The development of a human resource model that supports the establishment of an ethical organisational culture

Corruption and unethical management is a legitimate global economic concern as it can have a direct and substantial impact on the longevity and the economic success of an organisation, an industry and a country. As a result of individuals having more readily available access to information, much attention has been given to unethical behaviour and organisational ethical violations over the last decade. Recent events have indicated that business ethics is an organisational concern with mammoth implications for business. For example, Esterhuyse (1999, p. 27) reports that South Africa has lost astronomical amounts of money due to office or white-collar crime. Organisations’ attempts to become globally competitive will be hampered by the behaviour of employees who are unethical at work. Therefore, it is imperative that organisations implement measures to increase ethical awareness and behaviour in their employees. This research study deals with business ethics in the automotive cluster of the Eastern Cape Province and proposes a model that can assist an organisation in improving its ethical culture. The main question that this research study addressed was: To what extent do the strategies of human resource departments contribute to establishing and maintaining an ethical organisational culture? To answer the above question it was necessary to address the most universal characteristics of ethical organisations. To this end the role of the human resource department in attempting to develop and sustain an ethical organisational culture is discussed. Thereafter, various ethical models are outlined and evaluated. Lastly, the proposed ethical model for establishing an ethical organisational culture is presented. Based on the theoretical findings of the literature survey which outlined the characteristics of ethical organisations and the interventions required to improve the ethical functioning of an organisation, a questionnaire was developed and distributed to organisations within the automotive cluster in the Eastern Cape Province. The empirical results obtained from the survey indicated dominant consensus regarding the model (see Chapter Four). The main findings from this research are that 74.7 per cent of organisations that participated in the empirical study had implemented a code of ethics. However, the majority of these organisations had not implemented the identified critical and optional interventions (see to Chapter Four) required to operate as an ethical organisation. The study also revealed that 49.4 per cent of respondents believed that the human resource manager is responsible for organising and coordinating an ethical initiative within the organisation. Respondents in this study stated that the benefits of operating ethically are the improved financial position of the organisation (76.5 per cent), the enhanced morale of employees (95.3 per cent), positive stakeholder perception (93 per cent), better long-term strategic sustainability (94.3 per cent) and superior social responsibility (85.9 per cent)