Answer to Question 1
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Answer to Question 2
Answer: An organization's culture consists of shared organizational values. These values reflect what the organization stands for and what it believes in as well as create an environment that influences employee behavior ethically or unethically. When it comes to ethical behavior, a culture most likely to encourage high ethical standards is one that is high in risk tolerance, control, and conflict tolerance. Employees in such a culture are encouraged to be aggressive and innovative, are aware that unethical practices will be discovered, and feel free to openly challenge expectations they consider to be unrealistic or personally undesirable.
Because shared values can be powerful influences, many organizations are using values-based management, in which the organization's values guide employees in the way they do their jobs.
An organization's managers play an important role here. They are responsible for creating an environment that encourages employees to embrace the culture and the desired values as they do their jobs. People look to see what those in authority are doing and use that as a benchmark for acceptable practices and expectations.
A strong culture exerts more influence on employees than a weak one. If a culture is strong and supports high ethical standards, it has a powerful and positive influence on the decision to act ethically or unethically.
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