NAME:

STUDENT ID NUMBER:

COURSE: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

COURSE CODE:MGT 422

INSTRUCTOR:DR. NOORJAHAN SHERFUDEEN

DATE:30/3/2024

1.The formal and informal systems at the Saudi Arabian Fertilizer Company that may be in need

of proper maintenance can be identified as follows according to(The Embassy of The Kingdom

of Saudi Arabia. (n.d.). Agricultural Fertilizer Law. Retrieved from

https://www.saudiembassy.net/agricultural-fertilizer-law )

Formal Systems

The formal systems at the Saudi Arabian Fertilizer Company that may require maintenance

include:

- Compliance with Agricultural Fertilizer Law: The company needs to ensure strict adherence to

the regulations outlined in the Agricultural Fertilizer Law, including the application of technical

conditions and specifications for manures and agricultural fertilizers, as well as the prohibition of

unauthorized publicity, advertisement, or publication of commercial information about manures

and agricultural fertilizers without proper registration and licensing by the Ministry .

- Corporate Governance and Compliance: Maintenance of formal systems related to corporate

governance, compliance with regulatory requirements, and adherence to standards set by the
Ministry and other relevant authorities is essential for ensuring ethical and legal operations

within the company.

Informal Systems:

The informal systems at the Saudi Arabian Fertilizer Company that may require maintenance

include:

- Organizational Culture: Assessment of the informal norms, behaviors, and practices within the

company that may impact ethical conduct and decision-making. This involves understanding the

unwritten rules, power dynamics, and cultural factors that influence behavior and

decision-making processes within the organization.

- Stakeholder Engagement: Maintenance of informal systems related to stakeholder engagement,

communication, and relationships, which play a crucial role in promoting transparency,

accountability, and ethical practices within the company.

By addressing the maintenance needs of both formal and informal systems, the Saudi Arabian

Fertilizer Company can work towards fostering a culture of ethical conduct, compliance, and

responsible corporate behavior.

2.Based on (LinkedIn. (n.d.). Retrieved from

https://www.linkedin.com/advice/3/how-can-you-tell-your-company-culture-aligned-goals)the

culture at the Saudi Arabian Fertilizer Company appears to be out of alignment in several areas.

Here's the assessment based on the provided snippets.

a)Mission and Vision Alignment: The first step to align the culture with the company's goals is to

have a clear and compelling mission and vision statement. Employees should understand and

share the passion for achieving them, see how their roles contribute to them, and if the mission

and vision are communicated and reinforced regularly and consistently. If the employees do not

demonstrate a clear understanding of the mission and vision, it indicates a lack of alignment with

the company's goals.

b)Cultural Alignment and Employee Engagement: Research has shown that when employees and

senior leaders have the same view of the culture, employee engagement metrics are markedly

higher. If there is a lack of alignment between employees and senior leadership regarding the

company's purpose and core values, it suggests a potential area of misalignment within the

organizational culture [𝟐].

c) Hiring for Cultural Alignment: The types of team members the company hires play a

significant role in determining cultural alignment. If the organization is bringing on employees

with the right skills but an outlook or attitude that doesn't fit, it sets up both the employees and

the organization for failure. This indicates a potential misalignment in the hiring process and

cultural fit assessment .

Based on the provided information, it seems that the culture at the Saudi Arabian Fertilizer

Company may be out of alignment in terms of mission and vision understanding, cultural

alignment, and hiring practices. Addressing these areas of misalignment can contribute to

fostering a culture that is more closely aligned with the company's goals and objectives.
3.To build a reform program aimed at rectifying weaknesses and aligning formal and informal

mechanisms with a robust ethical culture at the Saudi Arabian Fertilizer Company, the following

steps can be taken according to (Heath, C., & Heath, D. (2012). Cultural change that sticks.

Harvard Business Review. Retrieved from https://hbr.org/2012/07/cultural-change-that-sticks)

a)Develop a Comprehensive Ethical Framework: Utilize a framework for ethical

decision-making that is culturally sensitive and inclusive. This framework should be the product

of dialogue and debate, involving key contributors from within the organization. It should

recognize the limitations of individual cultural perspectives and emphasize the importance of

integrating ethical considerations into every aspect of the company's culture, both formal and

informal .

b)Managing Culture to Manage Ethics: Implement a model that connects elements of culture to

conditions and opportunities to build a shared ethical culture within the organization. This model

should reveal patterns between the types of cultural elements in use, the conditions present in the

company, and the organization's ability to take advantage of opportunities for promoting ethics.

c)Integrate Formal and Informal Interventions: Integrate formal approaches, such as new rules,

metrics, and incentives, with informal interactions. This integration is crucial for promoting

critical new behaviors and making people aware of how they affect the company's strategic

performance .
By implementing these steps, the Saudi Arabian Fertilizer Company can work towards rectifying

weaknesses and aligning formal and informal mechanisms to foster a robust ethical culture

within the organization.

References

1. Heath, C., & Heath, D. (2012). Cultural change that sticks. Harvard Business Review.

Retrieved from https://hbr.org/2012/07/cultural-change-that-sticks

2. The Embassy of The Kingdom of Saudi Arabia. (n.d.). Agricultural Fertilizer Law. Retrieved

from https://www.saudiembassy.net/agricultural-fertilizer-law

3. LinkedIn. (n.d.). Retrieved from

https://www.linkedin.com/advice/3/how-can-you-tell-your-company-culture-aligned-goals