Organizational Culture and Ethical Values
Organizational Culture and Ethical Values
Organizational Culture and Ethical Values
2
Levels of Corporate Culture
Emergence and Purpose of Culture
Provides sense of organizational identity
Two critical functions in organizations:
1. To integrate members so they know how to relate to one another
2. To help organization adapt to external environment
4
Observable Aspects of
Organizational Culture
5
Organizational Chart for
Nordstrom
Nordstrom’s structure reflects the emphasis the department store chain puts on empowering
and supporting lower-level employees.
6
Organizational Design
and Culture
Managers want a
corporate culture
that reinforces the
strategy and
structural design
the organization
needs to be
effective within
environment.
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Culture Strength and
Organizational Subcultures
• Culture strength is the degree of agreement among
members of an organization about specific values
• Subcultures reflect the common problems, goals, and
experiences of a team or department
• Different departments may have their own norms
8
Organizational Culture, Learning,
and Performance
• Culture is important to learning and innovation
during challenging times
9
Constructive Versus
Non-Constructive Cultures
10
Ethical Values and Social Responsibility
Ethics
• Ethics refer to the code of moral principles and values that govern the
behaviors of a person or group with respect to what is right or wrong
Managerial Ethics
• Ethical decisions go far beyond behaviors governed by law
• Managerial ethics guide the decisions and behaviors of managers
11
Sources of Individual Ethical
Principles and Actions
12
Relationship between the Rule of
Law and Ethical Standards
13
Corporate Social Responsibility (CSR)
• Does it pay to be good?
• Extension of the idea of managerial ethics
• Management’s obligation to make choices and take
action that positively impact stakeholders
• Increase in social responsibility
• Customers and public are paying closer attention to
what organizations do
• Social responsibility can enhance a firm’s reputation
14
How Managers Shape
Culture and Ethics
• Value-Based Leadership
• Formal Structure and Systems
• Structure
• Disclosure Mechanisms
• Code of Ethics
• Training Programs
• Managers play key role in providing leadership and
examples of ethical behavior
15
Characteristics of
Values-Based Leaders
16
Corporate Culture and Ethics in a
Global Environment
• The global environment presents tough ethical
challenges
• Countries have varied attitudes and beliefs
• Components that characterize a global culture:
• Multicultural rather than national values
• Basing status on merit rather than nationality
• Managers must think broadly about ethics
• Social audits measure and report ethical, social, and
environmental impact of a company’s operation
17