Eth501 Mod 5

TUIU

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Case 5

Business Ethics 501

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April 28, 2014

Organizational Leadership and Culture

The part that will ultimately establish an unsuccessful or successful company is that organization’s sense of business ethics and the operations of the organization’s culture. The organizational culture of a company can be the factor that will help a business to grow, be profitable and build a solid relationship within the business community. When an organization has a negative organizational culture and poor business ethics this can lead to the downfall of the company. All companies must operate within the bounds of practicing good business ethics regardless of the size of an organization.

In order for an organization to adhere to good business ethics in the context of the organization’s culture, it is essential to have an understanding of what exactly is organizational culture. Culture includes the organization values, vision, norms, working language, systems, symbols, beliefs and habits. It also includes the patterns of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving, and even thinking and feeling.”( Cameron )The organization culture of a business not only effects the individuals that work within the organization, it also affects their relationships with clients, stakeholders, and other businesses. Executives play a larger role in defining the organizational culture of their business through their actions, leadership and management styles.

One company that has became known for their complete lack of good business ethics and a poor organizational culture was Enron. This company came together as a corporation in 1985 as the result of a merger between InterNorth Corporation and Houston Natural Gas. At the time, InterNorth ran one of the largest natural gas pipeline systems in North America. When the two companies merged the company’s original name was...