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OBS214 > Chapter 8 > Flashcards

Chapter 8 Flashcards

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1
Q

What is corporate culture?

A

Refers to the shared values, beliefs, norms and practices the shape how people behave and make decisions in an organisation

Eg : google corporate culture encourages innovation, communication, and flexibility (employees are empowered to take creative risks)

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2
Q

Corporate culture is just one level, but culture can also be found?

A
  • Religion, ethnicity, and language
  • Gender
  • Social class
  • Family traditions
  • Generations
  • Organisational culture
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3
Q

Culture shows up in how people behave and communicate it includes?

A
  • language
  • Use of space
  • Dress code
  • Gender roles
  • Power distance
  • Attitudes to hierarchy
  • Time perception
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4
Q

HOFSTEDE’S 6 culture dimensions?

A
  1. Power distance.
  2. Individualism vs collectivism.
  3. Uncertainty avoidance.
  4. Time and order orientation.
  5. Masculinity vs femininity.
  6. Indulgent vs restrained.
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5
Q

Power distance and individualism vs collectivism?

A
  1. Power distance
    - high = big gap between Boss and employees
    - low = more equality
    - Japan = high , Sweden = low
  2. Individualism vs collectivism.
    - Individualist = personal goals matter
    - Collectivist = group Harmony matters
    Eg. The US (individualist) , China(collectivist)
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6
Q

Uncertainty avoidance and time and order orientation?

A
  1. Uncertainty avoidance.
    - high = fear of change or risk
    - low = open to new ideas
    Eg. Greece= high, Singapore= low
  2. Time and order orientation
    - long-term = value tradition and planning
    - Short-term = prefers quick results
    Eg. Japan(long-term) , US (Short term)
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7
Q

Masculinity vs femininity and indulgent vs restrained?

A
  1. Masculinity vs femininity
    - masculine = competition, success
    - Feminine = relationships, caring
    Eg. Germany(masculine), Norway (feminine)
  2. Indulgent vs restrained
    - Indulgent = allows fun and expression
    - Restrained = strict social norms
    Eg. Mexico ( indulgent) , Russia (restrained)
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8
Q

Explain how corporate culture impacts ethical decision-making?

A

Corporate culture can encourage or discourage ethical behaviour by influencing what decisions are seen as acceptable or unacceptable within the organisation

Eg. In a culture that prioritise transparency, whistleblowing on unethical behaviour is rewarded, and a toxic culture to the same act might get someone fired

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9
Q

What is print culture?

A

Print culture refers to the way written rules, procedures, code of conduct an official documents, shape organisational behaviour and ethical decision decisions

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10
Q

How does Print culture impact ethics?

A
  • Written codes may create a rigid “ rule following” environment, where employees only do what is explicitly stated
  • This can be both helpful (clarity and consistency) and harmful (discourage his moral imagination and initiative)
  • eg. FEMAS case during hurricane Katrina employees followed written procedure , so that they failed to help victims in time ethical decisions were delayed by the need for paperwork and permission.
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11
Q

Compliance based culture?

A

A compliance based culture focuses on strictly following rules, laws, and codes. Ethics is seen as obeying formal standards.

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12
Q

Key traits of compliance based culture?

A
  • rule driven
  • Punishment focused
  • Short-term mindset
  • Employees fear making mistakes
  • Emphasises legal compliance of a personal judgement

Eg. Company trains staff on what to do to avoid lawsuits - but does not focus on why the actions are wrong

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13
Q

Value based culture?

A

a value based culture is built on principles and ethical values, like honesty, integrity, and respect - guiding decisions even when no rules exist

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14
Q

Key traits of value based culture?

A
  • principal driven
  • Encourages personal responsibility
  • Long-term ethical thinking
  • Motivates internal commitment to do what is right
  • Encourages flexibility, judgement and trust

Eg. A firm empowers employees to report unethical behaviour even if there is no formal policy about it - because the culture values transparency

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15
Q

Key differences between compliance based (traditional) and value based (progressive)?

A
  • Compliance based (traditional)
    - audit focus, policy adherence, financial account focus, transaction based, focus on policies& compliance
  • Value based (progressive)
    • Business focus, process based, customer focus, change facilitator, focus on goals, strategy and movement
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16
Q

Why is values based more effective?

A
  • Compliance culture
    Only works when there are clear rules- but no set of rules can cover every situation
  • Values based cultures
    Empowers employees to make good decisions even in New , complex or ambiguous situations
  • They create a stronger ethical environment over time
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17
Q

Best practice?

A

To combine both
Strong organisations blend both types :
- Use rules (compliance) for structure
- Use values (ethics) for guidance when rules fall apart

With icicle cultures perform better and attract loyal employees

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18
Q

Ethical leadership?

A

Ethical leadership is when leaders model, support and actively promote ethical behaviour within the organisation — not just by talking about ethics but by taking action, allocating resources and influencing systems and culture

O culture is shaped by the worst behaviour The leader is willing to tolerate

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19
Q

How leaders establish culture?

A
  1. Lead by example
    - employees observed a leader to say and do, actions must match values
  2. Dedicate resources to ethics
    - A point full-time ethics officers , provide training and budgets for ethics program, support code of conduct with active enforcement
  3. Create and maintain programs.
    - Ethical leaders ensure employees are trained and recognised for ethical behaviour, recognition increases ethical actions across O (praise = people will report)
  4. influence perceptions
    - leaders must be perceived as ethical, includes traits like listening, receptiveness and visible concern for stakeholders, public trust grows when leaders are consistently ethic/transparent
  5. Build ethical systems
    - Ethical leadership shapes HR policies, reward systems, and decision-making frameworks
    - They guide how the company handles mistakes, conflict and risk
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20
Q

Why ethical leadership matters?

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A

Ethical leadership leads to
- Higher employee trust
- Lower misconduct
- Better job satisfaction
- Reduce turnover
- Lower replacement costs

Eg. If leaders allow unethical behaviour to slide, employees will copy that. But if Nina is confront bad conduct and reward ethical behaviour, employees follow

21
Q

Good leaders do?

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A
  • Act on ethics visibly
  • Allocate budget for ethics training program programs
  • Reward employees for doing the right thing
  • Higher full-time ethics officers
  • Create culture of trust, fairness and transparency
22
Q

Bad leaders tolerate?

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A
  • quietly support ethics without action
  • Cut ethics funding as a non-essential
  • Ignore ethical win and only praise results
  • Assigning ethics as an extra task
  • Let’s talk to behavioural misconduct unchecked
23
Q

Effective leader?

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A

Is someone who successfully guides, motivate and directs people towards achieving a goal — often with strong results and strategic efficiency

24
Q

Key traits of an effective leader?

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A
  • delivers outcomes
  • Focuses on business strategy
  • May use fear, pressure or control
  • May overlook ethical implications

Eg. My manager who gets high sales but users intimidation or unrealistic time it may be effective but not ethical.

25
Ethical leader?
An ethical leader achieves results **while doing what is morally right** , using methods that reflect fairness, integrity, and respect
26
Key traits of an ethical leader?
- act based on values and principles - Motivates through trust care and example - Long-term loyalty and ethical workplace culture - Encourages Collaboration and employee growth Eg. A CEO who meets business goals well promoting diversity, fair pay and open dialogue with staff.
27
Main differences between an effective leader and an ethical leader?
**Effective leader** - Focuses on **results**, might use pressure /manipulation, can be feared or respected, prioritise his outcomes **Ethical leader** - Focuses on **values/doing the right thing**, uses persuasion, empathy, and ethical example, build respect through trust/fairness, focuses on people/purpose
28
Leadership theories?
- **Servant leadership (Greenleaf)** - ethical leader **serve others first** , and lead non-hierarchically (support, not commanding) - **transformational/transactional leadership** - Focus on **empowering** teams to solve problems and take initiative, while maintaining ethical integrity
29
Mission statement?
**Mission statement** is a clear expression of an organisations **purpose and values** , guiding decisions and actions when facing the dilemmas Eg. Southwest Airlines mission emphasises respect and dignity for employee customers — this will influence all business decisions
30
Why does a mission statement matter?
- Set the tone for all ethical behaviour - Serves as a **foundation** for code of conduct and company culture - Helps employers understand what the company truly stands for
31
Code of conduct?
Formal set of **rules and expectations** that guide employees and be behaving ethically and legally
32
Purpose of a code of conduct?
- helps **internal** (employees) and **external** (customers/partners) stakeholders know what is acceptable - Support risk management - Protects the companies reputation - Reinforces values in everyday decisions **Code must be backed up by action and belief — not just printed and ignored**
33
Steps to build Valley based culture (ethical Code development) ?
1. **Start with the mission** Clarify the companies purpose and values 2. **Create a clear vision** That employees and stakeholders know how the organisation will behave and why 3. **Define clear steps** Show how to apply valleys in real life (training/reporting channels/procedure procedures) 4. **Make it believable** If leadership is not on board, employees will not follow it (buy in is crucial)
34
Ethics code guidelines?
1. Be **clear** about what the code is meant to achieve. 2. Involve **all levels** of the organisation in its development. 3. Stay updated on **relevant laws** and **regulations** 4. Keep the language **simple** and practical (avoid legal jargon) 5. Use **real life scenarios** to make it relatable. 6. Office support tools and further resources. 7. **Make the code usable** if fails no one uses it.
35
Ethics hotlines & ombudspersons?
are tools within organisations that allow employees to **confidentially report unethical behaviour or ask questions about ethical concerns**
36
Key characteristics of ethics hotline&ombudspersons ?
- Must be **safe, accessible and confidential** - Must be **free from retaliation** - Must include **follow-up** and proper action - Can be an **internal or external** - eg. Accompany within an anonymous hotline sees increased employees reports of fraud — leading to internal investigation and ethical reform
37
What is whistleblowing?
**Whistleblowing** is when an employee **reports illegal or unethical** to someone in a position of authority (internally or externally)
38
Internal whistleblowing?
**Reporting within the organisation** (preferred when possible)
39
External whistleblowing?
**Reporting to the media, public or legal authorities**
40
Why does whistleblowing matter?
- Build **transparency** and ethical accountability - Can **prevent harm** to stakeholders in the company - Shows that the organisation takes ethical **breaches seriously**
41
Barriers to whistleblowing?
- Fear of **retaliation** or being labelled a **snitch** - **Lack of trust** in the system - **No reward / recognition** for doing the right thing
42
Culture integration through reporting?
For ethics to be a part of a company culture, reporting systems must be built into daily life and decision-making processes - **Communication is key** — ethics must be reflected in how leaders speak and act - Firms must **reward ethical behaviour**, not just punish unethical acts - Encourage to **speak up culture** (positive alt to snitch mindset) 
43
Best practices for ethical reporting systems?
- **practice simulations (crisis drills)** - prepares employees for real life scenarios - **Build time for ethical reflection** - Helps with better decisions under pressure - **Reinforce values in performance reviews and rewards** - Keeps ethics top of mind in all areas of business
44
Monitoring and why it matters?
Monitoring involves **continuously tracking the behaviour, decisions and ethical climate** of an organisation to **detect problems** early and promote improvement - Helps organisation stay on track with ethical goals - Allows early detection of risk areas or unethical trends - Keep the ethics visible and important in daily operations Eg. **A company tracks with the employees are reporting this conduct with they are afraid to speak up**
45
Key monitoring tools?
- **Surveys** Measure employees perception of the culture - **Focus groups** Gain in depth employee feedback - **interviews** Explore values, pressure points and red flags - **Reports and trends** Track ethical violations/complaints overtime
46
Ethics Auditing definition and purpose?
Ethics auditing is a formal structured evaluation of **how well an organisations ethics policies, training and leadership are functioning** Purpose - evaluate how resources are used - Check if ethical training is working - Ensure reward system supports ethics not just profits Eg **a firm might audit whether it’s tone at the top (executive behaviour) aligns with the ethics they promote**
47
Detecting toxic culture/ Signs of ethical failure?
- lack of shared values - Financial decision decisions made without ethical checks - Poor treatment of clients, suppliers or employees - Ethical value is not reflected in external relationship relationships Tip: **If no one is asking hard questions or giving feedback — that’s a red flag** 🚩
48
Government may enforce ethics through laws such as? And what do they require?
**Sarbanes Oxley act (USA)** Requires transparency and ethical compliance **Federal sentencing guidelines** Encourage a strong internal codes and ethics program **These require** Risk assessments , proper training programs, corrective action when needed

OBS214 (7 decks)

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