The Positive Ethical Organization: Enacting a Living Code of Ethics and Ethical Organizational Identity

Amy Klemm Verbos, Joseph A. Gerard, Paul R. Forshey, Charles S. Harding, Janice S. Miller

Journal of Business Ethics · 2007 · Volume 76 · Issue 1

Abstract

A vision of a living code of ethics is proposed to counter the emphasis on negative phenomena in the study of organizational ethics. The living code results from the harmonious interaction of authentic leadership, five key organizational processes (attraction–selection–attrition, socialization, reward systems, decision-making and organizational learning), and an ethical organizational culture (characterized by heightened levels of ethical awareness and a positive climate regarding ethics). The living code is the cognitive, affective, and behavioral manifestation of an ethical organizational identity. We draw on business ethics literature, positive organizational scholarship, and management literature to outline the elements of positive ethical organizations as those exemplary organizations consistently practicing the highest levels of organizational ethics. In a positive ethical organization, the right thing to do is the only thing to do.

Keywords

authentic leadership, ethical organization, positive organizational scholarship, organizational culture, organizational identity

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