Explain the role top management commitment plays in developing the ethical work climate and organizational performance seen at Alcoa
Case Study: Alcoa’s Core Values in Practice
Read the Alcoa’s Core Values in Practice. In a one- to two-page paper (not including the title and reference pages) you must:
Describe how you would classify Alcoa’s ethical work climate. In your description, address which ethical criterion, as shown in Figure 5.1, was used by the company: egoism (self-centered), benevolence (concern for others), or principles (integrity approach).
Explain the role top management commitment plays in developing the ethical work climate and organizational performance seen at Alcoa.
Describe the ethical safeguards that are mentioned in the case to support the company’s efforts to develop a strong ethical culture.
You must use at least one scholarly source in addition to the text and your paper must be formatted according to APA style guidelines.
Alcoa’s Core Values in Practice
Alcoa began under the name of the Pittsburgh Reduction Company in 1888, changing its name to the Aluminum Company of America (Alcoa) in 1907. The company was originally founded on a $20,000 investment to capitalize on Charles Martin Hall’s invention to smelt bauxite ore into the metal known as aluminum. Within a few years, Alcoa had developed into a model of large-scale vertical integration with control over all the inputs to aluminum production.
Since its inception, Alcoa had a very strong values-based culture. Employees learned early in their careers that every decision they made and everything they did must be aligned with the company’s values. In 1985, Fred Fetterolf, then president, decided the company needed to document the values that all employees must live by: Integrity; Environment, Health, and Safety; Customer; Accountability; Excellence; People; and Profitability.
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