How can managers create an ethical culture?

There are several ways to create an ethical organizational culture to help members resist the temptation to engage in illegal acts for personal gain. First, an organization can encourage people to act ethically by putting in place incentives for ethical behavior and disincentives to punish those who behave unethically. Second, organizations can design an organizational structure that reduces the incentives for people to behave unethically. Third, an organization can develop fair and equitable human resource procedures towards the management of its diverse employees. Fourth, organizations can put procedures into place giving subordinates access to upper-level managers to whom they may voice their concerns about unethical organizational behavior. Fifth, an organization can create a strong board of directors from outside the company with no ties to top management.