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Trust, Ethics, Integrity The Importance of Creating an Ethical Work Environment Organizational Aspects of Trust, Ethics, Integrity Culture – is a shared understanding of the beliefs and assumptions, which reflect the way members perceive the environment, its norms, roles, and values Values – reflect the essence of organizational philosophy, what is important Trust, Ethics, Integrity Trust - reliance on the integrity, ability, or character of a person Ethics – aligning oneself with the accepted principles of right and wrong that govern the conduct of a profession Integrity - adherence to a strict moral or ethical code Trust, Ethics, Integrity Morals – arises from the sense of right and wrong, concerned with the goodness or badness of human action and character Character - moral or ethical strength, often measured by a person's attributes or traits or public estimation of ones reputation Trust, Ethics, Integrity Principles – represent the moral or ethical standards, a fixed policy or mode of action Gray - intermediate in character or position; “a gray area between clearly legal and strictly illegal” Trust, Ethics, Integrity Factors that influence a work environment (D. Vidaver-Cohen, 1995) Work climate Culture Senior executives Perceived values of management are the best predictor of how employees handle moral dilemmas Trust, Ethics, Integrity Why an ethical work environment is important Promotes goodwill and respect within and outside the firm Acts as a psychological constraint against unethical, and criminal behavior Acts as a form of internally derived social control Impacts viability and profitability