Lecture 3 Organizational Lecture 3 Organizational Culture And EthicsCulture And Ethics

蓬生麻中，不扶则直蓬生麻中，不扶则直

Main contentMain content

• The Manager: Omnipotent or SymbolicThe Manager: Omnipotent or Symbolic• The Organization’s CultureThe Organization’s Culture• The EnvironmentThe Environment （自学）（自学）• What is Social Responsibility?What is Social Responsibility?• Social Responsibility and Economic PerformanceSocial Responsibility and Economic Performance

（自学）（自学）★★ The Greening of ManagementThe Greening of Management （自学）（自学）★★ Values-Based ManagementValues-Based Management★★ Managerial EthicsManagerial Ethics

Learning outline1Learning outline1

• The Manager: Omnipotent or SymbolicThe Manager: Omnipotent or Symbolic• Contrast the action of manager according to the Contrast the action of manager according to the

omnipotent and symbolic views.omnipotent and symbolic views.• Explain the parameters of managerial discretion.Explain the parameters of managerial discretion.

• The Organization’s CultureThe Organization’s Culture• Describe the seven dimensions of organizational Describe the seven dimensions of organizational

culture.culture.• Discuss the impact of a strong culture on Discuss the impact of a strong culture on

organizations and managers.organizations and managers.• Explain the source of an organization’s culture.Explain the source of an organization’s culture.• Describe how culture is transmitted to employees.Describe how culture is transmitted to employees.• Describe how culture affects managersDescribe how culture affects managers

Learning outline2Learning outline2

• The Environment The Environment

• Describe the components of the specific Describe the components of the specific and general environments.and general environments.

• Discuss the two dimensions of Discuss the two dimensions of environmental uncertainty.environmental uncertainty.

• Identify the most common organizational Identify the most common organizational stakeholders.stakeholders.

• Explain the four steps in managing Explain the four steps in managing external stakeholder relationships.external stakeholder relationships.

Learning outline3Learning outline3

What is Social Responsibility?What is Social Responsibility?• Contrast the classical and socioeconomic views of social responsibility.Contrast the classical and socioeconomic views of social responsibility.• Discuss the role that stakeholders play in the four stages of social responDiscuss the role that stakeholders play in the four stages of social respon

sibility.sibility.• Differentiate between social obligation, social responsiveness, and social Differentiate between social obligation, social responsiveness, and social

responsibility.responsibility.

Social Responsibility and Economic PerformanceSocial Responsibility and Economic Performance• Explain what research studies have shown about the relationship betweeExplain what research studies have shown about the relationship betwee

n an organization’s social involvement and its economic performance.n an organization’s social involvement and its economic performance.• Define social screening.Define social screening.• Explain what conclusion can be reached regarding social responsibility aExplain what conclusion can be reached regarding social responsibility a

nd economic performance.nd economic performance.

Learning outline4Learning outline4

The Greening of ManagementThe Greening of Management• Describe how organizations can go green.Describe how organizations can go green.• Relate the approaches to being green to the concepts Relate the approaches to being green to the concepts

of social obligation, social responsiveness, and social of social obligation, social responsiveness, and social responsibility.responsibility.

Values-Based ManagementValues-Based Management• Discuss what purposes shared values serve.Discuss what purposes shared values serve.• Describe the relationship of values-based management Describe the relationship of values-based management

to ethics.to ethics.

Managerial EthicsManagerial Ethics• Discuss the factors that affect ethical and unethical Discuss the factors that affect ethical and unethical

behavior.behavior.• Describe the important roles managers play in Describe the important roles managers play in

encouraging ethical behavior.encouraging ethical behavior.

思考题思考题

• ““ 上下同欲者胜”是一种怎样的企业文化氛围？上下同欲者胜”是一种怎样的企业文化氛围？举实例说明。举实例说明。

• 马太效应的解决对于组织而言凭借的是什么？马太效应的解决对于组织而言凭借的是什么？• ““ 顾客需要就是我们努力的方向”对否？为何？顾客需要就是我们努力的方向”对否？为何？• ““ 以直报怨，以德报德”是一种怎样的组织社会以直报怨，以德报德”是一种怎样的组织社会

责任观？责任观？

The Manager: Omnipotent or The Manager: Omnipotent or Symbolic?Symbolic?• Omnipotent (Omnipotent ( 全能的）全能的） View of ManagementView of Management

– Managers are directly responsible for an organizatiManagers are directly responsible for an organization’s success or failure.on’s success or failure.

– The quality of the organization is determined by thThe quality of the organization is determined by the quality of its managers.e quality of its managers.

– Managers are held accountable Managers are held accountable for an organization’s performance for an organization’s performance yet it is difficult to attribute yet it is difficult to attribute good or poor performance good or poor performance directly to their influence directly to their influence on the organization.on the organization.

The Manager: Omnipotent or The Manager: Omnipotent or Symbolic?Symbolic?• Symbolic View of ManagementSymbolic View of Management

– Much of an organization’s success or failure is due Much of an organization’s success or failure is due to external forces outside of managers’ control.to external forces outside of managers’ control.

– The ability of managers to affect outcomes is influeThe ability of managers to affect outcomes is influenced and constrained by external factors.nced and constrained by external factors.• The economy, customers, governmental policies, competiThe economy, customers, governmental policies, competi

tors, industry conditions, tors, industry conditions, technology, and the actions of technology, and the actions of previous managersprevious managers

– Managers symbolize control and Managers symbolize control and influence through their action.influence through their action.

Exhibit 3–1Exhibit 3–1 Parameters of Managerial DiParameters of Managerial Discretionscretion （自行决定权）（自行决定权）

思考题思考题

• 张瑞敏说过：现在的我是“如履薄冰，战张瑞敏说过：现在的我是“如履薄冰，战战兢兢”，请从管理者决策的角度进行分战兢兢”，请从管理者决策的角度进行分析。析。

• 唐太宗因为深明“水可载舟，亦可覆舟”唐太宗因为深明“水可载舟，亦可覆舟”之理成为史上明君之一，请从组织文化与之理成为史上明君之一，请从组织文化与所在环境两个方面进行分析，你认为管理所在环境两个方面进行分析，你认为管理者自动限制自己的权力对否，为何？者自动限制自己的权力对否，为何？

The Organization’s CultureThe Organization’s Culture

• Organizational CultureOrganizational Culture– A system of shared meanings and common beliefs held by orgA system of shared meanings and common beliefs held by org

anizational members that determines, in a large degree, how anizational members that determines, in a large degree, how they act towards each other.they act towards each other.

– ““The way we do things around here.”The way we do things around here.”• Values, symbols, ritualsValues, symbols, rituals （程序）（程序） , myths, myths （（ story), and practicesstory), and practices

– Implications:Implications:• Culture is a perception (the way you notice something,Culture is a perception (the way you notice something, 感知感知 ) .) .• Culture is shared.Culture is shared.• Culture is descriptive (describing) .Culture is descriptive (describing) .

海尔生产车间海尔生产车间

Exhibit 3–2Exhibit 3–2 Dimensions of Dimensions of Organizational CultureOrganizational Culture

Strong versus Weak Strong versus Weak CulturesCultures• Strong CulturesStrong Cultures

– Are cultures in which key values are deeply Are cultures in which key values are deeply held and widely held.held and widely held.

– Have a strong influence on organizational Have a strong influence on organizational members.members.

• Factors Influencing the Strength of CultureFactors Influencing the Strength of Culture– Size of the organizationSize of the organization– Age of the organizationAge of the organization– Rate of employee turnoverRate of employee turnover– Strength of the original cultureStrength of the original culture– Clarity of cultural values and beliefsClarity of cultural values and beliefs

Benefits of a Strong CultureBenefits of a Strong Culture

• Creates a stronger employee commitmeCreates a stronger employee commitment to the organization.nt to the organization.

• Aids in the recruitment and socialization Aids in the recruitment and socialization of new employees.of new employees.

• Fosters higher organizational Fosters higher organizational performance by instilling and performance by instilling and promoting employee initiative.promoting employee initiative.

Organizational CultureOrganizational Culture

• Sources of Organizational CultureSources of Organizational Culture– The organization’s founderThe organization’s founder

• Vision and missionVision and mission– Past practices of the organizationPast practices of the organization

• The way things have been doneThe way things have been done– The behavior of top management The behavior of top management

• Continuation of the Organizational CultureContinuation of the Organizational Culture– Recruitment of like-minded employees who “fit”Recruitment of like-minded employees who “fit”– SocializationSocialization of new employees to help them adap of new employees to help them adap

t to the culturet to the culture

Exhibit 3–4Exhibit 3–4 Strong versus Weak Strong versus Weak Organizational CulturesOrganizational Cultures

微软强势文化的缔造者微软强势文化的缔造者

• StoriesStories– Narratives of significant events or actions of people that Narratives of significant events or actions of people that

convey the spirit of the organizationconvey the spirit of the organization

• RitualsRituals– Repetitive sequences of activities that express and Repetitive sequences of activities that express and

reinforce the values of the organizationreinforce the values of the organization

• Material SymbolsMaterial Symbols– Physical assets distinguishing the organizationPhysical assets distinguishing the organization

• LanguageLanguage– Acronyms and jargon of terms, phrases, and word Acronyms and jargon of terms, phrases, and word

meanings specific to an organizationmeanings specific to an organization

How Employees Learn How Employees Learn CultureCulture

How Culture Affects How Culture Affects ManagersManagers• Cultural Constraints on ManagersCultural Constraints on Managers

– Whatever managerial actions the organization Whatever managerial actions the organization recognizes as proper or improper on its behalfrecognizes as proper or improper on its behalf

– Whatever organizational activities the Whatever organizational activities the organization values and encouragesorganization values and encourages

– The overall strength or weakness of the The overall strength or weakness of the organizational cultureorganizational culture

Simple rule for getting ahead in an organization:Simple rule for getting ahead in an organization:Find out what the organization rewards and do Find out what the organization rewards and do

those things.those things.

Exhibit 3–5Exhibit 3–5 How an How an Organization’s Culture Is Organization’s Culture Is Established and MaintainedEstablished and Maintained

华为和海尔的建筑所表达的文化有华为和海尔的建筑所表达的文化有区别吗？区别吗？

Review QuestionsReview Questions

• How can managers effect organization cHow can managers effect organization culture?ulture?

• 企业家文化和企业文化的区别和联系是什企业家文化和企业文化的区别和联系是什么？么？

• 你最推崇的企业文化是什么？为什么？你你最推崇的企业文化是什么？为什么？你认为这家企业的文化有哪些要完善的吗？认为这家企业的文化有哪些要完善的吗？

Defining the External EnvironmenDefining the External Environmentt （自学）（自学）• External EnvironmentExternal Environment

– Those factors and forces outside the organization tThose factors and forces outside the organization that affect the organization’s performance. hat affect the organization’s performance.

• Components of the External EnvironmentComponents of the External Environment– Specific environment:Specific environment: external forces that have a external forces that have a

direct and immediate impact on the organization.direct and immediate impact on the organization.– General environment:General environment: broad economic, socio-cult broad economic, socio-cult

ural, political/legal, demographic, technological, aural, political/legal, demographic, technological, and global conditions that nd global conditions that maymay affect the organizati affect the organization.on.

Exhibit 3–9Exhibit 3–9 The External EnvironmentThe External Environment

How the Environment Affects How the Environment Affects ManagersManagers

• Environmental UncertaintyEnvironmental Uncertainty– The extent to which managers have knowledge of aThe extent to which managers have knowledge of a

nd are able to predict change their organization’s nd are able to predict change their organization’s external environment is affected by:external environment is affected by:• Complexity of the environment:Complexity of the environment: the number of compon the number of compon

ents in an organization’s external environment.ents in an organization’s external environment.

• Degree of change in environmental components:Degree of change in environmental components: how d how dynamic or stable the external environment is.ynamic or stable the external environment is.

Exhibit 3–11 Environmental Uncertainty Exhibit 3–11 Environmental Uncertainty Matrix (self-study)Matrix (self-study)

Stakeholder RelationshipsStakeholder Relationships

• StakeholdersStakeholders– Any constituencies(Any constituencies( 选区的选民） 选区的选民） in the organizatioin the organizatio

n’s environment that are affected by the organizatin’s environment that are affected by the organization’s decisions and actionson’s decisions and actions

• Why Manage Stakeholder Relationships?Why Manage Stakeholder Relationships?– It can lead to improved organizational performance.It can lead to improved organizational performance.– It’s the “right” thing to do given the interdependIt’s the “right” thing to do given the interdepend

ence of the organization and its external stakeholdeence of the organization and its external stakeholders.rs.

1.1. Identify the organization’s external stakehoIdentify the organization’s external stakeholders.lders.

2.2. Determine the particular interests and conceDetermine the particular interests and concerns of the external stakeholders.rns of the external stakeholders.

3.3. Decide how critical each external stakeholdeDecide how critical each external stakeholder is to the organization.r is to the organization.

4.4. Determine how to manage each individual eDetermine how to manage each individual external stakeholder relationship.xternal stakeholder relationship.

Managing Stakeholder Managing Stakeholder RelationshipsRelationships

Exhibit 3–12Exhibit 3–12 Organizational StakeholdersOrganizational Stakeholders

思考题思考题

• 组织对于“利益相关者”应持有何种态度？组织对于“利益相关者”应持有何种态度？• 当媒体“误解”了组织的时候，该如何处当媒体“误解”了组织的时候，该如何处

之？之？• 组织应该怎样和“利益相关者”保持良好组织应该怎样和“利益相关者”保持良好

的关系？的关系？

What Is Social What Is Social Responsibility?Responsibility?• The Classical ViewThe Classical View

– Management’s only social responsibility is to maxManagement’s only social responsibility is to maximize profits (create a financial return) by operatinimize profits (create a financial return) by operating the business in the best interests of the stockholdg the business in the best interests of the stockholders (owners of the corporation).ers (owners of the corporation).

– Expending the firm’s resources on doing “social Expending the firm’s resources on doing “social good” unjustifiably increases costs that lower profgood” unjustifiably increases costs that lower profits to the owners and raises prices to consumers.its to the owners and raises prices to consumers.

What Is Social Responsibility? What Is Social Responsibility? (cont’d)(cont’d)

• The Socioeconomic ViewThe Socioeconomic View– Management’s social responsibility goes beyond Management’s social responsibility goes beyond

making profits to include protecting and improving making profits to include protecting and improving society’s welfare.society’s welfare.

– Corporations are not independent entities(Corporations are not independent entities( 实体） 实体） responsible only to stockholders.responsible only to stockholders.

– Firms have a moral responsibility to larger society tFirms have a moral responsibility to larger society to become involved in social, legal, and political isso become involved in social, legal, and political issues.ues.

– ““To do the right thing”To do the right thing”

Exhibit 5–1Exhibit 5–1 To Whom is To Whom is Management Responsible?Management Responsible?

Greed and ContributionGreed and Contribution

Exhibit 5–2Exhibit 5–2 Arguments For and Arguments For and Against Social ResponsibilityAgainst Social Responsibility

• ForFor– Public expectationsPublic expectations– Long-run profitsLong-run profits– Ethical obligationEthical obligation– Public imagePublic image– Better environmentBetter environment– Discouragement of Discouragement of

further governmental further governmental regulationregulation

– Balance of responsibility Balance of responsibility and powerand power

– Stockholder interestsStockholder interests– Possession of resourcesPossession of resources– Superiority of prevention Superiority of prevention

over cureover cure

• AgainstAgainst– Violation of profit Violation of profit

maximizationmaximization– Dilution of purposeDilution of purpose– CostsCosts– Too much powerToo much power– Lack of skillsLack of skills– Lack of Lack of

accountabilityaccountability

奶粉该向谁负责？奶粉该向谁负责？

From Obligation to From Obligation to Responsiveness to Responsiveness to ResponsibilityResponsibility• Social ObligationSocial Obligation

– The obligation of a business to meet its economic aThe obligation of a business to meet its economic and legal responsibilities and nothing more.nd legal responsibilities and nothing more.

• Social ResponsivenessSocial Responsiveness– When a firm engages in social actions in response tWhen a firm engages in social actions in response t

o some popular social need. o some popular social need. • Social ResponsibilitySocial Responsibility

– A business’s intention, beyond its legal and econoA business’s intention, beyond its legal and economic obligations, to do the right things and act in wamic obligations, to do the right things and act in ways that are good for society.ys that are good for society.

Exhibit 5–3Exhibit 5–3 Social Responsibility Social Responsibility versus Social Responsivenessversus Social Responsiveness

Social Responsibility Social Responsiveness

Major consideration Ethical Pragmatic( 实用主义）

Focus Ends Means

Emphasis Obligation （义务） Responses

Decision framework Long term Medium and short term

Source: Adapted from S.L. Wartick and P.L. Cochran, “The Evolution of the Corporate Social Performance Model,” Academy of Management Review, October 1985, p. 766.

Does Social Responsibility Pay?Does Social Responsibility Pay?（自学）（自学）• Studies appear to show a positive relationship Studies appear to show a positive relationship

between social involvement and the economic between social involvement and the economic performance of firms.performance of firms.– Difficulties in defining and measuring “social respDifficulties in defining and measuring “social resp

onsibility” and “economic performance raise issuonsibility” and “economic performance raise issues of validity and causation in the studies.es of validity and causation in the studies.

– Mutual funds using social screening in investment Mutual funds using social screening in investment decisions slightly outperformed other mutual funddecisions slightly outperformed other mutual funds.s.

• A general conclusion is that a firm’s social acA general conclusion is that a firm’s social actions do not harm its long-term performance.tions do not harm its long-term performance.

The Greening of ManagementThe Greening of Management（自学）（自学）

• The recognition of the close link between an orThe recognition of the close link between an organization’s decision and activities and its imganization’s decision and activities and its impact on the natural environment.pact on the natural environment.– Global environmental problems facing managers:Global environmental problems facing managers:

• Air, water, and soil pollution from toxicAir, water, and soil pollution from toxic （（ poisonous) wastpoisonous) wasteses

• Global warming from greenhouse gas emissionsGlobal warming from greenhouse gas emissions （排放物）（排放物）• Natural resource depletion(Natural resource depletion(耗损）耗损）

How Organizations Go GreenHow Organizations Go Green－－－－组织如何走向绿色？（自学）组织如何走向绿色？（自学）• Legal (or Light Green) ApproachLegal (or Light Green) Approach

– Firms simply do what is legally required by obeying laws, ruleFirms simply do what is legally required by obeying laws, rules, and regulations willingly and without legal challenge.s, and regulations willingly and without legal challenge.

• Market ApproachMarket Approach– Firms respond to the preferences of their customers for envirFirms respond to the preferences of their customers for envir

onmentally friendly products.onmentally friendly products.• Stakeholder ApproachStakeholder Approach

– Firms work to meet the environmental demands of multiple sFirms work to meet the environmental demands of multiple stakeholderstakeholders——employees, suppliers, and the community.employees, suppliers, and the community.

• Activist ApproachActivist Approach– Firms look for ways to respect and preserve environment and Firms look for ways to respect and preserve environment and

be actively socially responsible.be actively socially responsible.

Exhibit 5–5Exhibit 5–5 Approaches to Being Approaches to Being GreenGreen

Source: Based on R.E. Freeman. J. Pierce, and R. Dodd. Shades of Green: Business Ethics and the Environment (New York: Oxford University Press, 1995).

Values-Based ManagementValues-Based Management

• Values-Based ManagementValues-Based Management– An approach to managing in which managers establish and uAn approach to managing in which managers establish and u

phold an organization’s shared values.phold an organization’s shared values.• The Purposes of Shared ValuesThe Purposes of Shared Values

– Guiding managerial decisionsGuiding managerial decisions– Shaping employee behaviorShaping employee behavior– Influencing the direction of marketing effortsInfluencing the direction of marketing efforts– Building team spiritBuilding team spirit

• The Bottom Line on Shared Corporate ValuesThe Bottom Line on Shared Corporate Values– An organization’s values are reflected in the decisions and aAn organization’s values are reflected in the decisions and a

ctions of its employees.ctions of its employees.

个人应该如何进行价值的创造？个人应该如何进行价值的创造？

Exhibit 5–6Exhibit 5–6 Purposes of Shared Purposes of Shared ValuesValues

Managerial EthicsManagerial Ethics

• Ethics DefinedEthics Defined– Principles, values, and beliefs that define wPrinciples, values, and beliefs that define w

hat is right and wrong behavior.hat is right and wrong behavior.

Exhibit 5–8Exhibit 5–8 Factors That Affect Ethical Factors That Affect Ethical and Unethical Behaviorand Unethical Behavior

Factors That Affect Employee Factors That Affect Employee EthicsEthics• Moral DevelopmentMoral Development

– A measure of independence from outside influencesA measure of independence from outside influences• Levels of Individual Moral DevelopmentLevels of Individual Moral Development

– Preconventional levelPreconventional level– Conventional levelConventional level– Principled levelPrincipled level

– Stage of moral development interacts with:Stage of moral development interacts with:• Individual characteristicsIndividual characteristics• The organization’s structural designThe organization’s structural design• The organization’s cultureThe organization’s culture• The intensity of the ethical issueThe intensity of the ethical issue

Exhibit 5–9Exhibit 5–9 Stages of Moral Stages of Moral DevelopmentDevelopment

Source: Based on L. Kohlberg, “Moral Stages and Moralization: The Cognitive-Development Approach,” in T. Lickona (ed.). Moral Development and Behavior: Theory, Research, and Social Issues (New York: Holt, Rinehart & Winston, 1976), pp. 34–35.

Factors That Affect Employee Factors That Affect Employee Ethics (cont’d)Ethics (cont’d)

• Moral DevelopmentMoral Development– Research Conclusions:Research Conclusions:

•People proceed through the stages of moral devPeople proceed through the stages of moral development sequentially.elopment sequentially.

•There is no guarantee of continued moral develoThere is no guarantee of continued moral development.pment.

•Most adults are in Stage 4 (“good corporate citiMost adults are in Stage 4 (“good corporate citizen”).zen”).

Individual Characteristics Individual Characteristics Affecting Ethical BehaviorsAffecting Ethical Behaviors• ValuesValues

– Basic convictionsBasic convictions （（ a strong belief) about what is right or wroa strong belief) about what is right or wrong on a broad range of issuesng on a broad range of issues

• Personality VariablesPersonality Variables– Ego strengthEgo strength

• A personality measure of the strength of a person’s convictionsA personality measure of the strength of a person’s convictions– Locus of ControlLocus of Control

• A personality attribute that measures the degree to which peoplA personality attribute that measures the degree to which people believe they control their own life.e believe they control their own life.

• Internal locus:Internal locus: the belief that you control your destiny( the belief that you control your destiny( 命运）命运） ..• External locus:External locus: the belief that what happens to you is due to luc the belief that what happens to you is due to luc

k or chance.k or chance.

Other VariablesOther Variables

• Structural VariablesStructural Variables– Organizational characteristics and mechanisms thaOrganizational characteristics and mechanisms tha

t guide and influence individual ethics:t guide and influence individual ethics:• Performance appraisal systemsPerformance appraisal systems• Reward allocation systemsReward allocation systems• Behaviors (ethical) of managersBehaviors (ethical) of managers

• An Organization’s CultureAn Organization’s Culture• Intensity of the Ethical IssueIntensity of the Ethical Issue

丰田公司的道歉丰田公司的道歉

Exhibit 5–10Exhibit 5–10 Determinants of Issue Determinants of Issue IntensityIntensity

TEAM WORKTEAM WORK

• Can you be a socially responsible person and still worCan you be a socially responsible person and still work for a company whose products can injure and even kk for a company whose products can injure and even kill people? (Think of alcohol manufacturers, tobacco cill people? (Think of alcohol manufacturers, tobacco companies, firearms companies, and even food manufompanies, firearms companies, and even food manufacturers whose products have high fat content.) acturers whose products have high fat content.)

• Does the typical business executive have two sets of stDoes the typical business executive have two sets of standards—one for business activities and another for handards—one for business activities and another for his/her personal life? Do you agree to this view?is/her personal life? Do you agree to this view?

• ““What Do I Value?” ,What Do I Value?” ,“What Rewards Do I Value “What Rewards Do I Value Most?”Most?” , ,“What’s the Right Organizational Culture “What’s the Right Organizational Culture for Me?”for Me?” please consider 3 questions and tell us and r please consider 3 questions and tell us and reasons. easons.