Literature Review in Business Ethics

Shaping Cultures and Ethics of the Business Organization

Abstract

The overall atmosphere of numerous organizations is found in their ethics and culture. Organizations are shaped, and often defined, by both ethics and culture. This literature review will explore these two vital components and how they shape the beliefs and behaviors of a company's employees drive and affect the organization in its entirety. Additionally, this paper will describe culture and ethics and the effects that they have on many aspects of an organization. The business culture of an organization will illustrate the overall functionality of an organizations employees and the way it operates its daily processes, which is essential when management tries to improve the efficiency and productivity of its employees. Multiple studies will be reviewed and examined in this review, including exploring Hofstede’s Diagram and Schein’s Model of Organizational Culture. Furthermore, the literature review will demonstrate the relationship between culture, ethics, and the behaviors of the daily decision makers within an organization. Also discussed is the importance of factors like managerial ethics, and corporate social responsibility shaping cultures and ethics of an organization as they relate in business. This literature review highlights the importance of shaping cultures and ethics in the organizations and the varying perspectives from which culture are observed. Lastly, this review will explain the different tools, roles, and levels an organization has in creating a culture that promotes an ethical, efficient, and productive workforce.

Keywords: business, culture, ethics, Hofstede, organization, shaping culture, Schein

Outline

1. Introduction

1.1. Business Culture and Ethics

1.2. Components of Business Culture and Ethics

1.2.1. Power Distance

1.2.2. Uncertainty Avoidance

1.2.3. Individualism Versus Collectivism

1.2.4. Masculinity Versus Femininity

1.2.5. Long-Term Versus Short-Term Orientation

1.2.6. Indulgence Versus Restraint

2. Literature Review Findings

2.1. Approaches Used in Analyzing Organizations Cultures

2.1.1. Schein's Theoretical Model

2.2. Categories of Ethical Decision-Making Theories

2.2.1. Consequence-Based Theories

2.2.2. Duty-Based Theories

2.2.3. Contract-Based Theories

2.2.4. Virtue-Based Ethics

2.3. How to Shape Organizational Culture and Ethics

2.3.1. Conventional Theory

2.3.2. Managements Role

2.4. Effects of Shaping Organization’s Cultures and Ethics

2.4.1. Positive effects

2.4.2. Negative effects

2.5. Factors that Hinders Shaping Organizational Cultures and Ethics

3. Conclusion

3.1. Recommendation

3.2. Suggestions for Further Studies

4. Bibliography

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