Post on 29-Dec-2015
Questions of Values and Ethics
Values
Abstract ideals that shape an individual’s thinking and behavior – a moral compass
Instrumental values – certain way of behaving is appropriate in all situations – “means”.
Terminal values – enduring belief in the attainment of a certain end state – “ends”.
A moral compass
These abstract ideals can result from Religion Philosophy Family teachings
Instrumental values
As the means to an end they become the ingrained ways of behavior: Rituals Politesse Good habits
Terminal valuesWith the end always in sight:
Heaven Respect Financial Success Personal Independence Power
Ethics The study of moral obligation
involving the distinction between right and wrong.
Business Ethics: right or wrong in the workplace – value management.
Relativism
Egoism
Utilitarianism
Universalism
TheThe 44 ConceptsConcepts ofof
EthicsEthics
ETHICS THEORY/THEORISTS
“Ethicists”
Ethical Tests
Is It Legal Test?
Quadrant II
Ethical and Illegal
Quadrant IV
Unethical and Illegal
Quadrant I
Ethical and Legal
Quadrant III
Unethical and Legal
Ethical
Unethical
LegalIllegalCorporate
Decisions
Codification
Manifestation
Two Areas of Business Ethics
Moral mazes RIGHT vs. RIGHT
Obvious mischief
Common Misconduct in Organizations Misrepresenting hours worked Employees lying to supervisors Management lying to employees,
customers, vendors or the public Misuse of organizational assets Lying on reports/falsifying records Sexual harassment Stealing/theft Accepting or giving bribes or kickbacks Withholding needed information from
employees, customers, vendors or public
Common Causes of Unethical Behavior
Pressure Fear Greed Convenience
Causes of Unethical Behavior (cont’d) Following boss’s directives Meeting overly aggressive
business/financial objectives Helping the organization survive Meeting schedule pressures Be a team player (group think) Rationalizing that others do it Resisting competitive threats Advancing own career
Ethical Dilemmas
Making decisions under stress or dealing with complex issues that have no clear indication of what is right or wrong.
There are NO simple ethical dilemmas…all have layers of meaning and effect.
Business Ethics Myths
Business ethics is a new fad. Business ethics – religion vs.
management. Business ethics is obvious – “do
good!” Business ethics is good guys
preaching to bad guys.
“Whistleblower’s” Reluctance
Didn’t believe action would be taken.
Feared retaliation from mgmt. Didn’t trust confidentiality. Feared not being a team player. Feared retaliation from co-workers. Didn’t know who to contact. Nobody cares, why should I?
Business Ethics Myths (cont’d)
Ethics can’t be managed. Being legal = being ethical. Managing ethics has little practical
relevance.
Ethical Tips for Organizations
Develop a code of ethics. Communicate code and bake it
into culture top-down. Treat ethics as a process. Create open lines of
communication. Set good examples. Educate employees – frame issues
through storytelling. Value forgiveness.
Benefits of Managing Ethics in the Workplace
Improves society. Maintains a moral course in
turbulent times. Cultivates employee teamwork,
productivity, morale and development.
Acts as an insurance policy.
Benefits of Managing Ethics in the Workplace (cont’d)
Establishes values for quality management, strategic planning and diversity management.
Promotes strong public image. It is the RIGHT thing to do!
Ethical Tips for Individuals
Establish personal values. Be aware of ethical events. Develop critical thinking
techniques. Be reflective. Make it a priority every day.
“The simple step of a simple courageous man is to not take part in the lie, not to support deceit. Let the lie come into the world, even dominate the world, but not through me.”
-- Alexander Solzhenitsyn
Puzzling things out….
As we watch the video vignettes, keep these questions in mind:
1) What is the ethical dilemma? 2) What is the apparent cause of the
unethical behavior?3) Is there an ethical resolution to the
problem portrayed?4) If so, who should do what?
Decision-Making Process
A General Framework of the Ethical Decision-Making Process
ETHICAL SITUATION
CHARACTERISTICS OF THE DECISION MAKER
SIGNIFICANT INFLUENCES
OUTCOMESDECISION
Individual Characteristics of the Decision Maker that Influence the Ethical Decision-Making Process
ETHICAL SITUATION
CHARACTERISTICS OF THE DECISION MAKER
SIGNIFICANT INFLUENCES
OUTCOMESDECISION
* Achievement motivation * Knowledge* Need for affiliation * Experience* Ego strength * Risk taking* Locus of control * Machiavellianism
Significant Influences on the Ethical Decision-Making Process
ETHICAL SITUATION
CHARACTERISTICS OF THE DECISION MAKER
SIGNIFICANT INFLUENCES
OUTCOMESDECISION
* The organization * Technology* Work * Significant others; customers,* The law peers, immediate supervisor,* Economics top managers, family, friends,* Professionalism other “opinion leaders”
Outcomes that Result from the Ethical Decision-Making Process
ETHICAL SITUATION
CHARACTERISTICS OF THE DECISION MAKER
SIGNIFICANT INFLUENCES
OUTCOMESDECISION
* Performance * Feedback* Rewards * Promotions* Satisfaction * Learning
Elements of the Ethical Decision-Making Process
Characteristics of Decision Makers
Significant Influences
Outcomes
PERCEIVED ETHICAL PROBLEM
PERCEIVED ALTERNATIVES,
PRODUCT, PRICE, PROMOTION,
DISTRIBUTION INFO
PERCEIVED CONSQUENCES
ELEMENTS OF THE DECISION
Information acquiredInformation processed
Ethical decision historyExpectationsSent and received rolesEthics norms (personal & those of others)
Information acquiredInformation processed
Probability of consequencesDesirability of consequences
JUDGMENT
DECISIONEthical
Situation
A Successful Code of Ethics
• Have support of top management
• Be practical and realistic
• Followed by top management • Include penalties for disobedience
• Clearly explained to all employees
• Continuously implemented by a "watchdog committee" that has authority to take disciplinary actions
Inside an Organization:How ethics affects the
everyone!
Ethics of Accounting
Creative accounting practices and misleading financial analysis.
White-collar crimes Executive compensation Bribery, kickbacks, political lobbying
Ethics of Sales and Marketing
Pricing: price fixing, discrimination, skimming. Unethical marketing strategies Content of Advertisements Children and marketing Black and grey markets.
Ethics of Production
Defective products Quality vs. Quantity Addictive and inherently dangerous products and
services (e.g. tobacco, alcohol, weapons, motor vehicles, chemical manufacturing).
Environmental issues Safety Patent infringement
Ethics of Research & Development (R&D)
Ethical problems arising out of new technologies: genetically modified food, mobile phone radiation and health.
Product testing ethics: animal rights and animal testing.
Use of economically disadvantaged groups (such as students) as test objects.
Intellectual property
Ethics of International Business
Political Economic Socio-cultural Technological Legal Environment Government