An Ethical Climate is a Duty of Care

Abstract

The current emergence, once again, of corporate collapses due in no small way to unethical behaviour raises questions about the duties and responsibilities of boards of major organisations for building an ethical organisation. This paper argues that the legal duty of care to employees extends to creating an ethical work environment. It describes different types of ethical climates, how they are recognised and the consequences of their impact on the behaviours of their members. It illustrates this with some of the findings from our research into measuring ethics and ethical decision making. In conclusion, it identifies the key factors that boards should address to promote a desirable ethical climate.

Human resource systems and competitive advantage: an ethical climate perspective

“…personal gain) (Victor & Cullen ; Wimbush & Shepard ). Organization members operating in an instrumental ethical climate may have good intentions, for example, the sustainability of the firm (Armstrong & Francis ), but may also engage in self‐serving behavior even to the possible detriment of others (Martin & Cullen ). According to Victor & Cullen's () typology, an instrumental climate is more prevalent in a market environment (e.g.…”

“…In an organization whose market position calls for an instrumental climate, it is likely that norms and expectations can either promote ethical decisions beneficial to the organization and its members (Armstrong & Francis ), or beneficial to self (Martin & Cullen ). Thus, HR systems can serve an important strategic function in enhancing the desired ethical norms and expectations consistent with the organization's ethical climate.…”

Ethical Leadership and Its Relationship with Sales Force Performance Mediated by Trust of Sales Employees on their Leaders

“…The ethical values which constitute the corporate governance standards are: honesty, fairness and balance, accountability, transparency, good-will and dignity. The ethical behaviour standards should be clearly specified by the organizations which are expected out of the key executives and company directors to encourage the adherence to those standards (Armstrong & Francis, 2008).…”

The Relationship Between Ethical Climate and Pro-Social Silence

“…Board decisions in such a climate would be based on serving the organization's interests or providing personal benefits." [2] Because pro-social slience is based on helping others, protecting others or organization's benefits, without concerning self-interest, this is the opposite of the egoism context. It means that, instrumental climate is negatively related to pro-social slience.…”