Corporate Culture and Ethics in Business: Case Studies of Apple, Adidas, Starbucks, and Toyota

This article discusses the corporate culture and ethics of four major companies: Apple, Adidas, Starbucks, and Toyota. It explores how these companies measure employee performance and the importance of ethics in business. The article provides case studies and examples to illustrate the concepts.

Running head: LEADERSHIP
Leadership

LEADERSHIP 1
Question 1
Culture is a set of beliefs, values, attitudes and norms that must been followed in the
organisation. The corporate culture of the Apple Inc. is one of the standardised cultures in the
world. However, the culture is used to change from the few years due to the changes in the
leadership from time to time but the values of the companies are used to be same (Guiso,
Sapienza and Zingales, 2015).
The values of the company that is basically established by the Steve Jobs when he took over
the charge as a CEO in 1997 that time the company was going from a bad time. The first
value that to creating the best product in the market. It is the campaign for creating a brand
image of the Apple. The Apple has a core value of thinking different from others by creating
a unique and innovative product and marketing strategies. These core values of the Apple
have helped the company to make so consistently providing excellent products. The top
executives to the sales executives have been united by a common culture. The customers of
apple can experience whenever they interact with the Apple. The other value of the
companies believes that they are the face of the earth to make the great products. The
companies believe in the simple and not the complex. The company believes that they have to
own and control over the technologies of the products they make. The company has a belief
to concentrate on the markets where they can make the significant contribution. The markets
choose by the making where they can make a significant contribution. The company does not
take thousands of the projects but they focus on the few projects that are meaningful and
important for the company. The company followed the cross-pollination and deep
collaboration that has allowed the company to innovate as other cannot. In a support of vision
the core values are an important or an organisation (Apple, 2017).
Apple corporate culture is a key factor of the success of the organisation. Apple is known to
maintain its secrecy that is considered the pinnacle of the Apple strategic marketing culture.
Apple is also known to value and appreciate its employees that have helped to maintain the
corporate culture in the company. Many theorists have described the Apple culture in relation
to the motivation by rewarding the employees. Apple corporate culture enables the company
to enables the human resource that helps or supports to achieve various strategic objectives.
For example, the company’s culture traits are associated with the drive for innovation. These
are the main factor that determines the competitiveness of the company in the online services,

LEADERSHIP 2
information technology and the consumer electronics industries. The corporate mission and
vision statement has been based on the organisation culture. The human resource
management has been continued to be maximised in the leadership of Steve Jobs and now
though the leadership of Tim Cook for the business relevance in the various markets around
the World. Apple uses its corporate culture as a tool for the strategic management and the
success of the company. Apple corporate culture has benefitted the company to compete
against the other companies like Google, Samsung, LG, Intel, Sony, Lenovo and the
companies like IBM (Van and Fine, 2018).
Susan L. Wagner. Co-founder and Director of the Apple has exemplifies that the organisation
culture for creative innovation. The company focussed on the high level of innovation that
includes creativity and mind-set that challenges standards and conventions. The main
characteristics of the corporate culture have been described the Apple director and co-founder
is that the company that are:
 To provide excellence at the high level
 The creativity is an important factor of an organisation
 Innovation is the key factor
 The company maintain secrecy at all level
 Moderate combativeness (Carlos, Rodrigues and Dibb, 2014)
It can be analysed that the Apple corporate governance has helped the company to achieve its
vision and mission. The Apple cultural and values easily been seen by the apple customers
who has been linked with the products of the Apple. Currently apple is one of the biggest
companies that due to its creativity and innovations.
Question 4
The communication channel is an important part of any organisation. Organisations that are
globally established have been depended on the various types of communications. Adidas is
one of the companies whose operations have been widely expanded all over the globe.
Adidas is the multinational company that manufacture and design shoes, clothes and other
accessories. The Adidas is famous for its sportswear items and other sport related items.
There are numerous channels of communications used by Adidas for the communication. In
this number of channels, it will be seen that how Adidas use each channel in a number of
times a day in a below table of channels (Karjaluoto, Mustonen, and Ulkuniemi, 2015).

LEADERSHIP 3
Communication Channel Number of times used
in the day
Individual face-to-face 10
Meeting 2
Presentation 1
Telephone calls (Including mobile) 7
Video-conferences 1
Reports 2
Memos 1
Letters 3
Emails 15
SMS 3
Others 2
It can be seen from the above table that the communication of the Adidas has been a quite
similar from the other companies. It can be also noted that the email and face-to-face
communication in the organisation has been widely been used. The emails are the best source
to do the communication because it has been used to do the resource management and it can
be said that the email has been companies preferred communication channel (Wang, and Fan,
2016).
Adidas used emails because the emails are the safest source to communicate. In emails all
data has been put safe and secure. Emails are used for evidence for proving the
communication. The other communication cannot be proved easily as compared to email
because emails are in the written form in the digital platforms. These days it is the very
common type of communication used by the companies and therefore can be said to have the
most preferred communication channel (Fiordelisi, and Ricci, 2014).
Adidas has the view on why they most preferred on emails rather than any other
communication channels. Adidas has stated that due to Adidas has global reach and it
becomes easy for the company to reach every aspect by emailing. Adidas believes using the
communication and the email is the best communication channel for the easy sharing. It is
easy to measure the email from the other communication channel. The emails has the very
easy process just login with your email id and password you can login, compose the email
and easy to send. The emails are used by the executive to the top management and it becomes
easy for the management to communicate with all (Storey, and German, 2017).

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Adidas think that it is the best channel the company used for its communication for the type
of work the company works. Adidas related work like designs, production requirements,
operation details and other important guidelines required fast communication. The email is
the best way of communication in the view of the Adidas as just not only, it is a fast way of
communication but it also saves a lot of the cost for the company. In growing and developing
of any company, the communication is the major source. Adidas is known to have a good
leadership and flexible work environment. Adidas believes that face-to-face communication
is not possible with every employee or the customer so they believe it is the best way to
communicate is by email (Coombs and Holladay, 2015).
However, the email is the very good communication channel but there are some other
communication channels that are also useful for communication. Many companies avoid the
emails because sometimes the private information been misused by the employees.
Therefore, now a days the communication through video conferencing becomes much
effective than the other forms of communications. Through video conferencing, the person
can communicate with any person anywhere in the World. It is also very fast communication
and it is as effective as face-to-face communication. Adidas leaders can easily share their
thoughts and expression to their management all over the globe. The company can give better
productivity by using the video conferencing communication. The face-to-face
communication is always better than the written communication but it is not as fast as email,
video conferencing can be said to be the substitute of the face-to-face communication (Men,
2014).
Question 6
Ethics are the moral principles that are used to govern the behaviour of a person or govern the
activities of a person. Ethics always comes to the question that whether the ethics can be
taught. In an editorial of the Wall Street that said that ethics cannot been taught and all the
studies related to ethics are useless. Therefore, the issue raises that whether the ethics can be
taught? (Prentice, 2015)
Philosopher Socrates has debated this question and his stand was clear that ethics is the
subject that we ought to do. Therefore, ethics is a knowledge that can be taught. Most of the
psychologists have been agreed with the views of the Socrates. Philosopher James Rest has
described some of the answers that why ethics can be taught that are:

LEADERSHIP 5
 He has described that the ethical changes in a person comes mainly in the young age
between 20-30s. The adults used the ethics for the problem solving strategies.
 The ethical changes can be linked with the fundamental changes that by how the
person perceives the society and his/her role in the society.
 The change occurs in a number of years of the formal education like in schools,
colleges.
 The ethical studies helped to influence awareness of the moral problems among the
peoples.
 Moral perception and moral perception has generally been influenced by the person’s
behaviour (Drumwright, Prentice and Biasucci, 2015).
Some leaders have mentioned that ethics can be taught and they have proved by applying the
ethical values for him and for the success of the organisation. Howard Schultz an American
businessperson. He was the CEO of Starbucks until 2017. Starbuck is an coffeehouse chain
has been established all over the World. Starbucks has been named as one of the World’s
most ethical companies and behind this, it was Howard Schultz who taught the ethics in the
organisation. He has been honoured as one of the greatest leaders of the World. The
Botwinick prize in the business ethics has shown the commitment of the Howard Schultz for
the employees of the Starbucks. Swaya said in an interview with a magazine that Howard
Schultz motivates him every day because he resides in every core of the company and its
culture (Schoeman, 2016).
Howard Schultz has started the business ethics and compliance program that mission is to
inspire and nurture the human spirit. One-cup, one person and one neighbourhood at a time
that helps to protect the culture and by providing the resources that helps the employees to
make ethical decision while working. Starbucks has the main agenda to fulfil the company’s
requirements. The Starbucks has received majority of the reports by the Business ethics and
Compliance that involves the issues of the employee’s relations. The employee relation has
been considered important for an organisation success and the program has helped the
company to provide the better ethical environment by good relations between the employees.
Howard Schultz has the believe that ethics is an important for the organisational success. The
program initiated by the Howard Schultz has been to distribute and develops the awareness
materials that also includes the standards of the business conduct. The Standard of business
conducts helps in the social responsibility and it states the employees in conducting the
business. Starbucks new employees when joined the company has been exposed with the

LEADERSHIP 6
company’s policies of ethics and other social responsibilities. It has been stated that what
they have to do and in what manner they have to do has been guided by the Starbucks ( Banu,
2015).
Howard Schultz has proved the quality of a leader who by the good governance and with the
good ethical values has been able to provide the ethical environment in the company. Howard
Schultz has started many ethical training programs in the company. It can be analysed that the
ethics can be taught as what Howard Schultz has able to achieve in the organisation and has
proved the Philosopher Socrates view that ethics is a program that can be learned (Stephen,
2017).
Question 7
The performance of the employee in the Toyota has been measured is by the objectives that
has been set by the company. Toyota evaluates the performance by sales and production
process. In order to sell the fuel-efficient cars of the company it is required to do planning
and initiates the new methods to improve the sales and these are the main factors by which
Toyota measured the performance. The speed for achieving the objectives is also the main
performance measurement of the company. The speed to achieve the objectives depends on
the good plans and technologies that are required to achieve the objective of the company.
The time gap is an important factor for an employee, order placement and making the order
and delivering the order to the clients on time (Shortell, Blodgett, Rundall, and Kralovec,
2018).
The staffs of the company are an important part of the organisation and for the successful
business operation it is required that the employees give their best. The company must also
take steps to improve the productivity of the employees by provide enough resources that can
help the employees to improve the productivity (Blahová, Palka and Haghirian, 2017).
In Toyota, the global performance measurement has been taken place that suggests that how
the company is doing. This global performance measurement Toyota uses the quality,
financial, and safety measures of the company performance. Operation measurement is done
to know how the plant and department are doing (Chiarini and Vagnoni, 2015). The global
measurement of Toyota is better than the other companies. The employees work level and for
the aggression for achieving the targets are very important for the company (Bento and
Tontini, 2018).

LEADERSHIP 7
Toyota has implemented some key performance indicators that have been proposed by the
OIP for the better performance and leadership. These are the indicators for the balanced with
Qualitative and Quantitative measures that has been used to improve the external and internal
communications strategy. The key performance helps the companies to cover each are of the
company. There are two forms of Quantitative measures, first is continuous that measure the
values such as number of widgets, dollars, minutes and the second discrete measures that
count things like number of accidents, complaints, new customer and the customer
satisfaction. The Qualitative measures have been used to do the analyses the customer
satisfaction measurement. It establishes the key measurements for the strategies for the
companies with the balanced key performance indicators. The Toyota has clear understanding
to do the progress by achieving the targeted goals and by improving the public perception and
the communications (Goldman and Kates, 2017).
Toyota leadership has helped the companies in evaluating the performance of the employees.
Employees have been evaluated by the Toyota. The leadership of the Toyota has been done
by analysing the physical skills of the employees on the shop floor. The help has been
provided to work if required without any delays. Toyota by its performance pragmas that has
been discussed above has able to describe the company has achieved it goals by its good
performance programs. Leadership programs have helped the management to provide the
better quality and quantity to the customers. Toyota has employed the some of the important
leadership programs that motivates the employees to say no to the good things and start
saying yes to the best. The company believes in delivering the best and not to satisfy with the
good. The leadership of the company has been analysed that how they behave with the
employees or they interact with the employees. Toyota top management has the policies take
meals with the employees, talk to them, and listen their problems. Toyota also focussed on
the working hours, as their goal is to do the smart work in a limited time. The employees of
the company have been given the proper training so they can provide the quality of work
(Belandres, 2016).
Question 8
Corporate Social Responsibility is also be said the self-governance or self-regulation. The
companies made policies to govern the internal organisation or it can also be said the
corporate ethic strategy. The Corporate Social Responsibility has its own importance and it
is required for the companies that the company must not have the only purpose to earn

LEADERSHIP 8
profits, but they have to also think about its stakeholders. Some companies who have well
managed the corporate social responsibility within their organisation. Microsoft is one of
such companies who have well executed the corporate governance policies in the company
and the result the company is one of the biggest companies in the World (Researchgate,
2018).
Microsoft has its separate corporate social responsibility team that collaborate the leader of
all the business and operation all over the World and approach the corporate social
responsibility issues. The head of the Corporate Responsibility directly reports to the
president of the Microsoft and the legal head. The legal head Mr Brad Smith reports to the
CEO, Satya Nadella. The company is engaged in to earn the trust of it stakeholders that
include their customers, employees, shareholders, partners and the public.
The charter of the Regulatory and Public Policy Committee of the Microsoft states the
responsibility of board of directors. It has been included that the company must examine or
review and must provide guidance to the management and the board about the policies and
programs of the company that are in relation to the corporate social responsibility, these
includes environmental sustainability, ethical business practices, accessibility, human rights,
privacy and cyber security and also responsible sourcing. The corporate social responsibility
of the Microsoft is for the long-term business success. The other factors of the company’s
self-governance they know that decisions of the company will affect their employees,
customers, shareholders, partners and all the stakeholders they considers their views
(Microsoft, 2018).
Microsoft has governing the Microsoft educating and empowering its employees as in the
recent year Microsoft employees has done trainings on the standards of the business conduct.
The Microsoft multiple channels take employees feedback and initiate the action on the
issues. The company take labour and human rights at the Microsoft. Microsoft also takes care
of the health and safety of the employees (Lins, Servaes and Tamayo, 2017).
Microsoft literature and philosophies regarding the corporate social responsibility has been
came in the report of 2018 has been discussed. Microsoft has donated the $ 1.4 of billions of
software’s and services worldwide. Microsoft TEALS program has given the computer
science education to the 13,000 students in the 342 schools of the U.S. It has also spent $ 3
billion to the minority, disabled, woman owned business and the minorities. The company

LEADERSHIP 9
has been achieved the 100 % of carbon neutrality in the global operations every year since the
year 2012 (Tai and Chuang, 2014).
There are different views of the philosophers on the Microsoft corporate social
Responsibility. In view of the great philosopher, Melton is that if the company is achieving
the profits that mean they have achieved the corporate social responsibility. But many
philosophers takes other stands that corporate social responsibility does not over by earning
profits as the company must achieve its goal with the fulfilment of the social responsibility is
important for an organisation. Microsoft has set this example as it is the one of the biggest
companies in the world and with its recent report it has showed that the company has not only
the goal of achieving profits but also with the internal and external corporate social
responsibility (Ahern, Byrne and Leavy, 2016).
It can be analysed that corporate social responsibility is not a burden for the company but it
also helps the company in achieving their goals. Corporate Social Responsibility also helps
the company to achieve both the mission and the vision.

LEADERSHIP 10
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