...Organizational Ethics and the Law Classification of Ethical Work Climate Discussion case “Alcoa’s Core Values in Practice” exemplifies Aluminum Company of America’s implementation of a strong values-based ethical climate by insisting decisions of employees and what they do be aligned with company values. Analysis of Alcoa’s core values relative to Victor and Cullen’s typology, suggest Alcoa follows a principled-local method to ethical climate where personal morality; company rules and procedures; and laws and professional codes are favored. In respect to Professor Paine’s studies of ethical climate, Alcoa would be categorized as implementing integrity-based programs, where concerns for the law and employee responsibility are combined. Role of Management Top management commitment to developing an ethical work climate and organizational performance at Alcoa was communicated by CEO Paul O’Neill in the 1990s. His focus on the company’s core value of health and safety, led to implementation of global ethics and compliance programs. The program included an ethics and compliance officer whose purpose is to report compliance issues to the CEO and board of directors. Other ethical safeguards created to support a strong ethical climate at Alcoa consists of a global code of conduct; ethics and compliance training for all employees; and a global helpline reporting system. Management of Personnel Alcoa’s top management believed that no employees should be forced to work in an environment...
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...Alcoa’s Core Values in Practice The Aluminum Company of America (Alcoa) was founded in 1888 as the Pittsburgh Reduction Company. In 1907, they changed their name to Alcoa and had strong values based culture. “In 1985, Fred Fetterolf, then president, decided the company needed to document the values that all employees must live by: Integrity; Environment, Health, and Safety; Customer; Accountability; Excellence; People; and Profitability” (Lawrence & Weber, 2011, pg 137). CEO, Paul O’Neil, built this upon in the 1990’s through his communication of his belief in the importance of health and safety (Lawrence & Weber, 2011). Through the exploration of Alcoa’s Core Values in Practice an understanding of Alcoa’s ethical work climate, management’s role in the ethical climate and the ethical safeguards that support the company’s efforts will be understood. Safety is the primary concern at Alcoa, and this is important not only to their reputation but also to its employees. In the 12-month period ending in April 2009, Alcoa’s lost workday rate was 0.118. This was a stifling rate that was rapidly closing the gap with DuPont, which was considered the benchmark in safety among American companies (Lawrence & Weber, 2011). Alcoa’s ethical work climate can be classified as a combination of benevolence and principle. Barnett & Schubert (2002) explain, “The ethical climates of friendship, team interest, and social responsibility are based on benevolence” (para 12); while, “The ethical climates...
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...Alcoa’s Case Study 2 1. How would you classify Alcoa’s ethical climate? Which ethical criterion, as shown in figure 5.1., was used by the company: egoism (self-centered), benevolence (concern for others) or principles (integrity approach)? Or, using Professor Paine’s two distinct ethics approaches, as discussed in this chapter, was Alcoa’s approach more compliance or integrity? Alcoa since its inception had a very strong values and the people itself enforce these values, all the employees knew clearly that all the decisions should be done according to the Alcoa’s Core standards. Since my point of view the corporate culture sets the ethical work climate of the firm as principle (integrity approach) because Alcoa expected personal morality from their workers, the rules and procedures with to be followed by the organizations, and laws and professional codes were to be followed in society. I would classify Alcoa’s ethical work climate one of high standards. Using Professor Paine’s ethics studies, Alcoa’s has an integrity based approach that combines a concern for the law with an emphasis on employee responsibility for ethical conduct. Employees are told to act with integrity and conduct their business dealings in an environment of honesty and fairness. That’s why O’Neill fired the manager, because none employee could have a misperception about the company values, even though this manager had a record of increased sales and profitability. The top management commitment played...
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...of its good intensions. 2. Is there anything that Chiquita could have done to protect its employees adequately without paying the terrorists? A. Chiquita should have contacted the US Department of justice earlier and asked for help stating its good intensions to continue its business and also protect its employees. If sufficient help wasn’t available from the government it should have withdrawn from the market. 3. Using the four methods of ethical reasoning see figure 4.6 was it ethical or not for Chiquita to pay the terrorist organization? A. People in business can analyze ethics dilemmas by using four major types of ethics reasoning virtues ethics, utilitarian reasoning, rights reasoning and justice reasoning. The values and character of the company were right in trying to protect its people. The company was definitely seeing utilitarian benefits by having net benefits than actual costs. However these benefits were attained at the expense of human and social costs. The company also fails in rights and justice reasoning by indirectly being a cause of destruction. 4. How should Chiquita respond to the new lawsuits...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice Discussion Case at...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice...
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...production. Since its inception, Alcoa has had a very strong values-based culture. Employees learned early in their careers that very decision they made and everything they did must be aligned with the company’s values. In 1985, Fred Fetterolf, then president, decided the company needed to document the values that all employees must live by; Integrity; Environment, Health, and Safety; Customer; Accountability; Excellence; People; and Profitability. (In 2012, Alcoa slightly revised its core values – Integrity; Environmental; Health and safety; Excellence ; Respect and Innovation) In the 1990s Alcoa’s CEO, Paul O’Neil, communication his answering belief in the importance of health and safety-one of the company’s core values. As is the case with many large organizations, Alcoa had implemented a global ethics and compliance program, and focus on health and safety was interwoven through the company’s program. The Alcoa program included all the basic elements specified in the U.S Federal Sentencing Guidelines and Sarbanes –Oxley Act. Alcoa had an ethics and compliance officer who reported to the company’s CEO and board of directors, a global code of conduct, continuous ethics and compliance training for all employees, and a global helpline reporting system, to name just a few. Overall, the company emphasized that the program’s tool must be understandable by all employees, must support the company’s strong value system, and must be...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice Discussion Case at...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice Discussion Case at...
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...and from other research, describe two forces that you believe shape the relationship between business and society. Provide two examples (one for each force you choose). Look for flaws and strengths in specific examples and applications. Respond to at least two of your classmates' postings Week 1 DQ2 Business & Accountability In one paragraph, supported with evidence from your text and from other research, provide one example and brief discussion of one business in your area that has demonstrated accountability to people, to its community, and to its environment. Be specific with your examples. Respond to at least two of your classmates' postings Week 2 Assignment Case Study Alcoa's Core Values in Practice Case Study: Alcoa's Core Values in Practice Read the Alcoa's Core Values in Practice Discussion Case at...
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