企业伦理学（原书第5版）教案指导 第4章　企业文化-影响和启示

Chapter04-TheCorporateCulture—ImpactandImplications

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IMChapter4:

TheCorporateCulture—ImpactandImplications

ChapterObjectives

Afterreadingthischapter,youwillbeableto:

Definecorporateculture.

Explainhowcorporatecultureimpactsethicaldecisionmaking.

Discussthedifferencesbetweenacompliance-basedcultureandavalues-basedculture.

Discusstheroleofcorporateleadershipinestablishingtheculture.

Explainthedifferencebetweeneffectiveleadersandethicalleaders.

Discusstheroleofmissionstatementsandcodesincreatinganethicalcorporateculture.

Explainhowvariousreportingmechanismssuchasethicshotlinesandombudsmencanhelpintegrateethicswithinafirm.

Discusstheroleofassessing,monitoring,andauditingthecultureandethicsprogram.

Explainhowculturecanbeenforcedviagovernmentalregulation.

**TeachingNote:ThischaptercanbeintroducedbypickingupathemethatwaspresentedinChapter3.Ethicaldecision-makingbyindividualscanbebothencouragedanddiscouragedbythesocialcontextinwhichtheyoperate.Acorporateculturecanhavesignificantinfluenceonthedecisionmakingofallemployees,indeed,onallstakeholders.Therefore,acorporationhasaresponsibilitytocreateaculturethatwillsupportethicaldecision-makinganddeterunethicaldecisions.ThefollowingDecisionPointasksstudentstothinkaboutthisveryissue.

OpeningDecisionPoint

CreatinganEthicsProgram

ThisDecisionPointasksstudentstoimaginethattheyworkintheHumanResourcesdepartmentoftheircompanyandthattheCEOhasaskedtheHRdepartmenttodevelopanethicsprogramforthefirm.Theyhavebeenassignedtheresponsibilityofcreatingthisethicsprogramandhavetwoweekstocomeupwithadraftversionofacodeofethicsforthecompany,asummaryofotherelementsthattheethicsprogramwillinclude,andaproposalforhowtoassesswhethertheprogramisworking.TheCEOalsoasksthemtocomepreparedtoexplainwhatroleshecanplayinpromotingethicsandinsuringthesuccessoftheethicsprogram.Afterdoingherresearch,shecomesupwitheightpotentiallydesirableoutcomesofeffectiveethicsprograms:

Discoveryofunethical/illegalbehaviorandreductionofmeltdowns.

Awarenessofethicalandlegalissues.

Aresourceforguidanceandadvice.

Accuratereportsofwrongdoing.

Greatercustomerloyalty.

Incorporationofvaluesindecisionprocesses.

Greateremployeecommitmentandloyaltytotheorganization.

Satisfactionofexternalandinternalstakeholderneeds.

ThestudentsareaskedtoplaytheroleofthisHRpersoninseveraldifferenttypesofbusinesses:afast-foodrestaurant,anautomobiledealership,aretailstoresellingconsumerelectronics,agovernmentagency,andalargeinternationalcorporation.

Studentsareaskedtoconsiderthefollowingquestionsastheycompletethetaskofdevelopinganethicsprogramineachofthesebusinesssettings:

Listtheissuesyouthinkshouldbeaddressedinacodeofethics.

Otherthanacodeofethics,whatotherelementswouldyouincludeinanethicsprogram?

Howwillyoudefine“success?”Arethereanyfactsthatyouwillneedtogathertomakethisjudgment?

Howwouldyoumeasuresuccessalongtheway?Howwillyoumeasurewhetheryourethicsprogramis“working”beforeyoureachanyendobjective?

Whomwillyoudefineasyourprimarystakeholders?

Whataretheinterestsofyourstakeholdersinyourprogramandwhataretheimpactsofyourprogramoneachstakeholder?Howmightthemeasurementoftheprogram’ssuccessinfluencethetypeofpeopleattractedtothefirmorwhoaremostmotivatedwithinyourorganization?

HowwillyouanswertheCEO’squestionsaboutherownroleinpromotingethics?

Introduction:WhatisCorporateCulture?

DevelopinganEthicalCulture:Thischapterexaminesthewaysinwhichcorporationsdevelopethicalcultures,culturesinwhichindividualsareencouragedandsupportedinmakingethicallyresponsibledecisions.

ConsequencesofBusinessDecisions:Thedecision-makingmodelofethicsthatwehaveintroducedintheopeningchaptersemphasizestheresponsibilityofindividualsforthedecisionstheymakeinbusiness.Thesedecisionsimpactone’sownpersonalintegrityandalsohaveconsequencesformanystakeholderswithwhombusinessorganizationsinteract.

CorporateCulture:influences,limits,shapes,andsometimesdeterminesdecisionmakingwithinafirm.

Individualscanbehelpedorhinderedinmakingthe“right”or“wrong”decision(accordingtotheirownvalues)bytheexpectations,values,andstructureoftheorganizationinwhichtheyliveandwork.

Thischaptersurveys:someofthemajorissuessurroundingthedevelopment,influence,andmanagementofacorporatecultureaswellastheroleofbusinessleadersincreating,enhancing,andpreservingculturesthatsupportethicalbehavior.

CorporateCulturePerseveres:Evenintheageofdecentralizedcorporationsandotherinstitutions,thereremainsasenseofcultureinorganizations.

Despitethefactthatcorporationshavemanylocations,withdiverseemployeegroupsandmanagementstyles,anindividualworkingforlargeglobalfirminonecountrywillsharevariousaspectsofherorhisworkingculturewithsomeoneworkingforthesamefirmhalfwayaroundtheworld.

Corporateculturesurvivesthedistanceanddifferences.

*ChapterObjective1AddressedBelow*

OrganizationalCulture:Everyorganizationhasaculture,fashionedbyasharedpatternofbeliefs,expectations,andmeaningsthatinfluence,guide,andshapethethinkingandbehaviorsofthemembersofthatorganization.

Businesseshaveunspokenyetinfluentialstandardsandexpectations.

*Reference:Figure4-1Here*

*Reference:RealityCheck–“BuiltToLast”*

Example:Atsomeoffices,thedresscodemightbewhiteshirtsandgreysuits,whileoneofGoogle’s10principlephilosophiesis“youcanbeseriouswithoutasuit.”

Ifyoujoinafirmwithaculturethatsupportsothervaluesthanthosewithwhichyouarecomfortable,therewillbevaluesconflicts—forbetterorworse.

DATA:Theroleofnationalculture:GeertHofstede’sresearchisthemostwell-knowninthisarea.Heorganizednationalculturesintosix“dimensions”orcategoriesofpredispositions.

Powerdistanceindex

Individualismvs.collectivism

Uncertaintyavoidanceindex

Longtermorientation(LTO)vs.shorttermorientation

Masculinityvs.femininity

Indulgentvs.restrained

CriticismsremainregardingHofstede’swork,thoughitisinterestingtoseehowone’sownperceptionofacountry’sculturebearsoutinrelationtoHofstede’sanalysis(seeTeachingNote,below).

**TeachingNote:Suggest,forinstance,thatstudentsexploretheHofstedewebsite,wheretheyareabletocompareresultsfromtwodifferentcountries.

/country-comparison/

CulturesChange:Nocultureisstatic,butmodifyingcultureisabitlikemovinganiceberg.Onepersoncannotalteritscoursealone,butstrongleaders(sometimesfromwithinbutoftenfromthetop)canhaveasignificantimpactonaculture,andastrongbusinessleadercancertainlyhaveanimpactonacorporateculture.

Afirm’sculturecanbeitssustainingvalue—offeringitdirectionandstabilityduringchallengingtimes.

Forexample,somepointtoTraderJoe’scultureasthebasisforitshighqualityandconsistentcustomersatisfaction.

“It’sJustGroceries”-Onastressfulday,youmighthearacaptainormatereminditscrew,“it’sjustgroceries.”ThismaybewhyTraderJoe’sremainsrankedoneofthebestplacestoworkintheUnitedStates.

7CoreValues:Thestabilitythatacorporatecultureprovidescanbeabenefitatonetimeandabarriertosuccessatanothertime.WhilesomebelievethatTraderJoe's7CoreValuesmightcontributetoacultureofhigh-qualityproducts,whileotherssuggestthatthesevaluescouldcontributetoacultureofdefensivenessandsecrecy.

*Reference:RealityCheck–“It’sJustGroceries’”*

Theculturecanalsoconstrainanorganizationinthecommonwaysofmanagingissues,asinthetypicalphrases,“that’showthingshavealwaysbeendonehere,”or“that’sourprevailingclimate.”

Corporateculturescanbedefinednotonlyfromthetop-down,butalsobytheemployeesthemselves.

EXAMPLE:AtZappos,theemployeespersuadedCEOTonyHsiehtoestablishacodeofethics.Hedidsobye-mailingallemployeesinthecompanytoaskthemwhattheythoughtwerethecorevaluesofZappos.Hise-mailresultedin10“CoreValues,”whichrepresentastrongemphasisonemployeeandcustomersatisfactionseeRealityCheck“LivingOurCoreValues”)

**TeachingNote:YoumayconsideraskingstudentsatthispointhowtheymightrespondtoaCEOiftheywouldhavereceivedanemailsuchasthisone.Itisaslightlydifferentconsiderationtoreceiveanemailasanemployeeaskingforinputonvalues,ortobeaCEOcreatingvaluestoimposeonaworkforce.Howwouldtheresultvaluesbedifferentiftheyweretowritethemfromthesedifferentperspectives?

EXAMPLE:ElonMuskpreferstocommunicatedirectlywithhisemployees,sendingthemregularemailsandtweetingmessagetothem.Hehasalsoinvitedemployeestospeakdirectlytopeoplehighupinthechainofcommand,includinghimself.

**TeachingNote:Youmayaskstudentshowthissortofdirectcommunicationsmightbeviewedasbothpositiveandchallengingelementstoculture.ShouldaCEOdirectlyemailemployees?Whatabouttweetingatthem?Isthereabenefittoputtingculture-relatedinformationinwriting?

Whenacultureisnotclear,sometimesneitherareresultingdecisionsorthepublicfacingreputationofthefirm.

EXAMPLE:UnitedAirlineshashadanumberofrecentblunders,includingacoupleonlinepricingerrors,abloodiedcustomerwhowasdraggedoffanoverbookedflight,andincidentswithcustomer’spetsdyeingorbeingflowntothewrongcountry.

**TeachingNote:YoumightaskstudentstoconsiderhowUnited’svaluesdifferfromthoseofZappos.WhatvaluesmighttheyhaveemphasizedasanemployeerespondingtotheCEOineachofthesecompanies?Whatdothesecorevaluessuggestaboutthecompanies'respectivecultures?

Definingculturewithinspecificorganizations:Definingthespecificculturewithinanorganizationisnotaneasytasksinceitispartiallybasedoneachparticipant’sperceptionoftheculture.

Perceptionmayactuallyimpactthecultureinacircularway—perpetuatingitselfovertime.

Severaloftheelementsthatareeasiesttoperceive,suchasattitudesandbehaviors,areonlyasmallfractionoftheelementsthatcomprisetheculture.

Inaddition,cultureispresentinandcanbedeterminedbyexploringanyofthefollowing,amongothers:

Tempoofwork

Theorganization’sapproachtohumor

Methodsofproblemsolving

Thecompetitiveenvironment

Incentives

Individualautonomy

Hierarchicalstructure

Itcanbedifficultforindividualsinafirmtoidentifythespecificcharacteristicsofthecultureinwhichtheywork.

Culturebecomessomuchapartoftheenvironmentthatparticipantsdonotevennoticeitsexistence.

EXAMPLE:Whenindividualsgoofftocollege,theycanfinallybegintorecognizethattheirfamilyhasitsownculture.Eachfamilyhasaculturethatisdistinctandself-perpetuating,asdoeseachbusiness.

**TeachingNote:Studentscanbehelpedtounderstandtheinfluenceoforganizationalcultureondecisionmakingandvaluesbyusingexamplesfromtheirownexperience.Askstudentstocomparecharactertraitsoftypicalstudentslivinginparticularresidencehallsorfraternities/sororities.Or,askwhatdistinguishesthe“typicalstudent”atyourownschoolfroma“typical”studentatarivalschool.Studentsoftenwillwanttoarguethattheculturedoesn’tcreatecharacterandthataprocessofself-selectionisoperatingaswell.Peopleofacertaintypeareattractedtoorganizationsofcertaintypes.But,ofcourse,thisispartofthepoint.Organizationsofanytypewilltendtoattractpeoplewhowillfitinaflourish—TraderJoesisanexample.Thequestionremains:Whattypeoforganizationandpersonareyougoingtobe?

*Reference:Figure4-2Here*

CultureandEthics

*ChapterObjective2AddressedBelow*

WhatRoleDoesCorporateCulturePlayinBusinessEthics?Insituationswherethelawprovidesanincompleteanswerforethicaldecisionmaking,thebusinesscultureislikelytobethedeterminingfactorinthedecision.

Ethicalbusinessesmustfindwaystoencourage,toshapeandtoallowethicallyresponsibledecisions.

RoleofSocialEnvironment:Eachofthefactorsinthedecision-makingmodeweintroducedinchapter2,fromfactgatheringthroughmoralimaginationtoassessment,canbesupportedordiscouragedbytheenvironmentinwhichthedecisionismade.

Anethicalenvironment,orculture,wouldbeoneinwhichemployeesareempoweredandexpectedtoactinethicallyresponsiblewaysevenwhenthelawdoesnotrequireit.

CreatinganEthicalCorporateCulture:Inordertounderstandthatculturescaninfluencesometypesofbehaviorsanddiscourageothers,considerasanexampletheroleofcultureintheethicaldilemmasthatWellsFargoBankhasencounteredoverthepastfewyears.

EXAMPLE:WellsFargolongenjoyedareputationforsoundmanagement.ThebankwasabletoavoidmanyofthepitfallsandriskyinvestmentsthatledtotheUSrecessionthatbeganin2008andemergedfromitrelativelyunscathed.

Followingthe2008recession,FortunemagazinepraisedWellsFargofor“ahistoryofavoidingtherestoftheindustry’sdumbestmistakes.”AmericanBankerdescribedWellsFargoas“thebigbankleasttarnishedbythescandalsandreputationalcrises.”

WellsFargo’soriginalsuccesscamefromdeepcustomerrelationspairedwithanactivelyengagedsalesculture.TheWellsFargovisionisto“satisfyourcustomers’needs,andhelpthemsucceedfinancially.”

Despitebeingoneofthemostrespectedcompaniesin2015,thecompanyfelltodeadlastby2017.Thedeclinewastheresultofanumberofpoordecisions,includingthecross-sellingscandaluncoveredin2016.

Thebanksetdailysalestargets,includingquotasassignedtobranchmanagersforthenumberandtypesofproductssold.RumorsbegancirculatingthatWellsFargoemployeeswereengaginginaggressivetacticstomeettheirquotas,includingopeningnewaccountsandissuingdebitorcreditcardswithoutcustomerknowledge.Attimes,employeeswouldevenforgecustomersignatures.

Whenthescandalwasmadepublicin2016,theseniormanagementandtheboardofdirectorswrestledwithhowtoadequatelycondemnthesituationandtakeresponsibilityforthebank’sinfractions,whilealsoconvincingthepublicthattheproblemwascontained.

In2017,WellsFargoadmittedtoadditional(andsubsequent)wrongdoing!Itwasengagedinillegallyrepossessingover860carswithoutcourtorderinviolationoffederallaw;italsoadmittedtochargingatleast570,000customersforautoinsurancethattheydidnotneed;andthebankacknowledgedthat110,000mortgageholderswerefinedformissingadeadline,despitethefactthatthedelaywasthebank'sfault.

Thesagacontinuedin2018,whenthebankuncovered870customerswhohadbeenincorrectlydeniedmortgagechanges,resultingin545customerslosingtheirhomes.

Theseriesofscandalshasseverelydamagedthebank’sreputationandhurtWellsFargo’sbottomline.

Exploredfromautilitarianperspective,itcertainlywasnotaculturethatrevolvedaroundtheconsequencesofitsdecision-makingprocess.Theculturedidnotplaceweightonthelong-termimpactofitsprocessordecisionsonitsstakeholders.

Onemightbeabletoarguethat,insomecases,thedecision-makersinfactwereplacinghumanwell-being,includingthefundamentalneedsanddignityoftheirstakeholders(suchasshelter),asahighpriority.

Theseloansinsomeinstancesallowedindividualswhootherwisedidnotqualifynowtoaccessfundsforahomeloan.

Ontheotherhand,thereisareasontheydidnotqualifyand,ashistorydemonstrated,theywereunabletorepaytheloansorthepropertywasnotworththeamountoftheloans.

ExpectationsandHabits:Thecultivationofhabits,includingthecultivationofethicalvirtue,isgreatlyshapedbythecultureinwhichonelives.

Thevirtueethicstraditionremindsusthatourdecisionandouractionsareveryoftenoutofhabit,andnottheresultofcarefuldeliberation.Thus,thequestionofwherewegetourhabitsandcharacterisall-important.

Wecanchoosetodevelopsomehabitsratherthanothers,butitisalsoclearthatourhabitsareshapedandformedbyculture.Thiscultureexistsineverysocialcontext,includingtheworkplace,whereindividualsquicklylearnbehaviorsthatareappropriateandexpectedthroughthosewhichgetrewardedandpromoted.

Theeffectofthisworkplacecultureondecisionmakingcannotbeoveremphasized–includingonthebottomline.

DATA:TheEthicsResourceCenter(ERC)reportsthat“byeverymeasure,strongethicsprogramsandstrongethicsculturesproducesubstantiallybetteroutcomes—lesspressure,lessmisconduct,higherreporting,andlessretaliation—thaninweakerethicalenvironments.”

DATA:Whenindexedtogether,thepubliclytradedbusinessesontheEthisphereInstitute’sWorld’sMostEthicalCompanieslistregularlyoutperformsothermajorindices,includingtheS&P500.

BUT-ifignored,theculturecouldinsteadreinforceaperceptionthat“anythinggoes,”and“anywaytoabetterbottomlineisacceptable,”destroyinglong-termsustainabilityinbothfinancialperformanceandemployeeretention/recruitment.

*Reference:RealityCheck-“IgnoreatYourPeril!”See,also,howthedevastatingimpactisnotlimitedtoasingleindustryortypeofbusiness.

Corporateculturealsoisverypowerfulinshapingtheindividualsthatworkforafirm.CollinsandPorras’book,BuilttoLast:SuccessfulHabitsofVisionaryCompanies,explainsthatpowerindetaildiscussedintheRealityCheck,“BuilttoLast.”

ComplianceandValue-BasedCultures

*ChapterObjective3DiscussedBelow*

TwoTypesofCorporateCulture:Inthe1990’sadistinctionwasrecognizedbetweenthetraditionalcompliance-basedapproachandvalues-basedorintegrity-basedapproachestocorporateculture,whichareperceivedtobemorefar-sightedandflexible.

Thedistinctionbetweencompliance-basedandvalues-basedculturesperhapsismostevidentinaccountingandauditingsituations,butitcanalsobeusedtounderstandwidercorporatecultures.

*Reference:Table4.1Here*

Compliance-basedculture:Emphasizesadherencetotherulesastheprimaryresponsibilityofethics.

Acompliance-basedculturewillempowerlegalandauditsofficestomandateandmonitorcompliancewiththelawandwithinternalcodes

GoalsofCompliance:Atraditionalcompliance-orientedprogramwillfocusonmeetinglegalandregulatoryrequirements,minimizingrisksoflitigationandindictment,andimprovingaccountabilitymechanisms.

Values-basedculture:Reinforcesaparticularsetofvaluesratherthanaparticularsetofrules.

Values-basedfirmsmayhavecodesofconduct,butthecodesarepredicatedonastatementofvalues,anditispresumedthatthecodeincludesmereexamplesofhowtoapplythevalues.

InFavorofaValues-BasedCulture:Theargumentforvalues-basedcultureisthatacompliancecultureisonlyasstrongandaspreciseastheruleswithwhichworkersareexpectedtocomply.

Afirmcanonlyhaveacertainnumberofrulesandtherulescanneverunambiguouslyapplytoeveryconceivablesituation.

Avalues-basedculturerecognizesthatwherearuledoesnotapply,thefirmmustrelyonthepersonalintegrityofitsworkforcewhendecisionneedtobemade.

Thisisnottosaythatvalues-basedorganizationsdonotincludeacompliancestructure.Therelationshipbetweenethicalcultureandstrongethicsandcomplianceprogramsisoftensymbiotic.

DATA:In2018,theEthicsResourceCenter(ERC)foundthathighqualityethicsandcomplianceprograms“arelinkedwithstrongerethicscultures.Strongercultureslaythegroundworkforbetterethicsoutcomessuchasemployeesseekingguidanceandbeingpreparedtohandlesituationsthatcouldbeunethical.”

*Reference:RealityCheck–“ComplianceversusValues”*

ChoosinganEthicsProgram:Ifafirmdecidesavalues-basedorientationtoitsethicsprogram,itmustfindawaytointegrateethicsintothecomplianceenvironmenttopreventdilemmasandcreatea“culture”ofethics.

*ReferenceRealityCheck–“GoingDeeponValues”*

EthicalLeadershipandCorporateCulture

Theprimaryresponsibilityofcorporatecultureistocultivatevalues,expectations,beliefs,andpatternsofbehaviorthatbestandmosteffectivelysupportethicaldecisionmaking.

WhoIsResponsibleForTheCorporateCulture?Thetoneofthefirmcomesfromthetop,soleadersarechargedwiththisdutytoguidestakeholdersthroughouttheorganization.

Thisisnotatalltorelieveleadersthroughoutanorganizationfromtheirresponsibilitiesasrolemodels,butinsteadtosuggestthepinnaclepositionthattheexecutiveleaderplaysinsettingthedirectionoftheculture.Infact,neithercanbesuccessfulindependentoftheother;theremustbeaconsistenttonethroughoutthefirm.

DATA:Unfortunately,accordingtoonestudypublishedin2013,seniorleadersaremorelikelythanlower-levelemployeestobreakrules,and60percentofmisconductreportedisattributedtomanagers.Thisisanalarmingtrendthatshouldbeconsideredbybusinessesastheydeveloptheirethicsandcompliancetrainingprograms.

Theleaderisthemodelforeitherethicalorunethicalbehaviorinafirm,andherorhisactionsandattituderelaythetonetothestakeholders.

*Reference:DecisionPoint–“ALeaderTakesResponsibility”*

DecisionPoint

DecisionPointALeaderTakesResponsibility

Today’sGMwilldotherightthing.Thatbeginswithmysincereapologiestoeveryonewhohasbeenaffectedbythisrecall,especiallythefamiliesandfriends[ofthose]wholosttheirlivesorwereinjured.Iamdeeplysorry.

MaryBarra,CEOofGeneralMotors,apologizingforabotchedrecallof2.6millionGMvehiclesthatcontaineddangerousanddeadlyignitionswitchdefects

MaryBarra,CEOofGeneralMotors,appearedbeforeCongressinApril2014toapologizepubliclyfor13deathsthatGMsayswerecausedbyafaultyignitionswitch,aswellasforGM’s10-yeardelayinissuingarecallforthevehiclescontainingthisdangerousdefect.

BarrafacedseriousquestionsfromtheU.S.HouseofRepresentativesaboutwhyGMwaitedalmost10yearswheninternaldocumentsdemonstratedthatthecompanyknewaboutthedefectasearlyas2005,butdecidedthatthe$0.57modificationwastoocostly.TheHouseofRepresentativesaskedBarrawhathadchangedatGMtoensurethissameprocessofdecisionmakingdoesnotoccurinthefuture.

BarrahadsteppedintotheCEOroleatGMonlythreemonthspriortohercongressionalappearance,inJanuary2014.ThedefectwasmadeknowntothepublicinFebruary2014.Therefore,muchofBarra’stestimonyreiteratedthatthedecisions—andculture—thatcausedthisethicallapseinjudgmentcamebeforehertimeandknowledge.However,sheemphasizedthatherprimaryfocuswastochangeGMfroma“costculture”toa“customerculture.”SheexplainedtoCongressthatshehadrecentlyestablishedanewpositionspecificallyresponsibleforglobalvehiclesafetyinordertoencourageinterdepartmentcommunication,andsheassuredtheCongressionalmembersthatGMwasdoingafullinvestigationoftheissue.Shealsohiredahigh-profilecompensationconsultanttoconsiderappropriatecompensationforvictims’families.However,Housemembersdidreportthatnoengineerormanagerwasfiredfortheirculpabilityintheincident.

InJune2015,Barrafired15employeesdeemedresponsiblefornottrackingtheproblemattentivelyenough.ByAugust2015,124deathsandanadditional275injurieswerelinkedtofaultyignitionswitches.In2018,afederaljudgeinNewYorkdismissedtheDepartmentofJustice‘s(DOJ’criminalcasebroughtagainstGMattherequestoffederalprosecutorsafterapleaagreementhadbeenmade.Atthetimeofthedismissal,GMhadpaidmorethan$2.6billioninpenaltiesandsettlements,includingfinestotheDOJ.GMalsorecalled2.6millionvehicles.

In2018,duringthedaysbetweenThanksgivingandtheDecemberholidays,Barraannouncedjobcutsofmorethan14,800,explaining,"Iacceptnoexcusesforwhywecan'tbethebest."PerhapsBarraismovingbacktoa“costculture”butonlytimewilltelliftheearliercultureofmistakesalsowillfollow.

DoyouthinkitisfairforBarratobeheldresponsibleformistakesmadeunderpriorCEOs?Ifnot,thenhowdoweholdorganizationsresponsibleoncealeaderdeparts?Wasitsufficientmerelytofirethe15lower-levelemployees?

Barrawascriticizedforspendingasignificantportionofhercongressionaltestimonyrespondingthatshejust“didn’tknow.”Fromwhatyoureadhere,doyouthinkthatshemadeeffectivedecisionsonherarrivalatGMtoaddresstheproblem?

Whatadditionalfactsmightyouneedtouncover,ifany,torespondtothisparticularissue?

Doyouseeanyadditionalwaystorespondtotheissue(s)facingBarra?IfyouwereBarra,whatelsemightyoudoatGMto(1)respondtothisparticularissueand(2)modifytheculture?

WhoareBarra’sprimarystakeholdersinhermostpressingdecisionsrightnow?

WhatwouldyousuggestmightbeBarra’smosteffectiveethicalstrategyfordecisionmakingatpresent?

Oneofaleader’sprimaryresponsibilities,therefore,istobearolemodelbysettingagoodexample,bykeepingpromisesandcommitments,bymaintainingtheirownstandards,andbysupportingothersindoingso.Employeesareoftenlookingtoleaders/supervisorsforguidanceonhowtoact.

*Reference:RealityCheck-“PerceptionsonEthicsTraining”*

*ChapterObjective4DiscussedBelow*

Leadershipsetsthetonethroughothermechanismssuchasthededicationofresources.Ethicalbusinessleadersallocatecorporateresourcestosupportandpromoteethicalbehavior.

WhyEthicsOfficers?

Ethicsofficerswereintroducedtothecorporatestructureintheearly1990sasawaytoemphasizetofi