Business Culture: Diversity or Disaster?

Zen Benefiel

Leadership 520

University of Phoenix


Business Culture: Diversity or Disaster?

            Strategic planning within an organization requires the addressing of ethics and values that will become the foundation of the organizational culture. Many factors are included in the development and implementation of the corporate entity currently treated the same as an individual within the framework of law.

Person. I. A human being (a "natural" person). 2. A corporation (an "artificial" person). Corporations are treated as persons in many legal situations. Also, the word "person" includes corporations in most definitions in this dictionary. 3. Any other "being" entitled to sue as a legal entity (a government, an association, a group of Trustees, etc.). 4. The plural of person is persons, not people (see that word).—Oran '5 Dictionary of the Law, West Group 1999.

            As an entity responsible for carrying out appropriate measures that include the ethical and moral standards relating to the community it serves, several other factors come into play. Best practices in regard to social responsibility cover a plethora of issues. These include poverty eradication, social integration, women and gender equality, homelessness and housing, economic development, community participation and urban governance, and crime prevention. Just how these issues are addressed is a function of the code of ethics and its implementation in the community. For the purposes of this paper, we will look at two models of business culture. They are the interpersonal interaction model and the risk and feedback model. One is not necessarily ‘better’ than the other. Each contains subcultures that, depending on the specific environment, fit the needs of the organization and the community as a whole. We would like to think that life on planet earth is homogeneous. The reality is that there are diverse cultures and even diversity within those cultures and communities that unless understood, the effectiveness of any organization that attempts to engage them is marginal.

Interpersonal Interaction Model

Risk & Feedback Model

(http://www.entarga.com/stratplan/culture.htm)

Reflections of Social Responsibility and Best Practices

Diversity issues within the structure of such groups are addressed with much consideration for facilitating understanding and acceptance of culture differences. The goal is to gain support for collaborative efforts that empower the organization to succeed in the marketplace as well as reflect a high degree of social responsibility. The responsibility that rests on the shoulders of the corporate entity as a ‘person’ includes ethical, moral and legal issues within the community, which is now global in scale as the global village has been recognized by even the smallest of organizations. Reflecting macro- and microenvironments within the codes of ethics is no longer a consideration; it is a necessity.

In each of the ‘cultures’ of the Interpersonal Interaction model, we see opportunity for great service from both the organization and the individuals that comprise it, depending on the standards set by the role model of the CEO. We would hope that a forward-thinking and progressive organization would consider the long-term affects and effects of its actions, internally and externally. We, individuals and entities, would expect and even demand that leadership reflect these same ethics and values in order to preserve and serve the sustainable growth of business social responsibility and global earth stewardship. Best practices would echo these feelings and suppositions across the gamut of current and developing business endeavors.

In the subcultures of the Risk and Feedback model, we see more of a bottom-line approach to the exploration of opportunity, again reflective of the degree of social responsibility of the CEO. Each of these cultures appears to be relatively shortsighted in the long-term look of the sustainability of the organization. Diversity training within these types of organizations would also appear to be of less importance, as they are driven by attitude rather than gratitude. The best practices of social responsibility, although achieving the same results in the community, are a reflection of the internal effects of external actions, just as the feedback loop would indicate.

Corporate social responsibility, addressed comprehensively, can deliver the greatest benefits to a company and its stakeholders when integrated with business strategy and operations. Business ethics is rapidly moving beyond compliance to now influence corporate principles and decision-making, strengthening employee commitment, corporate reputation, and financial performance. Understanding the culture within the community, regardless of location, ethnicity and global perspective, is ultimately the most important factor in regard to developing an effective code of ethics that addresses both micro and macro applications.

The questions that are forthcoming include: Who sets the style and pace? What kind of role model are they? ‘Do as we do’ or ‘Do as we say?’ What behavior is rewarded, condemned or ignored? Is feedback constant, intermittent, at job completion, or never? Are improper or unethical practices condoned through silence? What information is shared? (needed vs. desired information) Is upward information flow constrained? How is superior performance encouraged? What type of performance appraisal system is used? How are the best-qualified people recruited? Is training and development offered to everyone? Are values backed up by time and money? What is the relative importance of – bottom line results; saving face; power building? Each of these is addressed in the development of the code of ethics that considers a diverse workforce and its involvement in any community. Again, best practices would indicate a uniformity of social responsibility, not necessarily practiced in the same procedural ways by each organization. There remains a question, though, given the current global environment and activities of much larger organizational structures. Are we able to critically reflect on the effects of an industry gone awry and do whatever is necessary to repair the damages to people and planet?

Diversity or Disaster?

The socially responsible efforts of the global organization, the United Nations, is now threatened by actions being taken by the US, some of which appear to be at the behest of ExxonMobil. Several of those who are outspoken leaders of socially responsible offices within the UN are in process of being replaced, even as these words are being written. (The U.S. Hit List at the United Nations, Publisher: Foreign Policy In Focus (Washington DC) By: Ian Williams Posted: 2002-05-01) In the case of social responsibility toward earth stewardship, as well as several other areas of responsibility, our role models seem to be ignoring the importance of the very essence of ethics, morals and values that support the beneficial and sustainable development of business.

According to William’s post, the High Commissioner for Human Rights, Mary Robinson, the chair of the Intergovernmental Panel on Climate Change, Robert Watson, and the head of the Organization for the Prohibition of Chemical Weapons (OPCW), Jose Bustani, have been valiant warriors for social responsibility on a global scale, defending the utilitarian foundation of the UN. Lesser ‘activists’ have replaced each since the beginning of the campaign in Afghanistan. A leaked memo from ExxonMobil had previously asked the White House, “Can Watson be replaced now at he request of the U.S.?”  Now this is getting a bit defiant of ‘responsibility.’

In the development of socially responsible institutions and organizations, it is hard to ignore the disparity within the growing affects of the fossil fuel industry. It is even harder to swallow the discouraging example of the lack of a code of ethics that truly reflects the good of the all.

Are we headed toward acceptance of diversity or disaster at the hand of our ‘fearless’ leaders?


References

Elder, Linda, Critical thinking: Teaching the foundations of ethical reasoning; Journal of Developmental Education; Spring 1999

Hindman, Elizabeth, Divergence of Duty: Differences in Legal and Ethical Responsibilities., parents, Journal of Mass Media Ethics, Vol. 14, Issue 4

Kreie, Jennifer,  Making ethical decisions; Association for Computing Machinery. Communications of the ACM; Dec 2000

Pruzan, Peter, The question of organizational consciousness: Can organizations have values, virtues and visions?; Journal of Business Ethics ; Feb 2001

Seidenberg, Ivan, Ethics as a competitive edge., Business & Society Review, Vol. 104, Issue 3

Stone, Brett A, Corporate social responsibility and institutional investment; Business and Society; Mar 2001

 

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