In: Operations Management
One of the concepts discussed in our textbook is the difference between compliance-based and values-based culture. The compliance-based approach tends to focus only on what is legal or the minimum that is to be expected to be in compliance. The values-based culture, on the other hand, is "[a] corporate culture in which conformity to a statement of values and principles rather than simple obedience to laws and regulations is the prevailing model for ethical behavior." (Hartman, DesJardins, & MacDonald, 2018, p. 119).
Based on this description and the nine principles of ethical decision making, can you give an example of a business-type situation that you can apply both concepts? Please provide references
Nine principles of ethical decision making:
1. Integrity of an organization and management
2. Establish the facts about the situation
3. Decide whether the situation involves legal or ethical issues
4. Identify your options
5. Choose the ethical one
6. Implement decision
7. Analyze the professional competence of an individual who is taking decision
8. Confidentiality should be there
9. Professional behavior of management
After clearly analysing the scenario of Compliance-based and Value based culture,I think the best situation of business to apply these both cultural norms is the BABY PRODUCTS BUSINESS...
Reason for my opinion:
When applying the Compliance based culture :
The baby product business is one of the crucial and reliable business to undertake as if once the trust is broken of a baby product brand, regaining that back is too difficult.Hence certain rules and strict conditions should be applied for this business such as Using quality ingredients that are not harmful or allergic to the baby,strictly clean maintanence of the factory unit, a very good testing unit of the final product.Hence we can see that there are certain conditions and orders the business need to follow which is what a compliance based culture tells about.
When applying the value based culture:
As we all know..babies are the most innocent creatures of the world,hence there are some international or emotional values and norms we have in our head when using a product for a baby.Since all humans have a heart, no any kind of adulteration happens in this business dealing with the baby products for sure.Moreover, every parent prefers the BEST for his/her baby and hence no any company would play by leaving the value based culture in this kind of business.
Hence we can surely say that business ethics(including ethical principles) would be maintained both due to compliance based and value based culture in case of a business situation dealing with baby products.