Business Studies Paper on Organizational Culture that leads to Unethical Behavior

TO: Management Team

FROM: Member of Management Team

DATE: 29 November 2019

SUBJECT: Sources and Solutions for Unethical Behavior.

Organizational culture and codes of conduct are very vital in determining the overall performance of the organization. Customers as well as investors have a natural tendency of selecting business partners who have a stable, reputable ethical standard. As such, organizations with effective culture and codes of conduct are better placed in commanding a huge market share in the competitive business market. Thus creation of effective organizational culture and codes of conduct by the management and the board of directors is fundamental for the quality and effective performance of the company. The performance of the company source from good leadership and management as well as cooperation of employees as a whole. According to LRN, 2006, corporate codes of conduct together with education, improves employee morale and job satisfaction, which in turn aids in strengthening relationships with business partners, hence quality performance. An employee with high morale and job satisfaction is more likely to deliver at work, compared to the frustrated employee. Similarly, organizational culture helps in curbing corruption in companies. Implementation of codes of conduct that penalize corruption limits financial losses of the company. Based on OECD, 2018, companies can achieve anticorruption through conducting culture assessments, creating a report on culture, and emphasizing the role of culture in regulation of employee’s behavior and conduct.

There are several organizational practices and policies in our system that may contribute to unethical behavior including, leadership, organizational unfairness, and fear of retaliation by employees. Leaders, including managers teach employees about the organization’s initiatives, policies and processes, as well as the ethical standards, yet the leaders engage in unethical behavior thus setting a bad precedence to employees. Ultimately, employees will follow the leaders’ unethical behavior since they consider the behavior as accurate, based on the influential role leaders have on employees at work place (OECD, 2018). Similarly, there will be an increase in unethical behavior among employees due to the abusive way of management that goes unpunished. Failure of punishment to the abuser, who is the leader confirms to employees that the organization values ethics less. Equally, the organization unfairness increases the unethical behavior among employees who are subjected to unequal treatment and unequal allocation of resources, leads to negative personal consequences for employees that in turn affects the performance of the organization negatively (Askew et al., 2015). Lastly, fear of retaliation by employees increases unethical behavior. Most employees fear to report unethical behaviors exhibited by their seniors due to fear of negative consequences that would be inflicted on them. Furthermore, some stakeholders silence employees through bribes, which is unethical behavior.

Adoption and implementation of the following system’s solution will limit the rates of unethical behaviors in our organization. Firstly, leaders should lead by example through implementing the codes of conduct and practicing the ethical standards of the organization. The implementation by leaders will eventually impact all employees who will in turn behave ethically according to the organization’s culture (Douglas, 2012). Secondly, by creating policies and practices that revolve around defining, identifying, and reporting unethical behaviors will effectively reduce problematic behaviors in our organization. Similarly, leaders will be limited to engage in abusive and corrupt ways of management. Therefore reduction of corruption ultimately reduces financial losses and improves the processes of the company. Finally, adoption of organizational behaviors like monetary rewards to employees who perform outstandingly, as well as behavioral feedback by supervisors, motivates employees to behave ethically in order to earn a reward. Consequently, working towards rewards, employees will perform their work duties accordingly, resulting to organization’s success.



OECD, (2018). Organizational Culture Drives Ethical Behavior: Evidence from Pilot Studies. OECD. Retrieved from

LRN, (2006). The impact of codes of conduct on corporate culture. LRN. Retrieved from

Askew, A. O. (2015). Current Trends of Unethical Behavior within Organizations. International Journal of Management & Information Systems. Retrieved from

Douglas, E. (31 Oct. 2019). 7 Practices to Prevent Unethical Behavior. Education Week Publication. Retrieved from