Case Study Chap 5 Business and Society

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Chapter 5 Discussion Case: Aloca’s Core Values in Practice 1. How would you classify Aloca’s ethical work climate? Which ethical criterion, as shown in figure 5.1, was used by the company: egoism (self-centered), benevolence (Concern for others), or principles (integrity approach)? Or, using Professor Paine’s two distinct ethics approaches, as discussed in this chapter, was Alcoa’s approach more compliance or integrity? Ans: Alcoa, from the time of its inception, has strongly focused on its values. It needed that all its employees live by integrity, respect, innovation, health and safety. This would imply that the employees at Alcoa would be valued, have a sense of respect for each other and have the opportunity to express their ideas and develop and thereby contribute in the development of the company. The ethical criterion that Alcoa uses are principles (integrity approach). Alcoa requires its employees to abide by the company’s rules and procedures. It expects personal morality from its employees to follow company’s norms and rules. It is in compliance with all appropriate laws and regulations. Alcoa has given importance to integrity, respect, customer, accountability environment, health and safety from its very beginning and it has been implementing on these to date (with slightly revised core values). 2. What role did top management commitment play in developing the ethical work climate and organizational performance seen at Alcoa? What other ethical safeguards are mentioned in the case to support the company’s efforts at developing a strong ethical culture? Ans: The top management at Alcoa were committed to its values. The CEO of Alcoa, O’Neill, in 1990s implemented the health and safety to the global ethics and compliance program. It had an ethics and compliance officer who reported to the company’s CEO and board of directors, organized

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