Managing Ethical Risks and Crises: Beyond Legal Compliance
Recent interest in culture stems from its power to explain corporate and organizational failures. Such failures are both internal and external: accounting fraud, management misconduct, harassment and bullying in the workplace, racism, sexism, environmental issues, and health and safety concerns. Current theory holds that these failures are to be explained partly by the particular, poor organizational culture and unhealthy climate, poor leadership, and by the misdeeds of a few bad apples. When economic conditions are negative, organizations look to legislation, regulations, and codes, to reform their culture, and manage the risks of organizational failure.