what is ethics
moral guidelines which govern acceptable behaviour
benefits of behaving ethically
- higher revenues - demand from +ve consumer support
- improved brand and recognition
- better employee motivation and recruitment
- new sources of finance - e.g ethical investor
disadvantages of behaving ethically
- higher costs
- higher overheads- training ethically
- can build up false expectations
Amoral business
- seeks to win at all costs
- anything is acceptable
Legalistic business
obey the law
responsive business
accepts being ethical pays off
what is a stakeholder
any individual or organisation who has a vested intel in the activities and decision making of a business
definition of organisational Culture
underlying belief assumptions, values and ways to interact that contribute to the unique environment of an organisation and how it impacts stakeholders
handy’s four classes of culture
- power
- role
- task
- person
power culture features
- control radiates from the centre
- only a few have power
- few rules and little bureaucracy
- quick decisions
role culture features
- people have clear delegated authority within a defined structure
- hierarchal bureaucracy
task culture features
- teams are from
- power derives from expertise
- matrix organisational
person culture features
- People believe themselves to be superior to the business
- business full of people with similar training, background and expertise
how corporate culture is formed
- influence of the founder
- management & leadership style
- external environment
- market
why is it difficult to change the culture
- long race - culture evolves slowly
- momentum is hard to sustain
- difficult - often fail
features of strong culture
- sources of competitive advantage
- clear values and goals
- strong in internal communication
- employees have higher motivation and loyalty
Features of weak culture
- little alignment with business values
- inconsistent behaviour
Salaries, wages and financial rewards play an important role in:
- Rewarding and motivating existing staff
- attracting new employees
- maximising productivity levels
Current ethical concerns regarding pay
- gender pay gap
- minimum wages
- executive bonuses
