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    Managing Business Ethics: Treviño & Nelson - 5 Edition

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    Hary Rulianto Ramadhan
    This chapter discusses organizational ethics and culture. It presents a multisystem framework for understanding ethical culture, including formal systems like leadership and codes of conduct, and informal systems like norms and stories. Ethical culture is influenced by alignment across these systems and leadership plays a key role in developing and maintaining culture. The chapter also addresses developing and changing organizational culture to be more ethical.

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    Managing Business Ethics: Treviño & Nelson - 5 Edition

    Uploaded by

    Hary Rulianto Ramadhan
    143 views15 pages
    This chapter discusses organizational ethics and culture. It presents a multisystem framework for understanding ethical culture, including formal systems like leadership and codes of conduct, and informal systems like norms and stories. Ethical culture is influenced by alignment across these systems and leadership plays a key role in developing and maintaining culture. The chapter also addresses developing and changing organizational culture to be more ethical.

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    This chapter discusses organizational ethics and culture. It presents a multisystem framework for understanding ethical culture, including formal systems like leadership and codes of conduct, and informal systems like norms and stories. Ethical culture is influenced by alignment across these systems and leadership plays a key role in developing and maintaining culture. The chapter also addresses developing and changing organizational culture to be more ethical.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    143 views15 pages

    Managing Business Ethics: Treviño & Nelson - 5 Edition

    Uploaded by

    Hary Rulianto Ramadhan
    This chapter discusses organizational ethics and culture. It presents a multisystem framework for understanding ethical culture, including formal systems like leadership and codes of conduct, and informal systems like norms and stories. Ethical culture is influenced by alignment across these systems and leadership plays a key role in developing and maintaining culture. The chapter also addresses developing and changing organizational culture to be more ethical.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

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    Managing Business Ethics

    Chapter 5
    Treviño & Nelson – 5th Edition
    +
    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


    +
    Influence of Culture on Individuals

    Individual Differences

    Ethical Awareness Ethical Judgment Ethical Action

    Ethical Culture
    +
    Organizational Culture

     Expresses shared assumptions, values and beliefs and is the social


    glue that holds the organization together. It’s “how we do things
    around here.”
     Strong - assumptions, values, beliefs widely shared
     Weak - subgroup norms more influential
    +
    Culture

     A body of learned beliefs, traditions, and guides for behavior shared


    among members of a society or a group
    +
    Ethical Culture:
    A Multisystem Approach
    Formal Systems Informal Systems

    Executive Leadership
    Selection System Role Models/Heroes
    Ethical/ Norms
    Policies/Codes
    Unethical
    Orientation/Training Behavior Rituals

    Performance Management Myths/Stories

    Authority Structure Language

    Decision Processes

    Alignment?
    +
    Alignment and Misalignment

    With alignment, all systems are “pushing”


    employees in the same direction – either
    ethical or unethical
    Withmisalignment, employees get mixed
    messages about expectations
    +
    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
    +
    Executive Ethical Leadership Rests on
    Two Pillars
    Moral Person Moral Manager
    Tells followers how leader behaves
    Tells followers how they should behave and
     Traits holds them accountable
     Honesty  Role modeling
     Integrity,
     Takes visible ethical action
     Trust
     Rewards/Discipline
     Behaviors
     Openness  Hold people accountable for
     Concern for people
    ethical conduct
     Personal morality  Communicating
     Decision-making  Sends an “ethics and values”
     Values based message
     Fair
    + Executive Ethical Leadership
    Reputation Matrix

    Strong Hypocritical leader Ethical leader

    Moral Manager

    Weak Unethical leader

    Ethically neutral leader

    Weak Strong
    Moral Person
    +
    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
    +
    Informal Cultural Systems

     Role Models and Heroes


     Norms: “The Way We Do Things Around Here”
     Rituals

     Myths and Stories


     Language
    +
    Ethical Climates

     Fairness
     Benevolence
     Self-Interest
     Principles
    +
    Ethical Culture Change

     From ethical to unethical


     From unethical to ethical
    +
    Ethical Culture Change

     Long-term view
     Systems view
     Diagnose/Audit
     Intervene
     Evaluate

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