The ethical
climate of an organization refers to the organization's shared beliefs and opinions on what is
ethically and morally right and wrong, what is proper ethical and moral behavior, and the
organization's way of determining what might and might not be considered an ethical or moral
issue. The ethical climate of a company is closely related to its business ethics and
organizational culture; if the company has poor business ethics and organizational culture, then
its ethical climate in general would be described as faulty and unacceptable; as a result, the
business might fail, and the company's image and reputation might be permanently
damaged.
For instance, discrimination on any basis, harassment in any
form,...
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