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The purpose of this study was to identify general characteristics attributed to ethical business cultures by executives from a variety of industries. Our research identified five clusters of characteristics: (1) Mission- and Values-Driven; (2) Stakeholder Balance; (3) Leadership Effectiveness; (4) Process Integrity; and (5) Long-term Perspective. We propose that these characteristics can be used as a foundation of a comprehensive model that can be engaged to influence operational practices in creating and sustaining an ethical business culture. (Contains 1 figure and 3 tables.)

This literature review identifies characteristics of ethical business cultures, describes factors, considered to be important in developing such cultures, describes current practices of developing ethical culture programs, and discusses the role of HRD in developing ethical business cultures. We argue that ethical thinking and behavior can be learned and internalized as a result of work-based interpretive interactions, and this learning process constitutes an important part of organizational learning. Therefore, to help the organization develop an ethical culture, HRD needs to play a key role in several interrelated activities which include: culture change efforts, focused on the creation of conditions, conducive to ethical behaviors; creation of a dynamic program of ethical training for employees on all levels of the organization; and development of up-to-date codes of ethics.