Organizational Factors: The Role of Ethical Culture and RelationshipsWhat is the role of ethics in an organization? Do ethics matter?How does your organization perceive the culture?Does your culture lend itself to ethical behavior?
Employee Conduct Critical Thinking: Do these results indicate that investors give more consideration to the actions of the firm, over the industry/sector they are in? Source: http://blog.vovici.com/blog/?Tag=Employee%20Satisfaction%20Surveys
Corporate Culture Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in an organization. It gives members meaning as well as internal rules of behavior. When values, beliefs, customs, rules, and ceremonies are accepted, shared, and circulated throughout the organization, they represent its culture. Source: Ferrell, O., Fraedrich, J., Ferrell, L. (2008). Business Ethics. Ethical decision making and cases. Houghton Mifflin. Boston
Is your Organization Seeing a Clear Picture of the Culture? Source: http://www.1000ventures.com/business_guide/crosscuttings/shared_values.html#GE%20Values%20Guide
Culture Typologies Critical Thinking: Which of these can an organization do without and still develop a culture that is ethical? Can they? Why? Source: http://www.hollandconsultinggroup.com/102.asp
Culture Permeates the Entire Organization Spark Question: How would you handle this situation in your organization? Source: ttph://www.whereistheoutrage.net/wordpress/category/ethics/page/2
Cultural Audit Spark Question: Does your organization utilize a cultural audit? Source: http://www.smartdraw.com/blog/archive/2009/10/12/corporate-culture-monkey-see-monkey-do.aspx
Transforming Culture Critical Thinking: Could this model be used as a base in which to build a sustainable organizational culture? Why or Why not? Source: http://www.targeted-innovation.com/Workshops___Events.html
Ethics Related Actions Top Management
Communicates ethics as a priority
Sets a good example of ethical conduct
Keeps promises and commitments
Provides information about what is going on
Employees perceive that top managers are held accountable for ethics violations
Source: http://erc.forumone.com/files/u5/lements_of_an_Organizational_Ethical_Culture.pdf Expected Program Outcomes
Reduced observation of any type of misconduct
Reduced observation of specific types of misconduct
Increased reporting among those who observe misconduct
Increased satisfaction with management’s response to reports of misconduct
Increased satisfaction with the organization
Reduced exposure to situations that could result in misconduct
Increased preparation to respond appropriately to situations that could result
Reduced pressure to compromise ethics standards or the law
Ethics Related Actions Spark Question: Does this reflect the thinking among your peers? Source: http://www.ethicsworld.org/ethicsandemployees/nbes.php
Whistle-Blowing Spark Question: What is the reasoning behind the reaction to Whistle-Blowing? Source: http://i-sight.com/ethics/2009-erc-ethics-survey/
Reasons for not Reporting Whistle-BlowingSource: http://www.pogo.org/pogo-files/reports/whistleblower-issues/the-unfinished-agenda
Observed Misconduct Spark Question: Is there a correlation between the two? Source: http://i-sight.com/ethics/2009-erc-ethics-survey/
Training for Results Spark Question: How effective is training in your organization? Examining the table; What would drive the results for Instructor was from within Org.? Source: http://www.ethicsworld.org/ethicsandemployees/managingworkplaceethics.php
Leader PowerThe status and power of leaders is directly related to the amount of pressure that position can exert on employees to conform to their expectations. A superior in an authority position can put strong pressure on employees to comply, even when their personal ethical values conflict with the superiors wishes. Source: Ferrell, O., Fraedrich, J., Ferrell, L. (2008). Business Ethics. Ethical decision making and cases. Houghton Mifflin. Boston
Examples of Leader Power Reward Power Coercive Power Legitimate Power Expert Power Referent Power Spark Question: What type of power exists in your organization? Source: Ferrell, O., Fraedrich, J., Ferrell, L. (2008). Business Ethics. Ethical decision making and cases. Houghton Mifflin. Boston
Leadership and PowerSpark Question: Is this an ethical leadership model? Source: http://hsusife.com/sarah/index.htm
Points of Power Critical Thinking: Which point of power is the most ethical? Least ethical? Why? Source: http://gillmacmillan.bsky.net/ecom/library3.nsf/SupportMaterialLookup
Motivating Ethical BehaviorSpark Question: What motivates you to act ethically?Source: http://www.emeraldinsight.com/journals.htm?articleid=1858827&show=html
Decision making authority concentrated at the top.
Responsibility rests with top level mangers.
Suitable for organization with high risk decision making.
Decision making authority delegated as far down as possible.
Relatively few formal rules.
Focus on increasing flow of information.
Source: Ferrell, O., Fraedrich, J., Ferrell, L. (2008). Business Ethics. Ethical decision making and cases. Houghton Mifflin. Boston
Fully De-Centralized Model Source: http://protectyourbits.wordpress.com/category/uncategorized/
Centralized and De-Centralized CultureDe-Centralized Organizations
Spark Questions: Is a de-centralized organization more or less likely to act unethically? Why? Is a centralized organization more or less likely to be successful if started today? Why? What issues would a de-centralized organization face if they decided to become centralized?
Critical Thinking: Is it easier for an employee to act unethically in a centralized or de-centralized organization? How does the decision making autonomy in de-centralized organizations lead to unethical behavior? Is coercive power the right choice for a centralized organization? Does an integrative culture work well in de-centralized organizations?