This document discusses organizational culture and internal stakeholders. It begins by outlining how value-based stakeholder management assessments can help implement ethics training programs more effectively. It then defines organizational culture as shared values and meanings held in common and transmitted through leadership, heroes, rituals, and communication. Strong corporate cultures have widely shared philosophies that value people, have symbolic heroes, and celebrate caring rituals. The document also discusses observing culture, leading strategy and structure, and balancing competing internal stakeholder values to ensure integrity and market effectiveness.

1. The Corporation and
Internal Stakeholders
Presented By:
Ashra Rehmat

2. Content
1. Organizational Culture, Value-Based
Stakeholder Management Assessment
2. Leading and Managing Strategy and
Structure
3. Leading & Balancing Internal Stakeholder
Values in the Organization
2

3. 3
Organizational Culture, Value-Based
Stakeholder Management Assessment
 A stakeholder management approach that is
value-based is argued to be more effective in
implementing organizational change programs
that include ethics and compliance training.
 There are many stakeholder management
audits and assessment frameworks.
 Companies can use management, human
resources, and ethics consultants to design and
deliver these types of assessments.

4. 4
Organizational Culture Defined
• A corporation’s culture is the shared values and meanings its
members hold in common, which are articulated and practiced by
an organization’s leaders.
• Purpose, embodied in corporate culture, defines organizations.
• Corporate culture is transmitted through:
1. Values and leadership styles that the leaders adopt and practice.
2. The heroes and heroines that the company holds up and rewards
as models.
3. The rite and symbols that organizations value.
4. The way that orgs. executives and members communicate among
themselves and with their stakeholders.

5. Cont…
Does ethics matter for an organization's
survival and market effectiveness?
The “good management hypothesis”
suggests that there is a positive relationship
between a corporation’s performance and
how it treats its stakeholders. Studies conform
this hypothesis.
5

6. Observing Organizational Culture
• Organizational cultures are both visible and invisible,
formal and informal.
• They can be studied by observation, by listening to and
interacting with people in the culture, and in the
following ways:
 Studying the physical setting
 Reading what the company says about its culture
 Observing and testing how the company greets
strangers
 Watching how people spend time
 Noting the length of tenure in jobs
6

7. Traits and values of strong corporate
cultures
Strong corporate structures:
1. Have a widely shared philosophy
2. Value the importance of people
3. Have heroes that symbolize the success of company
4. Celebrate rituals, which provide opportunities for
caring and sharing
7

8. High-Ethics Companies
The four principles that Pastin used to describes firms
serve as a benchmark for understanding ethically
effective organizations:
1. High-ethics firm are at ease interacting with diverse
internal and external stakeholder groups.
2. High-ethics firms are obsessed with fairness.
3. In high-ethics firms, responsibility is individual rather
than collective.
4. The high-ethics firms sees its activities as having a
purpose, a way of operating that members of firm
value.
8

9. Weak cultures
• Signs of cultures in trouble or weak cultures include:
– An inward focus
– A short-term focus
– Morale and motivational problems
– Emotional outbursts
– Fragmentation and inconsistency
– Clashes among subcultures
– Ingrown subcultures
– Dominance of subculture values
– No clear values or beliefs
– Many beliefs
– Different beliefs
– Destructive or disruptive cultural heroes
– Disorganized or disruptive daily routines
9

10. 10
Leading and Managing Strategy and
Structure
• Leadership is a shared process, although
the values and behaviors of company
founders and CEOs often frame and set
the cultural tone for the organizations.
• A starting point for identifying a leader’s
values is the vision and mission statement
of a company.

11. Leading and Managing Strategy and
Structure
If culture is the glue that holds organizations
together, strategy maps the direction.
The moral dimensions of strategy are also
based on ethics.
People are motivated to implement strategies
that they believe in, are able to enact and that
produce results.
11

12. 12
Leading and Managing Strategy and
Structure
• Strategy influences the goals and objectives
of the company and its stakeholders.
– Sets the overall direction of business activities
– Reflects and models activities that management
values and prioritizes
– Sets the tone and tenor of business activities and
transactions inside the organization

13. 13
Leadership And Strategy
 Corporations formulate at least four levels of strategies:
 Enterprise
 Corporate
 Business
 Functional
 The strategy management process involves:
 Formulating goals
 Formulating strategies
 Implementing strategies
 Controlling strategies
 Evaluating strategies
 Analyzing the environment

14. Organizational Structure
“An organization’s structure is important to the study of
business ethics because the various roles and job
descriptions that comprise that structure may create
opportunities for unethical behavior.”
Key concerns & questions regarding any structure are:
• How centralized or decentralized are the authority,
responsibility, communication and information flow?
• How organic or mechanistic are system?
• How tall or flat are reporting systems?
• How formal or informal are procedures?
14

15. Leading & Balancing Internal
Stakeholder Values in the Organization
• The other internal dimensions of organizations,
should also be aligned in order for the
organization to succeed in meeting its goals and
social responsibility obligations.
• Function orientations such as marketing, research
& development, production, finance and
information systems have built-in competing
values, especially when employees who are
under pressure must design, deliver and service
complex products and services for demanding
customers.
15

16. Leading & Balancing Internal
Stakeholder Values in the Organization
From a stakeholder management perspective,
it is the role of an organization’s leader, with
the support of each professional, to ensure
that the internal integrity and market
effectiveness of a company is based on the
types of relationships and values that embody
trust, collaboration and a win-win goal for
stakeholders and stockholders.
16

17. Thank You 
17