The Ethical Commitment to Compliance: Building Value-Based Cultures Harvard Case Solution & Analysis


In 2004, amendments to the Federal Sentencing Guidelines state that organizations should “create a culture that encourages ethical conduct and a commitment to comply with the law.” This article presents data which show that procedural justice, which concerns the objectivity and consistency of organizational processes, is an important component of such a culture. data shows that employees tend to believe that only the procedural organization is legitimate. This belief in the legitimacy, in turn, causes them to act ethically and comply with the rules. This “market” approach to compliance because employees “buy” to the organization, its values ​​and rules. command and control approaches based on reward and punishment programs are much less effective, suggesting that rigid, rule-based approaches, such as the Sarbanes-Oxley Act are unproductive. Procedural justice encourages employees to go beyond their officials to create organizational value. This aspect of the value of procedural justice suggests a new role for ethics officers. Finally, this article includes a tool organizations can use to assess their own level of procedural fairness, as well as a number of national guidelines. “Hide
by Tom Tyler, John Dienhart, Terry Thomas Source: California Management Review 22 pages. Publication Date: February 1, 2008. Prod. #: CMR392-PDF-ENG

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The Ethical Commitment to Compliance: Building Value-Based Cultures