Organizational culture that supports healthy and inclusive ethical climate can be considered one of the main tools of any modern management organization and staff development. An ethical climate implies a certain set of values, norms, and rules that form the guidelines for behavior and actions taken by employees. It is through the organizational culture that every staff member knows how to interact with others and with the external environment, ultimately forming positive ethical climate in the company. The Enterprise Holding’s climate is designed and supported to promote equality and inclusivity, as well as manage cultural differences between employees. This approach requires managers to implement principles of servant leadership and maintain a high level of conflict resolution skills.
Currently, the only ethical issue that has had lasting effects on the company is the ineffective cultural management that results in conflicts between employees and between employees and managers. The process of organizing and successfully running a business in a culturally diverse setting – especially carrying out serious projects – is not only laborious and painstaking, but also quite complex in terms of cross-cultural management. Dover et al. (2019) suggest that “diversity initiatives have the potential to negatively affect performance of the employees from underrepresented groups” (p. 177). Thus, several workers and managers were reported to the HR department due to their inconsiderate behavior towards some of their peers of Asian and Black origin. It shows that, despite company’s ethical course for alleviating cultural differences, there is a lot of work ahead in that direction, and it is necessary to implement cultural training.
The company provides proactive educational training on issues of inclusivity and gender and LGBTQ+ inequality. These trainings strive to address the problem of underrepresentation and inadequate attitude towards the aforementioned groups. Moreover, the organizational culture of the company is based on the principles of ethical leadership and a corporate motivational system, and is promoted by every managing lead of the enterprise. This kind of organizational culture allows the business to manage its development more efficiently using the employees’ ambitions and goals. In the corporate motivational system, a healthy and proper culture establishes a rational and fair structure for remunerating employees’ labor depending on their professional level and qualifications, as well as the results of their work. It also gently pushes employees to constantly improve and develop, which is the main task of the organization’s motivational policy.
Dover, T. L., Kaiser, C. R., & Major, B. (2019). Mixed signals: The unintended effects of diversity initiatives. Social Issues and Policy Review, 14(1), 152–181. Web.