12/17/2023 0 Comments Ethics in corporate culture![]() ![]() According to HR software provider Breathe, a toxic workplace culture costs UK businesses around £15.7 billion per year. The cocktail of COVID mixed with a toxic culture is thought to have contributed to the company’s £7.4 million loss, in what co-founder James Watt describes as the “toughest year” in the company’s history.īrewdog is not alone in discovering the hard way that a toxic work culture can exert a hefty price. ![]() An open letter signed by former staff described a culture of fear that permeated the organisation, suggesting that toxic attitudes towards junior staff “were simply an intrinsic part of the company”. Brewdog, with its reputation for clever marketing that often captured the public mood, found itself on the front pages for all the wrong reasons this summer. Highly successful businesses can be tarnished overnight, and often for good, if allegations of unethical behaviour hit the headlines. Whether it be managing staff through Covid, responding to #MeToo allegations, addressing accusations of bullying or mitigating environmental impacts, it matters what kind of culture is created. Organisational behaviour is under greater scrutiny than ever before, with the spotlight focused on unethical practices. ![]() It can influence recruitment and affect how objectives are achieved, yet it often remains a crucial if intangible asset. Whether by default or design, every organisation has a culture it is the ecosystem that determines behaviour and ultimately dictates how operations are conducted. And only 42 per cent of blue-collar workers feel their managers would not bend the rules to get things done, compared to 53 per cent of white-collar workers. Less than half of blue-collar workers feel their organisation sets an example in the way business is conducted, compared to over 64 per cent of those in clerical or managerial roles. There were also significant gaps and low scores among blue-collar workers when asked about the ethical tone the organisation sets and their belief in managers to do the right thing. While 57 per cent of those in managerial roles did feel this applied to them, fewer than 40 per cent of blue-collar workers felt they had the potential to develop within their organisations. The gap was similar when workers were asked if they felt they could grow and develop in their organisations. Less than half (47%) the of those in skilled, semi-skilled and unskilled work felt proud to say they worked for their organisation, compared to two thirds (66%) of those in managerial positions. In fact, blue-collar workers felt less positive than those in managerial posts about every culture indicator examined in the UK survey, in some cases by almost 20 percentage points. While 72 per cent of senior managers consider their organisation has an ethical culture, this falls to just 54 per cent among blue-collar workers. When it comes to corporate culture do managers look through rose-tinted glasses? According to GoodCorporation’s latest UK survey of workforce perceptions of organisational culture, senior managers and above are far more likely to feel their organisation has an ethical corporate culture than their non-managerial counterparts. ![]()
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