How Ethical Business Practices Can Improve Your Organizational Culture

It’s no coincidence that many of the world’s leading organizations have a great company culture. A strong organizational culture is really important as it directly affects various factors of your business, enhancing your ability to recruit top talent, maintain a happy workforce, improve team motivation and deliver excellent customer service.

To achieve great results, you must align your collection of values, expectations, and behaviors to inform and guide the actions of every team member in your organization. And there are several strategies you can employ to foster a positive culture in your workplace. But one of the easiest ways to achieve this is to run your organization in an ethical way. 

When an organization’s management is committed to ethical business principles that mindset trickles down to the rest of the team. The result is a winning culture that will benefit the entire organization and lead you closer to success.

Here are five ways ethical business practices can positively impact your organizational culture.

Attract Top Talent and Higher Quality Employees

Maintaining a strong organizational culture starts by recruiting and cultivating the right talent and retaining your team members. When you consistently bring in people that positively contribute to your culture, it’s much easier to build a positive workplace.

A recent study has shown that 62% of millennials want to work for organizations that value ethics and make a positive impact on the world. This means that if your organization utilizes ethical business practices, you may have a big leg up on your competitors when it comes to recruitment.

organizational culture
By running an ethical organization, you’ll be more likely to attract high-quality talent to fill your open positions. Photo by Tim Gouw from Pexels.

It’s also going to make it much easier for you to find talented individuals who fit in with the type of culture you’re looking to build. This goes for both full-time employees as well as freelance and contract workers.

Ensure Your Employees are Treated Fairly

While a large part of running an ethical business is doing good for those outside your organization, it’s also about ensuring people within your organization are treated fairly and compassionately, fostering diversity and inclusion. 

This includes fulfilling their work needs and desires, respecting their rights, and providing them with the support and resources they need to succeed.

Employees that are happy, healthy, and motivated are more likely to contribute to your culture in a positive way. They’ll also be more comfortable working in the company and committed to your organization, sparking the willingness to go above and beyond to help you achieve your company goals.

So, by running your business in an ethical way, you’re also improving your employee wellness which is a key component in building a strong organizational culture.

Set an Example for the Rest of Your Team

When people join an organization, they look to management and leadership to learn how they should act and conduct themselves. So naturally, the way you run your business sets a precedent for your team and will greatly influence the culture in your workplace.

When an organization doesn’t value ethics, that mindset spreads to the rest of the employees.  If employees don’t feel like their employer values them or society in general, then they’ll be less likely to as well. This environment creates an organizational culture where everyone is only concerned about themselves, hurting your team but also your customers.

However, when an organization treats its team with respect and works to make a positive impact on society, it encourages its employees to follow the lead and do the same. 

For example, a recent Gallup poll found that the number one reason employees donate to workplace fundraisers is their organizations’ mission. If you define a positive mission for your organization, they’ll be more inspired and likely to follow your lead. Consequently, they will help you create the type of culture that will lead you to success.

Provide Meaning for Your Organization

Your ability to provide your team with a sense of meaning and purpose will greatly influence the type of organizational culture you create. 

In a survey performed by Achievers, 57% of respondents said they weren’t motivated by their company mission. In the same study, 50% said they didn’t expect to be working for their employer within a year. This illustrates how important providing your team with meaning and purpose is to create a successful workplace.

Running your organization in an ethical way is a great way to respond to these statistics. When your team sees that your organization is committed to making a positive impact, it gives their job meaning, pride and a sense of duty to accomplish it. It also promotes a positive organizational culture as everyone is passionate about what they’re doing and working towards a common goal. 

Encourage a Higher Level of Employee Engagement

A strong level of employee engagement is critical to building the right organizational culture. If your team isn’t engaged and actively involved in helping you achieve your goals, your culture will suffer as a result.

It turns out there’s an easy way to boost employee engagement: Utilize ethical business principles.

According to leadership development experts Dr. Brad Shuck and Maryanne Honeycutt-Elliott, “higher levels of engagement come from employees who work for a compassionate leader—one who is authentic, present, has a sense of dignity, holds others accountable, leads with integrity, and shows empathy.”

organizational culture
Running an ethical organization has been shown to increase employee engagement. Photo by fauxels from Pexels.

By running your organization in an ethical and compassionate way you’ll find your engagement levels will always remain high. And engaged employees who are passionate about your organization will help contribute to a strong culture that benefits your entire team.

Achieve an ethical and positive organizational culture

Complementing the benefits of ethical business principles for your organizational culture, we share here some takeaways to help you achieve a positive workplace culture:  

  • Establish and communicate clearly the values, beliefs and mission of your organization;
  • Define a clear strategy to align your team with the mission and vision of the organization;
  • Walk your values and lead by example with authentic, honest and compassionate leadership;
  • Create an inclusive, supporting and valuing environment;
  • Take care of your customers, give appreciation, show recognition and encourage their participation.
  • Facilitate open and honest communication;
  • Foster collaborations and empower strong relationships;

Build a positive and ethical workplace in your company and become a desired company to work with. Zappos, Patagonia, Airbnb, and Google are referred to as fantastic business culture examples where employees are highly engaged in pursuing the company’s mission. We want to see you as a reference for great and ethical organizational culture. 

Find Freelancers Who Align with Your Organizational Culture

Are you an ethical organization looking for freelancers who can help you achieve your goals and fit your organizational culture?

Work for Impact can help you find skilled freelancers who share your values and fit your business culture. Our platform connects impactful organizations with talented individuals who believe in working for the greater good. 

Click here to sign up, join a community committed to a new way of working and attract top talented freelancers.