Walton Six models of Business Conduct
All businesses must meet certain standards of law and minimum cultural standards. All are further influenced by the general cultural aspects of their time. But in spite of these tendencies uniform conduct, there are important differences among business. Each has its own personality, as each human being does. These organizational differences are reflected in company codes of conduct and they do produce different results. As a guide to understanding different types of business conduct, Walton classifies six models of conduct. Those are Discussed bellow:-
(a) The austere model: It gives almost exclusive emphasis to ownership interest and profit objective. In this model, a business firm exclusively emphasizes owners ’ interest and the profit motive.
(b) The household model: The concept of extended family this model emphasizes employee job, benefits, and paternalism. The firm adopting this model employs a paternalistic approach with its employees.
(c) The vendor model: In this model, consumer interest, tastes, and rights dominate the organization. In this model, the interests and rights of customers are given top priority.
(d) The investment model: This model focuses on the organization as an entity and thus on long-term profits and survival. Social investment is given recognition along with economic investments.
(e) The civic model: its slogan is corporate citizenship. It goes beyond imposed obligations, accepts. This model makes a positive commitment to social needs its slogan is corporate citizenship and social responsibility is accepted.
(f) The artistic model: This model encourages the organizations to become creative instrument serving the cause of an advanced civilization with a better quality of life. Creative ideas are generated and used for this purpose.
The six models may be thought of as points on a continuum from low to high social responsibility.