Assignment 2 Case Study: Case Study: Alcoa’s Core Values in Practice Sarah Hickman BUS250: Corporate and Social Responsibility (CUC1708A) Instructor: Ryan Horner May 16, 2017 Case Study: Case Study: Alcoa’s Core Values in Practice Alcoa has been in operation for almost 131 years. It specializes in bauxite, alumina and aluminum products. Alcoa has been around as long and as successfully as it has been in large part because of their core values. The Alcoa website states, “Act with integrity. Operate with excellence. Care for people.” (Alcoa 2017) Alcoa has prided itself in making sure they do what they say. “Every Alcoan, worldwide, is required to understand what it means to act with integrity, to adhere to our policies and procedures, …show more content…
If the leaders were not following the values that the company instilled than the integrity of Alcoa would be compromised. In 2014, Alcoa reached a large settlement with the DOJ and SEC over corrupt payments. Alcoa had as one of its largest customers Aluminium Bahrain B.S.C. (Alba), a company that is one of the largest aluminum smelters in the world. Alba is controlled by Bahrian's government, and an SEC investigation found that Alcoa made more than $110 million in corrupt payments to Bahraini officials who had influence over contract negotiations between Alcoa and the government-operated aluminum plant (McGrath, 2014). Alcoa has worked hard to regain the trust of the public and their …show more content…
They want to be a company that is seen as a safe and honest running business. They pride themselves on integrity and honest values. They require their employees to know, follow, and respect their policies. They also care about the well-being of the people who work for them. A company would not be around for 131 years without a more positive than negative public view. They will only continue to grow. References: Hammond, S.C. & Christensen, L.J. (2016). Corporate & Social Responsibility: Road Map for a Sustainable Future. Bridgepoint Education, Inc. McGrath, M. (2014, Jan 9). Alcoa Reaches Settlement With SEC And DOJ Over Bahraini Bribery Scandal Retrieved from: https://www.forbes.com/sites/maggiemcgrath/2014/01/09/alcoa-reaches-settlement-with-sec-and-doj-over-bahraini-bribery-scandal/#30e7b01c2e18 Retrieved from: http://www.alcoa.com/global/en/home.asp Retrieved from: http://study.com/academy/lesson/organizational-ethical-climate-definition-issues-improvement.html
Lowe’s and Home Depot introduce each other in a message that clarifies their own explanation of Code of Ethics. Both encourage doing the right thing while performing a job that may not always cover all situations. However, employees’ are provided a strategic map that may...
By proactively addressing ethical issues with a code of conduct, Raiders Inc. can set the standard regarding how they want employees to behave. Employee can be trained on the company code of ethics so they understand how their company expects them to respond. They can also train them on the biases of decision making, to make sure they are aware of the pitfalls that exist. (Robbins & Coulter, 2012)
Riordan has identified criteria in four areas that define the company’s mission statement. First, the company focus is to have attitudes and abilities that exceed industry standards to provide solutions for customer’s challenges and lead the industry in Research and Development. Second, the mission for customer relationships is to be a solution for the customer, maintain quality, innovation, and customer service at a reasonable price. Third, to ensure the long-term viability of the company, the mission to the employees is to have an innovative and team oriented working environment, in addition to keeping the employees informed and supported. Lastly, the future of the company depends on maintaining profitability to allow growth in the company (Apollo Group, 2004).
The ethical code of an organization illustrates the importance of being honest, acting with integrity, and showing fairness in decision making (Bethel, 2015). Ultimately, “laws regulating business conduct are passed because some stakeholders believe they cannot be trusted to do what is right” (Ferrell, Fraedrich, & Ferrell, 2015, p. 95). In the last couple of years, culture has become the initiator for compliance, which means from the top down there has to be a commitment to act in a way that represents the company’s core values (Verschoor, 2015).
...are accountable to a board of directors and shareholders and publish annual reports that are public record so to make sure there financial standards are on the up and up.
The Johnson & Johnson Corporation have withstood various problems that would have crippled other firms which can only be accounted with the cohesiveness of the corporation members and the internal structure of the corporation. Despite the corporation’s problems over the years their statement of values is an integral part of their corporation culture and how the firm continues to conduct business. “For us, the credo is our expression of managing the multiple bottom lines of products, people, planet and profits” Larsen (as cited by Hartman et al., 2014, p. 165).
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
New Belgium Brewing, a small business based in Colorado and founded by Jeff Lebesch, was motivated while on a biking trip through Belgium. The case states “the company places great importance on the ethical culture of the brand.” (p.357) Furthermore, explain that, what a company says and does must be synchronized. New Belgium Brewing knew their core values and beliefs before the company was established.
Integrity, in the broadest sense, must pervade our actions in all relationships, including those with our customers, suppliers, and each other. This is a commitment to uncompromising values and conduct.
We are committed to the highest standards of ethical conduct in all that we do. We believe that honesty and integrity engender trust, which is the cornerstone of our business. We abide by the laws of the United States and other countries in which we do business, we strive to be good citizens and we take responsibility for our actions.
In this book, Jim Collins also challenges the notion that "people are your most important asset" and postulates, instead, that "the right people are." Despite the author's emphasis on finding the right people, there's no evidence that a company has to have concern for its employees as a core value for it to be great. There are a number of inherently great companies that didn't have this. I don't think Walt Disney cared about his people. He cared about films, and Disneyland, and smiles of kids. On the other side, with Hewlett-Packard and IBM, you had the antithesis of Walt Disney. When you look at corporate history, what matters is not what core values you have but that you have core value, and that you believe them. As another example, take David Maxwell's bus ride. When he became CEO of Fannie Mae in 1981, the company was losing $1 million every business day, with $56 billion worth of mortgage loans under water. The board desperately wanted to know what Maxwell was going to do to rescue the company. Maxwell responded to the "what" question the same way that all good-to-great leaders do: He told them, "That's the wrong first question.
...eputation of honesty, quality, and integrity. It is also each employee’s responsibility to report to the company any situation where the standards or the laws are being violated.
This Coca Cola malfunction incident demonstrates that if attention is not paid to the ethical operation or the company it could challenge and threaten a company’s short and long term performance. This could have long lasting affects on the companies operations and requires strategic decisions to restore company’s image in the eyes of the customers. Gaining the trust of customers takes long time but it is broken with one small incident.
...ials to make their products rather than using materials that carries hazardous materials. There widespread of products help expand the company all around the world, and inspire the world with great performance and design.
The Tyco accounting scandal is an ideal illustration of how individuals who hold key positions in an organization are able to manipulate accounting practices and financial reports for personal gain. The few key individuals involved in the Tyco Scandal (CEO Kozlowski and CFO Swartz), used a number of clever and unique tactics in order to accomplish what they did; including spring loading, manipulating their ‘key-employee loan’ program, and multiple ‘hush money’ payouts.