Explaining and diagnosing ethical failure(1)
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This document discusses ethical failures in organizations like Enron and the Catholic Church. It analyzes the disconnect between their official values and actual cultures. Enron claimed to value respect, integrity, and excellence, but its functional culture encouraged dishonesty, manipulation, and protecting the image of leaders over members. Similarly, while the Church claimed to value trust in clergy, its socialization process led priests and bishops to prioritize the institution over common morality. The document questions whether large organizations can maintain integrity without "resocializing" members away from their own moral values.
![What accounts for ethical behavior in an organization?
[1] “official” guiding values and mission?
elements of organization’s ethical profile and self image
[2] “functional” organizational culture and ethos
socialization processes
role identities (and “scripts”)
schematized belief systems
status and authority distinctions
reward and incentive systems](https://image.slidesharecdn.com/explaininganddiagnosingethicalfailure1-160929010314/85/Explaining-and-diagnosing-ethical-failure-1-2-320.jpg)
Explaining and diagnosing ethical failure(1)
- 1. Explaining and diagnosing ethical failure: Some “lessons’ from Enron, the Catholic Church, Penn State cases
- 2. What accounts for ethical behavior in an organization? [1] “official” guiding values and mission? elements of organization’s ethical profile and self image [2] “functional” organizational culture and ethos socialization processes role identities (and “scripts”) schematized belief systems status and authority distinctions reward and incentive systems
- 3. ENRON’s “official” guiding values and mission Respect Integrity Communication Excellence Service ethic Innovation as a Mission Trust / fidelity / honesty
- 4. ENRON’S “functional” guiding values Systematic dishonesty manipulation and exploitation Fear and Greed
- 5. Two ethical issues lack of organizational “integrity” overt cultural socialization of members ENRON inconsistent with image Organization’s “guiding values” at odds with actual culture/behavior Need to “Enronize” members • Internal socialization required to “replace” individual’s morality with organization norms Brian Cruver
- 6. Two ethical issues lack of organizational “integrity” overt cultural socialization of members CHURCH inconsistent with image Organization’s “guiding values” at odds with actual culture/behavior Cardinal Law and Fr. Geoghan Need to socialize members • Internal socialization required to “inculcate” specific organizational norms and culture
- 7. Church’s socialization process: How does Church shape Catholic believers? Ordinary Catholics: deference to authority trust in priests and hierarchy Priests and hierarchy (Bishops, cardinals, etc.) uniqueness of status “antinomian” perspective primary loyalties to Church and to fellow priests
- 8. Charismatic leadership – can lead to suppression of individual moral resources Institutional pressure to protect image and leader
- 9. Could organizations operate without “disengaging” from common morality or from their members’ own moral commitments? Organizational life with integrity and without the resocialization of organization’s members?