importance of Ethical Climate

In the book Organizational Behavior and Ethical Leadership,' Kreitner and Kinicki argue that leaders and employees create organizational culture (Kreitner and Kinicki, 2014). The business authors, Kreitner and Kinicki ascertain that adhering to the ethical climate increases productivity. Additionally, a positive and moral health culture that is created by leaders in the organization ensures the inclusivity of workers in the society. Thus, corporate culture in the work environment improves the morale of workers in the organization. Additionally, Kreitner believes that for the workers to feel inclusive in the workplace, they should be included in decision making. Productivity and employee retention best depends on the code of ethics created in the organizational culture.

In chapter one of the book Organizational Behavior and Ethical Leadership,' the Kreitner ascertains that an ethical climate promotes teamwork among the stakeholders. The authors argue that partnership is facilitated by the effort of team leaders in an organization who influence the moral culture of an organization (Kreitner and Kinicki, 2014). Teamwork among employees is promoted through the adherence of ethical codes that are used to govern and run a team. Through chapter one of the book, the authors state that through the promotion of teamwork, the level of productivity is increased.

In the same fashion, an ethical climate attracts more employees who want to work in an environment where the laws and rules are outlined clearly. In an organization where morals are stated, the rights of an employee are thus protected as there will be no discrimination or rather exploitation of the employees. Similarly, the set codes and standards in an organization reduce recruitment costs thus enabling the company to get the most talented workers. Additionally, knowing that the company that they transact business with has stated down morals, investors are easily attracted as they would feel that their money is used in an arranged manner. Ethical climate in an organization assures customers that they deal with a more responsible organization's ethics are well spelled.

Authentic leadership in an organization defines its ethical leadership. Business researchers argue that genuine administration is much concerned with relational transparency as well as internalized moral perspective in an organization. Through ethical leadership, a good list of behaviors and set ethical codes is also set (Leigh, 2013). Leaders in an organization play an important role in creating the codes that stakeholders in an organization should follow. Through building ethical codes in a firm, workers are made to feel inclusive and work within specific laws that the organization values. An ethical climate in a business organization provides for different styles of leadership that are exhibited in that company. Moral climate maintains its culture regarding administration. The culture created in a group helps to improve the servant leadership that is regarded as a culture or rather an ethical culture.

Bias and Ethical Dilemma

Kreiner and Kinicki argue that decision making in most business organizations are determined by specific influences. In the business world today, biases play a more significant role in decision making among different stakeholders as well as company leaders (Kreitner and Kinicki, 2014). Various preferences influence the decision making of which stakeholders may not be aware of. For instance, anchoring bias has been experienced in many organizations as it adds up to decision making. It entails where the first person who gives an opinion outlines many reasons to implement his view. The people are over-reliant on the first information to get, and hence this is regarded as bias.

Ethical dilemma or somewhat moral dilemmas entail situations where decisions are to be made between two options which seem to affect both sides. Additionally, neither of the two options seems to solve the situation in an ethically acceptable fashion. In business, ethical dilemmas assume that the chooser will stick to moral and norms of the organization when making decisions.

In my business organization, I witnessed a situation where my manager had issues with dealing a new female employee. The female employee could not work competently, and thus it created conflict between employees. Some of the male employees could make funny comments about her, and later she reported to the manager. The manager was in a dilemma because firing her could mean gender discrimination. Similarly, talking to her about her incompetence could mean discrimination The manager opted to transfer the new female employee to a less position rank within the organization. Consequently, the step taken by the manager went viral in the whole organization hence female workers threatened to strike as this seemed to be a form of discrimination. In my own opinion, the manager could have called an all-around meeting and look for views before taking a step.

As discussed above, ethical climate in an organization entails the set moral norms and codes that should be adhered in the work environment. As Kreitner and Kinicki argue, the leadership or rather the management team in an organization plays a vital role in creating an ethical climate or rather a moral culture. Leadership culture creates an ethical environment as discussed above. Similarly, ethical climate creates a favorable working environment for workers as they feel included in all aspects. As argued above, ethical climate attracts investors as well as customers as they believe their money is handled in an arranged manner. Moral biases in organizations influence decision making in many organizations today. Similarly, ethical dilemma needs a lot of consultations as the solutions arrived attends to stick to ethical expectations of organizations.


Das, G. A. (2010). Ethics, business and society: Managing responsibly. Los Angeles: Response Books.

Kreitner, R., &Kinicki, A. (2014). Organizational behavior and ethical leadership. NY: McGraw-Hill.

Leigh, A. (2013). Ethical leadership: Creating and sustaining an ethical business culture

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