Question 1 Case Study II, \"Discussion Case: Alcoa’s Core Values in Practice,\"

Question

Question 1

Case Study II, "Discussion Case: Alcoa’s Core Values in Practice," at the end of Chapter 5, page 111.

Alcoa has always had a strong values-based culture. Two of Alcoa’s values center upon health and safety. As with any large, diversified organization, it is not easy for values to be shared and practiced consistently throughout all units. Although it was agreed that Alcoa was in compliance with appropriate laws and regulations at one of its Mexican plants, charges were made that Alcoa did not live up to its core values of health and safety.

Respond to Discussion Questions:

1.    How would you classify Alcoa'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.

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.

Chapter 5: A company’s culture and ethical climate tend to shape the attitudes and actions of all who work there. Professional associations often attempt to provide a standard of conduct as a guide to ethical situations. Corporations not only need to have an ethics program for employees, they need to follow the laws of the nation.

Keep in mind to integrate the core values of Saint Leo University that you believe should apply to this issue. Responses for each case discussion question should be in paragraph form and be approximately 250 words in length.

Explanation / Answer

1. The ethical work climate is the workers' view of what is and what is not ethically acceptable in an organization. At the end of the day, it is the ethical atmosphere which exists in an association. In this way, representatives feel, in a way, which activity is permitted and which is taboo. There are three ethical criteria that the organization may have been utilizing, selfishness, kindness or rule. In the first place, egotistical approach expresses that interest is the main imperative thing. Therefore, an association must look for its own monetary advantage - that is benefit with a specific end goal to be prosperous and have maintainability in the business condition. To the extent the second standard is concerned, altruism (worry for-others, approach), deals with more of a socially responsible company. This essentially implies such an organization is worried about the society at large and the general population influenced by its choices and operations. The third segment of ethical climate outlines that the organization offers accentuation to its composed or non-composed laws, standards and methodology.

All the more particularly, the organization anticipates that all workers will take after its guidelines and methods in each and every occurrence that happens. Moreover, the laws and codes of the general public the organization is working are as urgent as its own.
Alcoa used the Integrity approach at the time of termination of the Facility's Manager. Alcoa has a very good and organized value system framework, which all workers must actualize, from the directorate to the low-level positions. The organization has established rules and procedures to accentuate the value in the organization. Furthermore, terminating the manager demonstrates that Alcoa thinks more about the work mishaps that were not revealed as opposed to its own financial gain as the manager was extremely gainful and kept the organization's clients satisfied. Alcoa required all injuries to be accounted for to the central station and the absence of reporting injuries made the manager to be ended. As a rule, Alcoa utilizes a blend of both three parts of economic climate; however more prominent accentuation is given to the trustworthiness approach. Having as a top priority teacher Paine's two unmistakable methodologies, compliance and integrity, Alcoa's approach was with greater integrit. Compliance expressed that the organization tries to maintain a strategic distance from legitimate authorizations and workers act lawfully because of their dread of discipline. Then again, respectability based approach says that workers are responsible for activity ethically and they should do as such in each and every operation. Thus, they should have legitimate associations with all investors and be imperial to the organization. The Alcoan integrity approach is completely evident on the off chance that we consider that the organization anticipates that for its representatives will actualize the laws and techniques of the organization and in addition its values which feature the significance of having reliable connections among all investors and the shareholders.

2. To the extent Alcoa is concerned, top chiefs contributed a huge part in building up its ethical climate. They have been the examples for the employees in the organization. So when the employees find the higher executives following all the rules and procedures then they themselves develop the values and maintain the ethical climate. Also, all CEOs of the Alcoa Company focused on the significance of having a solid value based culture, with two extraordinary illustrations, Fred Fetterolf and Paul O'Neill. The main choice that the association expected to record the qualities which all representatives ought to take after; Integrity, Environment, Health and Safety, Customer, Accountability, Excellence, People, and Profitability. Therefore, workers needed to live by those qualities and receive them as their very own major aspect culture. Having respectability and responsibility implies that the organization constructs reasonable and genuine associations with its providers, clients and for the most part talking with every one of its investors and in addition being in charge of all activities influencing nature in which Alcoa works prompts more adequacy and proficiency and thus productivity. Besides, being brilliance and productivity two of the organization's core values, brings about Alcoa's performance.

Each and every operation in the organization is focused on bringing benefits and advantages for the organization has made Alcoa the world leader in Aluminum producing. Also, as far as Paul O'Neill is concerned, he featured the significance of health and security as the organization's core values and endeavored to dispense with all injuries and accidents. They had a ethics and compliance training officer, a universal code of conduct, training and helping system. The officer is in charge of answering to the Alcoa's CEO and the leading group of the executive's episodes that may happen and concern the central values of the organization. There is a moral training which offers training and learning similarly as the Alcoan morals are concerned.

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