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What are the key elements that organizations must do in order to create a culture that supports ethical conduct and decision-making?

1) Some of the key elements that an organization must do in order to create a culture that supports ethical conduct and decision-making can best be defined in the components of the Corporate Social Responsibility (CSR). To begin with, organizations must be economically responsible, meaning that they must be profitable by maximizing sales revenue and reducing operating expenses. Next, organizations need to be legally responsible and obey the law, which means that they abide by the law and operate by the standards that they are given. Organizations also need to be ethically responsible and avoid questionable practices by going beyond just obeying the law. And finally, organizations should be philanthropic responsible and be a good corporate citizen, meaning that they should share their wealth with their local community making it a better place to live. By doing these simple things, organizations can create a culture that supports good ethical conduct and decision-making. (Crandall, Parnell, & Spillan, 2014

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2) In landscape survey a company must start at the top. For example, the founder or CEO of the company must hold themselves to ethical behavior and not breed a mentality of entitlement that they do not answer to anyone but themselves (Crandall, Parnell, & Spillan, 2013). This type of bad behavior was seen in scandals like Enron and Tyco where they did not believe that they answered to anyone. Also, the way that the top members of a company act is an example to the lower rank and file of the company and the example that is put before them is how they will also act. So, it starts at the top and flows to the bottom. I think that this is the most important part to create a culture that supports ethical conduct within an organization. If the leaders of a company aren’t ethical in their business dealings how do they expect the company as a whole to be ethical.

In the strategic planning phase this is where a company should generate initiatives to improve the ethical climate of the organization (Crandall, Parnell, & Spillan, 2013). In doing so a company improves the image of the company and reduces the vulnerability to an ethics related crisis. In the text book, it says the best way to deal with an ethical problem is prevention

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