The structure of a company plays a critical role in the development of productive processes and decisions. Acar & Acar (2014) argues that e thics is a critical influencer of corporate success. Corporate structures can be classified into centralized and decentralized structures. Companies with a centralized structure tend to be more ethical than those with decentralized ones. This is because these companies sternly emphasize official rules, rules, and processes ( Acar & Acar, 2014 ) which are reinforced with systematic control systems. As a result, the members of these corporations observe and adhere to the strict rules, maintaining moral and professional conduct, since behavior that is contrary to this, impacts grave consequences. For instance, any forms of prejudiced practices are not condemned in centralized organizations, as opposed to in decentralized organizations. Decentralized organizations are characterized by minimal formal rules. Furthermore, these companies also employ casual and personal synchronization and control, which can encourage unethical behavior within a company.
The Impact of Societal Expectations on Companies Ethical Initiatives
The society expects companies to uphold ethics in their operations. Each organization is expected to carry out its operations in an impartial and just manner. In addition, companies are required to make extensive efforts to meet societal norms despite the fact that these norms are not dictated by the law. According to Gorski, Fuciu, & Croitor (2014), t he society has a strong influence on the operations of a firm. A vast number of corporations have had to alter their commodities due to the societal concerns on the impact of these products or services on health, ethical and social issues. For instance, due to the emphasis put on healthy eating and the prevailing health concerns in the contemporary world, McDonald’s has been forced to incorporate healthier foods in its menu. Apparently, the high-calorie fast foods provided by the company have been deemed a major cause of modern lifestyle ailment, such as diabetes and hypertension. The company now offers vegan foods, and salads, among other healthy delicacies, to cater for the health needs of its global society.
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Organizational Cultures
There are four primary categories of company cultures. The clan culture is the first type of culture which is entrenched in teamwork. In this type of culture, the team members share one common objective and perceive themselves as a single, active, and involved family. Additionally, leaders are mentors in this culture, and a company is bound by obligations and tradition. Moreover, teamwork, effective communication, and consensus are the core focus of this culture. A good example of a company with this type of culture is Toms of Maine, a company which prioritizes establishing courteous and sustainable relationships with staff, clients, and other significant stakeholders.
The second type of culture is the adhocracy culture, which concentrates on vigor and creativity. In this type of culture, the staffs are encouraged to take calculated risks, while leaders are perceived as innovators. Additionally, personal ingenuity and liberty are emphasized. Moreover, the most basic values are centered on transformation and agility. A perfect example of this type of culture is Facebook. The current chief executive officer encourages the members of his organization to “move fast and break things.” The CEO fosters a culture of risk-taking and immense creativity. It is through risk-taking that the company thrives.
The fourth type of culture is the market culture, which emphasizes competition and the attainment of concrete results. Additionally, companies with this culture are goal-driven and characterized by sturdy and demanding leaders. In addition, values in this culture are driven by market share and productivity. General Electic is a good example of this culture.
The final category is the hierarchy culture, which is centered on structure and control. The culture fosters a culture of collaboration and is characterized by strict company processes. Additionally, leaders emphasize teamwork and play their role in effective monitoring, to boost efficacy and predictability. The culture is driven by reliability and consistency, as the central values. A good example of this type of culture is McDonald's.
Different Types of Power
There are five primary forms of power. In coercive power, coercion is used to impact compliance. Leaders who employ this type of power have the tendency to abuse it. Additionally, this power impacts a hostile work environment as well as low levels of job satisfaction among staff. Reward power is based on the idea that people are more likely to increase their productivity when they are rewarded ( Goncalves, 2013 ). A leader acquires this power by giving rewards to his/her employees for their ability to conform, and comply with their wishes. Legitimate power, on the other hand, is obtained by an individual through their position in a company. This power is attained when the staffs acknowledge the authority of an individual within the company. Moreover, expert power is derived from an individual’s personal competencies, experiences, and knowledge. Through experience, people become experts in various fields and acquire expert power, which can be used to influence others to meet the set objectives ( Goncalves, 2013 ). Furthermore, people obtain power by being trusted and respected by other people. Referent and expert power are more likely to result in ethical behavior, as opposed to powers such as legitimate and coercive powers.
Influence of Group Norms
Organizations are characterized by groups which have different sets of behavioral standards. The norms define what is moral from what is not when it comes to that particular group ( Ascı, Cemberci, Civelek, & Gunel, 2015 ). Due to the multiple groups and the differences in their ethical perceptions, frequent conflicts with other groups arise, due to these ethical disparities, which inhibit effective teamwork. In case the norms of a certain group conflict with corporate culture or goals, organizational objectives are not effectively attained. Group norms are therefore critical factors in goal attainment.
References
Acar, A. Z., & Acar, P. (2014). Organizational culture types and their effects on organizational performance in Turkish hospitals. EMAJ: Emerging Markets Journal , 3 (3), 18-31.
Ascı, M. S., Cemberci, M., Civelek, M. E., & Gunel, D. (2015). Groups and their Effects in Organizations. European Scientific Journal, ESJ , 11 (32).
Goncalves, M. (2013). Leadership styles: The power to influence others. International Journal of Business and Social Science , 4 (4).
Gorski, H., Fuciu, M., & Croitor, N. (2014). Research on Corporate Social Responsibility in the Development Region Centre in Romania. Procedia Economics and Finance , 16 , 224-233.
