PATTER DILEMMAS
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Managing Business Ethics
Chapter 5
Treviño & Nelson – 8th Edition
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Chapter 5 Overview
- Organizational Ethics as Culture
- Ethical Culture: A Multisystem Framework
- Ethical Leadership
- Other Formal Cultural Systems
- Informal Cultural Systems
- Organizational Climates: Fairness, Benevolence, Self-Interest, Principles
- Developing and Changing Ethical Culture
- A Cultural Approach to Changing Organizational Ethics
- The Ethics of Managing Organizational Ethics
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Influence of Culture on Individuals
Ethical Awareness
Ethical Judgment
Ethical Action
Ethical Culture
Individual Differences
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Organizational Culture
- Expresses shared assumptions, values and beliefs and is the social glue that holds the organization together. It’s “how we do things around here.”
- Strong - assumptions, values, beliefs widely shared
- Weak - subgroup norms more influential
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Culture
- A body of learned beliefs, traditions, and guides for behavior shared among members of a society or a group
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Ethical Culture:
A Multisystem Approach
Formal Systems
Informal Systems
Executive Leadership
Selection System
Policies/Codes
Orientation/Training
Performance Management
Authority Structure
Decision Processes
Role Models/Heroes
Norms
Rituals
Myths/Stories
Language
Ethical/ Unethical Behavior
Alignment?
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Alignment and Misalignment
- With alignment, all systems are “pushing” employees in the same direction – either ethical or unethical
- With misalignment, employees get mixed messages about expectations
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Leadership
- Executive Leaders Create Culture
- Leaders Maintain or Change Organizational Culture
- Ethical Leadership and Ethical Culture
- Ethical Leadership
- Unethical Leadership
- Hypocritical Leadership
- Ethically Neutral or “Silent” Leadership
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Executive Ethical Leadership Rests on Two Pillars
Moral Person
Tells followers how leader behaves
- Traits
- Honesty
- Integrity
- Trust
- Behaviors
- Openness
- Concern for people
- Personal morality
- Decision-making
- Values based
- Fair
Moral Manager
Tells followers how they should behave and holds them accountable
- Role modeling
- Takes visible ethical action
- Rewards/Discipline
- Hold people accountable for ethical conduct
- Communicating
- Sends an “ethics and values” message
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Executive Ethical Leadership
Reputation Matrix
Ethically silent leader?
Hypocritical leader
Ethical leader
Unethical leader
Strong
Weak
Moral Manager
Weak
Strong
Moral Person
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Other Formal Cultural Systems
- Selection Systems
- Values and Mission Statements
- Policies and Codes
- Orientation and Training Programs
- Performance Management Systems
- Organizational Authority Structure to Support Responsibility
- Decision-Making Processes
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Informal Cultural Systems
- Role Models and Heroes
- Norms: “The Way We Do Things Around Here”
- Rituals
- Myths and Stories
- Language
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Ethical Climates
- Fairness
- Benevolence
- Self-Interest
- Principles
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Ethical Culture Change
- From ethical to unethical
- From unethical to ethical
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The Garden Metaphor – Tending the Culture
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Ethical Culture Change
- Audit of the Ethical Culture
- A Cultural Systems View
- A Long-Term View
- Assumptions about People
- Diagnosis: The Ethical Culture Audit
- Ethical Culture Change Intervention