Ethical Climate

Organizational ethical climate refers to the moral atmosphere of the work environment and the level of ethics practiced within a company. Instrumental, caring, law and order, rules, and independence are the five types of climates that can exist in an organization. Incivility, harassment, aggression, and discrimination can all produce an unethical and hostile work environment, which can create dissatisfied employees, while a positive ethical environment can make employees more productive and even happier.

Instrumental

Instrumental ethical climate means managing via ethical egotism. make selfish decisions weather benefit either the company or even personally. This type of ethical climate has the highest amount of immoral and unethical business behavior due to self-interest being the driving factor in decision-making. Instrumental often ignore the needs of others

Caring

Caring climates emphasize concern or care for others. This include concerned about employees' well-being and offers support in career development and other opportunities. This second type of ethical climate is based on excellent leadership, fairness, and goodness. Employees can thrive in this ethical type of environment as there is usually excellent communication between subordinates and superiors. One negative to a caring climate is that rules can be overlooked to help out employees or friends.

Law and Order

A law and order climate is when precise codes of conduct are followed. This type of climate relies on the laws from outside sources, like actual state or federal laws. Conservative types of companies usually cultivate this type of ethical climate because they fear legal ramifications if they do not follow numerous codes. This type of climate can tend to ignore employee issues and only be concerned about specific codes.

Rules

The next type is very similar to law and order. The rules type of ethical climate is concerned with following rules, procedures, and policies established by the organization. In comparison to the laws climate, which depends on actual outside real laws, a rules climate relies on internal professional codes or policies. Employees and managers understand that varying from the rules could cost them their job. This can stifle creativity and can also ignore legitimate issues that employees may face. In addition, problems might not be solved because certain individuals are afraid to bend the rules even slightly.

Independence

The last type of ethical climate is the polar opposite of a rules climate. Which An ethical climate that promotes independence gives employees wide latitude to make decisions. This can cause great success because employees are able to think outside the box for problem-solving, especially if they are given the skills and information needed. Bend rules often.