Explain how Ethical Climate is promoted in organizations through examples.
There are highly ethical organizations, examples of some of which are given below:
1. Marilyn Hamilton, founded Quickie Designs in 1980, who was a teacher and athlete who was paralyzed in hang-gliding accident. A highly mobile and versatile wheel chair was designed weighing 26 pounds, half the weight of chairs that were currently produced. The company grew up within a decade to $65 millions in sales. It had a policy of customer sponsored sports events for young people in wheelchairs. It is relatively small (500 strong) and exceptionally committed.
2. Martin Mariette Corpn began an ethics program in 1985 emphasizing basic value like honesty and fairness and responsibility for environment and high product quality. They drafted a code of conduct, conducted and ethics workshop for managers and created effective procedures for employees to express their ethical concerns.
3. Texas Instruments (TI) is an example of an ethical large corporation emphasizing on trust, respect for other persons, etc. TI appointed a full time Ethics Director, Carl Skooglund. He surveyed to know the ethical concerns of employees and their awareness. He conducted workshops on ethics, wrote brochures and was directly to all employees through a confidential phone line. Even though they made it clear that unprofessional conduct would not be tolerated, the focus was on supporting ethical conduct than punishing wrong doers.
4. A large defense contractor started an ethics program that was not successful. Higher management viewed the program as a success but the professional employees considered it as a sham/farce for public relations and window dressing. The primary
difficulty was the gap between the intentions of top management and the unchanged behavior of the Senior managers.