Who writes the ethical code How does it become a part of the

Who writes the ethical code? How does it become a part of the organizations culture?

Solution

Organizational ethics is the ethics of an organization, and it is how an organization responds to an internal or external stimulus. Organizational ethics is interdependent with the organizational culture. Although, it is akin to both organizational behavior (OB) and industrial and organizational psychology as well as business ethics on the micro and macro levels, organizational ethics is neither OB or I/O psychology, nor is it solely business ethics (which includes corporate governance andcorporate ethics). Organizational ethics express the values of an organization to its employees and/or other entities irrespective of governmental and/or regulatory laws. A business owner writes the code of ethics.

Ethics within an organization can offer many benefits. A positive ethical corporate culture improves the morale among the workers in an organization which could increase productivity and employee retention.  More productivity improves the efficiency of the organizations and increased employee retention reduces the cost of replacing employees. Organizations focusing on encouraging ethical practices are commonly viewed with respect by employees, the community, and corresponding industries. Ethical business practices of organizations has resulted in a solid financial bottom-line. This has been seen through greater sales and increased revenue by companies retaining talented personnel and attracting newly skilled employees. More importantly, an ethical organization will have the ability to retain employees that are experienced and knowledgeable (generally referred to as human capital). This human capital results in less employee turnover, less training time for new employees, and greater output regarding services (or production of goods).