.

Effective leaders and managers inspire cooperation

personal decision by creating faith in common
understanding faith in the probability of success , faith
in the ultimate satisfaction of personal motives and
faith in the integrity of common purpose.

Empathy.
Originality.
Integrity.
Courage.

Define and lead the social and ethical, as well as the competitive,
mission of organizations.
Build and sustain relationships with stakeholders.
Talk with stakeholders, showing interest and concern for others
need beyond the economic and utilitarian dimensions.
Demonstrate collaborations and trust in shared decision making
and strategy sessions.
Show awareness and concerns for employees and other
stakeholders in the policies and practices of the company.

Ethical blindness
Ethical muteness
Ethical incoherence
Ethical paralysis
Ethical hypocrisy
Ethical schizophrenia
Ethical complacency

MORE ETHICAL

LESS ETHICAL
Manipulator
(end-justifies
-means ethic)

Bureaucratic
Administrator
(rule ethic)

Professional
Manager
(social contract
Ethic)

Transforming
Leader
(personal ethic)

CEO Pay: Excessive or Earned?

CEO Evaluation.

ORGANISATIONAL CULTURE,
COMPLIANCE AND STAKEHOLDER
MANAGEMENT

Four elements that shape ethical

culture :

Ethical Leadership
Supervisor Reinforcement
Peer commitment to ethics
Embedded Ethical Values

ORGANISATIONAL CULTURE
MEASUREMENT
SYSTEMS

PEOPLE

VISION AND
STRATEGY

CULTURE

TECHNOLOGY

TECHNOLOGY

STRUCTURE

 A corporations culture is the shared values and

meanings its members hold in common, which are
articulated & practiced by an organisation.
Corporate culture is transmitted through :
The values and leadership styles that the leader espouse and
practice.
The heroes and heroines that the company rewards and
holds up as models.
The rites and symbols that organisation value.
The way that organizational executives and members
communicate among themselves and their stakeholders.

Traits and Values of strong Corporate

Cultures
Have widely shared philosophy
Value the importance of people
Have heroes (president & products) that
symbolise the success of the company.
Celebrate rituals which provide opportunities for
caring and sharing for developing a spirit of
oneness and we-ness.
From the stakeholder management view,
organisational system are aligned along the
purpose , ethical values ,and mission of the
company.

 Also , individuals and teams in ethical cultures

demonstrate a tolerance and respect for individual
differences, compassion , ability to forgive and accept ,
and freedom and courage to do the right thing in a
questionable situation.
the effect of enterprise wide cultural approach is very
significant and the misconduct reduces by threefourth.

High Ethics Companies

Mark Partin gave 4 principles based 25 high
ethics high profit companies he studied
Principle 1 : High ethics firms are at ease interacting
with diverse internal & external stakeholder.
Principle 2 : High ethics firms are obsessed with
fairness.
Principle 3 :In high firms responsibility is individual
rather than collective , individual assume
responsibility for the firms action
the high ethics firm sees its activities as having a
purpose , a way of operating that members of the
firm.

Weak Cultures
Companies that reinforce secrecy, hidden agendas , and physical
settings that isolate executives from managers and employees
status over human concern often are cultures in trouble.
Signs of week culture include the following:
An inward focus
A short-term focus
Morale and motivational problems
Emotional outbursts
Fragmentation and inconsistency
Clashes among subcultures
Ingrown subcultures

Dominance of subculture values

No clear values or beliefs
Many beliefs
Different beliefs
Destructive or disruptive cultural heroes
Disorganized or disruptive daily routines

Leading and Managing Strategy And

Structure
A corporation s strategy is propelled & supported
by its people stakeholder s ,culture & moral
contributions to its communities, customers &
society.
An organisation s influences legality ,morality,
innovation and competitiveness in the following
ways :
Strategy sets the overall direction of business activities.
Strategy reflects what management values and
prioritizes . It mirrors managements ethics and morality.
Strategy sets tone for business transactions.

Organisational Structure
Decentralised structures with little or no
coordination & central policy & procedures
encourages immoral activities.
Unrealistic , short term & bottom line profit
quotas add pressure on employees to commit
unethical actions.
Overemphasis on number driven financial
incentives encourages shortcuts
Amoral organisation & work unit cultures can
create an env. That condones illegal & immoral
action.