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?