• Caring ethical climate: has norms and values that encourage people to make ethical
decisions based on looking out for the welfare of others.
Organizational Climates and Organizational Culture
• Organizational culture refers to the general beliefs and views of how things are done in
an organization.
• Two main components of ethical culture:
o The formal components include elements such as the mission and vision, codes of
conduct, and the socialization process that new and existing employees go through.
• Several steps managers can use to create their organizational cultures and hence their
ethical climates:
o What managers pay attention to, measure, and control.
▪ What managers pay attention to communicates to the people in the
organization the beliefs and values that dominate the leadership.
▪ This communicates to the people in the organization “what really counts.”
o Deliberate role modeling, teaching, and coaching.
o Observed criteria for allocation of rewards and status.
o Observed criteria for recruitment and selection.
o Communicating the desired ethical climate in your organizational culture:
▪ Walk the walk.
▪ Keep people in the loop.
▪ Encourage thoughtful dissent.