Impact of Corporate Culture on Ethical Actions: Enron Scandal Example

Business Ethics
Enron corporation

Introduction
– Corporate culture is also known as organizational culture. Corporate culture comprises of a set of
different functionalities such as, beliefs, norms, values, principles, goals and set of behaviors etcetera.
– All these characters helps the organization to operate in a fulfilling way along with that it also
includes different problem solving methods with the help of corporate members. Corporate culture
influence ethical actions in an organization in many different ways (Crane and Matten, 2016).
– The enactment and execution of the ethical values can really help the organization and specially the
member of the organization in order to guide them properly in many different ways.

Continued
– In any organization, ethical actions are very important and decided according to the organization environment. If the corporal
culture is strong then the ethical standards automatically increases of any organization.
– If the corporate culture is not proper or ineffective then it will also result into unethical behavior of the organization.
– Ethics can be also called as one of the internal part or department of any organization.
– The ethics bar is not only set by the founder of the organization but by the employees and others as well.

Factors of corporate culture that affect the actions
of business organization
– If any employee’s perspective is considered then,
– Management is responsible for taking all the actions. For instance the whole working environment, including all the
daily chores, functionalities, activities etcetera are handled and shaped by the management.
– Therefore if the corporate culture members are not good at what they do then they can easily put a bad impact on their
subordinates and create an environment of unethical behavior (Hartman, DesJardins and MacDonald, 2014).