8 Jun 2022

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Developing an Ethical Culture Memo

Format: APA

Academic level: Master’s

Paper type: Assignment

Words: 568

Pages: 2

Downloads: 0

Corporate culture is indispensable in ensuring an organization effectively competes in the market niche it operates in. While a myriad factors go into the creation of a desirable culture, there are fundamental factors that positively influence the effectiveness of such a culture. Examples include an institution’s vision, values, the people and internal as well as external environment. Unethical decision making by subordinate peers is a culture that does not reflect the ideals of an organization that aspires to achieve particular growth milestones. Besides the leadership being aware of such developments, it is also critical that it puts in place necessary solutions that mitigate such challenges in future. 

The issue at hand entails unethical acts that do not reflect the values of the organization. The issue is not as superficial as it looks. Its deep-rooted nature has to do with a poor organizational culture. Unethical decision making by subordinates does influence not only the organization’s performance in the short run but also its output. While decision making should not be reserved for the top management of an organization, subordinate employees have to understand that they are obligated to make decisions that are in the best interests of the organization. 

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One of the most challenging but viable solutions is changing the corporate culture. The company should embrace the Adhocracy culture in conjunction with the clan culture. Although the leadership should embrace collaboration in decision making, a culture in which leaders act as examples and also hold their subordinates accountable for their actions is indispensable. It is imperative that while all employees are made part of developments made in the organization, their actions are monitored, especially in critical decision-making undertakings. This ensures decision-making mishaps, including but not limited to, unethical decision making, are not witnessed. The plan to change the organization’s culture has to start from the leadership strategizing around the two chosen approaches, comprehensively education of all employees about the change expected and putting in place policies that ensure there are standards followed in the implementation of the new framework. 

Unethical decision making by subordinate employees affects their fellow employees, stakeholders and those the organization serves either directly or indirectly. Inability to follow audit procedures, for example, negatively affects the view of the above stakeholders both directly and indirectly. Their decisions about investing in the company is negatively affected as a false picture of the performance of the organization is given. Quality improvement would hence be the next significant solution to the issue at hand. To ensure quality is a service enjoyed by all stakeholders, employee appraisal is necessary from time to time. The leadership of the organization should also take advantage of current technological trends in quality measurement tools. Scatter diagrams and Pareto charts are an example of these. 

Intermittent Data monitoring is another solution that could curtail unethical decision making by the employees in question. The leadership of the organization has to establish management review boards that probe into matters related to unethical conduct. Actions should then be taken against all employees found guilty of acting against the organization’s values. Most importantly, positive findings from data analysis should be reinforced, for example, through a reward system. This way, employees will not only know that they have an obligation to enhance particular values but will also be motivated to ensure ethical dealings. 

In conclusion, Unethical decision making affects all stakeholders directly or indirectly influenced by an organization. An organization’s leadership should always be out to know and act on unethical decision making by subordinate employees. While the culture of an organization should reinforce adherence to organizational values, the extra measure should be put in place to solve the issue after it occurs. Some of the measures the leadership must take to mitigate such problems include quality improvement and data monitoring. 

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StudyBounty. (2023, September 16). Developing an Ethical Culture Memo.
https://studybounty.com/developing-an-ethical-culture-memo-assignment

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