Chapter Four - Values Jerry Estenson

Corporate Culture

Working Definition Shared pattern of beliefs, expectations, and meanings that influence and guide thinking and behaviors.

Cultural Norms in Action FEMA – Protocol before result (training in sexual harassment vs. saving people Some Wall Street Firms

Behavior of Ethical Leaders Visible and loud vs. “quietly ethical” Moral courage – say no up down and across organization if behavior is not appropriate Servant leader (Greenleaf) – Empower subordinates – Provide a clear goal and direction

Foundation of a strong strategy BeliefsValuesPurpose Vision Mission Goals Objectives 6

The Legacy Thing Collins and Porras CORE IDEOLOGY –CORE VALUES Organization’s essential and enduring tenets - a small set of guiding principles. Not compromised for financial or individual political gain. –PURPOSE Fundamental reason for existence - A perpetual guiding star on the horizon.

Estenson An executive will quit before violating a value A company will close before violating a value

Determining if a “Value” is Ethical Serves the end of human well-being Happiness, integrity, meaning, freedom, autonomy, companionship, health. – Smoking is Ok then Ethical if promote well-being in an impartial way. – Malden Mills – ethical, well-being, bad outcome

Mission How do we moved toward our vision by accomplishing our purpose (why do exist?) Mission must be able to accomplished

Creating an ethical culture Ethical hotlines Ombudsmen Cultural audits Spot “toxic” aspects of culture – Treatment of customers, vendors, employees Base line – Follow the 8 minimum guidelines of the United States Sentencing Commission.