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UNIVERSITAS

KRISNADWIPAYANA
Corporate
Culture,
Ethics and
Leadership

DISUSUN OLEH :

DIPL.ING. JULIUS HASSAN MDM

PROGRAM MM - PASCA SARJANA 2013

Corporate(Culture(
Organiza0onal(
Culture( ! !!
Values,!beliefs,!behaviors,!
customs,!and!a5tudes!that!
help!the!members!of!the!
organiza9on!understand!
what!it!stands!for,!!
!
how!it!does!things,!and!
what!it!considers!important!

Corporate(Culture(
The(Importance(of(
Organiza0on(Culture(
!

Culture!determines!the!
overall! feel !of!the!
organiza9on,!although!it!
may!vary!across!
dierent!segments!of!
the!organiza9on!
Culture!is!a!powerful!
force!that!can!shape!the!
rm s!overall!
eec9veness!and!long?
term!success!
!

Corporate(Culture(
Determinants(of(
Organiza0onal(Culture(
Organiza9on s!founder!
(personal!values!and!
beliefs)!
Symbols,!stories,!heroes,!
slogans,!and!ceremonies!
that!embody!and!
personify!the!spirit!of!the!
organiza9on!
Corporate!success!that!
strengthens!the!culture.!
Shared!experiences!that!
bond!organiza9onal!
members!together!

Corporate(Culture(
Managing(
Organiza0onal(Culture(
Understand!the!current!
culture!to!decide!whether!
to!maintain!or!change!it!
!

Ar9culate!the!culture!
through!slogans,!
ceremonies,!and!shared!
experiences!
Reward!and!promote!
people!whose!behaviors!
are!consistent!with!
desired!cultural!values!

Corporate(Culture(
Changing(
Organiza0onal(Culture(
Develop!a!clear!idea!of!what!
kind!of!culture!you!want!to!
create!
Bring!in!outsiders!to!
important!managerial!
posi9ons!
Adopt!new!slogans,!stories,!
ceremonies,!and!purposely!
break!with!tradi9on!

Ethics(and(Culture(
Ethics(
An!individual s!personal!beliefs!
regarding!what!is!right!and!
wrong!or!good!and!bad.!
(

Ethical(Behavior(
This!behavior!is!in!the!eye!of!
the!beholder.!However,!it!also!
refers!to!behavior!that!
conforms!to!generally!accepted!
social!norms.!
!

Problems!occur!in!ambiguous!
situa9ons!that!can!be!
interpreted!in!dierent!ways.!

Ethics(and(Culture(
Examples(of(Unethical(
Behavior(
!

Borrowing !oce!
supplies!for!personal!use,!
Surng!the!Net !on!
company!9me.!
!

Filing!falsied!or!inated!
business!expense!reports.!

Ethics(and(Culture(
Managing(Ethical(
Behavior(
!

Must!begin!with!top!
management!!
!

Top!management!
establishes!the!
organiza9on s!culture!
and!denes!what!will!
and!will!not!be!
acceptable!behavior!
Provide!training!on!how!
to!handle!dierent!
ethical!dilemmas!

Ethics(and(Culture(
Managing(Ethical(
Behavior(
(
Develop'a'wri,en'code'of'
ethics'
A!formal,!wriTen!statement!of!
the!values!and!ethical!
standards!that!guides!a!rm s!
ac9ons!

(
Individual'issues'
Behavior!and!conscience!
Privacy!

Actors:(

Conflicts of interest
Secrecy and
confidentiality
Honesty

Employees

Organization
Hiring and firing
Wages and working
conditions
Privacy and respect

Three basic areas of


concern for managerial
ethics are the
relationships of the firm
to the employee, the
employee to the firm,
and the firm to other
economic agents.

Subject to ethical ambiguities


Advertising and promotions
Ordering and purchasing
Bargaining and negotiation
Financial disclosure
Shipping and solicitation
Other business relationships

Economic Agents
Customers
Competitors
Stockholders
Suppliers
Dealers
Unions

Figure 4.1

Ethics(in(Organiza0ons(
Individual Values
+
Organizational Values
=
Managerial Values

Applying(Ethical(Judgments(
Model(for(deciding(
whether(or(not(a(par0cular(
ac0on(or(decision(is(ethical(
Gather!relevant!factual!
informa9on.!
Determine!the!most!
appropriate!moral!values.!
Make!a!judgment!based!on!
the!rightness!or!wrongness!of!
the!proposed!ac9vity!or!
policy.!

Applying(Ethical(Judgments(
Ethical(Norms(Aec0ng(
Ac0ons(
!

U#lityact!op9mizes!what!is!
best!for!its!cons9tuencies!
(benets!only!or!primarily!
those!who!are!directly!
involved)!
Rightsact!respects!the!rights!
of!others!involved!
Jus#ceact!is!consistent!with!
what!is!considered!fair!
Caringact!is!consistent!with!
people s!responsibili9es!to!
each!other!

Social(Responsibility(
and(Organiza0ons(
Social(Responsibility(
The!set!of!obliga#ons!!
(to!behave!responsibly)!
that!an!organiza#on!has!
to!protect!and!enhance!
the!social!context!in!
which!it!func#ons.!

Social(Responsibility(
and(Organiza0ons(
Areas(of(Social(
Responsibility(
(

Stakeholders(
Customers,!employees,!and!
investors!

The(natural(environment(
Environmentally!sensi9ve!
products,!recycling,!public!
safety!

The(general(social(welfare(
Charitable!contribu9ons,!
support!for!social!issues!
such!as!child!labor!and!
human!rights!

Arguments(For(and(Against(Social(Responsibility(
Arguments For Social Responsibility

Arguments Against Social Responsibility

1. Business creates problems and


should therefore help solve them.

1. Business lacks the expertise to


manage social programs.

2. Corporations are citizens in our


society.

2. Involvement in social programs


gives business too much power.

Social
Responsibility

3. Business often has the resources


necessary to solve problems.

3. There is potential for conflicts


of interest.

4. Business is a partner in our


society, along with the government and the general population.

4. The purpose of business in U.S.


society is to generate profit
for owners.

Figure 4.4

Approaches(to(Social(Responsibility(
Degree of Social Responsibility
Obstructionist
stance
Lowest

Defensive
stance

Accommodative
stance

Proactive
stance
Highest

Figure 4.5

Approaches(to(((((((
Social(Responsibility(
Obstruc0onist(Stance(
(Unconcerned)!
Do!as!liTle!as!possible!to!
solve!social!or!
environmental!problems!

Defensive(Stance(
(Damage!Control)!
Do!only!what!is!legally!
required!and!nothing!more!

Approaches(to(((((((
Social(Responsibility(
Accommoda0ve(Stance(
(Compliance)!
Meet!legal!and!ethical!
obliga9ons!and!go!beyond!
that!in!selected!cases.!

(
Proac0ve(Stance(((((((((((
(Ethical!Culture)!
Organiza9on!views!itself!as!a!
ci9zen!and!proac9vely!seeks!
opportuni9es!to!contribute!
to!society.!

How(Business(and(the(Government(
Inuence(Each(Other(

The
Government

The government influences business


through direct and indirect regulation:
Environmental protection legislation
Consumer protection legislation
Employee protection legislation
Securities legislation
The tax codes

Business influences the government


through:
Personal contacts and networks
Lobbying
Political action committees (PACs)
Favors and other influence tactics

Business

Figure 4.6

Managing(Social(Responsibility:(
Formal(Dimensions(
Legal(Compliance((

Extent!to!which!the!
organiza9on!conforms!to!
local,!state,!federal,!and!
interna9onal!laws.!

(
Ethical(Compliance(

Extent!to!which!members!of!
the!organiza9on!follow!basic!
ethical/legal!standards!of!
behavior.!
!

Philanthropic(Giving(

Awarding!of!funds!or!gi[s!to!
chari9es!and!other!social!
programs.!

Managing(Social(Responsibility:(
Informal(Dimensions(
Organiza0onal(
Leadership(and(Culture(
Leadership!prac9ces!and!the!
culture!of!the!organiza9on!can!
help!dene!the!social!
responsibility!stance!an!
organiza9on!and!its!members!
will!adopt.!

!
Whistle(Blowing(
The!organiza9onal!response!to!
the!disclosure!by!an!employee!
of!illegal!or!unethical!conduct!
on!the!part!of!others!within!the!
organiza9on!is!indica9ve!of!the!
organiza9on s!stance!on!social!
responsibility.!

Leadership(
Leaders(

People!who!can!inuence!the!
behaviors!of!others!without!
having!to!rely!on!force!
!

People!who!are!accepted!as!
leaders!by!others!
!

What(leaders(actually(
do(

Using!non?coercive!inuence!
to!shape!the!group s!or!
organiza9on s!goals!
!

Mo9va9ng!others !behavior!
toward!goals!
!

Helping!to!dene!
organiza9onal!culture!
!

Leadership(
Leadership

Activity

Management

Establishing direction and


vision for the organization

Creating an agenda

Planning and budgeting,


allocating resources

Aligning people through


communications and actions
that provide direction

Developing a human network


for achieving the agenda

Organizing and staffing,


structuring and monitoring
implementation

Motivating and inspiring by


satisfying needs

Executing plans

Controlling and problem


solving

Produces useful change and


new approaches to challenges

Outcomes

Produces predictability and


order and attains results

Leadership(
Power(and(Leadership(
(

1. Legi:mate'power!is!granted!
through!the!organiza9onal!
hierarchy!
2. Reward'power!is!the!power!
to!give!or!withhold!rewards!
3. Coercive'power!is!the!capability!
to!force!compliance!by!means!of!
psychological,!emo9onal,!or!
physical!threat!
4. Referent'power!is!the!personal!
power!that!accrues!to!someone!
based!on!iden9ca9on,!imita9on,!
loyalty,!or!charisma!
5. Expert'power!is!derived!from!
the!possession!of!
informa9on!or!exper9se!

Leadership(
Using(Power(
Legi0mate(request(

Compliance!by!a!subordinate!with!a!
manager s!request!because!the!
organiza9on!has!given!the!manager!
the!right!to!make!the!request!
(

Instrumental(compliance(

A!subordinate!complies!with!a!
manager s!request!to!get!the!
rewards!that!the!manager!controls!
(

Coercion(

Threatening!to!re,!punish,!or!
reprimand!!
subordinates!if!they!do!not!do!
something!
(

Ra0onal(persuasion(

Convincing!subordinates!that!
compliance!
!is!in!their!own!best!interest!

Leadership(
Personal(
iden0ca0on(

Using!the!referent!power!of!a!
superior s!desired!behaviors!
to!shape!the!behavior!of!a!
subordinate!
(

Inspira0onal(appeal(

Inuencing!a!subordinate s!
behavior!through!an!appeal!
to!a!set!of!higher!ideals!or!
values!(e.g.,!loyalty)!
(

Informa0on(
distor0on(

Withholding!or!distor9ng!
informa9on!(which!may!
create!an!unethical!situa9on)!
to!inuence!subordinates !
behavior!

Exer0ng(Strategic(
Leadership(
Stay(on(top(of(how(well(
things(are(going(
(

o Stay!current!with!internal!
and!external!informa9on,!
reports,!etc.!
o Communicate!regularly!
with!colleagues,!
subordinates!and!
customers!
o Keep!abreast!of!rivals !
ini9a9ves!
o MBWA!

Exer0ng(Strategic(
Leadership(
Establish(a(strategy(T
suppor0ve(culture(
(

o Stakeholders!are!king!
o Challenge!the!status!quo!
o Management!must!listen!to!
customers!
o Sell'the'strategic'ini:a:ves'
to!groups!and!individuals!
throughout!the!organiza#on!
o Recognize'and'reward'
those!who!lead!the!change!

Exer0ng(Strategic(
Leadership(
Keep(the(organiza0on(
responsive(and(innova0ve(
(

Empower( champions (
o Encourage!crea#vity!and!
innova#on!
o Allow!champions!to!fail!
o Oer!organiza#onal!support!
o Make!rewards!large!and!
visible!

Lead(the(process(to(
develop(new(capabili0es(

Exer0ng(Strategic(
Leadership(
Exercise(ethics(leadership(
o Lead!by!example!
o Have!wriTen!policies!and!
guidelines!
o Enforce!compliance!
o Encourage!whistleblowers!
o Promote!good!corporate!
ci9zenship!

(
Make(correc0ve(
adjustments(as(needed(