+ Managing Business Ethics Chapter 5 Trevio & 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 Culture Ethical Action + 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 + 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 Selection System Role Models/Heroes Executive Leadership Policies/Codes Orientation/Training Ethical/ Unethic al Behavio r Performance Management
Norms Rituals Myths/Stories Language Authority Structure Decision Processes Alignment? + 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 + 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 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 Rewards/Discipline
Takes visible ethical action Hold people accountable for ethical conduct Communicating Sends an ethics and values message + 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 Values Systems 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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