1. Organizational Culture and Ethical Values – Chapter 10

2. Culture is the set of values, norms, guiding beliefs and understandings that is shared by members of an organization and taught to new members as the correct way to think, feel and behave. It represents the unwritten, feeling part of the organization. Everyone is a culture being, but culture generally goes unnoticed.

3. Culture is like an iceberg!
Observable symbols, ceremonies, stories, slogans, behaviors, dress, physical settings.
Underlying values, assumptions, beliefs, attitudes, feelings

4. Culture provides people with a sense of organizational identity and generates in them a commitment to beliefs and values that are larger than themselves. They usually begin with a founder or early leader who articulates and implements particular ideas and values as a vision, philosophy, or business strategy. (376)

5. Internal Integration –members develop a collective identity and know how to work together effectively. Guides day-to-day working relationships and determines how people communicate within the organization, what behavior is acceptable or not acceptable, and how power and status are allocated. (377)

6. External Adaptation – how the organization meets goals and deals with outsiders. Culture helps guide the daily activities of workers to meet certain goals. It can help the organization respond rapidly to customer needs or the moves of a competitor. The right culture can help transform an organization’s performance from average to truly great. (377)

7. Interpreting Culture – To identify and interpret culture requires that people make inferences based upon observable artifacts. Examples include rites and ceremonies, stories, myths, heroes, legends, symbols, organizational structures, power relationships, and control systems.

8. Rites and
Ceremonies
Symbols
Stories
and
Myths
Organizational
Culture
Organization
Structures
Power
Relationships
Control
Systems
(378)

9. Adaptability Culture – Characterized by strategic focus on the external environment through flexibility and change to meet customer needs. Example is Google (382) Mission Culture – Concerned with serving specific customers in the external environment, but without the need for rapid change. InBev NV, the Belgian-Brazilian brewing giant is one example. (383)

10. Clan Culture – Primary focus on the involvement and participation of the organization’s members and on rapidly changing expectations from the external environment. Wegman’s (71 supermarkets) is an example. Bureaucratic Culture – has an internal focus and a consistency orientation for a stable environment. (Pacific Edge Software) (384)

11. Ethical Values and Social Responsibility
Recent study: Of the 100 largest U.S. corporations, 40% have recently been involved in activities that can be considered unethical. Other countries have had similar problems. Ethics refers to the code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong. Ethical values set standards as to what is good or bad in conduct and decision making. (389)

12. The notion of Corporate Social Responsibility (CSR) is an extension of the idea of managerial ethics and refers to management’s obligation to make choices and take action so that the organization contributes to the welfare and interest of all organizational stakeholders, such as employees, customers, shareholders, the community and the broader society. (392)

13. There seems to be a positive relationship between ethical and socially responsible behavior and financial results. There is also evidence that people prefer to work for companies that demonstrate a high level of ethics and corporate social responsibility, so these companies can attract and retain high-quality employees. (393)

14. A survey of year-olds found that 79% say they want to work for a company that cares about how it affects or contributes to society. In a study of ethics policy and practice in successful companies such as J&J and General Mills, no point emerged more clearly than the role of top management in providing commitment, leadership and examples for ethical behavior. (393)

15. Values-based Leadership
Organizational values are developed and strengthened primarily through values-based leadership, a relationship between a leader and followers that is based upon shared, strongly internalized values that are advocated and acted upon by the leader. Employees learn about values, beliefs and goals from watching managers, just as students learn which topics are important for an exam, what professors like and how to get a good grade from watching professors. Values-based leaders “walk their talk”!!!

16. Chuck Williams, Sonoma-Williams Company
Nordstrom Department Stores
John Tu and David Sun – Kingston Technology Company

17. Interpersonal Behaviors Treat people with care Be helpful and kind
Support others
Maintain positive relationships
Personal Actions and Expectations Hold self to high ethical standards. Strive for honesty, humility, integrity. Accept responsibility for ethical failings.
Values-Based Leadership
(395)
Fairness with Others
Treat everyone equitably
Never be condescending
Accept others’ mistakes
Organizational Leadership
Articulate and communicate ethical vision
Hold people accountable
Put ethics above short-term interests

18. Who (or what) a person is (character, integrity) will ultimately determine if their brains, talents, competencies, energy, effort, alliance-building abilities, and opportunities will succeed.

25. Giving attention, appreciation and encouragement Humility
Patience
Showing self control
Kindness
Giving attention, appreciation and encouragement
Humility
Being authentic and without pretense or arrogance
Respectfulness
Treating others as important people
Selflessness
Meeting the needs of others
Forgiveness
Giving up resentment when wronged
Honesty
Being free from deception
Commitment
Sticking to your choices
Results: service and sacrifice
Setting aside your own wants and needs; seeking the greatest good for others 25

26. Code of Ethics
Formal statement of the company’s values concerning ethics and social responsibility; it clarifies to employees what the company stands for and its expectations for employee conduct. (397) Social audit – measures and reports the ethical, social and environmental impact of a company’s operations. (399)

27. Whistle-blower. Tell me about it!
What is it?
Who does it?
Why are companies trying to protect them?
When safe-guards are not in place, what happens to a whistle-blower?