Corporate Ethics and Organizational Culture Relationship

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Organizational culture refers to the postulations, opinions, objectives, knowledge, and ideals that are common to members of an organization (Racelis, 2010). The purpose of this paper is to analyze a scholarly research article “Relationship between Employee Perceptions of Corporate Ethics and Organizational Culture: An Exploratory Study” by Racelis (2010). This title is appropriate for the study because the author examines the relationship between culture and employees’ opinions of organizational ethics.

The research problem is that there is substantial pressure on businesses to be ethically perceptive and act in socially accountable ways. Consequently, there is a need to carry out an experiential investigation of the culture-ethics connection. The significance of organizational culture is indicated by the current interest in culture as a potential key for organizational effectiveness (Racelis, 2010).

Racelis (2010) provides a relevant review of literature that focuses on the acceptable definition of organizational culture, its significance, and studies that look into the relationship between organizational culture and employees’ behavior. Organizational culture distinguishes between organizations and its employees (Racelis, 2010). Upbringing strives to instill morals in children by teaching them to distinguish between right and wrong. Ethics, in contrast, deals with a code of conduct that should be understood and followed by every member of an organization. The author states the research problem clearly and provides a theoretical rationale.

The research question and objective of the study are stated clearly. The research question is: “Is any relationship between employees’ perceptions of corporate ethics and organizational culture?” The article’s objective is to examine the relationship between culture and employees’ opinions of organizational ethics.

A qualitative method was used in data collection. A survey that involved 136 MBA students who were also managers in various Philippine companies was conducted (Racelis, 2010). Questionnaires were administered over a three-month period. The Corporate Ethics Scale was used to examine corporate ethics. Conversely, the Organizational Culture Scale was used to investigate the organizational cultures of the firms included in the study. A total of 16 questions that were broken down into four categories of clan, hierarchy, adhocracy, and market were asked (Racelis, 2010). A correlation analysis (to answer the problem) was done using the factor scores of the ensuing ethics and cultural factors. A convenience sample was used though it is not indicated how the sample was selected. The evaluative techniques used to analyze the data were appropriate for the goals of the study.

The results showed that employees’ values and organization values were intertwined. One ethics factor termed as “ethical orientation” was evident in the study (Racelis, 2010, p. 255). Philippine firms did not possess any dominant culture, which pointed towards various subcultures. Four main subcultures were evident: a vibrant and risk-taking culture, a formal culture concerned with continuity and stability, a production-focused culture that looks up to the leader, and a tradition-orientated family culture whose leader is a parent figure (Racelis, 2010).

The author does not state the study limitations. One source of error is the sample used, which consisted of students only. A more accurate representation of the relationship between organizational culture and ethics would be attained if the sample included employees at different phases of career growth.

The study concluded that there was a slightly significant relationship between particular cultural characteristics and employee perceptions of organizational ethics (Racelis, 2010). These findings imply that organizations should discuss the expected cultural values based on the progressive stage of the organization. These findings can be applied to the Defense Media Activity as it undergoes an important leadership change. The researcher does not overgeneralize the findings and backs the conclusions with the findings of the investigation.

Reference

Racelis, A. D. (2010). Relationship between employee perceptions of corporate ethics and organizational culture: An exploratory study. Asia Pacific Management Review, 15(2), 251-260. Web.

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