Chapter 7

Organizational Factors: The Role of Ethical Culture and Relationships

Review

Corporate Culture Defined

Class Example of how corporate culture can be influenced by the founder’s values

Class Examples of how corporate culture may be explicit statements of values, beliefs, and customs

Class Examples of how corporate culture may be expressed informally through direct and indirect comments that convey management’s wishes

Two basic dimensions which determines an organizations culture

Four different corporate cultures

What happens if a firm’s culture encourages or rewards unethical behavior?

Leadership

Corporation’s role as a moral agent

______ ________ is the only way to ensure consistent decisions that represent the interests of all stakeholders is to require ethical policies

____% will take advantage of situations to further their own personal interests

____%will go along with the work group on most matters

____%will try to follow company policies and rules and have a strong grasp of the corporate culture

____%maintain formal standards that focus on rights, duties and rules

Role relationships within the organization

• Socialization

• Role-sets

• Role stress

• Differential association

• Whistle-blowing

• Organizational pressures

Legal provisions of whistle-blowing

Chapter 7

Organizational Factors: The Role of Ethical Culture and Relationships

Review

Power: General definition and different types

Motivation

Centralized v. decentralized organizations

Group norms