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Managing Business Ethics

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Managing Business Ethics Chapter 5 ... Change Organizational Culture Ethical Leadership and Ethical Culture ... 11_Advantage 12_Advantage 13 ... – PowerPoint PPT presentation

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Title: Managing Business Ethics


1
Managing Business Ethics
  • Chapter 5
  • Treviño Nelson 5th Edition

2
Chapter 5 Overview
  • Organizational Ethics as Culture
  • Ethical Culture A Multisystem Framework
  • Ethical Leadership
  • Other Formal Cultural Systems
  • Informal Cultural Systems
  • Organizational Climates Fairness, Benevolence,
    Self-Interest, Principles
  • Developing and Changing Ethical Culture
  • A Cultural Approach to Changing Organizational
    Ethics
  • The Ethics of Managing Organizational Ethics

3
Influence of Culture on Individuals
Individual Differences
Ethical Awareness
Ethical Judgment
Ethical Action
Ethical Culture
4
Organizational Culture
  • Expresses shared assumptions, values and beliefs
    and is the social glue that holds the
    organization together. Its how we do things
    around here.
  • Strong - assumptions, values, beliefs widely
    shared
  • Weak - subgroup norms more influential

5
Culture
  • A body of learned beliefs, traditions, and guides
    for behavior shared among members of a society or
    a group

6
Ethical Culture A Multisystem Approach
Formal Systems
Informal Systems
Executive Leadership Selection System Policies/Cod
es Orientation/Training Performance
Management Authority Structure Decision Processes
Role Models/Heroes Norms Rituals Myths/Stories Lan
guage
Ethical/ Unethical Behavior
Alignment?
7
Alignment and Misalignment
  • With alignment, all systems are pushing
    employees in the same direction either ethical
    or unethical
  • With misalignment, employees get mixed messages
    about expectations

8
Leadership
  • Executive Leaders Create Culture
  • Leaders Maintain or Change Organizational Culture
  • Ethical Leadership and Ethical Culture
  • Unethical Leadership
  • Hypocritical Leadership
  • Ethically Neutral or Silent Leadership

9
Executive Ethical Leadership Rests on Two Pillars
  • Moral Person
  • Tells followers how leader behaves
  • Traits
  • Honesty
  • Integrity,
  • Trust
  • Behaviors
  • Openness
  • Concern for people
  • Personal morality
  • Decision-making
  • Values based
  • Fair
  • Moral Manager
  • Tells followers how they should behave and holds
    them accountable
  • Role modeling
  • Takes visible ethical action
  • Rewards/Discipline
  • Hold people accountable for ethical conduct
  • Communicating
  • Sends an ethics and values message

10
Executive Ethical Leadership Reputation Matrix
Ethically neutral leader
11
Other Formal Cultural Systems
  • Selection Systems
  • Values and Mission Statements
  • Policies and Codes
  • Orientation and Training Programs
  • Performance Management Systems
  • Organizational Authority Structure
  • Decision-making Processes

12
Informal Cultural Systems
  • Role Models and Heroes
  • Norms The Way We Do Things Around Here
  • Rituals
  • Myths and Stories
  • Language

13
Ethical Climates
  • Fairness
  • Benevolence
  • Self-Interest
  • Principles

14
Ethical Culture Change
  • From ethical to unethical
  • From unethical to ethical

15
Ethical Culture Change
  • Long-term view
  • Systems view
  • Diagnose/Audit
  • Intervene
  • Evaluate
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