corporate culture
The shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business(es)
Sarbanes-Oxley 404
The characteristics of an ethical corporate culture are codified within this part of SOX. This section includes a requirement that management assess the effectiveness of the organization's internal controls and commission an audit of these controls by an
How ethical corporate culture is measured
1. Management and the board demonstrate their commitment to integrity, core values, and ethics codes through their communications and actions
2. Every employee is encouraged and required to have hands-on involvement in compliance, especially internal cont
Characteristics of culture
1. It is shared among individuals belonging to a group or society
2. It is formed over a relatively long period of time
3. It is relatively stable
Types of organizational cultures
1. Apathetic
2. Caring
3. Exacting
4. Integrative
Apathetic culture
Shows minimal concern for either people or performance.
Individuals focus on their own self-interest.
Caring culture
Exhibits high concern for people but minimal concern for performance issues.
Exacting culture
Shows little concern for people but a high concern for performance; it focuses on the interests of the organization.
integrative culture
Combines a high concern for people and performance. An organization becomes this when superiors recognize employees are more than interchangeable parts--employees have an ineffable quality that helps the firm meet its performance criteria.
cultural audit
An assessment of an organization's values. It is usually conducted by outside consultants buy may be performed internally as well.
ethical culture
The ethical component of corporate culture. It is a significant factor in ethical decision making.
compliance culture
use a legalistic approach to ethic. The accounting professional model of rules created this.
values based ethics culture
Relies upon an explicit mission statement that defines the core values of the firm and how customers and employees should be treated.
differential association
The idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or belong to other intimate personal groups.
whistle-blowing
Means exposing an employer's wrongdoing to outsiders such as the media or government regulatory agencies.
qui tam relator
If an employee provides information to the government about a company's wrongdoing under the Federal False Claims act, the whistleblower is known as this.
Power
Refers to the influence leaders and managers have over the behavior and decisions of subordinates.
Individuals have _________ over others when their presence causes others to behave differently.
Using _____ is one way to influence the ethical decision-mak
Power bases
1. Reward Power
2. Coercive Power
3. Legitimate Power
4.Expert Power
5. Referent Power
Reward Power
A type of power the refers to a person's ability to influence the behavior of others by offering them something desirable.
Eg. Money, status, or promotion
Coercive Power
A type of power that penalizes actions or behavior
Essentially the opposite of reward power.
Legitimate power
A type of power that stems from the belief that a certain person has the right to exert influence and certain others have the obligation to accept it.
Expert power
A type of power that is derived from a person's knowledge (or perception of that person's knowledge). It usually stems from a superior's credibility with subordinates.
Referent Power
A type of power that may exist when one person perceives that his or her goals or objectives are similar to another's.
Motivation
A force within the individual that focuses his or her behavior toward achieving a goal.
Job performance
Considered to be a function of ability and motivation and can be represented by
=ability*motivation
relateness needs
A type of need. Satisfied by social and interpersonal relationships
growth needs
A type of need. Satisfied by creative or productive activities.
Centralized organization
A type of organizational structure. Decision-making authority is concentrated in the hands of top-level managers, and little authority is delegated to lower levels.
Structure is suited to organizations that make high-risk decisions and have lower-level ma
decentralized organization
A type of organizational structure. Decision-making authority is delegated as far down the chain of command as possible. Such organizations have relatively few formal rules, and coordination and control are usually informal and personal.
Focus is on incre
Formal group
Defined as an assembly of individuals with an organized structure that is explicitly accepted by the group.
Informal group
Defined as two or more individuals with a common interest but without an explicit organizational structure.
Types of formal groups
1. Committees
2. Work groups
3. Teams
committee
A type of formal group. It is a formal group of individuals assigned to a specific task.
work groups
A type of formal group. Used to subdivide duties within specific functional areas of a company.
teams
A type of formal group. They bring together the expertise of employees from several different areas of the organization--such as finance, marketing, and production--on a single project.
informal groups
A type of group that is normally composed of individuals, often from the same department, who have similar interests and band together for companionship or for purposes that may or may not be relevant to the goals of the organization.
the grapevine
Informal channels of communication
group norms
Standards of behavior groups expect of their members.
Help define acceptable and unacceptable behavior within a group.