Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Chapter 2 Lecture Outline
The Environment: Culture, Ethics, and Social
Responsibility
The Internal Environment
Slide 3
The organization’s internal environment includes the factors that affect its performance from within its
Exhibit 2-1: Internal Environmental Means and Ends
Slide 4
See figure on page 34.
Mission, Management, and Culture
Slide 5
The organization’s mission is its purpose or reason for being.
Resources and Structure
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Slide 6
Organizational resources include human, financial, physical, and informational. Human resources are
Systems Process
Slide 7
The systems process is the technology used to transform inputs into outputs to make and deliver
Exhibit 2-2: The Systems Process
Slide 8
See figure on page 36.
Total Quality Management
Slide 9
Total quality management (TQM) is the process that involves everyone in an organization focusing on
Exhibit 2-3: Components of the Internal Environment
Slide 10
See figure on page 36.
Organizational Culture
Slide 11
Learning the organizational culture through artifacts:
Heroes
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Three Levels of Culture
Slide 12
Behavior – includes the observable things that people do and say or the actions employees take.
Exhibit 2-4: Three Levels of Organizational Culture
Slide 13
See figure on page 38.
Learning Organizations
Slide 14
The External Environment
Slide 15
The organization’s external environment includes the factors outside its boundaries that affect its
Exhibit 2-5: The Organizational Environment
Slide 16
See figure on page 43.
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Business Ethics
Slide 17
Ethics are the standards of right and wrong that influence behavior.
Factors That Influence Behavior to be Ethical or Unethical
Slide 18
Personality traits and attitudes – some people have a higher level of ethics than others, as integrity is
considered a personality trait.
Exhibit 2-6: Levels of Moral Development
Slide 19
See figure on page 47.
Guides to Ethical Behavior
Slide 20
Golden rule – “Do unto others as you want them to do unto you,” or “Don’t do anything to anyone that
you would not want someone to do to you.”
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Managing Ethics
Slide 21
Top management support and example – Many large corporations have Ethics Officers responsible for
developing their ethics codes and developing and conducting this training.
Social Responsibility and Sustainability
Slide 22
Social responsibility is the conscious effort to operate in a manner that creates a win-win situation for
Exhibit 2-7: Levels of Corporate Social Responsibility
Slide 23
See figure on page 52.
Levels of Corporate Social Responsibility
Slide 24
Legal CSR – focuses on maximizing profits while obeying the law.
Sustainability
Slide 25
Sustainability is meeting the needs of the present world without compromising the ability of future
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.