Formal System
The organizational formal cultural system are considered as concrete and direct measures that establish ethical behavior such as mission statement, code of conduct and ethical standards (Belak & Milfelner, 2011). The formal structure is primarily concern with the configuration in which how workers at all levels interact. It usually involves the organizational chart, hierarchy, and clear lines of authority for each level. It also shows clearly the flow of information to ensure everyone in the organization have access to it in order to perform their duty. The formal cultural system consist of other element and factors such as leadership, reward system, structure, policies and codes, orientation and training programs, and decision making process.
Leadership
Foremost in the creation of an ethical culture is the personal integrity of organizational leadership, this is essential for creating and sustaining an effective “tone from the top”. It is often said that a