Chapter 6

Values and

Workplace Ethics

Describe how organizations foster unethical business

Explain how organizations can promote ethical behavior

Define ethics and valuesBetter articulate your own values

Objectives

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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…ObjectivesDistinguish between ethical and non-

ethical valuesExplain and recognize the stages of moral

reasoningDescribe five ethical modelsExplain corporate social responsibility and

its benefits

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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What Was Your Score on the Corporate Integrity Checkup?

Compare your score with your neighbor’s and describe your organization’s

perspective on ethics

Who had the highest score in the room? The lowest?

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Unethical Business Practices

Ambiguous “window-dressing” policies

Overemphasis on individual and firm performance

Intense internal and external competition

“Letter of the law” rather than the “spirit of the law”

Sole objective is profit

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Unethical Business Practices

“Let the buyer beware”

Inadequate controls

Indifference to customers’ best interests

Failure to understand public’s ethical concerns

Expediency reigns

Groupthink mentality

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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How to Foster Ethical Behavior

Communicate expectations and define what ethical behavior means

Hire top executives who set a good example

Reward ethical behavior and punish unethical behavior

Teach the tools of ethical decision makingEncourage discussion of ethical issues

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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The Ethics Warning System

Golden Rule – Are you treating others as you would want to be treated?

Publicity – Would you be comfortable if your reasoning and decision were on the front page of tomorrow’s newspaper?

Kid on your shoulder – Would you

be comfortable if your children

were observing you?

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Ethics - Defined

Standards of conduct that indicate how one should behave based on moral

duties and virtues arising from principles about right and wrong

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Values - Defined

Core beliefs or desires that guide or motivate attitudes and actions

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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The Toyota Way

Terminal Values - Defined

Desirable end states of existence or the goals that a person would like to

achieve

Two types: personal and social values

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Instrumental values are preferable modes of behavior or the means to achieving one’s

terminal values

Two types: moral and competence values

Instrumental Values - Defined

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Schwartz and Bilsky’s Seven Universal Values

Prosocial – Active protection or enhancement of the welfare of others

Restrictive conformity – Restraint of actions and impulses likely to harm others and to violate sanctioned norms

Enjoyment – Pleasure, sensuous and emotional gratification

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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…Schwartz and Bilsky’s Seven Universal Values

Achievement – Personal success through demonstrated competence

Maturity – Appreciation, understanding, and acceptance of oneself, others, and the surrounding world

Self-direction – Independent thought and action—choosing, creating, exploring

Security – Safety, harmony and stability in society, identity groups, relationships and self

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Ethical Vs. Non-ethical Values

Trustworthiness, respect, responsibility, justice and fairness, caring, civic virtue, and citizenship

Ethical—Related to what is right and proper

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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…Ethical Vs. Non-ethical Values

Money, fame, status,

happiness, being liked

Non-ethical—Related to things we like, desire, or find personally important

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Kohlberg’s Three Levels of Moral Development

Level One—Self-Centered (Preconventional) Stage One: Obedience and Punishment Orientation Stage Two: Instrumental Purpose and Exchange

Level Two—Conformity (Conventional) Stage Three: Interpersonal Accord, Conformity, Mutual

Expectations Stage Four: Social Accord and System Maintenance

Level Three—Principled (Postconventional) Stage Five: Social Contract, Individual Rights Stage Six: Universal Ethical Principles

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Five Ethical Approaches

Utilitarianism – greatest good for greatest number

Individual Rights – personal entitlements

Justice – fairness, equity, impartiality

Caring – well-being of other people

Environmentalism – stewardship of the earth

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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International Ethics

Making ethical decisions is even more

difficult in international business due to

different value systems and practices

Example: Different attitudes toward bribery

But ethical behavior is a competitive advantage because it builds trust

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Corruption - Defined

“The abuse of public power for private gain”

Out of 159 countries evaluated for the 2005 Corruption Perceptions Index, 70 countries

have high levels of corruption

Corruption correlates with high power distance and achievement cultures, socio-political instability, and the absence of a

tradition of well-established law and order

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Corporate Social Responsibility - Defined

“ CSR is broadly defined as a company’s commitment and contribution to the quality of life of employees, their families and the

local community and society overall to support sustainable economic

development”Provides a competitive advantage in

business and in attracting and retaining employees

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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When Is Whistle Blowing Legitimate?

It would benefit the public interestThe revelation is of major importance and

very specificThe facts have been checked and

rechecked for accuracyAll other avenues within the organization

have been exhaustedThe whistleblower is above reproach and

has nothing to gain personally by revealing the info

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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Ways of Handling Unethical Behavior

Sabotaging or refusing (quietly or vocally) to implement unethical behavior

Indicating your unwillingness to support a cover-up in case the wrong-doers are caught

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

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...Ways of Handling Unethical Behavior

Secretly or publicly blowing the whistle within the organization

Secretly or publicly threatening the offender or a responsible higher-level manager with blowing the whistle inside or outside the organization

Secretly or publicly blowing the whistle outside the corporation

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