Managing Business Ethics Chapter 5

+ 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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