Knowledge that Transforms

This study draws on organizational justice theory to investigate the effects of mandatory employment arbitration on organizational attraction. Specific attention is given to the characteristics of employment arbitration procedures that moderate the adverse effects these programs have on applicants' intentions to continue with the recruitment process. A total of 389 professional and executive MBA students read simulated employment brochures. Making employment arbitration mandatory was found to have a significant negative main effect on applicant attraction. This negative effect was mitigated when procedures afforded employees more due process considerations and when employees were given a just-cause protection in return for giving up their right to sue. Finally, this negative effect was greater among minorities than nonminorities.

A corporate culture is the combination of the values and characteristics that define an organization. It influences the way employees relate to each other, to customers, to shareholders, and to business partners. It drives behaviors and unites employees around a shared set of values. Companies with strong, formally articulated values that are focused on the needs of their constituencies have an important advantage over those without such values. American Express recently worked to strengthen its culture and renew its corporate values. I will focus on why this initiative was important, how we reviewed company culture and implemented culture change strategy, and what early results showed.