CULTURE AND ETHICS

BUSINESS ETHICS

WHAT IS RIGHT AND WHAT IS WRONG

GOLDEN RULEAct in a way you would expect to act Towards you PROFESSIONAL ETHIC Take actions that would be viewed as proper by a disinterested panel of professional peers UTILITARIAN APPROACH Act in a way that results in the greatest good for the greatest number of people

BUSINESS ETHICS-WHAT IT REALLY MEANS???

DEFINITION Ethics involves a discipline that evolves good or bad practices within the context of a moral duty BUSINESS ETHICS include practices and behaviors carried out businesses that are either good or bad

TWO KEY BRANCHES OF ETHICS

DESCRIPTIVE ETHICS Involves describing ,characterizing and studying morality WHAT IS NORMATIVE ETHICS Supplying and justifying moral systems WHAT SHOULD BE

ELEMENTS OF BUSINESS ETHICS

DUTIES

RIGHTS

THEORY OF ETHICS MORALITY V/S AMMORALITY

IMPORTANCE OF ETHICS IN BUSINESS

Ethics correspond to basic business needs Value creates credibility with the public Ethics and profit go together Ethics help in better decision making

SOCIETAL COSTS OF UNETHICAL BEHAVIOUR

Law enforcement and security problems Need for physical protection

Welfare costs
Wasted investment funds Lack of investment from outside investors

BUSINESS COSTS OF UNETHICAL BEHAVIOUR

Loss of physical assets Loss of customers(specially those who value ethics) Loss of reputation

Increased legal costs

Loss of investors

CULTURE

A POPULAR VIEW OF CULTURE

Culture is all about food, language, dress, customs, holidays, etc.

What Is Organizational Culture?

Organizational Culture
A common perception held by the organizations members; a system of shared meaning.

1.

2. 3. 4. 5. 6. 7.

Characteristics: Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability

Do Organizations Have Uniform Cultures?

Dominant Culture :-

Expresses the core values that are shared by a majority of the organizations members

Subcultures :Minicultures within an organization, typically defined by department designations and geographical separation.

Do Organizations Have Uniform Cultures? (contd)

Core Values :-

The primary or dominant values that are accepted throughout the organization.

Strong Culture :-

A culture in which the core values are intensely held and widely shared.

What Do Cultures Do?

Cultures Functions:

1.

Defines the boundary between one organization and others.

Conveys a sense of identity for its members.

2.

3.

Facilitates the generation of commitment to something larger than self-interest.

Enhances the stability of the social system. Serves as a sense-making and control mechanism for fitting employees in the organization.

4. 5.

What Do Cultures Do?

Culture as a Liability:

1.
2.

Barrier to change.
Barrier to diversity

3.

Barrier to acquisitions and mergers

How Organization Cultures Form

How Organizational Cultures Have an Impact on Performance and Satisfaction

Positive Aspects of an Organizational Culture

Guides decision making Provides identity for members Amplifies commitment Guides employee behavior Provides justification for actions

Types of Cultures

The Clan Culture The Hierarchy Culture The Adhocracy Culture The Market Culture

CULTURE AND ETHICS

GEERT HOFSTEDES CULTURAL DIMENSIONS

Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." - Prof. Geert Hofstede It gives us insights into other cultures so that we can be more effective when interacting with people in other countries. If understood and applied properly, this information should reduce the level of frustration, anxiety, and concern. It gives you the 'edge of understanding' which translates to more successful results.

The Dimensions Are :

Power Distance
Uncertainty Avoidance Individualism/Collectivism

Femininity/Masculinity

Power Distance

The extent to which less powerful, members of institutions and organizations accept that power is distributed unequally.

Uncertainty Avoidance

The extent to which members are intolerant of ambiguity and rely on formal rules

Individualism/Collectivism

The tendency of people to look after themselves and their immediate family versus belonging to groups or collectives and looking after each other in exchange for loyalty

Masculinity/Feminity

Values concerning work goals and assertiveness (masculinity) as opposed to personal goals (getting along, having friendly atmosphere) and nurturance (femininity).
A

proxy for assertiveness

High:

Brazil, Chile, Sweden Low: Japan, Mexico

CASE STUDY

CULTURE / ETHICS
VIDEO ANALYSIS KARANA PANDYA

Mike Bucci on Culture's Impact on Corporate Ethics and Communication.mp4

How the Culture affect the Ethics in the corporate world

Every county has their own culture We can not blame their culture. Cultural difference that arises out of their Ethical norms makes their business techniques different