Explain the role of leadership in shaping organizational culture

Recent research stated that companies with an established organizational culture that includes strong capabilities for change, commitment to innovation and a high level of trust have a significant advantage” when attempting to adopt a strategy of broad-based corporate sustainability (Eccles, Perkins, & Serafeim, 2013). Yet an Ethics Resource Center (2012) survey found that 42% of respondents felt their organizations exhibited signs of a weak ethics culture with a low degree of trust and transparency. Organizational leaders should have a strong incentive to identify and address any disparities that exist between their organization’s current culture and a productive healthy one. They must understand the impact they can have as leaders in facilitating an organizational culture, determining the necessary steps to build that culture, and taking the necessary action to create a healthy organizational culture.

To prepare:

Search for scholarly references about the relationship between leadership and organizational culture. Reflect on the leadership characteristics and skills that are useful in promoting a healthy organizational culture. Also, consider the leadership styles that promote a healthy organizational culture. Think about the impact on organizational culture of how a leader responds to specific situations, such as crises. Reflect on how a leader might use power to promote a healthy organizational culture and how a leader can promote ethics in a healthy organization.

To prepare is intended to aid in your reflection upon how the various leadership theories to assist you in analyzing the relationship between leadership and organizational culture.

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