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Ethical organizations

Ethical organizations






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    Ethical organizations Ethical organizations Presentation Transcript

    • 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
    • Organizational CultureSource: http://www.nhorizons.ca/en-change-culture-change.asp
    • Organizational CultureSource: http://www.adb.org/documents/studies/auditing-lessons-architecture/ala2.asp
    • Framework for Corporate Culture and Integrity
      • Code of Ethics or Conduct
      • Education and Training
      • Tone from the Top
      • Outsourced Hotline (Anonymous)
      • Centralized Data Repository
      • Data Management System
      • Investigation and Action
      • Ability to Query and Generate Reports
      • Validation, Background Checks
      Source: http://www.globalcompliance.com/pdf/GCSFrameworkforCorporateCultureandIntegrity.pdf
    • 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
      • in misconduct
      • 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
    • Organizational Structure
      Source: http://www.12manage.com/methods_centralization_decentralization.html
    • Organizational Structure
      • Decision making authority concentrated at the top.
      • Responsibility rests with top level mangers.
      • Suitable for organization with high risk decision making.
      • Extremely bureaucratic.
      • Decision making authority delegated as far down as possible.
      • Relatively few formal rules.
      • Focus on increasing flow of information.
      • Greater flexibility.
      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
    • 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?