Module 5 - Background
Business Ethics and Organizational Culture
In Module 5, we will study organizational culture and how culture relates to business ethics. I just recently read an article in which it was said that business leaders are really never asked about their personal sense of ethics these days – at least not until they are seated in front of a legislative committee. Ringing with satire, it would seem to me that there is an abundance of truth in this statement – that is, we don’t ordinarily think about our organizational leaders’ sense of ethics until they’ve gotten themselves into trouble that is nothing short of jaw-dropping.
I suppose that all of this begs the central question as to whether increasingly ethical cultures are more apt to produce generally more ethical behaviors. Common sense tells me that they would. But if this is true, then why don’t all – or perhaps most – organizations have ethical cultures? The answer might be that building an ethical culture requires a lot of money, a lot of know-how, a lot of dedicated people, and a lot of organizational energy!
Required:
Read about organizational culture here:
http://managementhelp.org/organizations/culture.htm
Read the ideas of Edgar Schein, the organizational culture guru, here:
Edgar H Schein. (1984). Coming to a New Awareness of Organizational Culture. Sloan Management Review (pre-1986), 25(2), 3. Retrieved July 28, 2011, from ABI/INFORM Global. (Document ID: 66023702).
Read the following article on creating an ethical culture. Also, be sure that you view Kirk Hanson’s PowerPoint presentation (the link is located directly under the title of the article):
http://www.scu.edu/ethics/practicing/focusareas/business/organization.html
Optional:
Following is a video relating to the role of the CEO in building an ethical organizational culture: http://www.scu.edu/ethics/practicing/focusareas/business/ceo-ethical-culture.html
You may want to watch the following videos relating to the Board of Director’s role in the creation of an ethical culture: http://www.scu.edu/ethics-center/video/ethical-culture.cfm
Following is a white paper from the Ethics Resource Center, a not-for-profit organization (and a truly superlative ethics resource!) dedicated to promoting ethics in the private and public business sectors. This white paper itemizes those critical elements that comprise an ethical organizational culture: http://www.ethics.org/files/u5/lements_of_an_Organizational_Ethical_Culture.pdf
Also from the ERC are the following articles relating to steps that should be taken in order to changing the ethical cultural of an organization, and another relating to the role of leadership in setting the tone for organizational integrity (Hint: these articles may help you in addressing the Case).
http://www.ethics.org/resource/seven-steps-changing-ethical-culture-organization