PATTER DILEMMAS

profileshanta75
ch05.ppt

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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