An ethical culture is important because it’s a win-win for both the employees and employers. It creates a positive and productive environment which is healthy for the organization. When the employer runs into difficult situations, the employees are most likely willing to go the extra mile.
It is important for a board to fully understand and demand an ethic culture in light of Enron, yes Enron. It’s 2014 and Enron is still the go to example of what can happen to as company when an organization does not embrace an ethical culture.
The importance of institutionalizing ethics because it creates transparency and accountability for ethical behavior. Technology has given us the ability to communicate and reach large audiences on demand. This creates a lot of transparency, which reinforces excellence, engagement and ethics, so individuals and organizations are forced behave or begin to behave ethnically.
Transparency is the key as it creates a fair environment and the consequences for unethical behavior would be the same for all individuals from the top of the organization chart down to the bottom. Institutionalizing ethics would create new programs and majors in higher-ed institutions and we’ll see more Chief Ethical Officers at the c-level.