CORPORATE CULTURE & ETHICAL BEHAVIOUR
what is it?
shared meanings, values and beliefs that are created and communicated within an organisation
a framework which provides direction on issues such as how work gets done, how the organisation achieves success and sets standards for interaction
set of company rules, the mission statement and corporate objectives, or even a set of common values : complex mix of factors that combine together to form the prevailing culture of the organisation
includes
unwritten rules
assumptions about expected behaviour
styles and attitudes formed from national culture
prevailing orthodoxies/ moralities in the society and its environment
components
visible aspects
attitude of the staff
common corporate objectives
staff handbook and its policies
management styles and how it affects employees
hidden aspects
national culture
unwritten rules
institutional morals and prejudices
visible aspects
espoused values
not financial goals but commitments towards stakeholders
overt values of the company (public)
artefacts
the visible manifestation of the espoused values
policies and procedures for the staff
hierarchical structure
arrangements for management supervision
hidden aspects
unwritten rules
can derive from the prevailing national culture or from unwritten laws of business
not necessarily only bad things
unspoken consensus within the workforce that everyone understands - part of the way things are done
individuals and corporate culture
dysfunctional behaviour is a personal thing- organisations don't commit fraud people within the organisation do
human frailties under stress + propensity for irrational behaviour & emotional reactions = difficult to guarantee ethical behaviour
organisational climate and prevailing culture and value have an effect on the employee
rationalising unethical behaviour
denial of responsibility
denial of injury
acceptable
denial of victim
appeal to higher loyalty
entitlement
invidious comparison
individuals claim they have little choice but to act unethically
claims that what they did was a 'victimless crime' so it was not corrupt
individuals claim that unethical behaviour is normal in their industry
the effect of the corrupt action is sees as being the victim's fault- not a result of the unethical behaviour
the actions are justified as they are part of a process much higher order value
individuals justify immoral acts by believing they have 'earned' it
individuals compare themselves with others e.g 'others are worse than we are'
dysfunctional acts by individuals
deliberate deception
violation of conscience e.g a manager engages in unethical behaviour and forces its collaborators to do the same
failure to honor commitments
unlawful conduct
what influences individuals' unethical behaviour
corporate culture
personal feelings
level of corporate internal control