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But when you are responsible to, you are responsible “to a person” or “to a group of people.” And that’s
what our credo says . . . we are responsible to our customers, mothers and fathers, doctors and nurses;
responsible to employees; responsible to people in communities. This is an intrinsically subjective area
precisely because it’s personal. It’s about owing part of yourself to others. It’s a serious responsibility.
Tone at the Top” is a term that is used to define management’s leadership and commitment towards
openness, honesty, integrity, and ethical behavior. It is the most important component of the control
environment. The tone at the top is set by all levels of management and has a trickle-down effect on all
employees of the University. If the tone set by management upholds honesty, integrity and ethics,
employees are more likely to uphold those same values.
LEAD BY EXAMPLE:
Setting the proper tone starts with managers at all levels leading by example and with integrity. Leaders
should demonstrate through their own actions their commitment to honesty, ethical strength, reliability,
and fairness. Management cannot act without these qualities and expect others in the University to
behave differently.
60-year-old deceptively simple one-page document. Our credo grew out of General
Robert Wood Johnson’s (the patriarch of our company) very simple, yet very profound,
management philosophy. In essence, it says that our fi rst responsibility is to our
customers, to give them high-q uality products at fair prices. Our second responsibility is
to our employees, to treat them with dignity and respect and pay them fairly. Our third
responsibility is to the communities in which we operate, to be good corporate citizens
and protect the environment. And then, it says that our fi nal responsibility is to our
shareholders, to give them a fair return. In the fi nal analysis, the Credo is built on the
notion that if you do a good job in fulfi lling the fi rst three responsibilities, then the
shareholder will
A KPMG is a network of professional service firms and one of the Big Four auditors, along with
Deloitte, Ernst & Young (EY), and PricewaterhouseCoopers (PwC). ... Its tax and advisory
services are further divided into various service groups. The name "KPMG" stands for
"Klynveld Peat Marwick Goerdeler."
Corporate Culture –
howeverwever, as mentioned earlier, all of these traits and behaviors must be visible. If an executive is
“quietly ethical” within the confi nes of the top management team, but more distant employees do not
know about her or his ethical stance, they are not likely to be perceived as an ethical leader. Traits and
behaviors must be socially visible and understood in order to be noticed and infl uence perceptions. 17
Take a look at the importance of that visibility in the Reality Check, “Perception of Leadership Qualities.”
People notice when an executive walks the talk and acts on concerns for the common good, society as a
whole, and long-term business, prospers. Executives are expected to be focused on the fi nancial bottom
line and the short-term demands of stock analysts, but it is noteworthy when they focus on these
broader and longer-term concerns.
tne key diff erence lies with the means used to motivate others and achieve one’s goals. Eff ective
leaders might be able to achieve their goals through threats, intimidation, harassment, and coercion.
One can also lead using more amenable interpersonal means such as modeling ethical behavior,
persuasion, or using the impact of one’s institutional role.
Values pertain to the unwritten laws of behavior when at the workplace. For
instance, workers should not gossip about each other; or they should all work
for the good of the company, etc. Values are manifested through behaviors
but are not directly detectable.
Example
Google is one of the companies that are renowned for their corporate culture.
The company has evolved into a mega corporation; however, it maintains a
very friendly culture reflected in its extremely clear vision and mission. By
hiring the best of the best candidates in a meticulous manner, Google fosters
creativity and maximizes employee performance. People know what they
should do and why, and this motivates them to work harder and achieve the
organizational goals.
Open-door policies allow the involvement of all levels of the workforce in the
decision making of the company, but more importantly they instill trust and
commitment. In addition, employee benefits, employee recognition, and
democratic leadership make Google one of the best companies to work for.
Today, Google employs about 70,000 full-time employees. Although there has
been a lot of criticism regarding the company’s employee turnover, the truth of
the matter is that Google employs too many people on the same day. This
means that, if 200 employees were hired last week, and one calculates
employee tenure today, the tenure for these people will be one week, but this
doesn’t mean that they stay at the company for one week.
Summary Definition
Define Corporate Culture: Organizational culture means the vision, tone,
and mentality of a company and its employees as a whole.
compliance-based cultures
values-based cultures. These latter cultures are perceived to be more fl exible and far-sighted
corporate environments.
Compliance-based culture emphasizes obedience to the rules as the primary responsibility of ethics. A
compliance-based culture will empower legal counsel and audit offices to mandate and to monitor
compliance with the law and with internal codes. It will also focus on meeting legal and regulatory
requirements, minimizing risks of litigation and indictment, and improving accountability mechanisms.
Values-based culture reinforces a particular set of values rather than a particular set of rules.•The
argument for values-based culture is based on the fact that a compliance culture is only strong and as
precise as the rules with which workers are expected to comply. •A values-based culture recognizes that
where a rule does not apply, the firm must rely on the personal integrity (revise topic 1) of its work force
when decision need to be made.
Difference between effective leaders and ethical leadersA key difference between effective leaders and
ethical leaders lies in the means used to motivate others and achieve one’s goals. One suggests that
leaders can be effective (achieve their goals) through threats, intimidation, harassment, or
coercion.Alternatively one suggests that leaders can also use more amenable interpersonal means such
as modeling ethical behavior, persuasion, or using the impact of one’s institutional role.Others suggest
that true ethical leaders are those “transformational” or “transactional” leaders who employ methods
that empower subordinates to take initiative and to solve problems for themselves. Creating a
corporate culture in which employees are empowered and expected to make ethically responsible
decisions is a necessary part of being an ethical business leader.
https://www.thebalancesmb.com/mission-statement-2947996
Our Credo
We believe our first responsibility is to the patients, doctors and nurses, to mothers and fathers and
all others who use our products and services. In meeting their needs everything we do must be of
high quality. We must constantly strive to provide value, reduce our costs and maintain reasonable
prices. Customers' orders must be serviced promptly and accurately. Our business partners must
have an opportunity to make a fair profit.
We are responsible to our employees who work with us throughout the world. We must provide an
inclusive work environment where each person must be considered as an individual. We must
respect their diversity and dignity and recognize their merit. They must have a sense of security,
fulfillment and purpose in their jobs. Compensation must be fair and adequate and working
conditions clean, orderly and safe. We must support the health and well-being of our employees and
help them fulfill their family and other personal responsibilities. Employees must feel free to make
suggestions and complaints. There must be equal opportunity for employment, development and
advancement for those qualified. We must provide highly capable leaders and their actions must be
just and ethical.
We are responsible to the communities in which we live and work and to the world community as
well. We must help people be healthier by supporting better access and care in more places around
the world. We must be good citizens — support good works and charities, better health and
education, and bear our fair share of taxes. We must maintain in good order the property we are
Our final responsibility is to our stockholders. Business must make a sound profit. We must
experiment with new ideas. Research must be carried on, innovative programs developed,
investments made for the future and mistakes paid for. New equipment must be purchased, new
facilities provided and new products launched. Reserves must be created to provide for adverse
times. When we operate according to these principles, the stockholders should realize a fair return.