![]() ![]() Leading through leaders: Driving strategy, execution and change. Enron ethics (or: Culture matters more than codes). Upper Saddle River, NJ: Pearson Education, Inc. *In addition to losing customers, suppliers and the community, I would also include losing the support of employees and managers. “A business perceived to lack integrity or to operate in an unethical, immoral, or irresponsible manner soon loses the support of customers, suppliers and the community at large*” (Tozer, 2012, p. Enron executives created an organizational culture that valued profits (the bottom line) over ethical behavior and doing what’s right. Sims and Brinkmann (2003) described Enron’s ethics as “the ultimate contradiction between words and deeds, between a deceiving glossy facade and a rotten structure behind” (p. ![]() This might include creation of ethical counselors, ombudsmen, or ethical officers.Ī good case study of an unethical organizational culture is the now defunct Enron. Provide protective mechanisms. The organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand.Just as importantly, unethical acts should be punished. People who act ethically should be visibly rewarded for their behavior. Appraisals must include the means taken to achieve goals as well as the ends themselves. ![]()
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