Crafting and Executing Strategy: Chapter 12
14. Which of the following topics would least likely be contained in a company's statement of its core values? A. A commitment to having fun and creating a fun work environment B. A commitment to operating excellence and superior results C. Mandating full compliance with all laws and regulations D Exhibiting such qualities as integrity, fairness, trustworthiness, pride of workmanship, respect for co- . workers, and ethical behavior E. Exhibiting teamwork and cooperative attitudes
C. Mandating full compliance with all laws and regulations
26. A hallmark of a strong-culture company is: A. strictly enforced policies and procedures. B. a strongly entrenched competitive strategy. C. the dominating presence of certain deeply rooted values and norms of behavior that are widely shared. D. decentralized decision-making and empowered employees. E. a deep commitment to benchmarking, best practices, and operating excellence.
C. the dominating presence of certain deeply rooted values and norms of behavior that are widely shared. The hallmark of a strong-culture company is the dominating presence of certain deeply rooted values and behavioral norms that "regulate" the conduct of company personnel as they go about the company's business. Strong cultures enable a company to operate like a well-oiled machine, smoothly operating without a lot of intervention from management.
15. Which of the following topics would least likely be contained in a company's code of ethics? A. Prohibiting giving or accepting bribes, kickbacks, or gifts B. Expecting all company personnel to display honesty and integrity in their actions and avoid conflicts of interest C. Barring dealing with suppliers that employ child labor or engage in other unsavory practices D. Committing to a no-layoff policy and to adequate funding of employee retirement programs E. Avoiding use of company assets, resources, and property for personal or other inappropriate purposes
D. Committing to a no-layoff policy and to adequate funding of employee retirement programs
24. Which of the following is NOT particularly helpful in perpetuating a company's culture? A. Word-of-mouth indoctrination of new members in the culture's fundamentals B. Frequent reiteration of core values by senior managers and group members C. Visibly rewarding those who display cultural norms and penalizing those who don't D. Maintaining a consistent strategic vision and strategic intent over time E.Telling and retelling of company legends and regular ceremonies honoring members who display desired cultural behaviors
D. Maintaining a consistent strategic vision and strategic intent over time
8. A company's culture is typically grounded in and shaped by: A. its core competencies and competitive capabilities. B. its long-term strategic success or lack thereof. C. the degree to which top management is committed to achieving market leadership. D. its core values and the bar it sets for ethical standards. E. its strategic intent and its reward system.
D. its core values and the bar it sets for ethical standards. The foundation of a company's corporate culture nearly always resides in its dedication to certain core values and the bar it sets for ethical behavior.
20. The retelling of legendary stories does a lot for establishing a company's core values, but it should NOT: A.place pressure on company personnel to display core values and to do their part in keeping the companies traditions alive. B. illustrate the kind of behavior the company reveres. C. inspire company personnel to perform similarly and reinforce the depth of commitment that people have displayed. D. reflect an aspect of company culture no longer current. E. steer company personnel toward both doing things right and doing the right thing.
D. reflect an aspect of company culture no longer current. Despite the role of time-honored stories and long-standing traditions in perpetuating a company's culture, cultures are far from static—just like strategy and organizational structure, they evolve.
5. A company's culture is NOT manifested in which of the following? A Its approaches to people management and problem-solving and in the "chemistry" and "personality" . that permeates the work environment B. Its revered traditions and the stories that get told over and over to illustrate the importance of certain values C. Its acceptance of the peer pressures that exist to do things in particular ways and conform to expected norms DIts approach to people management and its official policies, procedures, and operating practices that . paint the white lines for the behavior of company personnel E. Its strategic vision, strategic intent, and strategy
E. Its strategic vision, strategic intent, and strategy Every company has its own unique corporate culture—the shared values, ingrained attitudes, and company traditions that determine norms of behavior, accepted work practices, and styles of operating. The character of a company's culture is a product of the core values and beliefs that executives espouse, the standards of what is ethically acceptable and what is not, the "chemistry" and the "personality" that permeate the work environment, the company's traditions, and the stories that get told over and over to illustrate and reinforce the company's shared values, business practices, and traditions. In a very real sense, the culture is the company's automatic, self-replicating "operating system" that defines "how we do things around here."
7. Which of the following is something to look for in identifying a company's culture? A The atmosphere, spirit and character that pervades the work climate and the values, business principles, . and ethical standards that management preaches and practices B. The track record in meeting or beating its financial and strategic performance targets C. The intensity and makeup of the company's value chain D. The strategic intent and competitive strategy inherent within the company's efforts for successful strategy execution E. The resource strengths, core competencies, and competitive capabilities that permeate the organization
A The atmosphere, spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices
27. In a strong-culture company: A. values and behavioral norms are like crabgrass—deeply rooted and hard to weed out. B. there is wide support for high ethical standards among both managers and employees. Ca company has more strategy flexibility because it can change its strategy and be confident that the . culture will welcome the strategy changes and be an ally in implementing whatever changes are called for. Dthere is little room for employee empowerment, because independent-thinking empowered employees . may well make decisions or engage in actions that weaken the culture. E. management insists that official policies and procedures be followed religiously.
A. values and behavioral norms are like crabgrass—deeply rooted and hard to weed out. The hallmark of a strong-culture company is the dominating presence of certain deeply rooted values and behavioral norms that "regulate" the conduct of company personnel as they go about the company's business. Strong cultures enable a company to operate like a well-oiled machine, smoothly operating without a lot of intervention from management.
9. A company's value statement and code of ethics: A.help to mold the culture and communicate what kinds of actions and behaviors are expected of all company personnel. B. help prevent it from coming across to customers and the general public as greedy. C. serve the valuable purpose of making its suppliers hesitant to engage in business practices that are unethical. D.are the most important factors determining its reputation with customers, suppliers, employees, shareholders, and society at large. E. should always be made a prominent and visible part of the company's strategic intent and strategy.
A.help to mold the culture and communicate what kinds of actions and behaviors are expected of all company personnel. The culture-shaping significance of core values and ethical behaviors accounts for why so many companies have developed a formal value statement and a code of ethics. Of course, sometimes a company's stated core values and code of ethics are cosmetic, existing mainly to impress outsiders and help create a positive company image.
4. A company's culture is in part defined and identified by: Aits internal work climate and personality—as shaped by its shared values, work practices, traditions, and . ingrained attitudes and behaviors that define "how we do things around here." B. whether it employs a low-cost provider, best-cost provider, differentiation, or focused strategy. C.whether decision making is centralized or decentralized and whether it is a single-business company or a diversified company. D. how strongly its strategic vision is linked to its core values. Ewhether it is a well-known industry leader, an up-and-coming company that is gaining market share, a . middle-of-the-pack company unlikely to move up in the industry ranks, or an industry also-ran that may or may not survive.
Aits internal work climate and personality—as shaped by its shared values, work practices, traditions, . and ingrained attitudes and behaviors that define "how we do things around here." The key features of a company's corporate culture includes the atmosphere and spirit that pervades the work climate—whether the workplace is competitive or cooperative, innovative or resistant to change, political or collegial, all business or fun-loving, and the like.
23. Once established, company cultures can be perpetuated by: Arelying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, . as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors. B avoiding frequent or dramatic reorganizations that could disturb existing relationships and networking . amongdepartmentsandcompanypersonnel. C. making adherence to cultural beliefs and cultural norms the defining features of the company's strategic vision. D rewarding departments that observe cultural norms with above-average budget increases and penalizing . those who don't with budget cuts. E. making cultural values and beliefs the centerpiece of the company's competitive strategy.
Arelying on word-of-mouth indoctrination and the power of tradition to instill the culture's . fundamentals, as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors. Once values and ethical standards have been formally adopted, they must be institutionalized in the company's policies and practices and embedded in the conduct of company personnel. This can be done in a number of different ways. Tradition-steeped companies with a rich folklore rely heavily on word-of-mouth indoctrination and the power of tradition to instill values and enforce ethical conduct.
22. Frequently, a significant part of a company's culture is captured in: A. the company's strategic vision and strategic intent. Bthe stories that get told over and over again to illustrate the importance of certain values and the depth . of commitment that various company personnel have displayed. C. how much stretch is built into the company's financial and strategic performance targets. D. the vigor and enthusiasm with which it engages in benchmarking and seeks out best practices. E. the company's track record in taking market share away from rivals.
B the stories that get told over and over again to illustrate the importance of certain values and the depth of commitment that various company personnel have displayed Frequently, a significant part of a company's culture is captured in the stories that get told over and over again to illustrate to newcomers the importance of certain values and the depth of commitment that various company personnel have displayed.
19. Which of the following is NOT an integral part of transforming core values and ethical standards into cultural norms? A. Instituting procedures for enforcing ethical standards B. Immediately dismissing any employee caught violating the company's code of ethics or disregarding core values C. Screening out job applicants who do not exhibit compatible character traits D.Periodically having ceremonial occasions to recognize individuals and groups who display the values and ethical principles EHaving senior executives frequently reiterate the importance and role of company values and ethical . principles at company events and internal communications to employees
B. Immediately dismissing any employee caught violating the company's code of ethics or disregarding core values
6. Which of the following is NOT something to look for in identifying a company's culture? A. The company's defined spirit and character that pervades the work climate B. The company's resource strengths, core competencies, and competitive capabilities C. The company's revered traditions and oft-repeated stories about "heroic acts" and "how we do things around here" DThe company's approach to people management and the official policies, procedures, and operating . practices that paint the white lines for the behavior of company personnel E. The company's shared values, business principles, and ethical standards that management preaches and practices
B. The company's resource strengths, core competencies, and competitive capabilities
13. Codes of ethics and statements of core values: A are the single most effective measure of enforcing ethical behavior and cultural norms, provided they . arewrittendownandeveryemployeeisgivenacopy. B. serve as yardsticks for gauging the appropriateness of particular actions, decisions, and behaviors. C.serve as the best benchmarks for judging whether the corporate culture is deeply ingrained, planted and accepted or not. D need to be personally written and presented by the CEO to reinforce the company values and . convictions so that employees will take it seriously. E. serve to give top-priority emphasis to every employee in training programs a company conducts.
B. serve as yardsticks for gauging the appropriateness of particular actions, decisions, and behaviors. A company's stated core values and ethical principles have two roles in the culture-building process. First, a company that works hard at putting its stated core values and ethical principles into practice fosters a work climate in which company personnel share strongly held convictions about how the company's business is to be conducted. Second, the stated values and ethical principles provide company personnel with guidance about the manner in which they are to do their jobs—which behaviors and ways of doing things are approved (and expected) and which are out-of-bounds. These value-based and ethics-based cultural norms serve as yardsticks for gauging the appropriateness of particular actions, decisions, and behaviors, thus helping steer company personnel toward both doing things right and doing the right thing.
A company's corporate culture is BEST defined and identified by: A. the integration of the strategy and business model that a company has adopted. Bthe company's shared values, ingrained attitudes, core beliefs and company traditions that determine . norms of behavior, accepted work practices of "how we do things around here," and styles of operating. C. its ingrained statement of core values and its internal code of ethics. D. its internal politics that influence the dedication to ethical conduct and accepted work practices. E the formal traditions that company executives are committed to maintaining to ensure the company . strategy-supportive culture is change resistant.
Bthe company's shared values, ingrained attitudes, core beliefs and company traditions that determine . norms of behavior, accepted work practices of "how we do things around here," and styles of operating. Every company has its own unique corporate culture—the shared values, ingrained attitudes, and company traditions that determine norms of behavior, accepted work practices, and styles of operating.
25. Which of the following statements about a company's culture is NOT true? AThe more new employees a company is hiring the more important it becomes to screen job applicants . every bit as much for how well their values, beliefs, and personalities match up with the culture as for their technical skills and experience. BThe longer people stay at an organization, the more that they come to embrace and mirror the corporate . culture—their values and beliefs tend to be molded by mentors, fellow workers, company training programs, and the reward structure. C. A company's culture, once established, tends to remain stable and entrenched over time. DTypically, key elements of the culture originate with a founder or certain strong leaders who articulated . them as a set of business principles, company policies, operating approaches, and ways of dealing with employees, customers, vendors, shareholders, and local communities where the company has operations. E Company cultures can be perpetuated by the telling and retelling of company legends, by regular ceremonies honoring members who display desired cultural behaviors, and by visibly rewarding those who display cultural norms and penalizing those who don't.
C. A company's culture, once established, tends to remain stable and entrenched over time. Despite the role of time-honored stories and long-standing traditions in perpetuating a company's culture, cultures are far from static—just like strategy and organizational structure, they evolve.
29. Which of the following contribute to the emergence and sustainability of a strong culture? A. Senior executives that walk the talk of high ethical standards B. A strong emphasis on developing innovative core competencies and competitive capabilities CA sincere, long-standing company commitment to operating the business according to established . traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms D. Centralized decision making and strict enforcement of company policies E A long-standing commitment to strict enforcement of established policies and procedures and steadfast unwillingness to change these policies and procedures
C. A sincere, long-standing company commitment to operating the business according to established . traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms Strong cultures emerge only after a period of deliberate and rather intensive culture building that generally takes years (sometimes decades). Two factors contribute to the development of strong cultures: (1) a founder or strong leader who established core values, principles, and practices that are viewed as having contributed to the success of the company, and (2) a sincere, long-standing company commitment to operating the business according to these established traditions and values. Continuity of leadership, low workforce turnover, geographic concentration, and considerable organizational success all contribute to the emergence and sustainability of a strong culture.
31. Which of the following statements about a strong-culture company is NOT true? AIn a strong-culture company, culturally approved behaviors and ways of doing things are nurtured while . culturally disapproved behaviors and work practices get squashed. BIn a strong-culture company, senior managers make a point of reiterating key principles and core values .to organization members; more importantly, they make a conscious effort to display these principles and values in their own actions and behavior and they insist that company values and business principles be reflected in the decisions and actions taken by all company personnel. CContinuity of leadership, small group size, stable group membership, geographic concentration, and . considerable organizational success all contribute to the emergence and sustainability of a strong culture. DCentralized decision making, strict enforcement of company policies, diligent pursuit of a distinctive . competence, and a bold strategic intent are the hallmarks of a strong-culture company. E. In a strong-culture company, values and behavioral norms are like crabgrass: deeply rooted and hard to weed out.
D. Centralized decision making, strict enforcement of company policies, diligent pursuit of a distinctive . competence, and a bold strategic intent are the hallmarks of a strong-culture company. A strongly implanted corporate culture ends up having a powerful influence on behavior because so many company personnel are accepting of cultural traditions and because this acceptance is reinforced by both management expectations and co-worker peer pressure to conform to cultural norms. Strong cultures emerge only after a period of deliberate and rather intensive culture building that generally takes years (sometimes decades). Two factors contribute to the development of strong cultures: (1) a founder or strong leader who established core values, principles, and practices that are viewed as having contributed to the success of the company, and (2) a sincere, long-standing company commitment to operating the business according to these established traditions and values. Continuity of leadership, low workforce turnover, geographic concentration, and considerable organizational success all contribute to the emergence and sustainability of a strong culture.
3. Which of the following is NOT a fundamental part of a company's culture? A. The work practices and behaviors that define "how we do things around here" B The company's standard of what is ethically acceptable and what is not, along with the "chemistry" . and "personality" that permeates its work environment C. The core values and business principles that management preaches and practices D. The company's strategic vision, strategic intent, and culture strategy E.The legends and stories that people repeat to illustrate and reinforce the company's core values, traditions, and business practices
D. The company's strategic vision, strategic intent, and culture strategy Every company has its own unique corporate culture—the shared values, ingrained attitudes, and company traditions that determine norms of behavior, accepted work practices, and styles of operating. The character of a company's culture is a product of the core values and beliefs that executives espouse, the standards of what is ethically acceptable and what is not, the "chemistry" and the "personality" that permeate the work environment, the company's traditions, and the stories that get told over and over to illustrate and reinforce the company's shared values, business practices, and traditions. In a very real sense, the culture is the company's automatic, self-replicating "operating system" that defines "how we do things around here."
10. At companies where executives believe in the merits of practicing the values and ethical principles that have been espoused, the: A. executives have usually personally written the statement of core values and the code of ethics. B company's pursuit of higher profits is tempered, so that the company will not come across to customers . and the general public as greedy. Ccompany's chances for strategic success and market leadership are substantially reduced because . company personnel are hesitant to engage in business practices that are unethical. D. stated core values and ethical principles are the foundation of the corporate culture. E. core values and ethical standards are made a prominent and visible part of the company's strategic intent and strategy.
D. stated core values and ethical principles are the foundation of the corporate culture. A company that works hard at putting its stated core values and ethical principles into practice fosters a work climate in which company personnel share strongly held convictions about how the company's business is to be conducted.
30. Which of the following is NOT a factor in contributing to the emergence and sustainability of a strong culture? A Continuity of leadership, small group size, stable group membership, geographic concentration, and . considerable organizational success BA founder or strong leader who establishes values, principles, and practices that are consistent and . sensible in light of customer needs, competitive conditions, and strategic requirements CA sincere, long-standing company commitment to operating the business according to established . traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms D.Centralized decision making, strict enforcement of company policies, and a strong commitment to being the market share leader E.A genuine concern for the well-being of the organization's three biggest constituencies—customers, employees, and shareholders
D.Centralized decision making, strict enforcement of company policies, and a strong commitment to being the market share leader A strongly implanted corporate culture ends up having a powerful influence on behavior because so many company personnel are accepting of cultural traditions and because this acceptance is reinforced by both management expectations and co-worker peer pressure to conform to cultural norms. Strong cultures emerge only after a period of deliberate and rather intensive culture building that generally takes years (sometimes decades). Two factors contribute to the development of strong cultures: (1) a founder or strong leader who established core values, principles, and practices that are viewed as having contributed to the success of the company, and (2) a sincere, long-standing company commitment to operating the business according to these established traditions and values. Continuity of leadership, low workforce turnover, geographic concentration, and considerable organizational success all contribute to the emergence and sustainability of a strong culture.
12. The two culture-building roles of a company's stated values and ethical standards are to: A. communicate the company's good intentions and establish a corporate conscience. B confirm the integrity of company personnel and signal the above-board nature of the company's business principles and operating methods. C. steer company personnel toward doing the right thing and convince outsiders that the company is socially responsible. Dfoster a work climate where company personnel share common and strongly held convictions about how . the company's business is to be conducted and to provide them with guidance about how to do their jobs, steering them toward both doing things right and doing the right things. E provide a basis for designing culture-supportive incentive compensation plans and reinforcing the . appropriateness of particular ethical and moral actions.
Dfoster a work climate where company personnel share common and strongly held convictions about . how the company's business is to be conducted and to provide them with guidance about how to do their jobs, steering them toward both doing things right and doing the right things. A company's stated core values and ethical principles have two roles in the culture-building process. First, a company that works hard at putting its stated core values and ethical principles into practice fosters a work climate in which company personnel share strongly held convictions about how the company's business is to be conducted. Second, the stated values and ethical principles provide company personnel with guidance about the manner in which they are to do their jobs—which behaviors and ways of doing things are approved (and expected) and which are out-of-bounds.
11. A corporate culture founded on ethical business principles and socially approved values: Avirtually guarantees that a company will be (or soon become) the acknowledged industry leader because . of the ethical and socially approved manner in which its business is being conducted. B. doesn't necessarily impact a company's long-term strategic success favorably or unfavorably. C. does more to detract from a company's chances for strategic success and market leadership than to help it. Dis a positive force underlying a company's long-term financial success and reduces the likelihood of . lapses in ethical and socially approved behavior that can damage the company's reputation. Eis seldom more than window-dressing and is generally regarded by customers, suppliers, employees, . shareholders, and society at large as nothing more than good public relations.
Dis a positive force underlying a company's long-term financial success and reduces the likelihood of . lapses in ethical and socially approved behavior that can damage the company's reputation. Many executives want the work climate at their companies to mirror certain values and ethical standards, partly because of personal convictions but mainly because they are convinced that adherence to such principles will promote better strategy execution, make the company a better performer, and positively impact its reputation.
17. Which of the following is NOT a technique that companies employ to embed core values and ethical standards? A Incorporating the statement of values and the code of ethics into orientation programs for new employees and training courses for managers and employees B. Making the display of core values and ethical principles a factor in evaluating each person's job performance C. Encouraging everyone to use their influence in helping enforce observance of core values and ethical standards D. Using ceremonial occasions to recognize individuals and groups who display the values and ethical principles EInstituting standard practices and procedures for employees to follow as a foundation for maintaining . ethical and cultural norm conflict clashes and behavioral lapses
E Instituting standard practices and procedures for employees to follow as a foundation for . maintaining ethical and cultural norm conflict clashes and behavioral lapses Most companies employ a variety of techniques in embedding values and ethical standards, drawing on some or all of the following: screening applicants and hiring those who will mesh well with the culture; incorporating discussions of the company's culture and behavioral norms into orientation programs for new employees and training courses for managers and employees; having senior executives frequently reiterate the importance and role of company values and ethical principles at company events and in internal communications to employees; expecting managers at all levels to be cultural role models and exhibit the advocated cultural norms in their own behavior; making the display of cultural norms a factor in evaluating each person's job performance, granting compensation increases, and deciding who to promote; stressing that line managers all the way down to first-level supervisors give ongoing attention to explaining the desired cultural traits and behaviors in their areas and clarifying why they are important; encouraging company personnel to exert strong peer pressure on co-workers to conform to expected cultural norms; and holding periodic ceremonies to honor people who excel in displaying the company values and ethical principles.
21. Which of the following is NOT one of the positive impacts that a company's stated values and ethical standards have on its corporate culture? A. Communicating the company's good intentions B. Validating the integrity and above-board nature of the company's business principles and operating methods C. Steering company personnel toward both doing things right and doing the right thing D. Establishing a corporate conscience E. Identifying how best to adapt to changing market conditions
E. Identifying how best to adapt to changing market conditions The company's stated core values and ethical principles have two roles in the culture-building process. First, a company that works hard at putting its stated core values and ethical principles into practice fosters a work climate in which company personnel share strongly held convictions about how the company's business is to be conducted. Second, the stated values and ethical principles provide company personnel with guidance about the manner in which they are to do their jobs—which behaviors and ways of doing things are approved (and expected) and which are out-of-bounds. These value-based and ethics-based cultural norms serve as yardsticks for gauging the appropriateness of particular actions, decisions, and behaviors, thus helping steer company personnel toward both doing things right and doing the right thing.
28. The characteristics of a strong-culture company include all of the following EXCEPT: A deeply rooted values and operating approaches that "regulate" the conduct of a company's business and . the climate of its workplace. B. strong managerial commitment to display company values and principles in their own actions and behavior. Cdedicated efforts on the part of management to communicating values and business principles to . organization members and explaining how they relate to the company's business environment. D. ingrained shared values and business principles guide management in making decisions. E. co-worker peer pressure to challenge cultural norms.
E. co-worker peer pressure to challenge cultural norms. The hallmark of a strong-culture company is the dominating presence of certain deeply rooted values and behavioral norms that "regulate" the conduct of company personnel as they go about the company's business. Strong cultures enable a company to operate like a well-oiled machine, smoothly operating without a lot of intervention from management. Senior managers in strong-culture companies embody the cultural norms in their own actions and expect the same of others within the company. An unequivocal expectation that company personnel will act and behave in accordance with the adopted values and ways of doing business leads to two important outcomes: (1) Over time, the values come to be widely shared by rank-and-file employees—people who dislike the culture tend to leave—and (2) individuals encounter strong peer pressure from co-workers to observe the culturally approved norms and behaviors. Hence, a strongly implanted corporate culture ends up having a powerful influence on behavior because so many company personnel are accepting of cultural traditions and because this acceptance is reinforced by both management expectations and co-worker peer pressure to conform to cultural norms.
2. The character of a company's corporate culture is a product of all of the following EXCEPT: A. the shared values and core business principles and beliefs that management preaches and practices. Bits standards of what is ethically acceptable and what is not and the stories that get told over and over to . illustrate and reinforce the company's shared values, business practices, and traditions. C.the company's approach to people management and the "chemistry" and "personality" that permeates its work environment. D. the work practices and behaviors that define "how we do things around here." E.its lack of mechanisms for aligning, constraining, and regulating the actions, decisions, and behaviors of company personnel.
E. its lack of mechanisms for aligning, constraining, and regulating the actions, decisions, and behaviors of company personnel. Every company has its own unique corporate culture—the shared values, ingrained attitudes, and company traditions that determine norms of behavior, accepted work practices, and styles of operating. The character of a company's culture is a product of the core values and beliefs that executives espouse, the standards of what is ethically acceptable and what is not, the "chemistry" and the "personality" that permeate the work environment, the company's traditions, and the stories that get told over and over to illustrate and reinforce the company's shared values, business practices, and traditions. In a very real sense, the culture is the company's automatic, self-replicating "operating system" that defines "how we do things around here."
18. To deeply ingrain core values and ethical standards, a company must: A. provide every employee with a copy of the company's statement of core values and code of ethics. B. turn the espoused core values and ethical standards into strictly enforced cultural norms. C. encourage company personnel to observe the core values and ethical standards. D give big pay raises and bonuses to individuals and groups who display the company's core values and . observe its ethical standards. E. fire employees who do not live up to the core values or who are found guilty of violating the code of ethics.
B. turn the espoused core values and ethical standards into strictly enforced cultural norms. To deeply ingrain the stated core values and high ethical standards, companies must turn them into strictly enforced cultural norms. They must make it unequivocally clear that living up to the company's values and ethical standards has to be "a way of life" at the company and that there will be little toleration for errant behavior.
16. A company's stated core values and ethical principles are: Aimportant because of their role in ensuring that company executives will not engage in unethical . behavior or behave in a manner that is contrary to the company's core values. B. typically tightly linked to its strategic vision and strategy. C. the best indicators of a company's social responsibility strategy. Dmeant to foster a work climate where company personnel share common and strongly held convictions . about how the company's business is to be conducted and provide guidance in displaying the core values in their actions and behaviors. E. strictly enforced in strong culture companies and weakly enforced in weak culture companies.
Dmeant to foster a work climate where company personnel share common and strongly held . convictions about how the company's business is to be conducted and provide guidance in displaying the core values in their actions and behaviors. A company's culture is grounded in and shaped by its core values and ethical standards. Core values and ethical principles serve two roles in the culture-building process: (1) They foster a work climate in which employees share common and strongly held convictions about how company business is to be conducted, and (2) they provide company personnel with guidance about the manner in which they are to do their jobs—which behaviors and ways of doing things are approved (and expected) and which are out-of-bounds. They serve as yardsticks for gauging the appropriateness of particular actions, decisions, and behaviors.
