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    Unit 5-The Corporate Culture-Impact and Implications

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    Anuska Jayswal
    This document discusses corporate culture and its impact on organizational ethics. It begins by defining organizational culture and outlining eight key dimensions of culture. It then examines different types of culture and culture's functions, including defining boundaries, conveying identity, and facilitating commitment. The document focuses on the relationship between culture and ethics. It categorizes ethics systems as either compliance-based or values-based and discusses the advantages and disadvantages of each approach. Finally, it proposes synthesizing the two approaches into a risk-based model and emphasizes the role of ethical leadership in shaping an organization's culture.

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    Unit 5-The Corporate Culture-Impact and Implications

    Uploaded by

    Anuska Jayswal
    19 views18 pages
    This document discusses corporate culture and its impact on organizational ethics. It begins by defining organizational culture and outlining eight key dimensions of culture. It then examines different types of culture and culture's functions, including defining boundaries, conveying identity, and facilitating commitment. The document focuses on the relationship between culture and ethics. It categorizes ethics systems as either compliance-based or values-based and discusses the advantages and disadvantages of each approach. Finally, it proposes synthesizing the two approaches into a risk-based model and emphasizes the role of ethical leadership in shaping an organization's culture.

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    Unit 5-The Corporate Culture-Impact and Implications (1)

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    This document discusses corporate culture and its impact on organizational ethics. It begins by defining organizational culture and outlining eight key dimensions of culture. It then examines different types of culture and culture's functions, including defining boundaries, conveying identity, and facilitating commitment. The document focuses on the relationship between culture and ethics. It categorizes ethics systems as either compliance-based or values-based and discusses the advantages and disadvantages of each approach. Finally, it proposes synthesizing the two approaches into a risk-based model and emphasizes the role of ethical leadership in shaping an organization's culture.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    19 views18 pages

    Unit 5-The Corporate Culture-Impact and Implications

    Uploaded by

    Anuska Jayswal
    This document discusses corporate culture and its impact on organizational ethics. It begins by defining organizational culture and outlining eight key dimensions of culture. It then examines different types of culture and culture's functions, including defining boundaries, conveying identity, and facilitating commitment. The document focuses on the relationship between culture and ethics. It categorizes ethics systems as either compliance-based or values-based and discusses the advantages and disadvantages of each approach. Finally, it proposes synthesizing the two approaches into a risk-based model and emphasizes the role of ethical leadership in shaping an organization's culture.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18

    The Corporate Culture-Impact

    and Implications
    What Is Organizational Culture?
    Eight Dimensions
    (Characteristics)
    Innovation
    Attention to detail
    Decisiveness
    Team orientation
    Outcome orientation
    Aggressiveness
    Supportiveness
    Rewards emphasis
    Types of Culture
    Types of Culture..cont’
    What Do Cultures Do?

    Culture’s Functions/ Importance:


    1. Defines the boundary between one
    organization and others.
    2. Conveys a sense of identity for its members.
    3. Facilitates the generation of commitment to
    something larger than self-interest.
    4. Enhances the stability of the organization
    Culture and Ethics

    • Culture is the sum of attitudes, values, goals, and


    practices shared by individuals in a group,
    organization, or society.
    • Cultural norms are the shared and sanctioned
    systems of beliefs and practices that are passed
    down through generations and characterize a cultural
    group
    • Interpretations of what is moral are influenced by
    cultural norms
    • If a firm’s culture encourages or rewards unethical
    behavior, the employees may act unethically
    6
    Categorization of Ethics System
    • Two categorizations of ethics system:
    – Compliance approach
    – Value based approach

    7
    Compliance Culture

    • Traditional ethics based culture focused on


    compliance
    • Establish their rules of conduct and put penalties in
    place for anyone who disobeys those rules.
    • Use a legalistic approach to ethics
    • They don't empower employees to be ethical actors,
    but rather use strict rules of fear and punishment to
    enforce the code
    • Employees are motivated to act out of fear of
    consequence as opposed to being motivated because
    of some moral or ethical compass 8
    Continue…
    • Good in the short term
    • This type of ethics code focuses more on the 'thou
    shall not,' rather than the 'thou shall.‘
    • Drawbacks:
    – Employees are not motivated by an interior moral
    compass or from an ethical place; they are simply
    avoiding punishments.  
    – A reactionary response rather than a proactive one. 
    – Employees do not have an ethical standpoint of its
    own. 
    9
    Continue…
    • To run compliance based ethics:
    – Prevention and detection of criminal conduct with rules
    and policies
    – Rules need to be communicated
    – An oversight board of the ethics and compliance
    program
    – A corporate compliance officer
    – Monitoring and auditing of the ethics compliance
    program
    – A whistleblower forum
    – Discipline to enforce the program
    10
    Value/ Integrity based Culture
    • Relies upon self-policing and motivation, rather than
    coercion.
    • Focuses on the 'thou shall,' rather than the 'thou
    shall not.‘
    • Have established core principles that ask everyone to
    adhere to the principles and govern themselves
    accordingly
    • The focus of this type of corporate culture is on
    values such as trust, transparency, and respect to
    help employees identify and deal with ethical issues
    11
    Value based Culture…continue
    • Drawbacks:
    – Does not provide a clear direction for employees
    – Require training as opposed to just applying a specific
    set of rules to a situation as in compliance based
    program.
    – Employees have difficulty making ethical choices if
    they cannot readily identify the ethical choice

    12
    Building a Value-Based Corporate Culture

    • Consistency in word and deed


    • Creating a shared vision
    • Value based leadership training
    • Measurement
    • Recognition

    13
    Ethics Programs Synthetizing/ Risk Based
    Approach
    • A conceptual framework that emphasizes using the
    best of both approaches
    • An organization should adopt compliance based
    codes of conduct and from the integrity side a
    corporate culture that is value based

    14
    Ethical Leadership and Corporate Culture

    • Leadership is the ability of influencing a group


    towards the achievement of a goal
    • Two key type’s:
    – Ethical individual dimension: Personal traits and
    characteristic such as integrity, honesty and
    trustworthy
    – Ethical manager dimension: A manager who
    proactively looks for influence on employees’
    legitimate behavior

    15
    How Organization Cultures Form

    16
    Effective Leadership

    • Influencing group towards achievement of goal


    • Emphasizing on new ideas
    • Empower employees rather than controlling
    • Emotional maturity
    • Initiation
    • Removing obstacles rather than adopting it

    17
    18

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