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ETHICAL ISSUE IN ORGANISATIONAL CULTURE

SUBMITTED BY GROUP 9

ORGANIZATIONAL CULTURE
Organization

culture refers to a system of shared meaning held by members that distinguishes the oraganization from other organization.

CHARACTERISTICS OF ORGANISATIONAL CULTURE


Innovation

and risk taking. Attention to detail Outcome orientation People oriented Team orientation Aggressiveness Stability

CULTURE IS A DESCRIPTIVE TERM


Organization

culture is concerned with how employees perceive the characteristics of an organization's culture , not with whether or not they like them. That is, it is a descriptive term. This is important because it differentiates this concept from that of job satisfaction.

DIFFERENT ORGANISATION CULTURE


Dominant

culture Subculture Core values Strong culture

ETHICS
Employment

practices

Human

rights

Environmental

regulations

Corruption

Moral

obligation of multinational firms

EMPLOYMENT PRACTICES
Firms

should establish minimal acceptable standards that safeguard the basic rights and dignity of employees and audit the foreign subsidiaries and subcontractors on a regular basis.

HUMAN RIGHTS
Basic

human rights are still not respected in many nations rights are not universally accepted such as freedom of: association speech assembly movement political expression

Many

ENVIRONMENTAL POLLUTION
Ethical

issues arise when environmental regulations and/or enforcement are inferior to those in the home nation might result in higher levels of pollution from the operations of multinationals than would be allowed at home

This

CORRUPTION
Corruption

has a been a problem in almost every society in history and it continues to be one today

Some

international businesses can and have gained economic advantages by making payments to government officials

MORAL OBLIGATIONS
Multination

firms have power that comes from their control over resources and their ability to move production from country to country philosophers argue that with that power comes the social responsibility for multinationals to give back to the societies that enable them to prosper and grow

Some

ETHICAL DILEMMAS
Situations in which none of the available alternatives seems ethically acceptable
The

ethical obligations of multinational firms are not always clear-cut dilemmas exist because many decisions are complex, difficult to frame, and involve first-, second-, and third-order consequences which are hard to quantify

Ethical

DETERMINANTS OF ETHICAL BEHAVIOR

PERSONAL ETHICS
Generally accepted principles of right and wrong governing the conduct of individuals
Our

personal ethical code exerts a profound influence on the way we behave as businesspeople first step to establishing a strong sense of business ethics is for a society to emphasize strong personal ethics

The

Expatriate

managers may experience more than the usual degree of pressure to violate their personal ethics

DECISION-MAKING PROCESSES
Several

studies of unethical behavior in business have concluded that businesspeople sometimes do not realize they are behaving unethically primarily because they simple fail to ask. the result of applying straight-forward business calculus to a decision without considering important ethical issues

Often

ORGANIZATION CULTURE
The

climate in some businesses does not encourage people to think through the ethical consequences of business decisions

Result

of an organizational culture that deemphasizes business ethics, reducing all decisions to be purely economic

UNREALISTIC PERFORMANCE EXPECTATIONS

Pressure from the parent company to meet unrealistic goals that can only be attained by cutting corners or acting in an unethical manner This often results in managers will violating their own personal ethics and engage in unethical behavior

An organizational culture with values that reinforce ethical behavior is an essential ethical component

LEADERSHIP
Leaders

help to establish the culture and values of an organization, and they set the example that others follow

ETHICS OFFICERS
Some

firms have ethics officers to ensure

all employees are trained in ethics ethics is considered in the decisionmaking process the companys code of conduct is followed

MORAL COURAGE
Enables

managers to walk away from a decision that is profitable, but unethical Gives an employee the strength to say no to a superior who instructs her to pursue actions that are unethical Gives employees the integrity to go public to the media and blow the whistle on persistent unethical behavior in a company Does not come easily and employees have lost their jobs when acting on this courage

THANKYOU