Ethical Organizations? Working Internationally January 16 th 2014 Jan Lok

Four elements 1.Context 2.Importance of diversity (major concept in Business Ethics as well as Cross Cultural Business) 3.Responsible organizing (based on dissertation of Maarten Verkerk) 4.Role of a Code of Conduct (how to get the organization to a higher ethical level)

Context Some basic questions 1.What does it mean when an organization is responsible? 2.Who is responsible within an organization? 3.How do you organize responsibility? 4.How to combine your convictions with those of others – a matter of hermeneutics and diversity 5.How do you develop an organization towards a higher ethical level (if that’s possible)?

Diversity Personal concept Reflective concept Business concept

Personal check up What if… Your colleague is gay and communicates it Your have to recruit 5% employees from ethnic minorities and just Moroccon guys show up You have to collaborate with someone in a wheelchair who is depending on you Your boss has been to prison for fraud You have to work with gypsies who are just in it for the money

Diversity item Gender Race Belief Conviction Health Age Sexuality level Person Organization Society System

attitude Humility Listening skills Empathy Cultural awareness

Some statements… 1.The way you deal with people from other churches predict how you deal with diversity in business 2.Your worldview is decisive in dealing with diversity 3.In the long run, discussions about diversity always end up talking about hermeneutics 4.Within Post Modernism diversity is the ultimate value

Responsible Organizations

A philosophical option… See reader Responsible Behaviour in Industrial Organisation by Maarten J. Verkerk (a quite complicated text)

elements 1.conditions by management 2.multidimensional character of org's 3.role of an employee 4.ethics of responsibility

Conditions conditions for responsibility –freedom –information –Competence role of manager -> leader -> coach

Norms in organizing…

multidimensional character of org's Organization is 'a whole' Dimensions: a. physical (e.g. the chemicals being transformed),

b. biological (the reduction of waste materials that polluted the environment of the plant, ergonomic aspects of equipment),

c. psychic (the identification of the operators with their work and group, their motivation and satisfaction),

d. power and influence ( authority of operators, the mini-company process, improvement teams), news.wordpress.com/2011/01/

e. lingual (sharing of information, communication patterns),

f. social (cooperation of operators within a group, informal contacts between management and employees),

g. economic (reduction of cost prices, competition in the market),

h. juridical (safety and environmental laws), 0&bih=879&tbm=isch&tbnid=uQ0KgAq6Bte- 4M:&imgrefurl= g&docid=9W2VBgVSsOHU2M&imgurl= ridical_text_AO27986_mp3h8896.jpg&w=2336&h=2331&ei=W1- pT5KbCPCN4gSRqtGxCQ&zoom=1&iact=hc&vpx=881&vpy=144&dur=4895&hovh=224&hovw=225& tx=107&ty=147&sig= &page=1&tbnh=154&tbnw=151&start=0&ndsp=24&v ed=1t:429,r:4,s:0,i:79

i.moral (care for individual employees, quality of labour),

j. trust (between management and employees).

role of dimensions each dimension has its own norms each dimension is unique –each dimension cannot be reduced to another one aspect of a whole frame for moral behavior???

ethics of responsibility 1 blind spots: –ethical aspects of design of organisations –the influence of typical organisational phenomena such as trust and power on responsible behaviour is not recognised so, inherent normativity of organisations should be starting point –anchoring of business ethics in organisational theory. –implies a normative reinterpretation of organisational theory

ethics of responsibility 2 An ethics of responsibility starts with the deepest motive or ethos of a human actor –religious ethical motivation –enlightened humanism of Christian belief Stress the importance of –values –norm principles –norms

ethics of responsibility 3 Three lines of thought are integrated: 1.a fundamental line summarised by the key words dignity and vocation. 2.an organisational line summarised by the words trust and power. 3.a philosophical line summarised by the words multidimensional normativity and the normative development of organisational structures

The Code of Conduct 1 Basic question: how do you establish integrity as keystone of your organization? 1.Cultural approach 2.Structural approach 3.Integrated approach

CoC Effectiveness is depending on –Role models –Shared beliefs –Teamspirit –Implementation –Fit with overall culture –Part of policies

A small comparison Holland Team approach (culture) Shared beliefs / convictions Employees Enforcing by talks USA Individual accountability Company’s convictions are leading Leader Enforcing by rules