ILM by City & Guilds · 8725-521Mandatory unit

Unit 521: Organisational culture and ethics

This unit will give learners the opportunity to explore how ethical principles and organisational culture influence organisational structure, leadership styles and operational practices. Learners will examine different types of normative ethical systems and models of organisational culture. In today’s workplace, ethics and values-based leadership are central to building stakeholder trust and protecting organisational reputation. By completing the unit, they will develop the skills to apply ethical decision-making models and frameworks in real-world contexts, to make evidence-informed leadership decisions that align with ethical standards and organisational values.

In short

Unit 521 Organisational culture and ethics is a 4-credit optional Level 5 unit. LO3 requires you to identify your own organisation's culture against a recognised cultural model, describe its ethics, and make recommendations to improve both the culture and the policies that underpin ethical practice.

Level

RQF Level 5

Credit value

4 credits

Guided learning

25 hrs

Assessment criteria

13 criteria

Learning outcomes and assessment criteria

To achieve unit 521 your portfolio must evidence every assessment criterion below. There is no exam and no written assignment — you demonstrate each criterion using evidence from your own work.

Learning outcome 1

Understand organisational culture

  • 1.1

    Define the term organisational culture

  • 1.2

    Summarise recognised cultural models

    Evidence requirement: Evidence must include at least two cultural models.

  • 1.3

    Explain how different factors influence organisational culture

    Evidence requirement: Evidence must include at least two internal and two external factors.

    What this covers: Factors: internal and external.

  • 1.4

    Explain how culture influences organisational structure

  • 1.5

    Evaluate the impact of different types of organisational culture on leadership style

Learning outcome 2

Understand organisational ethics

  • 2.1

    Explain what is meant by organisational ethics

  • 2.2

    Explain how different factors influence organisational ethics

    Evidence requirement: Evidence must include at least two internal and two external factors.

    What this covers: Factors: internal and external.

  • 2.3

    Explain how ethics influences organisational practices

  • 2.4

    Assess the importance of alignment between organisational and employee values

Learning outcome 3

Be able to recommend improvements to organisational culture and ethics

  • 3.1

    Identify own organisational culture against a recognised cultural model

  • 3.2

    Describe the ethics of own organisation

  • 3.3

    Make recommendations for improvements to own organisational culture

  • 3.4

    Make recommendations for policy improvement to enhance organisational ethics

How to approach unit 521

Written by our assessment team: what the criteria mean in practice, the evidence that works, and where learners get caught out.

What this unit is really about

Unit 521 pairs culture with ethics, and the practical requirement is precise: criterion 3.1 asks you to identify your own organisational culture against a recognised cultural model. That means picking a named model and mapping your organisation onto it with evidence — not describing the atmosphere.

Criterion 3.4 then asks for recommendations for policy improvement to enhance organisational ethics, so you need to have read the relevant policies: code of conduct, whistleblowing, gifts and hospitality, conflicts of interest, procurement, and speak-up arrangements.

Choosing a cultural model

ModelWhat it gives youWhere it is weak
Handy's four cultures (power, role, task, person)Fast, memorable, easy to map onto real organisationsBroad-brush, and most organisations are a mix
Schein's three levels (artefacts, espoused values, basic assumptions)Explains the gap between the values poster and actual behaviourBasic assumptions are hard to evidence
Competing values framework (clan, adhocracy, market, hierarchy)Comparable, and has a survey instrument behind itReduces culture to two dimensions
Hofstede's dimensionsUseful for national and cross-border differencesNational-level data applied to a single workplace overreaches

Schein is the most productive for a portfolio, because criterion 1.4 and LO2 both live in the gap between espoused values and real behaviour. Use artefacts you can point to: what gets celebrated, who gets promoted, what happens when someone raises a problem, how quickly bad news travels upwards, and whose meetings start on time.

The evidence that works

Learning outcomeEvidence that works well
LO1 — cultureA definition, recognised models summarised, the factors influencing culture, how culture influences structure, and an evaluation of how culture types affect leadership style
LO2 — ethicsWhat organisational ethics means, the factors influencing it, how ethics influences practice, and an assessment of the importance of alignment between organisational and employee values
LO3 — recommend improvementsYour organisation identified against a model, its ethics described, and recommendations for both culture and policy

Ethics at Level 5

The spec guidance for this unit references normative ethical systems, so name and use them rather than talking loosely about integrity:

  • Consequentialism / utilitarianism — judge the act by its outcomes; the difficulty is who counts, and over what timeframe
  • Deontology — some duties and rights hold regardless of outcome; the difficulty is when duties conflict
  • Virtue ethics — what a person of good character would do; strong on culture, weak as a decision rule
  • Ethics of care — obligations arising from relationships and dependency, which lands well in people-management decisions

Apply them to one real dilemma you faced and show how the frameworks point in different directions. That contrast is the evidence; agreement between frameworks proves nothing.

For criterion 2.4 — alignment between organisational and employee values — be careful with the popular claim that misalignment always causes turnover. It is better evidenced as a cost to engagement and discretionary effort, and worth noting that strong value alignment has a downside too: it narrows recruitment and suppresses dissent, which is a culture risk in itself.

Recommendations (3.3 and 3.4) should target mechanisms, not sentiments: what the promotion criteria reward, whether the speak-up route is anonymous and who receives it, whether the code of conduct is referenced in any real decision, and whether hospitality thresholds are enforced.

Useful reading

Supporting information for unit 521

Unit aim: This unit will give learners the opportunity to explore how ethical principles and organisational culture influence organisational structure, leadership styles and operational practices. Learners will examine different types of normative ethical systems and models of organisational culture. In today’s workplace, ethics and values-based leadership are central to building stakeholder trust and protecting organisational reputation. By completing the unit, they will develop the skills to apply ethical decision-making models and frameworks in real-world contexts, to make evidence-informed leadership decisions that align with ethical standards and organisational values.

Unit guidance: LO1 For this unit, cultural models can include the following theories and frameworks: • Recognised cultural models: o Competing Values Framework, Quinn and Rohrbaugh (1983) o Deal and Kennedy’s Model (tough-guy/macho, work-hard/play-hard, bet-your-company and process culture) o Denison’s Organisational Culture Model (1990) o Handy’s Culture Types (1993), (power, role, task, person culture) o Hofstede’s Six Cultural Dimensions (2010), (power distance index, individualism– collectivism, masculinity–femininity, uncertainty avoidance index, long-term orientation-short-term orientation and indulgence–restraint) o Johnson & Scholes Cultural Web (1982) o McKinsey 7S Framework (n.d.) o Schein’s Organisational Culture Model (1985) (artifacts, espoused values, underlying assumptions).

Suggested learning resources: These suggestions are current at the time of publication. The following resources are provided as guidance only. Centres should select current and relevant resources and encourage learners in self-guided reading. Ethical decision making | ACCA Global – American Accounting Association (AAA) (n.d.) Ethical decision-making model – Chartered Institute of Housing (2015) Ethical Decision-Making – IBE (2024) 4 Pillars of ESG - Learn its Benefits and Challenges – Digital Regenesys (2024)

Evidencing this unit

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you.

  • Workplace documentation and records — team development plans, project implementation reports, meeting agendas and minutes, training materials
  • Video clips, up to a maximum of 15 minutes
  • Projects
  • Reflective accounts, journals and logs
  • Assessment observation
  • Witness testimonies

Where unit 521 counts

This unit sits in the ILM Level 5 Leadership and Management suite (8725) and counts towards the pathways below, from £695.

Frequently asked questions

Which cultural model should I use for unit 521?

Any recognised one you can evidence: Handy's four cultures, Schein's three levels, the competing values framework or Hofstede. Schein works particularly well because the unit lives in the gap between espoused values and actual behaviour.

What are normative ethical systems?

Frameworks for judging what is right: consequentialism judges by outcomes, deontology by duties and rights, virtue ethics by character, and ethics of care by relational obligations. Apply them to one real dilemma and show where they disagree.

Is unit 521 mandatory?

Yes. Unit 521 is a mandatory unit — every learner on the relevant pathway must complete it.

How is unit 521 assessed?

Assessment is a portfolio of evidence, centre-devised and internally set and marked. There are no exams and no written assignments.

What evidence can I use for unit 521?

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you. Workplace documents, projects, reflective accounts, observation records and witness testimonies are all valid sources.

Which qualifications include unit 521?

It counts towards the Level 5 Award, Level 5 Certificate, Level 5 Diploma, Level 5 Extended Diploma.