Importance of Ethical Climate in Business
A strong ethical climate is a system of informal rules concerning the stakeholders’ behavior in internal or external environments. In such an environment, organizational leaders take the initiative to shape or support the ethical environment. Ethical climate corresponds to organizational personality, which has a direct impact on both organizational success and employee satisfaction. Ethical climate represents common values and beliefs that hold an organization intact. Given that employee and customer dissatisfaction are some of the causes of turnover and loss of trust respectively, leaders at all levels of an entity must be aware of their predefined roles and responsibilities in preserving an ethical workplace setting that can improve both customer experience and employee satisfaction. While most managers or organizational leaders recognize the significance of ethical climate in customer and employee satisfaction, some fail to realize the direct impact they have is shaping it. Therefore, shaping ethical climate is one of Continue reading