The culture of an organization can generally be characterized as either rules-based or values-based.
A purely compliance culture tends to be rules-based, meaning the rule itself is the ultimate basis of decisions. This invites a legalistic orientation where obedience to the letter of the law is the objective (i.e., if it?s legal it?s ethical). In a rules-based culture, it?s quite enough that employees know and follow the rules. In a rules-based culture there is a minimalist attitude ? just do what is required ? and efforts?to ?bend? the rules or make strained but plausible interpretations of the rules to justify desired conduct can result in behaviors that are legal but ?undesirable (i.e., lawful but awful).
In contrast, an ethical culture? is values-based, dominated by core ethical beliefs and convictions (i.e., values about what is right and good) which underlie each rule or policy. Thus, rules and policies are interpreted and applied in relation to traditional ethical values such as honesty, respect, fairness and responsibility and while?employees are expected to know and follow rules and policies they are expected to make a good faith effort to?honor the spirit (i.e., purpose) of the rules as well as the letter.
In a values-based ethical culture an employee is expected to understand that there is a difference between what there is a right to do and what is right to do.
In a values-based ethical culture an employee is expected to understand that conduct is not necessarily proper just because it is permissible and that ethics sometimes requires doing more than is required to do and less than is allowed.
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