It’s not only the organization as a whole but the subcultures within the various departments that make up the organization’s culture*When the subculture’s cultures are the same as the organization’s, this means you have a strong organizational cultureEach department faces ethical dilemmas of different kinds
What is value chain: the key functional inputs provided to transform raw materials into a delivered product or service*Research & Development: develops and creates new product designs*Manufacturing: sources the components & builds the product*Marketing: advertising – promotes the product/service*
Within the value chain’s functional areas there are line functions that support them*HRM: coordinates recruitment, training, & personnel development*Finance: internal/external accounting personnel & external auditors*IS/IT: maintains data transfer/security, email, web sites, individual hardware & software*Management: supervisory role (oversees all operational functions)Each of these functional lines represent personnel, dollars & technology – all the resources an organization commits to
R&D professionals are responsible for a company’s future growth -they create the products that recruit new customers and bring current customers back
Utilitarianism – offer the greatest good to the greatest number of peopleUniversal Ethics – actions taken out of duty and obligation rather than based on the needs of the situation
Code of Ethics: doing no harm, fostering trust, and improving customer confidence in the integrity of the marketing exchange system while establishing clear ethical values of honesty, responsibility, fairness, respect, openness, & citizenshipSo even if a company follows this ethical code, is it really ethical to convince people to buy something they don’t really need?
Standard operating procedures accountants use to govern themselves*In order to keep investors satisfied, some corporation legally defer receipts from one quarter to the next *This can get tricky of what becomes deferment versus falsifying accounts/books
Organizational Ethics Week 4
Business Ethics & SocialResponsibilityMGMT 447
Business Ethics• Differ from general ethics ▫ Stakeholders vested in the ethical performance of the organization ▫ Your work environment may provide situations that clash with your personal value system
Organizational Culture• The values, beliefs, norms shared by employees of the organization• Sums up the policies and procedures of the functional departments within the organization
Value Chain • R&D • Manufacturing • Marketing • Sales • Customer Service
Value Chain cont…• Human Resource Management• Finance• Information Systems• Management
R&D• Create new products ▫ Incorporate customer feedback ▫ Competitive feedback ▫ Strategic input• Ethical Dilemma ▫ Creating products of the highest quality, safety, & reliability all within a predetermined manufacturing cost
Manufacturing• Build the designs created by R&D• Ethical Dilemmas ▫ Build it fast or build it right?
Marketing• Includes ▫ Advertising ▫ PR ▫ Sales• Ensures the product reaches satisfied customers• Ethical Dilemmas ▫ Do customers really “need” these products ▫ Is this manipulation or placing a product in the hands of customers to better the customers’ lives?
Marketing cont…• So who does a company owe responsibility to? ▫ Stockholders ▫ Customers• AMA Code of Ethics ▫ http://www.marketingpower.com/AboutAMA/Pa ges/Statement%20of%20Ethics.aspx• DMA Code of Ethics ▫ http://www.dmaresponsibility.org/guidelines/
Human Resources• Job description• Recruitment/Selection of “right” candidate• New employee orientation• Payroll and benefits management• Performance review documentation• Disciplinary/training documentation• Career Development Program Plan• Final Paperwork/Benefit Severance/Exit Interview
HR Cont…• Ethical Dilemmas ▫ Arise when there’s a failure to plan ahead• Should HR be at center of corporate code of ethics as its voice of reason? ▫ Ensure ethics is a top priority ▫ Ensure leadership selection & development ▫ Ensure proper programs & policies are in place ▫ Aware of ethical issues (legislation, etc)
Finance• Financial transactions• Accounting function• Auditing function ▫ Internal