Relate to an current event and summarize using key words?

5-1c Organizational Factors Although people can and do make individual ethical choices in business situations, no one operates in a vacuum. Indeed, research has established that in the workplace, the organization's values often have greater influence on decisions than a person's own values. * Ethical choices in business are most often made jointly, in work groups and committees, or in conversations and discussions with coworkers, Employees approach ethical issues on the basis of what they learned not only from their own backgrounds but also from others in the organization. The outcome of this learning process depends on the strength of personal values, the opportunities to behave unethically, and the exposure to others who behave ethically or unethically. An alignment between a person's own values and the values of the organization help create positive work attitudes and organizational outcomes. Rescarch has further demonstrated that congruence in personal and organizational values is related to commitment, satisfaction, motivation, ethics, work stress, and anxiety. * Although people outside the organization such as family members and friends also influence decision makers, the organization develops a personality that helps determine what is and is not ethical. Just as a family guides an individual, specific industries give behavioral cues to firms. Within the family develops what is called a culture, and so too in an organization Debate Issue: Take a Stand Conflicts Over Privacy in the Workplace There is tension between companies and their employces over privacy in the workplace. Some Debate Issue: Take a Stand Conflicts Over Privacy in the Workplace There is tension between companies and their employees over privacy in the workplace. Some companies track employees via company-issued GPS-enabled smartphones and monitor employees' behavior through social networking sites such as Facebook and Twitter. Currently, there are no laws preventing companies from monitoring and tracking employees. Companies believe not monitoring these platforms leaves them vulnerable to misconduct. For instance, the Internet increased the number of distractions in the workplace, and some employees may spend up to 30 percent of their time at work using social media sites for nonwork purposes. On the other hand, employees argue they have a right to their pivncy. They see tracking as a clear sign that their employers do not trust them. Another major argument is that employers with access to employee social media sites or smartphones might be able to monitor employee activity outside the workplace. Where is the line drawn on ensuring employees are working appropriately versus their rights to privacy? 1. Companies should have the right to track employees through company smartphones and monitor their personal Facebook and Twitter accounts: 2. Employees should be able to maintain their personal privacy and not be tracked through their company smartphones or their Facebook and Twitter accounts, Corporate culture can be defined as a set of values, norms, and artifacts, including ways of solving problems that members (employees) of an organization share. As time passes, stakeholders come to view the company or organization as a living organism with a mind and will of its own. The Walt Disney Co., for example, requires all new employees to take a course in the traditions and history of Disneyland and Walt Disney, including the ethical dimensions of the company. The corporate culture at American Express stresses that employees help customers out of difficult situations whenever possible. This attitude is reinforced through numerous company legends of employees who have gone above and beyond the call of duty to help customers. This strong tradition of customer loyalty might encourage employees to take unorthodox steps to help a customer who encounters a problem. Employees learn they can take some risks in helping customers. Such strong traditions and values have become a driving force in many companies, including Starbucks, IBM, Procter & Gamble, and Hershey Foods One way organizations can determine the ethicalness of their corporate cultures is having the company go back to their mission statement or goals and objectives. These goals and objectives are often developed by various stakeholders, such as investors, employees, customers, and suppliers, Comparing the firm's activities with its mission statement, goals, and objectives helps the organization understand whether it is staying true to its values. Additionally, most industries have trade associations that disperse guidelines developed over time from others in the industry. These rules help guide the decision making process as well. The interaction between the company's internal rules and regulations and industry guidelines form the basis of whether a business is making ethical or unethical decisions. It also gives an organization an An important component of corporate or organizational culture is the company's conduct and whether they define it as ethical or unethical. Corporate culture involves values and norms that prescribe a wide range of behavior for organizational members, while ethical culture reflects the integrity of decisions made and is a function of many factors, including corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity for unethical behavior. Communication is also important in the creation of an effective ethical culture. There is a positive correlation between effective communication and empowerment and the development of an organizational ethical culture. Within the organization as a whole, subcultures can develop in individual departments or work groups, but these are influenced by the strength of the firm's overall ethical culture, as well as the function of the department and the stakeholders it serves. For instance, salespeople are heavily influenced by the subculture of the sales department and face many ethical issues that are not necessarily common to other departments. Additionally, because salespeople tend to operate largely outside of the organization, they may not be as socialized to other employees and the organization's ethical culture. Corporate culture and ethical culture are closely associated with the idea that significant others within the organization help determine ethical decisions within that organization Research indicates the ethical values embodied in an organization's culture are positively correlated to employees' commitment to the firm and their sense that they fit into the company. These findings suggest companies should develop and promote their values to enhance employees' experiences in the workplace, The more employees perceive an organization's culture to be ethical, the less likely they are to make unethical decisions. * AA 2 A major focus of the amendments to the Federal Sentencing Guidelines for Organizations is to strengthen an organization's ethical culture. After its sales incentive scandal, mentioned carlier in this chapter, Wells Fargo admitted that it had culture problems related to its sales practices. It decided to survey 269,000 employees about its culture. The analysis and results were to be shared with bank employees. The goal was to identify positive attitudes and potential weaknesses. Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as significant others. They help workers on a daily basis with unfamiliar tasks and provide advice and information in both formal and informal ways. Coworkers, for instance, can offer help in the comments they make in discussions over lunch or when the boss is away. Likewise, a manager may provide directives about certain types of activities employees perform on the job. Indeed, an employee's supervisor can play a central role in helping employees develop and fit in socially in the workplace. Numerous studies conducted over the years confirm that significant others within an organization may have more impact on a worker's decisions on a daily basis than any othe factor Obedience to authority is another aspect of the influence significant others can exercise and helps explain why many employees resolve business ethics issues by simply following the directives of a superior. In organizations that emphasize respect for superiors, employees may foel they are expected to carry out orders by a supervisor even if those orders are contrary to the employees' morals. Rewards and punishments that managers control influence ethical decisions. If finns place all rewards around financial performance, then how objectives are achieved can become a secondary concem. This situation occurred WE AR v ways. Cowo, , comments they make in discussions over lunch or when the boss is away. Likewise, a manager may provide directives about certain types of activities employees perform on the job. Indeed, an employee's supervisor can play a central role in helping employees develop and fit in socially in the workplace. Numerous studies conducted over the years confirm that significant others within an organization may have more impact on a worker's decisions on a daily basis than any other factor. Obedience to authority is another aspect of the influence significant others can exercise and helps explain why many employees resolve business ethics issues by simply following the directives of a superior. In organizations that emphasize respect for superiors, employees may feel they are expected to carry out orders by a supervisor even if those orders are contrary to the employees' morals. Rewards and punishments that managers control influence ethical decisions. If firms place all rewards around financial performance, then how objectives are achieved can become a secondary concern. This situation occurred in major banks prior to the financial crisis. If the employee's decision is qudged to be unethical, he or she is likely to say, "I was only carrying out orders" or "My boss told me to do it this way." In addition, the type of industry and size of the organization were found to be relevant factors, with larger companies at greater risk for unethical activities