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Chapter04-TheCorporateCulture—ImpactandImplications
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IMChapter4:
TheCorporateCulture—ImpactandImplications
ChapterObjectives
Afterreadingthischapter,youwillbeableto:
Definecorporateculture.
Explainhowcorporatecultureimpactsethicaldecisionmaking.
Discussthedifferencesbetweenacompliance-basedcultureandavalues-basedculture.
Discusstheroleofcorporateleadershipinestablishingtheculture.
Explainthedifferencebetweeneffectiveleadersandethicalleaders.
Discusstheroleofmissionstatementsandcodesincreatinganethicalcorporateculture.
Explainhowvariousreportingmechanismssuchasethicshotlinesandombudsmencanhelpintegrateethicswithinafirm.
Discusstheroleofassessing,monitoring,andauditingthecultureandethicsprogram.
Explainhowculturecanbeenforcedviagovernmentalregulation.
**TeachingNote:ThischaptercanbeintroducedbypickingupathemethatwaspresentedinChapter3.Ethicaldecision-makingbyindividualscanbebothencouragedanddiscouragedbythesocialcontextinwhichtheyoperate.Acorporateculturecanhavesignificantinfluenceonthedecisionmakingofallemployees,indeed,onallstakeholders.Therefore,acorporationhasaresponsibilitytocreateaculturethatwillsupportethicaldecision-makinganddeterunethicaldecisions.ThefollowingDecisionPointasksstudentstothinkaboutthisveryissue.
OpeningDecisionPoint
CreatinganEthicsProgram
ThisDecisionPointasksstudentstoimaginethattheyworkintheHumanResourcesdepartmentoftheircompanyandthattheCEOhasaskedtheHRdepartmenttodevelopanethicsprogramforthefirm.Theyhavebeenassignedtheresponsibilityofcreatingthisethicsprogramandhavetwoweekstocomeupwithadraftversionofacodeofethicsforthecompany
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