The link between corporate culture and ethics is significant. Ethics and ethical climate of an organization form the basis of corporate culture. Thus, corporate culture is grounded on corporate ethics so that without proper ethics, it is hard to develop ethical corporate culture. Ethics provide a system of rules and principles of behavior of corporate owners, managers and employees. On the basis of those norms and behaviors, it is possible to gradually formulate corporate culture. Thus, only with ethical behavior and responsibility of all organizational members, the top level of corporate culture can be formed. In its turn, corporate culture can be used to improve ethical situation in the company and to resolve ethical issues. Thus, culture and ethics are equally important for organizations, as they are interconnected and help to develop and improve each other.
The potential for organizational culture to be used in order to improve ethics in an organization is great. For example, corporate culture can be applied to form particular rules and values within the organization and share them with all members via messages. Due to that fact, it is possible to establish the same ethical values within a large organization. Moreover, organizational culture can be used to train employees and form particular behavior for them to follow. Thus, employees will become more ethical, and the organizational level of ethics will be improved. In fact, it is especially important to introduce organizational culture to new employees and members, as well as to the newly acquired companies. Culture is an important mechanism of ensuring integrity within large organizations comprising differentiated parts. Thus, as organization passes its culture to newcomers, it forms their new ethics which is integrated with ethics of the existing company. Thus, the potential of organizational culture is very large since it forms ethics and provides support to large and more integrated organizations.
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