Ethical climate in an Organization serve as an integral part as people nowadays do care of being ethical in business. With the passing of time, the concept of social responsibility in business ethics has also become essential on the way of Management, once the basic survival concept of the businesses stabilized. As a matter of fact, today’s society has increasing expectations about corporate social responsibility. Also, today’s diverse workforce brings a wide variety of values and morals to the workplace. The social responsibility in today’s era, have spread its wings to include the broader concept of ‘Corporate Social Responsibility’. The Social Responsibility of the Corporate is now a scientific approach of Organizational duties towards the larger benefits of the society. Its emergence has been due to
Ø Growth in size of corporate enterprises
Ø Education and impact of business activities in society
Ø Claims made by Companies on society
Therefore, the purpose that ethical climate serves is that only socially responsible behavior can work towards building favorable public opinion. Besides, it is important to an Organization on the following grounds:
Decision making process gets an affirmation of their individual freedom and responsibility.
It promotes consideration and respect for all constituents.
It encourages calculation of the long term impact of decisions before any decisions are reached.
It is relatively free of religious, cultural or nationalistic bias.
It facilitates in exercising the rights to privacy and rights to speech within the Organization.
It promotes the appreciation and rewards to the ‘Whistle-blowers’ in the Organization who brings into light the wrong-doings or inappropriate behavior of the Department or employees.
It further helps in imposing of and enforcing of rules fairly and impartially so there is an equitable distribution such as in the category of wages or using use seniority as the primary determinant in making layoff decisions.
It assists in managing employee’s values and conflict among them.
It helps in believing that Stress or confusion are not excuses for ethical actions – they are reasons.
It aids in maintaining the integrity in terms of Wholeness, reliability, consistency, treating the other employees with respect and Honesty in the best possible manner.
It supports the commitment to the business promises to the Organization’s stakeholders.
It helps in ensuring more commitment by applying Corporate ethics both internally and externally in terms of meeting the obligations of the staff employees as well as that with the vendors.
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