Alcoa S Case Study
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?
Alcoa’s ethical work climate is diverse, encourages open communication and learning, and community outreach. The company’s strategy encourages employees to be the first to brainstorm ideas for improvements and innovations. They are also supported to take responsibility and ingenuity by REWARDING them financially and non-financially. Among the diversity they expect a work environment that employees are respected, valued and encouraged to contribute to the company.
The ethical criterions that Alcoa uses are principles (integrity approach). They conduct SURVEYS among the community through focus groups to find new programs that will help the environment. Alcoa is committed to improve the quality of life within the communities their employees live and work. Their principles also are geared towards research and development of innovative products and environmental issues. Alcoa is highly committed to the preservation of natural resources and environmental stewardship, they believe it is the right thing to do and a key factor to exceptional value to shareholders.
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?
Top management commitment to their values played in important role in their transformation. The leader of Alcoa, Paul O’Neill, began with reducing the amount of products sold and widened the range OF BUSINESS globally. Alcoa also created a new office, Environmental Health and Safety, at the
Alcoa’s ethical work climate is diverse, encourages open communication and learning, and community outreach. The company’s strategy encourages employees to be the first to brainstorm ideas for improvements and innovations. They are also supported to take responsibility and ingenuity by REWARDING them financially and non-financially. Among the diversity they expect a work environment that employees are respected, valued and encouraged to contribute to the company.
The ethical criterions that Alcoa uses are principles (integrity approach). They conduct SURVEYS among the community through focus groups to find new programs that will help the environment. Alcoa is committed to improve the quality of life within the communities their employees live and work. Their principles also are geared towards research and development of innovative products and environmental issues. Alcoa is highly committed to the preservation of natural resources and environmental stewardship, they believe it is the right thing to do and a key factor to exceptional value to shareholders.
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?
Top management commitment to their values played in important role in their transformation. The leader of Alcoa, Paul O’Neill, began with reducing the amount of products sold and widened the range OF BUSINESS globally. Alcoa also created a new office, Environmental Health and Safety, at the