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Alcoa Ethical Climate Case Study

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Module 2 Case Study 1. Alcoa’s ethical work climate would be classified as benevolence. As shown time after time, Alcoa and its CEO, upper management, and employees, all care for their consumers and especially for each other. The strong moral to keep incident and injury rates low is a clear indication that Alcoa’s ethical work climate is benevolence. 2. Top management at Alcoa plays a key role at developing and maintaining its strong ethical culture. Management insures that employees are trained early on that every decision made must align with company values. They also have continuous ethics and compliance training for all employees. The president documented their values, explicitly stating all things Alcoa strives for in their ethical culture. They also implemented a global ethics and compliance program, which focused on health and safety. A position in top management is specifically designed as an ethics and compliance officer who reports directly to the CEO. Alcoa also has a global helpline reporting system. Management continuously reinforces all these things that develop the ethical culture. 3. While the facility manager had an excellent track record of profits and efficiency, it was necessary for O’Neill to fire him. Alcoa has set itself on a high pedestal by being explicitly public with its values. If O’Neill had allowed the incident to slip by, Alcoa could be seen as hypocritical. It has taken Alcoa a long time to develop the strong ethical culture and reputation it has, yet it is difficult to maintain and it can be crushed in a moment’s notice. 4. Alcoa’s strong values throughout the entire company’s operations can and should be adopted by other organizations. Its strong defense of employee safety and health is something that every organization should implement. Employees who feel cared for and safe in turn have strong ethical behavior and represent their organization well. Other companies should learn from Alcoa’s example and follow their lead.

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