Alcoa’s Core Values in Practice
Alcoa’s Core Values in Practice
BUS 250
Alcoa’s Core Values in Practice The Aluminum Company of America (Alcoa) was founded in 1888 as the Pittsburgh Reduction Company. In 1907, they changed their name to Alcoa and had strong values based culture. “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” (Lawrence & Weber, 2011, pg 137). CEO, Paul O’Neil, built this upon in the 1990’s through his communication of his belief in the importance of health and safety (Lawrence & Weber, 2011). Through the exploration of Alcoa’s Core Values in Practice an understanding of Alcoa’s ethical work climate, management’s role in the ethical climate and the ethical safeguards that support the company’s efforts will be understood. Safety is the primary concern at Alcoa, and this is important not only to their reputation but also to its employees. In the 12-month period ending in April 2009, Alcoa’s lost workday rate was 0.118. This was a stifling rate that was rapidly closing the gap with DuPont, which was considered the benchmark in safety among American companies (Lawrence & Weber, 2011). Alcoa’s ethical work climate can be classified as a combination of benevolence and principle. Barnett & Schubert (2002) explain, “The ethical climates of friendship, team interest, and social responsibility are based on benevolence” (para 12); while, “The ethical climates of personal morality, rules and procedures, and laws and codes are based on principle” (para 13). The combination of benevolence and principle provides a well-rounded company that is focused on not only their image but also for the welfare of their employees. This emphasis on safety held deep meaning to the top management of Alcoa. As Lawrence & Weber (2011) explain, “The
BUS 250
Alcoa’s Core Values in Practice The Aluminum Company of America (Alcoa) was founded in 1888 as the Pittsburgh Reduction Company. In 1907, they changed their name to Alcoa and had strong values based culture. “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” (Lawrence & Weber, 2011, pg 137). CEO, Paul O’Neil, built this upon in the 1990’s through his communication of his belief in the importance of health and safety (Lawrence & Weber, 2011). Through the exploration of Alcoa’s Core Values in Practice an understanding of Alcoa’s ethical work climate, management’s role in the ethical climate and the ethical safeguards that support the company’s efforts will be understood. Safety is the primary concern at Alcoa, and this is important not only to their reputation but also to its employees. In the 12-month period ending in April 2009, Alcoa’s lost workday rate was 0.118. This was a stifling rate that was rapidly closing the gap with DuPont, which was considered the benchmark in safety among American companies (Lawrence & Weber, 2011). Alcoa’s ethical work climate can be classified as a combination of benevolence and principle. Barnett & Schubert (2002) explain, “The ethical climates of friendship, team interest, and social responsibility are based on benevolence” (para 12); while, “The ethical climates of personal morality, rules and procedures, and laws and codes are based on principle” (para 13). The combination of benevolence and principle provides a well-rounded company that is focused on not only their image but also for the welfare of their employees. This emphasis on safety held deep meaning to the top management of Alcoa. As Lawrence & Weber (2011) explain, “The
References: Barnett, T., & Schubert, E. (2002). Perceptions of the ethical work climate and conventional relationships. Journal of Business Ethics, 36(3), 279-290. Retrieved from http://search.proquest.com/docview/198026725?accountid=32521 Lawrence, A. T. & Weber, J. (2011). Business and Society: Stakeholders, Ethics, Public Policy (13th ed.). New York: McGraw-Hill/Irwin. ISBN: 978-0-07-813715-0