When it comes to making ethical business decisions, the culture of an organization is crucial to how the employees will operate, and whether they will make ethical business decisions. When organizations intentionally instill ethics into their culture they have an upper hand over an organization that merely has a compliance department to meet regulatory obligations. When the leadership of an organization “walks the talk”, remains transparent, and leads its employees in ethical decision making, the organization proves to employees that it is an important aspect of the organization. Hebrews 13:7 says “Remember your leaders, who spoke the word of God to you. Consider the outcome of their way of life and imitate their faith.” When leadership “walks the talk” and instills in the culture of the organization that ethics are a paramount, then the whole organization is likely to reflect on ethical decision making as being a part of life for that organization and that is how they will conduct their business. The ethical decision making then becomes the cultural norm within the organization.
While I think it is important to have good compliance programs within organizations, I think the culture of the organization is equally important in ensuring that ethical business decisions are being made.
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