Tone at the Top

Tone at the Top

Tone at the top refers to the ethical atmosphere created within the workplace by the leadership in an organization. The tone set by leaders affects employees in that Company. If the administration in an organization desires to uphold ethics and integrity, the tone set by leadership should uphold such values. In other words, tone at the top is perceived as a demonstration of the priorities of an organization by leaders to employees (Lamberton et al., 2005).

Different organizations have guiding principles instituted to ensure professional conduct and integrity while performing business activities.

Code of ethics is a factor that can be used to determine the tone at the top. Adherence to the code of conduct by leaders is essential because it creates a conducive working environment. Code of ethics is appropriate is assuring governance and risk management within organizations. Tone at the top focuses on ensuring a balance between the creation and protection of enterprise value (Hermanson et al., 2008).

The Institute for global ethics identified five essential ethical values among people. These values exist in an individual regardless of age, culture, and ethnicity background (Amernic et al., 2010). These five ethical value guide dealing, leadership, relationships and situations. These moral values can be considered as factors that determine the tone at the top. For example, one of the ethical values is honest and truthful. Such ethical values allow leaders and employees to handle customer well. The management at the top creates a basis for the development of a culture that is supportive to employees, customers and investors.

Another factor that determines the tone at the top is corporate accountability. Today, the business environment is characterized by various ethical dilemmas. It is challenging to identify which is the appropriate and the right course of action. Corporate accountability is one of the primary reason for tone at the top being essential for a firm’s success. When leaders adhere to ethical codes with stated values, they initiate the creation of a corporate culture that is followed by the employees. Tone at the top also enhances corporate governance (Lamberton et al., 2005).

Organizations have an ethical obligation to society. Here, consistency is the factor that determines tone at the top (Amernic et al., 2010. Some of the roles played by an organization to the society can be stated in the mission statements or defined in policies. Here, leaders are required to be consistent in meeting the organizational responsibility to society. As a result, the leaders set standards for the employees, which forces most of them to adhere to because leaders are leading by example.