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    Ethics and Culture

    Module 2

    LIS 580: Spring 2006Instructor- Michael Crandall

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    Roadmap

    What is ethics?

    Ethics in the workplace

    Organizational culture and socialresponsibility

    Diversity in the workplace

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    The Wall Street Journal Workplace-

    Ethics Quiz

    FIGURE 21Source: Wall Street Journal, 21 October 1999, pp. 8184. Ethics Officer Association, Belmont, Mass.; Ethics

    Leadership Group, Wilmette, Ill.; surveys sampled a cross-section of workers at large companies and nationwide.

    G.Dessler, 2003

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    The Meaning of Ethics

    Ethics

    The study of standards of conduct andmoral judgment; also, the standards of right

    conduct. Normative Judgment

    A comparative evaluation stating orimplying that something is good or bad,

    right or wrong, or better or worse.

    Morality

    A societys accepted norms of behavior.G.Dessler, 2003

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    G.Dessler, 2003

    Moral Philosophies

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    The Ethical Continuum

    FIGURE 22Source: Source: Michael Boylan, Business Ethics

    (Upper Saddle River, NJ: Prentice Hall, 2001), p. 119.

    Low High

    G.Dessler, 2003

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    Ethics and the Law

    Important Points:

    Something may be legal but not right

    (ethical)

    Something may be right (ethical) but not

    legal.

    G.Dessler, 2003

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    What Influences Ethical

    Behavior At Work?

    Ethical Work

    Behaviors

    Individual

    Factors

    Organizational

    Factors

    Top

    Management

    Ethics Policies

    and Codes

    G.Dessler, 2003

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    G.Dessler, 2003

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    Raytheon Companys Quick

    Ethics Test

    Is the action legal?

    Is it right?

    Who will be affected? Does it fit company values?

    How will it feel afterwards?

    How will it look in the newspaper? Will it reflect poorly on the company?

    G.Dessler, 2003

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    Checklist 2.1

    How to Foster Ethics at Work Emphasize top managements

    commitment.

    Publish an ethics code.

    Establish compliance mechanisms.

    Involve personnel at all levels.

    Train employees.

    Measure results.

    G.Dessler, 2003

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    What Is Organizational Culture?

    Organizational Culture

    The characteristic set of values and ways of

    behaving that employees in an organization share.

    Patterns of Behavior Ceremonial events, written and spoken comments,

    and actual behaviors of an organizations members

    that create the organizational culture.

    Values and Beliefs Guiding standards of an organization that affirm

    what should be practiced, as distinct from what is

    practiced.G.Dessler, 2003

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    Components of Organizational

    Culture

    Signs and Symbols

    Practices and actions that create and sustain a

    companys culture.

    Stories The repeated tales and anecdotes that

    contribute to a companys culture by illustrating

    and reinforcing important company values.

    Rites and Ceremonies Traditional culture-building events or activities

    that symbolize the firms values and help convert

    employees to these values.G.Dessler, 2003

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    Managers And Social

    Responsibility

    Social Responsibility

    The extent to which companies should and do

    channel resources toward improving the quality of

    life of one or more segments of society other thanthe firms own stockholders.

    Managerial Capitalism

    The classic view is that a corporations main

    purpose is to maximize profits for stockholders. Stakeholder Theory

    Business has a social responsibility to serve all the

    corporate stakeholders affected by its decisions.G.Dessler, 2003

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    FIGURE 25

    A Corporations Major

    Stakeholders

    G.Dessler, 2003

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    Managers And Social

    Responsibility (contd) Moral Minimum

    The idea that corporations should be free to

    strive for profits so long as they commit noharm.

    Stockholders versus Stakeholders?

    G.Dessler, 2003

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    How to Improve the Companys

    Social Responsiveness Corporate Social Audit

    A rating system used to evaluate a corporations

    performance in meeting its social obligations. Whistle-blowing

    The activities of employees who try to report

    organizational wrongdoing.

    Social Responsibility Networks Organizations that promote socially responsible

    business practices and help managers to establish

    socially responsible programs.G.Dessler, 2003

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    Managing Diversity

    Managing Diversity Planning and implementing organizational systems

    and practices to manage people in a way thatmaximizes the potential advantages of diversity

    while minimizing its potential disadvantages. Cultural diversity contributes to improved

    productivity, return on equity, and marketperformance.

    Diverse Describes a workforce comprised of two or more

    groups, each of which can be identified bydemographic or other characteristics.

    G.Dessler, 2003

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    Bases for Diversity

    Racial and Ethnic

    Gender

    Older workers People with disabilities

    Sexual/affectional orientation

    Religion

    G.Dessler, 2003

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    Barriers in Dealing with Diversity

    Stereotyping Attributing specific behavioral traits to

    individuals on the basis of their apparentmembership in a group.

    Prejudice A bias that results from prejudging someone on

    the basis of the latters particular trait or traits.

    Ethnocentrism A tendency to view members of ones own

    group as the center of the universe and to viewother social groups less favorably than onesown.

    G.Dessler, 2003

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    Barriers in Dealing with Diversity

    (contd) Discrimination

    A behavioral bias toward or against a person

    based on the group to which the person belongs.

    Tokenism

    Appointing a small number of minority-group

    members to high-profile positions instead of more

    aggressively achieving full group representation. Gender-Role Stereotyping

    Usually, the association of women with certain

    behaviors and possibly (often lower-level) jobs.G.Dessler, 2003

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    FIGURE 27

    Activities Required to Better

    Manage Diversity

    G.Dessler, 2003

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    Wrapup

    Management is part of life in an organizational

    society

    Knowing how it works can help you achieve

    your goals: personal, professional, and social Ethical and social responsibility is affected by

    managerial actions and inaction

    Your choices as a manager build anorganizational culture that reflects your

    decisions and values

    Take charge to make changes

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    Ghoshals Thesis

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    Different Approaches

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    Next Time

    A week on planningTuesdays topic isdecision making Read Chapter 3 and assigned article

    First discussion!! Be sure to read the case

    Think about these questions as you read Why is a decision so hard in this case?

    What process might have made it easier?

    Could something have been done earlier in the

    process to avoid the complications? Who should be responsible for the decision?

    If you had to decide what to do next to resolve thisproblem, how would you go about it?