ch1_PPT

UNETHICAL BEHAVIORS IN ORGANIZATIONS AND HUMAN NATUREChapter OneVisit http://wileymanagementupdates.com/ for the latest in business news stories. Copyright 2012 John Wiley & Sons

Copyright 2012 John Wiley & Sons

Chapter 1Learning ObjectivesExplain the competitive advantages of creating and maintaining an ethical organizationAppreciate that unethical behaviors occur in all organizational operationsIdentify common types of unethical behaviorsUnderstand that unethical behaviors can be very costly to organizationsDescribe different theories of human nature and the stages of moral developmentDiscuss why good people occasionally behave unethically

Chapter 1: Collins, Business Ethics


Daily Occurrence of Ethical DilemmasEthics is the set of principles a person uses todetermine whether an action is good or bad.

People experience a multitude of ethicaldilemmas on a daily basis. Almost everydecision and action a person makes impactsother people.Chapter 1: Collins, Business Ethics


Daily Occurrence of Ethical DilemmasExamples of Ethical Dilemmas:Should you arrive at work early, on time, or late?Should you submit adequate work that meets a deadline or submit the highest quality work possible and miss the deadline?Should you inform your boss about your colleague's questionable work habits?Should the organization incur additional costs for environmental protection technologies not required by law?Should you leave work at the designated time or cancel after work plans and stay late to finish a project?



Unethical Behaviors at WorkEthics Resource Center 2009 Survey on types of ethical misconduct respondents observed most within the previous 12 months (top 5):Company resource abuseAbusive or intimidating behavior toward employeesLying to employeesEmail or internet abuseConflicts of interest



Unethical Behaviors at WorkThese ethical misconducts were observed in both large firms and small firms, and in all sectors examined, including:Government agencies (29% reported ethical misconducts)Nonprofit organizations (26%)Publicly traded for-profit firms (25%)Privately held for-profit firms (25%)



EVERY PROFESSION AND INDUSTRY EXPERIENCES ETHICAL PROBLEMSUnethical Behaviors at WorkAccounting AuditorsLegal ProfessionConstruction IndustryPublic RelationsSalesGovernment AgenciesArmy PersonnelMedical ResearchersChapter 1: Collins, Business Ethics


Costs Associated with Unethical BehaviorsManagers often underestimate the costs associated with unethical behaviors

The most direct cost is lost business

Other costs associated with unethical behavior:Legal costsTheftRecruitment and turnoverMonitoringReputationAbusive treatment



Costs Associated with Unethical BehaviorsLegal CostsLawsuits are one of the most easily quantifiable costs associated with unethical behaviorsThe Equal Employment Opportunity Commission maintains an annual database of charges filed and resolved under various antidiscrimination laws



Costs Associated with Unethical BehaviorsEmployee TheftEmployees can steal money, products, or time

The biggest source of retail theft is employees, not customers

Theft can occur at all levels of an organization



Costs Associated with Unethical BehaviorsMonitoring CostsOrganizations incur monitoring costs when they employ unethical individuals

Once an employee has lied, he or she needs to be more closely monitored



Costs Associated with Unethical BehaviorsReputation CostsAn organizations reputation is one of its most important assetsReputation management accounts for 63% of an organizations market valueContinuous negative publicity creates substantial barriers



Costs Associated with Unethical BehaviorsAbusive Treatment CostsAbusive supervision affects approximately 13% of U.S. workers

Costs in terms of absenteeism, health care, and lost productivity have been estimated to be $23.8 billion annually



Costs Associated with Unethical BehaviorsRecruitment and TurnoverUnethical organizations cannot be trusted

Unethical organizations incur greater costs recruiting employees, customers, suppliers, and investors



Competitive Advantages of Ethical OrganizationsEthical organizations, compared to unethical organizations, are more likely to:

Attract and retain high-quality employeesAttract and retain high-quality customersAttract and retain high-quality suppliersAttract and retain high-quality investorsEarn good will with community membersChapter 1: Collins, Business Ethics


Competitive Advantages of Ethical OrganizationsIf you were a job applicant, would you rather work for an ethical or an unethical organization?

If you were a customer, would you rather purchase products or services from an ethical or unethical organization?



Human NatureAre employees, customers, and suppliers inherently selfish or altruistic?Can they be trusted or do they have to be carefully monitored?From a managerial perspective, what are the most important features of our moral imperfection?



Human NatureAre we:Born Good?

Born with Inherited Sin?

Born Morally Neutral?



Cognitive DevelopmentChildren are born into a particular family, neighborhood, and culture that influence their moral judgment

Parents are a childs most direct role model and shape the childs environmental experiences



Kohlbergs Stages of Moral DevelopmentLevel 1 - Pre-conventionalObedience & punishment orientationInstrumental Orientation

Level 2 - ConventionalGood Boy-Nice Girl OrientationLaw-and-Order Orientation

Level 3 - Post-ConventionalSocial contract OrientationUniversal Ethical Principles


Chapter 1: Collins, Business EthicsSingle quote mark on Nice Girl needs to be reversed*

Kohlbergs Stages of Moral DevelopmentPreconventional Levelindividual is not perceived as being part of a broad community with rules and regulations

Conventional Levelsocietal roles and agreements matter a great deal to the individual

Postconventional Levelindividual delves into the principles that govern societal roles and order



Lies and CheatingManagers need honest information from other employees and stakeholders to achieve optimal organizational performanceChildren lie and deceive others as soon as they can formulate alternative strategiesLying and cheating continue through high schoolCheating patterns continue in college



Lies and CheatingChapter 1: Collins, Business EthicsExhibit 1.3: The Day Americans Told the Truth


Why Do Good People Behave Unethically?Unintended Unethical Behaviors

Choosing Between Competing Values

Intentional Unethical Behaviors

Failure to Report Unethical Behaviors



Single quote mark on Nice Girl needs to be reversed*

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