that were quite different from those of the other two groups.
They ranked “equality” as their most important terminal value;
executives and union members ranked this value 12 and 13,
respectively. Activists ranked “helpful” as their second-highest
instrumental value. The other two groups both ranked it 14.
These differences are important, because executives, union
members, and activists all have a vested interest in what cor-
porations do. These differences make it difficult when these
groups have to negotiate with each other and can create serious
conflicts when they contend with each other over the organi-
zation’s economic and social policies.^7
Ethical Values
Ethicsis the study of moral values or principles that guide our
behaviour and inform us whether actions are right or wrong.
Thus ethical values are related to moral judgments about right
and wrong.
In recent years, there has been concern that individuals
are not grounded in moral values. It is believed that this lack
of moral roots has resulted in a number of business scan-
dals, such as those at WorldCom, Enron, Hollinger
International, and in the sponsorship scandal of the Canadian
government.
Management consultant Kent Hodgson has identified seven general moral princi-
ples that individuals should follow when making decisions about behaviour. He calls
these “the Magnificent Seven” and suggests that they are universal values that managers
should use to make principled, appropriate,and defensibledecisions.^8 They are presented
in OB in Action—The Magnificent Seven Principles. We discuss the issue of ethics further
in Chapter 9.
ASSESSINGCULTURALVALUES
Procter & Gamble (P&G) Canada’s decision to value diversity in its workplace reflects a dominant
value of Canada as a multicultural country. This value is very different from the United States,
which considers itself a melting pot with respect to different cultures. P&G Canada has other
values that guide employees. These include integrity, trust, ownership, leadership, and pas-
sion for winning. What do we know about the values of other countries? What values make
Canada unique?In Chapter 1, we noted that managers have to become capable of working with people
from different cultures. Thus it is important to understand how values differ across
cultures.
One of the most widely referenced approaches for analyzing variations among cul-
tures has come from Geert Hofstede.^9 He surveyed more than 116 000 IBM employees
in 40 countries about their work-related values. He found that managers and employ-
ees vary on five value dimensions of national culture.
Hofstede’s original findings are based on research that is nearly three decades old.
However, his work was updated and reaffirmed when a Canadian researcher at the
Chinese University of Hong Kong, Michael Bond, conducted research on values in 22
countries on 5 continents.^10
Chapter 3Values, Attitudes, and Their Effects in the Workplace 75IBM Canada
http://www.ibm.com/ca/2 How can we
understand values
across cultures?OB IN ACTION
The Magnificent Seven Principles
➔Dignity of human life.The lives of people are to
be respected.
➔Autonomy.All persons are intrinsically valuable
and have the right to self-determination.
➔Honesty.The truth should be toldto those who
have a right to know it.
➔Loyalty.Promises, contracts,and commitments
should be honoured.
➔Fairness.People should be treated justly.
➔Humaneness.Our actions ought to accomplish
good,and we should avoid doing evil.
➔The common good.Actions should accomplish the
greatest good for the greatest numberof
people.Source:K. Hodgson, “Adapting Ethical Decisions to a
Global Marketplace,” Management Review81, no. 5 (May
1992), pp. 53–57. Reprinted by permission.ethics The study of moral values or
principles that guide our behaviour
and inform us whether actions are
right or wrong.