Organisational Culture Vrs Ethics

7/29/2019 Organisational Culture Vrs Ethics

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ORGANISATIONAL CULTUREVERSUSETHICS

Dr. Keshab Nandy


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Organizational Culture - are determinant how peoplebehave more or less ethically in organisation.

When things go wrong, managers look atorganizational culture as the source of problem and

basis of solutions.

Organizational Culture artifacts, symbols,procedures and arrangements, rituals, religious beliefs.


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To control the activity of employees to best serve definedorganizational interests. This is done through

a) Bureaucratic mechanismb) Cultural mechanism

Two approaches to management of Organizational Cultureto improve ethics in organisations:

a) Creating a unitary corporate culture aroundethical values.

b) Fostering the coexistence and diversity with theorganisation of underlying national and racial culturesas well as professional and occupational sub-cultures.


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System of rewards, selection, appraisal, physicalspaces, rituals, ceremonies are designed to createvalues and organizational culture.


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ETHICS

Ethics refers to a system of moral principles

A sense of right and wrong.

Goodness and badness of actionsAnd the motives and consequences of these

actions.
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VIEWS OF ETHICS

Utilitarian

View

Theory of

Justice ViewRights View

Integrative

SocialContracts


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Formation of ethics


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BUSINESS ETHICS

Business ethics can be defined as written andunwritten codes that govern decisions and actionswithin a company.

Shareholderperspective

Stakeholderperspective


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ORGANIZATIONAL ETHICS

Organizational ethics is the ethics of anorganization and it is how an organizationethically responds to an internal or externalstimulus.

Organizational ethics is interdependent withthe organizational culture.


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Organizational ethics express the values of an organization toits employees and other entities irrespective of governmentaland regulatory laws.

Basic elements of an ethical organization. Written code of ethics and standards

Ethics training

Availability for advice on ethical situations

Systems for confidential reporting


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UNDERSTANDING ETHICAL DECISION

MAKING

Ethical Issue Intensity

Individual Personal MoralFactors Philosophy

Organizational Organizational

Factors CultureCoworkers andsuperiorsopportunity

Ethical /

UnethicalDecisions


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ORGANIZATION culture

Organizational culture is the personality of theorganization

Organizational culture refers to the general culture within

organization


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Levels of organization culture

Assumptions

and

Values

Artifacts and Behaviours


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DIMENSIONS OF ORGANIZATIONAL

culture

Service Culture

Safety CultureOrganization

CultureProfile

Innovative

Aggressive

Outcome-Oriented

StablePeople-Oriented

Team-

Oriented

Detail-Oriented


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Characteristics OF ORGANISATIONS

THAT DEVELOP HIGH ETHICAL

STANDARDS

High Tolerancefor Risk

Low to moderatein aggressiveness

Focus on means aswell as outcomes


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What can management do to create a

more ethical culture?

Being a visiblerole model

Communicatingethical

expectations

Providing ethicaltraining


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Hire individuals with high ethical standards.

Establish codes of ethics and decision rules.

Lead by example.

Set realistic job goals and include ethics in performanceappraisals.

Conduct independent social audits.

Provide support for individuals facing ethical dilemmas.

How managers can improve ethical

behaviour in an organization?


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Ethics corresponds to basic human needs.

Values create credibility with the public.

Law cant protect society. Ethics can.

Benefits of managing ethics in workplace.

improve society

sensitizes leaders and staff to how they have to act

cultivate strong teamwork and employee growth promotes a strong public image.

Importance of ethics in

organizational culture


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The National Business Ethics Survey conducted by the EthicsResource Center, found that despite rising employeeawareness of formal ethics and compliance programs,standards of ethical conduct remained unchanged or evenworsened.

Effectiveness of programs depends on the culture of theorganization.

Strong ethical cultures are in part themselves a product offormal programs.

A study : organizational culture the

key to improving workplace ethics


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Enron and the creation of an unethical culture.

Enron Corp., which in December 2001 became the largest-ever US bankruptcy did not fail solely because of improper

accounting practices, but also due to a culture that pushedexecutives into unethical behaviour.

Instead of rewarding new ideas, the company encouragedunethical corner-cutting.

There was a yes-man culture among executives.

Example of the case 1


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Wipro Infotech and the Creation of an Ethical Culture.

Wipro has been awarded the Ethics is Good Business awardfor the year 2002.

Wipro has compiled an Integrity Manual that defines theway wiproities should deal with their customers.

Wipro has also introduced a helpline known as Wipro SOS.

Wipro Infotech has launched its eco-friendly Greenwaredesktop range, manufactured with materials that are free fromcarcinogenic chemicals like polyvinyl chloride (PVC) andbrominated flame retardants (BFRs).

Example of the case 2


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Thank You I may be reached at:

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Organisational Culture Vrs Ethics

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