Danger signs of unethical behavior maintaining consistent ethical behavior by all employees is an ongoing challenge. many factors create a climate conducive to either ethical or unethical behavior. your task is to consider louisa’s experience thus far with her current company as well as her reflections overall, to answer the questions provided, and to decide if louisa’s current company is in danger of fostering a climate that is conducive to unethical behavior. the ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong. as managers monitor the external environment, they are expected to consider legal and ethical developments, along with other concerns, so that the company can be prepared for new issues as they arise. to create a culture that encourages ethical behavior, managers must be more than ethical people. they also should lead others to behave ethically. read the case below and complete the questions that follow. louisa has been at her current job for just over a year now. she’s proud that her company always talks about ethics in all of its advertising; people in the community have mentioned those ads to her and it makes her happy to be part of such a great company. the culture of the company is pretty laid back. no real procedures exist and everyone is mellow. her boss is so relaxed, in fact, that she didn’t even seem to care when louisa took some note pads home from the copy room. louisa is noticing how the relaxed environment really spreads and changes how she thinks about work and vacation. before, she used to work and then take vacation, period. it was black and white. now, louisa knows she can mix vacations into her work trips. as long as she makes the quarterly numbers, she can do whatever she wants with her expense account. the managers know that if they question her about the expense account she’ll quit, and that recruiting and training someone to take her place will cost a lot of money. and, when the managers found out two colleagues were dating (which is a company no-no, especially since one was the other’s boss), they just relocated them to a less visible branch. when the junior person in that relationship hinted at the possibility that the senior person had initiated the whole thing and that some quid pro quo may have been involved, the company executives gave her a raise and moved her to a more desirable geographic area. louisa heard they are even trying to help that woman get another job with a vendor! they’re so nice. what other company would handle things like that?
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