To What Extent Is Organisational Culture Always to Blame When a Business Is Found to Have Acted Illegally or Unethically

In: Business and Management

Submitted By iethomas2
Words 1122
Pages 5
Organisational culture is the collective behaviour of humans who are part of an organisation and the meanings that people attach to their actions. Culture includes the organisational values, visions, norms, working language, systems, symbols, beliefs and habits. Organisational culture affects the way people and groups interact with each other, with clients and with stakeholders. The type of organisational culture implemented within a business can be seen as detrimental to the reasons why a business appears to have acted illegally or unethically. For example, huge corporations such as Nike who have obtained and implemented a type of organisational culture which is based on the power sub-type of organisational structure. Power is a type of organisational structure and means that power and decision making within the firm is delegated between just a few individuals. Centralised organisational structures are also associated with businesses that a implement a power sub-type of organisational culture. Businesses such as Nike and GAP that have acquired an organisational structure like the above sort, are implemented in scope to generate substantial profits. Firms that operate solely to generate abnormal profits are considered much more likely to take part in illegal or unethical practices, partly due to the fact that these firms are highly focused in cost minimisation. Consequently, cost minimisation can lead to the participation of firms into illegal or unethical practices, thus meaning that firms such as Nike, GAP and Primark are much more likely to be found involved within these practices due to their business attitude of cost reduction and profit maximisation. My evidence to back this up consists of Nike and GAP both having been caught out using a factory in cambodia which breeches their own strict codes of conduct and anti-sweatshop guide lines. The BBC discovered…...

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