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Cae Study Chapter 5

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1. I would classify Alcoa’s ethical work climate as principles (integrity approach). This is because Alcoa’s work climate has one of the highest standards. Alcoa is strict with their safety and educational programs and employees learn that early within being hired for the job. The company policy is that all employees must live by Integrity, environment, health, and safety; Customer; Accountability; Excellence; People; and Profitability. Alcoa’s approach was definitely more integrity-based, according to Professor Paine distinction between approaches. This is because Alcoa’s employees were told to act with integrity and conduct their business dealings with fairness and honesty. Also the company believed that with these values they will succeed and maintain business relationships as well as a good reputation.

2. The top management commitment played a significant role in developing the ethical work climate and organizational performance seen at Alcoa. Paul O’Neil, the CEO, wanted to add health and safety to the global ethics and compliance program. A plan was created for employees to follow the codes of health and safety so the company could satisfy stakeholders. Alcoa also had an ethics and compliance officer who made sure the company’s CEO and board of directors had a global code of conduct, continuous ethics, compliance training for all employees, and a global helpline reporting system. The company made sure that all employees understood the program’s tools, must support the company’s strong value system, and must be continually reinforced by management.

3. O’Neil was justified in terminating the manager for his lack of reporting the workplace accidents. Regardless if there was no serious harm from the workplace incident, it is the company policy that he was to report any type of incident. As being a manager of the company he must abide by those rules. Since he did not abide by the rules, the manager deserved to be fired because when he was thoroughly taught how to deal with workplace incidents since Alcoa is very strict in that sense. Also O’Neil terminating the manager showed an example to the other employees of how imperative it was to listen to the values and anything less was unacceptable. Also the employees should learn from this situation and not make the same mistakes.

4. Alcoa’s “values in practice” can be adopted by other organizations as a universal set of ethical standards leading to ethical employee behavior. This way other companies can learn how to be just as efficient as Alcoa is. Also this could possibly create competition against other companies of who’s working conditions are more enforced and followed. This can result in more fair and equal treatment towards employees.

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