I need help answering these 3 questions below from these notes below.

How do mission, vision and values statements differ from one another?

What is the difference between a behavior-based approach to developing an ethical culture and a character based approach?

What can leaders do to develop an ethical culture within their organizations?

Every business organization begins with a purpose. The principal purpose of most commercial organizations is to earn a profit for their owners by providing products or services that have economic value. The purpose of not-for-profit organizations or governmental agencies is to address social needs or provide social benefits. Whatever their size or structure, all businesses have some form of governance, either by an owner, a group of partners or a board of directors. The governing body of the business is responsible for establishing its mission, setting policy, and ensuring its success. In businesses comprised of more than one or a few individuals, the governing body is responsible for selecting the organization's leader and holding the leader accountable for achieving the mission of the organization. Larger companies are typically led by a team of corporate officers who report to the Chief Executive Officer. The leadership team is responsible for the organization's table of organization, corporate policies and procedures, strategic planning (typically in conjunction with the board), oversight of finances and operations, and setting standards for quality and organizational behavior. Farther down the table of organization are the organization's managers and supervisors who direct the activities of the organization's departments, facilities, and work units. Managers and supervisors are responsible for the day-to-day operations and for the supervision of individual employees. The majority of the organization are the rank and file workers who carry out the functions of the organization.

Mission, vision and values

The purpose and behavioral standards of most large companies and not-for-profit organizations are expressed in a statement of mission, vision, and values.1

A mission statement defines what the business does and how they do it. It might be "to provide high-quality, affordable health care services" (Kaiser Permanente)2; "to empower people to choose how they live as they age" (AARP)3; or "to organize the world's information and make it universally accessible and useful" (Google)4. The intent of the mission statement is to focus everyone in the organization on a single overarching goal that is both inspirational and attainable.

The vision statement is meant to be aspirational - to express the organization's best image of itself. Its intent is to challenge staff and other stakeholders to think beyond the day to day operations of the company and to envision its larger purpose. IKEA's vision is "to create a better everyday life for the many people;"5 the Alzheimer's Association envisions "a world without Alzheimer's Disease;"6 Philips aspires "to make the world healthier and more sustainable through innovation.

The values statement provides a set of ethical standards to guide the behavior of the organization's leaders and staff. Some of these values may be technical or prudential norms related to the company's business success, and some may be more purely ethical in nature. American Express, for example, includes among its corporate values providing outstanding products and a will to win in the marketplace, which are technical standards, but its statement of values also mentions integrity, respect, and good citizenship, which are more properly ethical values.

The mission, vision, and values statements give the organization's leaders an opportunity to make their expectations clear to the company's employees and other stakeholders. Business leaders who are intent on creating an ethical culture give ethical principles a prominent place in their founding documents. It is important that the governing body and leadership team actually buy into to these ethical commitments - that they are not just window dressing composed by the public relations department for posting on the website. The company's top leadership should have a deciding role in developing the company's core principles and should refer to them frequently. It is important too that the leaders' decisions and actions be consistent with the principles expressed in the mission, vision and values statements. Otherwise they are empty words.

Organizational culture

One of the most important functions of an ethical leader is to create an organizational culture that translates the company's mission, vision, and values into everyday practice. Organizational culture is to a company what character is to an individual. Just as individuals develop good character through the development of good habits, organizations develop an ethical culture through the development of ethical practices. Some companies make a habit of deceiving their customers, while others are honest and transparent. Some companies take shortcuts in the manufacture of their products, while others put a premium on producing products of the highest quality. These differences in behavior reflect differences in corporate culture. Corporate culture refers to the shared values, attitudes and standards that define a company's "personality." The elements of corporate culture are often unspoken and sometimes unrecognized, but they manifest themselves in decisions about what is most important within the company, which kinds of behaviors are rewarded and which discouraged, who is accepted and who is rejected.

Like character, corporate culture develops as the result of repeated practice. A business leader intent on creating an ethical company must put processes and systems in place that not only inform employees what is expected of them, but also ensure that expectations are consistently met. A leader who is committed to eliminating sexual harassment, for example, must do more than publish policies and require employees to attend training sessions, they must also set up a comprehensive system of supervision, establish effective methods for reporting and following up on complaints, and create systems for monitoring compliance. Unless and until an ethical behavior is routinely and universally practiced, it will not become part of the organization's culture.

Behavioral and character-based approaches to organizational culture

Because corporate culture is so important to a company's success, ethical business leaders devote considerable attention to nurturing a positive culture within their organizations. Business leaders can use a behavior-based approach or a character-based approach (or a combination of the two) in their attempts to shape corporate culture. Behavior-based approaches rely on rules. Employees are motivated to comply with them by promises of reward and punishment. Character-based approaches are grounded in the company's mission, vision and values. Employees are motivated to pursue them because of a commitment to personal and organizational excellence.

Behavior-based approaches, which are the most commonly used in business, focus on behavior - what people should or should not do. Tools for shaping or constraining behavior within business organizations include codes of conduct, policies and procedures, orientation and training, supervision, performance programming, evaluation, and disciplinary programs. These controls are an essential part of business culture, especially in highly regulated sectors that involve public health or safety. Behavior-based approaches are necessary to maintain baseline compliance with laws, regulations, and industry standards. Almost every industry has its outside regulators or accrediting agencies who expect to see written policies and mechanisms for enforcing them. In addition, disciplinary actions typically require documentation that the employee was given explicit expectations with regard to behavior, adequate training and supervision, and fair warning about problematic behavior before disciplinary action can be taken. These also require a behavior-based approach.

Character-based approaches focus on influencing the values, attitudes, and motives of individuals within the business organization.9 The end of a character-based approach is personal and organizational excellence. Various means can be used to achieve this end, but all of them focus on encouraging the members of the organization to develop the traits of character that support good judgment and ethical behavior. A character- based approach focuses on the virtues of integrity, responsibility and industry. Ethical leaders encourage their staff to display moral courage to speak up when they see signs of incompetence or wrongdoing. They reward creativity and forward thinking. They expect their subordinates to tell them the truth, even when the truth is painful. Ethical leaders also promote team-building and create opportunities for staff to interact with their coworkers. A truly ethical culture develops when the work community shares authentic values and the members of the group identify closely with it.

In the end, the aim of a character-based approach is to develop the capacity for good judgment among the members of the organization. Judgment is the application of a general principle to a particular situation. It is not a mechanical process but creative, spontaneous and intuitive. The capacity for good judgment is a prerequisite for autonomy. To the extent that team members can exercise good judgment, they can be given autonomy. One of the great advantages of a culture based on character and values over a culture based on rules is that it enables staff to act in complex or ambiguous situations not envisioned by the rules.

Developing an ethical culture is not easy. Human beings resist being shaped or molded. Leaders cannot simply impose their will on a workforce, creating a culture by fiat. They must develop strategies for inducing their staff to buy into their vision of a highly functioning ethical society. Leaders interested in the pursuit of organizational excellence begin by developing the traits of character within themselves they want to see embodied in their organization and repeatedly displaying them for others to emulate. Creating an ethical organizational culture, however, demands more than modeling good behavior and hoping others follow suit. Ethical leadership requires a deliberate strategy for engaging others in the quest for excellence. This strategy includes a comprehensive program of thoughtful communications, the development of processes and systems that support ethical behavior, and focused efforts to encourage elements of the culture that exemplify the company's mission, vision, and values.