Corporate culture A blend of ideas, customs, traditional practices, organizational values and shared...
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Transcript of Corporate culture A blend of ideas, customs, traditional practices, organizational values and shared...
Corporate culture
A blend of ideas, customs, traditional practices,
organizational values and shared meanings that help define normal
behavior for everyone who works in a company
“The accepted way of thinking, feeling, and acting in an organization”
“Shared beliefs about what is important and how things are done”
“Social glue that binds members of the organization together through shared values, symbolic devices, and shared ideals”
Artifacts: What can you see & hear?
Symbols Slogans/mottos/credos Rituals Stories Dress code Layout of space Technology used
Observable
Espoused values: How the organization wants to operate
Rules/regulations Policies Code of conduct Strategies Goals Philosophies Ethical climate: The unspoken understanding
among employees of what is and is not acceptable behavior.
Somewhat observable
Assumptions and beliefs
Perceptions Thoughts Feelings
Not observable
Functions of Organizational Culture
Behaviorial control
Establishes Organizational Identity
Fosters Commitment
Promotes Stability •Expectations (norms and rules) and what to
anticipate and how to behave
Types of culture
Strong Weak
Judgment Communication Impact Curiosity Innovation Courage Passion Honesty Selflessness
Foundation of a strong culture?
Ethical leaders!
“In thought, word and deed, a company’s leaders must clearly and unambiguously both advocate and model ethical behavior.” -CEO, Merck
What are the traits of an ethical leader?
Difference between good and ethical
Character
Who do you think of when you think of character?
Character
Consistency between what you say you will do and
what you actually do.
Character
The actions you take to carry out the ethics and morals that you believe in.
Defines, builds, or breaks your reputation.
Who you are and what you do when no one
is looking.
Character v. competence
Modern education has placed more emphasis on competence than character
Not mutually exclusive
Building businesses of character
Think about what you stand for and what you want to be known for: apply that to your job
Make talking about values/character ok
Reward those utilizing their values/character
It’s FREE
Defining moments
There is a lot @ stake for everyone
Steve Lewis
Kathryn McNeil
Uclaf (RU-486)
Have you been (un)lucky enough to have one?
Choose action in your decision-making process!
Clarify the ethical issue
Create alternatives (via moral imagination)
Don’t judge alternative
Critical thought shuts down creative thought
Evaluate alternatives
According to your character
“Capitalism with a social conscious”
Radical Chocolate
Nothing like Chocolate
What’s going on @ GCC?
Team Accion…?
GCC culture
What are their artifacts?
Espoused values?
Assumptions and beliefs?
Expand? Stay the same? Some other option?
We can’t assume everyone will be ethical all of the the time so… sometimes you have to
regulate.
Sarbanes-Oxley Act 2002
A Public Company Accounting Oversight Board is established.
The firms are not permitted to offer loans to its executive officers or board of directors.
SEC rules will create guidelines for internal controls and financial reporting procedures.
ERISA penalties are increased from $5,000 to $100,000 and one year in prison to $100,000 to $500,000 and up to 10 years in prison.
Sarbanes-Oxley Act 2002
The firm’s audit committee is entrusted with auditor oversight and with all independent directors on the committee
Certain nonaudit services by auditors to clients are banned, nonaudit services must be preapproved by the audit committee, the lead auditor must be rotated every five years, and auditors report to the audit committee.
The CEO and CFO must sign off on financial statements as accurate and fair and must repay bonuses if a restatement of financials is undertaken.
U.S Corporate Sentencing Guidelines: Directives
Establish standards and procedures to reduce criminal conduct
Assign high-level officer(s) responsibility for compliance
Not assign discretionary authority to “risky” individuals
Enforce standards and procedures through disciplinary mechanisms
Following direction of offense, respond appropriately and prevent reoccurrence
U.S Corporate Sentencing Guidelines
Effectively communicate standards and procedures through training
Take reasonable steps to ensure compliance-monitor and audit systems, maintain and publicize reporting systems
Ethics Codes/Policies in Organizations: How to
1. The code is about corporate culture
-What lines can’t be crossed?2. Get input
-From ALL levels3. Don’t be too specific or too vague4. Watch out for pitfalls
-Nepotism, harassment, discrimination5. Ask experts (HR, ethicist, lawyer)6. Put someone in charge
-Who applies and updates?
In order to comply…
Codes of ethics exist in each of your chosen fields:
-Accounting (AICPA, IFAC, Code of Ethics for Professional Accountants)
-Finance (FPA, NAPFA)-Marketing (AMA, BMA)-Information Technology (Association of IT
Professionals)
What do your company’s codes look like?
Standard? Unique? Do they work very well? Do they not work at all? What single change would you make?
Creating a culture of ethical leaders
Ethics committees Ethics officers/ombudspersons Hot lines Ethics audits Corporate ethics awards
