Organization culture and ethics/ Organizational Factors: The Role of Culture and Relationships pptx

1. Organizational Factors: The
Role of Culture and
Relationships
C H A P T E R 7

2. Chapter Objectives
• To understand the concept of corporate culture
• To examine the influence of corporate culture on
business ethics
• To determine how leadership, power, and motivation
relate to ethical decision making in organizations
• To assess organizational structure and its
relationship to business ethics
• To explore how the work group influences ethical
decisions
• To discuss the relationship between individual and
group ethical decision making

3. Chapter Outline
• Defining Corporate Culture
• The Role of Corporate Culture in Ethical Decision
Making
• Leaders Influence Corporate Culture
• Motivating Ethical Behavior
• Organizational Structure and Business Ethics
• Group Dimensions of Corporate Structure and
Culture
• Variation in Employee Conduct
• Can People Control Their Own Actions
• Within a Corporate Culture?

4. Ethical Corporate Culture
• Corporate culture includes the behavioral patterns,
concepts, values, ceremonies, and formal procedure
that take place in the organization

5. Corporate Culture
• May be formal statements of values, beliefs, and
customs
• May be informal through direct or indirect comments
conveying management’s wishes
• Two dimensions
– Concern for people
– Concern for performance

6. Four Organizational Culture Types
• Apathetic
• Caring
• Exacting
• Integrative
A cultural audit is an assessment
of the organization’s values

7. Compliance Versus Value-Based
Culture
• Compliance-based cultures use their legal
departments to determine ethical risk
• Values-based cultures relies on an explicit mission
statement that defines the firm and stakeholder
relations

8. Differential Association
• The idea that people learn ethical/unethical behavior
while interacting with others

9. Whistle Blowing
• Exposing an employer’s wrongdoing to outsiders
(external to the company)

10. Leaders Can Influence Corporate
Culture
• Five Power Bases
– Reward power: Offering something desirable to
influence behavior
– Coercive power: Penalizing negative behavior
– Legitimate power: Titles and positions of authority
– Expert power: Knowledge based
– Referent power: Exists when goals or objectives
are similar

11. Motivation
• A force within the individual that focuses behavior
toward achieving a goal
• An individual’s hierarchy of needs may influence
motivation and ethical behavior
• Needs or goals may change over time

12. Organizational Structure and Business
Ethics
• In a centralized organization, decision-making
authority is concentrated in the hands of top-level
managers
• In a decentralized organization, decision-making
authority is delegated as far down the chain of
command as possible

13. Groups in Corporate Structure and
Culture
• Formal groups
• Informal groups
• Group norms

14. Can People Control Their Own Actions
Within a Corporate Culture?
• Organizational ethical decisions often made by
committees and formal and informal groups
• Many decisions are beyond the influence of
individuals
• Individuals entering the business will need several
years of experience to understand how to resolve
ethical issues