Today’s globalized market demands substantial changes that put pressure on companies to form more complex decision-making structures, which can be influenced by the lack of an ethical culture among their top officials.

In this regard, making a brief analysis of the formation of the ethical culture of organizations, it can be asserted that it has its foundations in the principles and values ​​of the people who decided to be part of the organization in its initial stages, thus forming its culture. and principles. However, it is important to take into account that in organizations there is a diversity of opinions and ways of thinking, what for some people is unacceptable for others is unimportant, for which it is necessary to define the position of the organization regarding the ethics, what is «acceptable» and what would lead to a sanction because it is outside the allowed parameters «improper».

Once the philosophy and ethical principles of the organization have been defined, these must be disseminated at all levels and communication mechanisms must be implemented to publicize situations that are outside the ethical position of the organization, commonly called complaint lines, complaints and /or suggestions.

The ethical structure in organizations, as well as its implementation, must involve from the highest hierarchical levels to the last link of the organization, also including interested third parties (stakeholders), being its main promoters the shareholders, directors and senior management.

In conclusion, the foundation or basis of corporate governance is the ethical culture and philosophy of the founders, as well as the new generations, since transparency, accountability, fairness between shareholders and investors, loyalty to the business, diligence, respect for the interests of others and adherence to all those principles and good practices; therefore, it is necessary to put the culture and philosophy of the organization before any important change in business, which should be a priority for every business leader.

Elizabeth Pacheco Matencio
Audit Supervisor
Russell Bedford Peru