The principal problem with getting one's ethics from one's organization is that, according to Bailey, “Organizations seem to have a poorly developed sense of right and wrong. Expediency all too often comes out ahead of morality. Organizations and institutions are supposed to be the guardians of trust and fair dealing, but often there is no one to guard the guardians and — self interest being a prime mover — they look after their own good rather than the public good. ... The lack of moral sensibility lies in the leaders and owners, who put their advantage ahead of the common good ... behind a screen of respectability, of professed concern for the public good. Everywhere there is a major presentational effort either to deny self-interested behavior or to redefine it as altruism."
What you can see from reading this anthropologist, who studies all sorts of organizations in countries around the world, is that what occurs in local governments in the U.S. is no different. The principal thing that is different is that local government officials owe their fiduciary duties not to owners, or to numerous, dispersed stockholders who change frequently, but to the members of the community they live in.