Business Ethics and Corporate Governance, Second Edition

WALTON’S SIX MODELS OF BUSINESS CONDUCT

To understand business conduct, Walton¹³ has classified it into six models.

1. The austere model: It gives almost exclusive emphasis on ownership interest and profit objectives.
2. The household model: Following the concept of an extended family, the model emphasizes employee jobs, benefits and paternalism.
3. The vendor model: In this model, consumer interests, tastes and rights dominate the organization.
4. The investment model: This model focuses on the organization as an entity and thus on long-term profits and survival. In the name of enlightened self-interest, it gives some recognition to social investments along with economic ones.
5. The civic model: Its slogan is ‘corporate citizenship’. It goes beyond imposed ...