Organizational Culture
• Def: the set of values,
beliefs, understandings
and ways of thinking
that are shared by org
members & taught to
new members as
correct
• Surface level
• Underlying level
Interpreting Culture
• Rites & Ceremonies
- expressive events
• Stories
- history & folklore
• Symbols
- deeper values
• Language
- ingroup vocabulary
Ethical Issues in Business
• Ethics: the study of
morals and principles
of conduct
• Right vs. Wrong
• Human consequences
associated with
decisions and actions
• Higher standards than
prescribed by the law
Sources of Ethical Values
• Personal Ethics
- two frame works
• Org Culture
• Org Systems
- code of ethics
• External Stakeholders
- gov’t, customers,
environmental groups
Ethical Frameworks
• The Ethical / Legal
Framework:
• When are actions legal
but unethical, or
illegal but still ethical?
• The Moral Philosophy
Framework:
• What are underlying
assumptions?
The Ethical / Legal Framework
• Legal+Ethical? Do it!
• Illegal+Unethical?
Don’t do it!
• But… legal, but
unethical?
• Or… illegal, but
ethical?
• Ethical dilemmas
The Moral Philosophy
Framework
•
•
•
•
1) Utilitarian:
Consequential theories
cost/benefit analysis
maximize ‘good’ and
minimize ‘harm’
• Limitations:
• Measurement issues
• Whose utility curve?
The Moral Philosophy
Framework
• 2) Categorical
Imperative:
• Rule-based theories
• Absolute or universal
law… Bible, Koran
• Limitations:
• Whose interpretation?
• Just following orders...
The Moral Philosophy
Framework
• 3) Cultural
Relativism:
• Cultural theories
• Situational ethics
• “When in Rome…do
as the Romans do.”
• Limitation:
• Which Romans?