An organization’s culture socializes people. It subtly conveys to members that certain actions are acceptable, even though they may be illegal. For instance, when executives at General Electric (GE), Westinghouse, and other manufacturers of heavy electrical equipment illegally conspired to set prices in the early 1960s, the defendants invariably testified that they came new to their jobs, found price-fixing as an established way of life, and simply entered into it as they did into other aspects of their jobs. One GE manager noted that every one of his bosses had directed him to meet with the competition: “It had become so common and gone on for so many years that I think we lost sight of the fact that it was illegal.” The strength of an organization’s culture has an influence on the ethical behaviour of its managers. A strong culture will exert more influence on managers than a weak one. If the culture is strong and supports high ethical standards, it should have a very powerful positive influence on a manager’s ethical behaviour. However, in a weak culture, managers are more likely to rely on subculture norms to guide their behaviour. Work groups and departmental standards will more strongly influence ethical behaviour in organizations that have weak overall cultures. 

It is also generally acknowledged that the characteristics of a culture affect ethical behaviour. Assuming this is true, what would a culture look like that would shape high ethical standards? What could top management do to strengthen that culture? Do you think it’s possible for a manager with high ethical standards to uphold those standards in an organizational culture that tolerates, or even encourages, unethical practices?