Business Ethics 3 | Stakeholder (Corporate) | Organizational Culture

Business Ethics

The common feature that brings these Organizations on single platform is«

Ethical Organization
y Organizations to be called ethical should possess ´ethical

behaviorµ.

Judging the Ethical Nature of an Organization

y THEORY OF CORPORATE MORAL EXCELLENCE y ETHICS AND STAKEHOLDER THEORY y ETHICS AND CORPORATE GOVERNANCE

THEORY OF CORPORATE MORAL EXCELLENCE
y Focuses on Two aspects: Corporate Culture and Ethical y y y

y

Behavior Analysts believe that an organization culture impacts on the behavior of its employees. CULTURE IS BASED ON THE VALUES OF AN ORGANIZATION Deal and Kennedy, Values produce a sense of direction for employees and help guide and control their day-to-day behavior. CorporateValues can be classified into: y EspousedValues y Values in Practice

THEORY OF CORPORATE MORAL EXCELLENCE
y Espoused Values refer to company·s statements credos and code of

ethics. y They describe the organizational purpose and ethical perspectives y Ethical perspective are aimed at guiding the members who are responsible for leading and directing the organization. y They are intended to communicate to employees, customers, competitors and supplier the type of behavior acceptable in organization.

Mission, Vision & Values The world is changing all around us. To continue to thrive as business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners. Our Mission y Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. y To refresh the world... y To inspire moments of optimism and happiness... y To create value and make a difference.

Our Vision Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization. Our Winning Culture Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality.

Live Our Values Our values serve as a compass for our actions and describe how we behave in the world. Leadership:The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality:What we do, we do well
Focus on the Market y Focus on needs of our consumers, customers and franchise partners y Get out into the market and listen, observe and learn y Possess a world view y Focus on execution in the marketplace every day y Be insatiably curious

Work Smart y Act with urgency y Remain responsive to change y Have the courage to change course when needed y Remain constructively discontent y Work efficiently Act Like Owners Be accountable for our actions and inactions y Steward system assets and focus on building value y Reward our people for taking risks and finding better ways to solve problems y Learn from our outcomes -- what worked and what didn·t Be the Brand Inspire creativity, passion, optimism and fun

THEORY OF CORPORATE MORAL EXCELLENCE
y Values in Practice,When espoused values differ in situations. y Example, ´ The Customer is the kingµ but in practice organization

pays little attention to customer service. y The difference between Espoused values and values in Practice trust declines. y Organization can align its ´ Values in practiceµ to its ´Espoused valuesµ if its wishes to be regarded as an ethical organization. y Congruence of both will improve employees morale and their conformity to the organization¶s code of ethics.

´ As a responsible citizen of the global community, we treat our employees with respect«µ

THEORY OF CORPORATE MORAL EXCELLENCE
y Michael Hoffman shows two moral excellence, which if blended

properly will produce desired corporate culture: Moral Corporate Culture and Moral autonomy of individual. y He classified corporate culture into three types.
y Basic values, attitudes and beliefs of the organization y Organizational goals, policies, structure and strategies that are shaped

by the values, attitudes and belief s prevalent in the organization. y Organizational processes and procedures Moral autonomy of individual Employees responsible for developing organization goals Evaluating the corporate culture and implementing change process

Ethics and Stakeholder Theory
y Stakeholder refers to shareholders, employees, customers,

suppliers, lenders and society at large. y ´Paying attention to the needs and rights of all stakeholders of a business is a useful way of developing ethically responsible behavior by managers.µ y Consideration of stakeholder·s interest while taking managerial decisions y Ethical responsibilities include the distribution of benefits and allocation of costs in a manner that is considered right, proper, and just by the stakeholders.

Ethics and Corporate Governance
y ´ Rightµ ,´Fairµ, ´Properµ and ´Justµ in decisions and actions

that affect stakeholders. y It focuses on business relationship with employees, customers, stockholder, creditors, suppliers and members of the society in which it operates. y CG is the system by which business corporations are directed and controlled. The CG structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the Board, managers, shareholders, and spells out the rules and procedures for making decisions on corporate affairs.

Corporate Responsibility
y Moral commitments to consumer safety, environmental care and y y y y y y

working conditions. The core tasks of business lie in creating excellent in the areas it can master itself. Improving inner production process to meet a broader concept of quality. To satisfy genuine consumer requirements. Constant effort in TQM. It should balance corporate responsibility with moral concerns. It consists of wise planning and showing extreme care and skill on actions.

y Brain power and thinking power in humans. y Development of language and symbols to express, thoughts, y y y y y

idea and view. Humans organize themselves according to self made rules. Humans can be educated and trained. Human beings are culturally shaped. Our personality is shaped by our culture. Capability to make choice freely. We integrate education and experiences. Capable of conscious behavior.

Balanced Concept of Freedom
y It includes two basic assumptions for free choice: y Action results from a personal choice or deliberate will.

We are responsible for our actions. People have conscious will that enable us to say ¶ I choose to do it.· y Importance of well informed choice. The free choice is not blind or uninformed but based on valid understanding of the possibilities.

y It needed to understand the responsible behavior

by individuals. y Both constituents of free choice need to be respected. y External factors should not be overlooked. y Free choice to be personal and well informed.

y Freedom is ability to choose autonomously while

considering the given circumstances (internal and external) with its opportunities and limitations.
y Balanced concept contains the liberty to think, behave

and perform with fundamental aspects like responsibility, accountability and commitment towards society.
y This liberty should not affect the framework and set

norms of society.

The surrounding circumstances: Six spheres of life
1. The individual person 2. The primary group 3. The groups and organization they participate in 4. Our common future as mankind 5. Life on earth 6. The physical universe

Individual Responsibility
y A person is not only responsible for his plans and activities,

but to a certain extent he can also be held responsible for the subsequent events and resulting harm and damage.
y Provided that:
y The person acted willingly and knowingly, and he was able to

foresee this possible outcome. y Any person would be able to forecast that the intentions and the course of action might result in certain damage or harm.

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