It is vital to note that ethical or unethical actions by particular managers do not occur in a vacuum. They most often occur in an organizational context that is conducive to them.
Some people may commit crime to further their own careers or financial gains. Ethical standard of a person determines this behavior.
Organizational practice may strongly influence the ethical standards of employees. Some organizations openly permit unethical business practices as long as they are in the best interests of the firm.
Environmental competitiveness tends to encourage unethical behavior. They engage in unethical behavior through price-fixing. Competitive jealously is normal in business. Everybody wants to make more than others do.
Pressure from superiors can lead to blind conformity. Most workers feel some pressure to act unethically or illegally on the job.
There are some ambiguous situations in which there are no clear- cut ethical guidelines. Managers feel uncomfortable in these ambiguous situations.
Organizational culture also contributes to the context for ethical behavior. If a manager aware of an unethical behavior and allow it to continue, he has contributed to the organizational culture that says such activity is permitted.
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