Introduction
The ethical culture of the organization is an essential aspect of the work of the company since it formulates the foundations of moral principles. In addition, it includes the framework and criteria by which a certain company determines the degree of ethics of an activity. The main task of corporate ethics is to unite the team to demonstrate maximum efficiency. No wonder employees will have good relationships if basic moral values are maintained within the company. In turn, it will contribute to profitability, as one will keep workers’ performance at a high level due to increased motivation and good work settings. In this regard, it is necessary to consider the concept of ethical culture in more detail using the example of several organizations in Asia.
Discussion
Each organization has its work characteristics depending on geographical, national, and cultural aspects. Ethical culture in a company includes a set of beliefs, thoughts, ideas, reflections, actions, and a criterion about the ethics of a particular process (Suh et al., 2018). Besides, it involves a set of company values, which in turn are shared by each employee, and productive cooperation between workers. Each company tries to instill faith in the success of each employee in the organization as a whole, as well as following a common goal (Suh et al., 2018). Moreover, ethical culture also includes pieces of training, advanced training, courses, and everything that contributes to self-development, and finally, it implies fair performance appraisal, motivation, and rewards.
An example of an ethical culture within an organization is the Bank of India (BOI), an Indian commercial bank that is a public company. It provides financial spectrum and insurance services to citizens of India, Tanzania, Uganda, New Zealand, and Indonesia. The central concept of the company’s work is to provide adequate services to clients, that is, a customer-oriented strategy (Preetham & Bomma, 2021). In this regard, an ethical culture includes a strategy for developing relationships and maximizing positive banking experiences for customers. The aspect of intra-organizational activities is articulated by training, instructions, and communication to employees about the most profitable strategy for communicating with clients.
Talking about how companies build and implement an ethical culture, one can highlight several aspects. First, a foundation of ethical standards is built depending on the company’s philosophy. For example, if one considers Japanese Airlines company, then recently, CO2 emissions have become a national problem (Kito et al.,3 2020). Therefore, this issue formulated the settings for building a new company philosophy, namely following the eco-friendly trend. Since then, the company has striven to reduce emissions as much as possible, using harmless ways of operation in all aspects of the activity where possible. In addition, training and personnel briefings on this issue articulate part of the company’s ethical culture.
Further, the company has a bonus program for customers that encourages a large number of flights. It includes certain levels depending on the number of points and flights with Japan Airlines. The higher the level, the more bonuses the client can receive, which is a successful marketing strategy. Moreover, it articulates the company’s cultural ethic, namely customer orientation (Kito et al., 2020). The individual has an increased motivation to use the company’s services since one knows that one is appreciated by providing bonuses. In addition, the task of the company’s employees is to make the user experience as positive as possible. All this is achieved through training and informing workers about strategies for providing quality services to clients.
It is worth noting that business conduct and clothing style also form part of the ethical culture. For example, in Japan Airlines company, all employees wear a certain uniform depending on their profession (Kito et al., 2020). The uniform is applied by many other airline companies for discipline and ethical reasons as well. In addition, in large organizations usually, the clothing style is strict, which contributes to focusing on work. It also encourages discipline, as the work suit is associated with the need to focus on the job and the tasks. All of this has a positive effect not only on the organization’s internal processes but also on external factors, such as the company’s image (Stuart et al., 2021). Nowadays, when there are a significant number of companies worldwide, having a good image is a must, as it affects investments and relationships.
Speaking about how culture influences values, one can contingently divide it into several parts. Primarily, the culture emphasizes the importance of values within the company, which affects each employee’s morale. Further, the culture formulates specific frameworks of the company’s and employees’ value systems (Stuart et al., 2021). Thus, with the help of an ethical culture, one can create the necessary value structure for employees. This structure will rely on the direction of the company and have its own characteristics, depending on how it is necessary for the effective performance of the organization. That is, ethical culture is important not only in terms of moral standards but also for efficiency in commercial terms.
Furthermore, an example of an ethical culture can be articulated by processes within a company related to HR or a production line. For instance, in the Singapore Telecommunications organization, significant attention is placed on the search and management of human resources (Wal & Demircioglu, 2020). It includes the latest strategies in terms of recruitment, such as a psychological profile, and an analysis of the employee’s effectiveness, taking into account the habits, history, and lifestyle of the candidate. Unlike most firms, where the above factors have little effect on the further activities of the worker, in this company, analysis plays a decisive role. Through this, the organization’s HR department articulates an ethical culture of rigorous personnel selection that positively impacts Singapore Telecom’s operations and profitability.
In addition to the previously mentioned points, it is worth noting that the significance of a company’s ethical culture lies in the fact that it formulates corporate social responsibility (CSR). In turn, CSR includes a set of moral rules which constitute the foundation for determining the activities of the company and the morality of the processes associated with the organization (Li & Wang, 2019). It also helps to define whether the company follows modern trends, which is important for the image. Finally, CSR contributes to the popularity of the company by making the organization known in a positive manner.
Conclusion
To conclude, ethical culture determines the degree of success of the company, influencing key performance indicators and formulating ethical leadership. It is crucial as a factor in the moral rules within the company and in relation to the environment. In addition, ethical culture formulates the value system of the company and its employees, thereby building CSR. The ethical culture was found to be vital not only in moral but also in the commercial aspect. It can be built on the basis of the field of activity, territorial, national, and other features of the company.
References
Kito, M., Nagashima, F., Kagawa, S., & Nansai, K. (2020). Drivers of CO2 emissions in international aviation: the case of Japan. Environmental Research Letters, 15(104036).
Li, B., & Wang, C. (2019). Corporate Social Responsibility and Contemporary Community Expectations. Asian Business Research, 4(3), 74-78.
Preetham, D., & Bomma, M. (2021). Analysis of Ethical Aspects Among Bank Employees with Relation to Job Satisfaction Level. SSRN. Web.
Stuart, A. C., Bedard, J. C., & Clark, C. E. (2021). Corporate social responsibility disclosures and investor judgments in difficult times: The role of ethical culture and assurance. Journal of Business Ethics, 171, 565-582.
Suh, J. B., Shim, H. S., & Button, M. (2018). Exploring the impact of organizational investment on occupational fraud: Mediating effects of ethical culture and monitoring control. International Journal of Law, Crime and Justice, 53, 46-55.
Wal, Z., & Demircioglu, M. A. (2020). More ethical, more innovative? The effects of ethical culture and ethical leadership on realized innovation. Australian Journal of Public Administration, 79(3), 386-404.