commences at the top with the chief executives championing every ethical
activity for then adherents to emulate them and reverence the ethical
comportment within an organization. Ethical leadership has been found to be
positively and significantly associated with transformational leadership and
transformational culture of the organization.
situation in the contemporary business environment has optically discerned many
businesses reexamine their strategic acumen by developing a direction that
avail initiate the substrata of ethical leadership for purposes of efficiency
and business profitability. From this perspective, it is pellucid that ethical
leadership reflects the dimension of organizational leadership, comportment and
culture with the primary role of leading the organization by making ethical
decisions to inherently influence the postures and interactions of employees.
The designation of ethical leadership revolves around the practical level of
business practice that links the aspects of culture and ethical business
categorization of ethical leadership in corporate world is a conceptualization
of positive relationship that potentially subsist on the backdrop of moral
values, obligations of bellwethers and prospect of associated leadership
factors. The interplay of such factors provides a paramount insight into the
utilization of ethical considerations within the extensive framework of
integrated public-sector leadership. Coupled with the belief that leaders
reflected the image of the organization, the growth, popularity and
significance of ethical leadership in claiming the core values of the
organization and developing a suitable framework that aligns the internal
virtue components of leadership with the external organization actions and
behaviors for the sole role of promoting the common good of the organization (Atiya Alshammari, 2015)
refers to the underlying postulations, notions, values, postures and prospects
shared by an organization’s members, including unwritten codes of conduct and
deportment. A company`s culture will be reflected in its compulsory apparel,
business hours, office setup, employee benefits, turnover, hiring decisions,
treatment of clients, client gratification & every other aspect of
operation. Corporate culture also called as the soul of the organization or the
organization`s DNA. As such to cross-culture the corporate culture refers to,
“the interaction of people from different backgrounds in the business world”.
Good and ethical
bellwethers require both competence and integrity; they must understand the
culture of the enterprise and the context within which it operates to be able
to steer the organization in the intended direction. Leadership can manifest at
many places in the organization at different times, hence providing for shared
leadership as a component of ethical leadership construct. The best bellwethers
leverage their own inhibited faculties by sanctioning and catalyzing the leadership
that is latent in the organization.
A vigorous corporate culture refers to how broadly and steeply employees hold
the company’s vigorous values and notions. Organizational culture guides the
sense-making process. It avails employees understand what transpires and why
things transpire in the organization.
Culture of corporate additionally makes it simple for them to understand
what will be expected of them and to join with colleagues who are well versed
with the culture and believe in the organization. People are perpetually
circumvented by culture. It composes the vigorous background of working area,
coloring everything in an organization. Organizational culture withal gives a
puissant implement for regulating demeanor by affecting how we annex benefit to
our world and how we perceive events. An
organization is an interactive environment in which cultural transfer can and
does occur from social intercourse between employees and hence the need to
identify and moderate especially those cultural practices that may be
considered counter-progressive to the organization. (Ouma, 2017)
It is always a collective phenomenon, but it can be connected to
different collectives. Within each collective there is a variety of
individuals. If characteristics of individuals are imagined as varying
according to some bell curve; the variation between cultures is the shift of
the bell curve when one moves from one society to the other. (Hofstede, 2009)
Corporate culture refers to the character of a company’s internal work
climate and personality.
In a strong-culture company, culturally-approved behaviors and ways of
doing things are nurtured while culturally-disapproved behaviors and work
practices are discouraged.
In adaptive cultures, there is a spirit of doing what is necessary to
ensure long-term organizational success.
Adaptive cultures are exceptionally well suited to companies with
fast-changing strategies and market.
The tighter the culture-strategy fit, the more the culture steers company
personnel into displaying behaviors and adopting operating practices that lead
to successful strategy execution.
It is in management’s best interest to dedicate considerable effort to
building a corporate culture that encourages behaviors and work practices
conducive to good strategy.
A company’s culture is grounded in and shaped by its core values and the
bar it sets for ethical behavior.
A multinational company needs to build its corporate culture around
values and operating practices that travel well across borders.
Corporate Culture can evolve from…
leader’s vision, policies, and actions
individuals or work groups
& Procedures (Careless, lax, or unclear)
management philosophy (ignoring employee harassment)
work-ethic (hire for attitude; train for skill)
policies (no gifts from suppliers, casual Fridays,
According to Robert Kennedy
(Attorney Gen of US 1965) had summed up leadership as “Others see things as
they are and wonder why; I see them as they are not and say why not”.
Leadership is all about making people say,
“I will Walk on water for you” it is about creating a worthy dream and helping
people achieve it.
Corporate culture is a manifestation of the informally sanctioned
corporate attitude. It is often referred to as “Organizational DNA” or the
“Organizational Soul.” It is a
fundamental contributor to the success or failure of corporate strategies. Corporate
culture is reflected in a company’s values, business principles, and
ethical standards preached and practiced by management; approaches to people
and problem solving; relationships with Shareholders, community, customers,
suppliers, government agencies, etc.; entrenched attitudes toward people from
different “national” cultures.
It can be argued
that some dimensions of business ethics are fluid: Cultural norms can differ
between countries. What is unacceptable in one country may be perfectly
acceptable in another.
Thus, by concluding we can say that A healthy
corporate culture will encourage employees to observe, learn, and avoid passing
judgment too quickly.