Ethics Chapter 4: The Corporate Culture

Rank the steps involved in establishing a code of conduct in an organization in the order of their implementation

1. Identifying the purpose of the organization as well as what it stands for 2. Articulating a clear vision for the organizations direction 3. Identifying clear steps as to how the code will be implemented 4. Fostering a belief among members of the organizations that the requirements of the code are achievable

Mission Statement

A formal summary statement that describes the goals, values, and institutional aim of an organization.

Long term orientation vs short term orientation

A high LTO suggests a comfort with long term commitments, traditions, and rewards linked to hard work strong relationships and status. A low LTO indicates that change may occur more rapidly.

Masculinity vs Femininity

A low masculinity score indicates greater equality, stronger maintenance of warm personal relationships, service, care for the weak, solidarity. A high masculinity score suggests a strong culture of assertiveness, success, and competition

Code of Conduct

A set of behavioral guidelines and expectations that govern all members of a business firm.

An organizations culture serves as an obstacle by preventing the organization from...

Creatively responding to challenges

The stability a corporate culture provides is always a benefit True or False

False

Ethics officers

Individuals within an organization charged with managerial oversight of ethical compliance and enforcement within the organization.

Dimensions of culture

Power distance index individualism vs collectivism Uncertainty avoidance index Long term orientation vs short term orientation Masculinity vs femininity Indulged vs. restrained

Culture can include...

Tempo of work the organizations approach to humor methods of problem solving the competitive environment incentives individual autonomy hierarchical structure

Power distance index

The distance between individuals at different levels of a hierarchy (more equal = low power distance).

Uncertainty avoidance index

The extent to which people are comfortable with uncertainty, ambiguity, change, and risks

Identify the criticisms of Geert Hofstede's culture divisions

These divisions were created based on a single period of time These divisions do not describe everything that is different from one place and people to another.

Federal Sentencing Guidelines for Organizations require organizations to assess areas of risk for ethics and compliance True or False?

True The United States Sentencing Commission updated the Federal Sentencing Guidelines for Organizations in 2004. The revised guidelines required that organizations assess areas of risk for ethics and compliance.

Values-based culture

a corporate culture in which conformity to a statement of values and principles rather than simple obedience to laws and regulations is the prevailing model for ethical behaviors. A more "progressive" approach

Compliance-based cultures

a corporate culture in which obedience to laws and regulations is the prevailing model for ethical behavior. This is the traditional approach

Culture

a shared pattern of beliefs, expectations, and meanings that influences and guides the thinking and behaviors of the members in an organization. Can be found in different levels: religion/ethic/linguistic affiliations, Generation, Gender, social class, family, organization/corporate.

When establishing a code of conduct, what does an organization do immediately after articulating its vision for its direction

it determines processes and procedures it would need to establish

what is an impact in of a company's culture on employees?

it develops both ethical and unethical habits in employees

Geert Hofstede

most well known scholar in national culture research. organized national cultures into six dimensions.

According to a universalist perspective, decisions made in an organization should...

never breach its underlying mission

a feature of business culture is that it is...

not static

One of the issues faced by a compliance based corporate culture is...

rules can never be unambiguously applied to every possible situation

Individualism vs. Collectivism

the degree to which people refer to act individually or in groups

Indulgent vs restricted

the extent to which people try to control their desires and impulses