Business Ethics Quiz Ch 4

Corporate culture

"How we do our thing" Encourages and supports individuals in making ethical responsible decisions... or don't Decision impacts personal integrity. Has consequences for stakeholders whose business organization interacts Decision making in business is influenced by corporate culture Small organizations as well as big ones have same corporate culture around world Fashioned by shared pattern of beliefs, expectations, and meaning that influence and guide the thinking and behaviors of the members of a particular group Find a different level including: Religious, ethnic, linguistic, generation, gender, social class, organization, family. National cultures in 6 dimensions: Power distance, individualism vs collectivism, uncertainty avoidance, time and order orientation, masculinity vs femininity, indulgent vs restrained. If you join a culture that support values other think which you are comfortable, there will be conflicts for better or for worse! Strong leaders can impact culture

role of mission statements and codes in creating an ethical corporate culture

Code of conduct should speak to internal and external of company Must be belief in culture is successful and achievable Everyone must be on board with no issues

Discuss the role of assessing, monitoring, and auditing the culture and ethics program

If you do not measure how effective the ethics culture is within your company, people may perceive a decline in its importance Monitoring and having an ongoing ethics audit allow organizations to uncover vulnerabilities that could pose challenges alter to the firm. The monitoring process may also evaluate resource allocations, whether the audit is keeping pace with the organizational growth, if the positive results are being accurately measure and reports, if a firm compensation structure is adequately rewarding ethical behavior, and if the tone at the top is being dispersed effectively on the company.

role of corporate leadership in establishing the culture

Leaders not only talk and act ethically, also allocate corporate resources to support/promote ethical behavior Budgeting is all about values When company engaged in ethical programs, workers implement themselves Leaders must have clear goals and act/behavior must be visible

value Based structure

Promote Ownership, Put values in Action, "Managing complex, grey issues"

how culture can be enforced via governmental regulation

The government can enforce culture through a prescribed federal sentencing guideline for organizations. This applies to individuals and organizational defendants in the federal system. These guidelines create both legal and an ethical corporate environment these guidelines not only include references to compliance programs but also ethics and furthermore promote an organizational culture that encourages ethical conduct and commitment to compliance with the law. Compliance consultants ch6 Guidelines encourage corporations to create an effective ethics and compliance program. If companies are found to demonstrate compliance with these programs, and find themselves in court because bad person either will not be penalized or the recommended penalty is reduced On the other hand, if companies don't have good ethics program, could be sentenced to additional term of probation and ordered to develop ethics program.

how corporate culture impacts ethical decision making

Their habits and what they believe in will impact their decisions unconsciously We choose to develop some habits rather than others. Shaped and formed by education and training. Takes place in every social environment Quickly learn behaviors that are appropriate and expected leads to rewards and promotion Strong ethical culture can serve as a deterrent to stakeholder's damage and improve bottom line sustainability

how various reporting mechanisms such as ethics hotlines ombudspersons (middle man) can help integrate ethics within a firm

Various reporting mechanisms such as ethics hotlines and ombudsmen can help integrate ethics within a firm by allowing people to come forward with any questions, concerns and information about unethical behavior ultimately allowing employees to be ethical without consequences No bias

Ethical Leaders

____________ determined by solely the methods used in leading creates corporate culture of employees being empowered and expected to make ethical responsible decisions

Effective Leaders

_________________ leaders can get followers to common destination. Not all _______________ leaders can be ethical ______________ achieve goal through threats, intimidation, harassment, can also model ethical behavior, persuasion

Compliance Based Structure

based on laws, concrete, either you do it right or not (traditional approach)