Cultural Characteristics and Unethical Behavior

An organization’s culture socializes people. It subtly conveys to members that

certain actions are acceptable, even though they may be illegal. For instance, when
executives at General Electric (GE), Westinghouse, and other manufacturers of
heavy electrical equipment illegally conspired to set prices in the early 1960s, the
defendants invariably testified that they came new to their jobs, found price-fixing
as an established way of life, and simply entered into it as they did into other
aspects of their jobs. One GE manager noted that every one of his bosses had
directed him to meet with the competition: “It had become so common and gone
on for so many years that I think we lost sight of the fact that it was illegal.”
The strength of an organization’s culture has an influence on the ethical behavior
of its managers. A strong culture will exert more influence on managers than a
weak one. If the culture is strong and supports high ethical standards, it should
have a very powerful positive influence on a manager’s ethical behavior. However,
in a weak culture, managers are more likely to rely on subculture norms to guide
their behavior. Work groups and departmental standards will more strongly
influence ethical behavior in organizations that have weak overall cultures.

It is also generally acknowledged that the characteristics of a culture affect ethical

behavior. Assuming this is true,
1. What would a culture look like that would shape high ethical standards?
2. What could top management do to strengthen that culture?
3. Do you think it’s possible for a manager with high ethical standards to
uphold those standards in an organizational culture that tolerates, or even
encourages, unethical practices?