Assumptions about People

Mainstream economics rests on the assumption that human beings are driven by self-interest and opportunism and are likely to shirk responsibility. Acceptance of this assumption logically leads to change efforts focused almost exclusively on behavioral control.

We believe, however, that human beings are essentially good and open to growth and change. Most employees prefer being associated with a fair organization that supports ethical behavior and disciplines unethical behavior. Given this type of environment, most individuals can be expected to choose ethical behavior. Individuals who engage in unethical behavior should not simply be labeled ‘‘bad’’ people. They are often responding to external pressures or behaving according to organizationally sanctioned definitions of what’s appropriate. Although unethical behaviors must be disciplined, the organization should also treat unethical behavior as a signal to investigate itself and the cultural context in which the behavior occurred. Through culture, the organization can change definitions of what is appropriate and inappropriate and can relieve pressures to behave unethically.

Ethical Culture Change Intervention

Once the audit is complete, the data should be discussed with employees, who can then be enlisted in developing a culture change intervention plan. The plan will be guided by the diagnosis and the cultural, multisystem framework shown earlier in Figure 5.1. Complementary changes in both the formal and informal organizational systems should be a part of any recommended change effort.

Though difficult, changing formal systems is a more straightforward process than changing informal systems. Gaps and problems identified in the diagnosis can be addressed in a number of ways. Structure can be altered to encourage individuals to take responsibility for their behavior and to discourage unquestioning deference to authority. Codes of ethics can be designed participative, distributed, and enforced. Performance management systems can be designed with an emphasis on what people do as well as on how they do it. Reporting misconduct can be encouraged by providing formal communication channels and confidentiality.106 Orientation programs can be designed to incorporate the organization’s values, and training programs can be set up to prepare individuals to handle the ethical dilemmas they are most likely to face in their work. Integrity can be emphasized in selection and promotion decisions. Decision-making processes can incorporate attention to ethical issues by devoting time at meetings and space in reports.

It’s more difficult to change the informal systems, particularly those that have been found to maintain unethical behavior in the organization. However, these changes must be undertaken if the total change effort is to be effective. These changes require attention to the ‘‘art’’ rather than the science of management and are consistent with ideas about the importance of ‘‘symbolic management.’’ With symbolic management, organizational leaders and managers are encouraged to create rituals, symbols, and stories that will influence those they manage.

The organization may have to be ‘‘remythologized’’ by reviving myths and stories of its founding and resurrecting related tales that can guide organizational behavior in the desired direction.108 For example, Alexander Graham Bell’s comment, ‘‘Come here, Watson, I need your help,’’ set up Bell’s concept of service that was so important to AT&T’s success for many years. However, myths must also be frequently evaluated for their continuing usefulness. New ones may have to be found or developed to fit the organization’s current needs and goals. Remythologizing should be done carefully and infrequently. Employees generally know what’s ‘‘really going on’’ in the organization. If the revived myth doesn’t fit with organizational reality, it will only increase their cynicism. Also, myths can’t be changed frequently. Their strength and value in the culture come from their stability across time.