January 2018
Building an ethical corporate culture
Overview
An ethical corporate culture that permeates all strata of an organisation is at the core of good corporate governance. It also has a positive impact on employee engagement and profitability.
The process of implementing cultural change within a business must be actively led by those at the top. Senior management should set the tone for the organisation, and their actions will ultimately decide whether an ethical culture survives or not.
Those coordinating a change need to implement a thorough training process to overcome likely challenges such as cultural differences and entrenched attitudes of resistance to change.
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Learning objectives
After reading this article, you should be able to:
- explain the typical characteristics of an ethical corporate culture
- discuss the importance of a strong ethical corporate culture
- describe how a strong ethical corporate culture can be established
- outline the challenges when establishing an ethical corporate culture.
Knowledge areas and accreditation
Knowledge area: Ethics (60 minutes/1.0 point).
FPA CPD points 0.75 Dimension: Professional Conduct (Ethics) (FPA 009746).
AFA CPD points 1.0 (AFA 01022009).
CPA Australia CPD points 1.0 (CPA 000460).
TPB CPE (60minutes/1.0 point).
SMSF Association CPD points 1.0.