Ethics - PPT (Bus1301)

ethics.
ppt (bus1301)
◆ Essence
of Ethics
◆ Morally Questionable Acts
◆ Dynamic Relationships that Affect
Ethical Decision Making
◆ Factors Affecting Ethical Decisions
◆ Norms and Counter-norms
◆ Managing Ethics
ethics.ppt (bus1301)
TEXACO - racial discrimination $176 M
MERCURY FINANCE - overstating profit $ 2.2 B
ADM - price fixing $100 M
GENETECH - tying personal loan
to business deal CEO loses job
BANKER’S TRUST - deliberately misled or
deceived customers Damaged
image
W.R. GRACE - sexual harassment CEO loses job
BAUSCH & LOMB - manipulation of
accounting data earnings fell 54%
1. Responsibility to address corporate 58% execs
issues (58% Execs)
2. Corp. leaders’ responsibility is to 52% execs
the greatest good (52% Execs; 35% MBAs
35% MBAs)
3. Switch brands (76% consumers) 76% consumers
4. Skepticism about ‘cause’ related
marketing (58% consumers; 21% 58% consumers
today) 21% today
5. Do not buy (75% consumers)

75% consumers
1. Social responsibility is important (26%
1. 26% investors
investors)
2. Company image (84% employees)
2. 84% employees
3. Innovative workplace practices
associated with productivity
4. Employee ownership leads to
productivity (60% companies)
4. 60% companies
5. Business has too much power (71 %)
5. 71%
6. Corporate role is more than to make a
profit (95%) 6. 95%
Profit at Any Cost
- Corporate layoffs - theft

- Wall Street sins - selling products that do not meet
specs.
- Pentagon fraud
- age discrimination - retaliation against employees
who exposed unsafe/illegal
practices
- price fixing
- use of banned chemicals
- power in the market place
* Who is responsible? “Captain of the ship?”
* Does profitability excuse questionable behavior?
◆ Codes do not produce ethical
behavior.
◆ Our ethics tend to flow from our

core values.
◆ People have intrinsic worth.

Conflicts of interest lead to ethical problems
Individual behavior is strongly influenced by

incentive
Self-regulation and standard setting

organizations fall short
◆ Get support by CEO for support of key
stakeholders
◆ Get stakeholders participation
◆ Expand words/ phrases into expectations
◆ Establish feedback mechanism
◆ Assure implementation/ monitoring of results
◆ Reward employees who perform and deliver
on values
◆ Non-job failures:
– Cheating on your expense accounts
– Stealing supplies
– Sandbagging
◆ Job failures:
– Superficial performance appraisal
– Not confronting expense account
– Cheaters
– Falsely praising poor performers
– Denial of training opportunities
– Undermine management
◆ Job distortions:
– Bribery
– Manipulation of suppliers/buyers
– Differential pricing
– Falsifying information
◆ Job “creation”:
– Bending policies for certain customers
– Bending policies for salespeople
– Caught violating rules
– Arranging for promotions
FACTORS AFFECTING
ETHICAL DECISIONS
UNCERTAINTY
OF
INPUTS POWER
CENTRALITY
OF
CONTROL OF
WORKFLOW
ETHICAL
BEHAVIOR
CONTINGENCIES
SUBSTITUTABILITY
OF
COPING
ACTIVITIES
ROUTINIZATION
PREVENTIVE
ROUTINIZATION
A General Framework of the
Ethical Decision-Making Process
CHARACTERISTICS OF
THE DECISION MAKER
ETHICAL DECISION OUTCOMES

SITUATION
SIGNIFICANT
INFLUENCES
Individual Characteristics of the
Decision Maker that Influence the
CHARACTERISTICS OF
THE DECISION MAKER
ETHICAL
DECISION OUTCOMES
SITUATION
SIGNIFICANT INFLUENCES
* Achievement motivation * Knowledge

* Need for affiliation * Experience
* Ego strength * Risk taking
* Locus of control * Machiavellianism
Outcomes that Result from the
CHARACTERISTICS OF
THE DECISION MAKER
ETHICAL
DECISION OUTCOMES
SITUATION
* Performance * Feedback
* Rewards * Promotions
* Satisfaction * Learning
Significant Influences on the Ethical
Decision-Making Process
CHARACTERISTICS OF
THE DECISION MAKER

SITUATION
* The organization * Technology

* Work * Significant others; customers,
* The law peers, immediate supervisor,
* Economics top managers, family, friends,
* Professionalism other “opinion leaders”
Elements of the Ethical Situation
CHARACTERISTICS OF
THE DECISION MAKER

SITUATION
* Opportunity
* Ethical decision history
* Moral intensity of the situation
Elements of the Ethical Characteristics of
Decision Makers
Decision-Making Process Ethical

Situation DECISION Outcomes
Significant
Influences
ELEMENTS OF THE DECISION
Information acquired
PERCEIVED ETHICAL Information processed
PROBLEM
Ethical decision history

Expectations
PERCEIVED
ALTERNATIVES, Sent and received roles
PRODUCT, PRICE, Ethics norms (personal & JUDGMENT
PROMOTION,
DISTRIBUTION INFO those of others)
Information acquired
Information processed
PERCEIVED
CONSQUENCES
Probability of consequences
Desirability of consequences
ORGANIZATION A
ORGANIZATION B
NORMS COUNTERNORMS
◆ LT relationships with customers ◆ Sandbagging
◆ Objectivity
◆ Openness ◆ Emotional Involvement
◆ Candor ◆ Secrecy
◆ Honesty ◆ Stonewalling
◆ Flexibility/Adaptability ◆ Lying
◆ Cost-effectiveness ◆ Dogmatism
◆ Taking responsibility ◆ Padding expenses
◆ Customer Service ◆ Passing the buck
◆ Develop younger salespeople ◆ Sales force
◆ Team effort ◆ Look out for “Number 1”
◆ Consensus ◆ Individual goals first
◆ Loyalty ◆ Taking unfair credit
◆ Criticize the company
▼ The OLD Ethic Favors ▼ The NEW Ethic Favors
✦ Work ✦ Leisure
✦ Savings ✦ Debt
✦ Responsibility ✦ Rights
✦ Competition ✦ Protection
✦ Sex roles ✦ Unisexism
✦ Sacrifice ✦ Self-interest
✦ Equality - Inequality ✦ Equality
✦ Wealth accumulation ✦ Wealth redistribution
✦ Absolution ✦ Situationalism
✦ Risk assumption ✦ Risk aversion
✦ Efficiency/Productivity ✦ Quality of life
✦ Thrift/Investment ✦ Consumerism
◆ Diagnose the reward system
◆ Analyze rules and procedures
◆ Training and education
◆ Develop investigative structures
◆ Leaders exhibit moral courage by being
willing to make personal sacrifices
◆ Leaders should not become to preoccupied
with pleasing constituents
◆ Leaders focus on needs of others - they have
a commitment to serve
◆ Business as usual may be evidence of a
leadership failure
CEO’S Set the Tone for How to Handle
Questions of Ethics
(Hymowitz)
Hymowitz
◆ Determination and a winning personality
equal success
◆ Employees rarely complain
◆ Employees take their cues from
management
◆ Top management actions are more
important than codes of ethics
◆ Employees wrestle with the short-run vs.
long-run
THE ESSENCE OF ETHICS I
(Article by Williams)
◆ Codes of ethics do not necessarily lead to

ethical behavior.
◆ The core values we profess are not necessarily
those by which we live.
◆ There is a place for compassion in leadership.
◆ Bureaucracy can come in conflict with ethics.
◆ Managers who vent their frustration on
subordinates (who can do little about it) are not
acting ethically.
THE ESSENCE OF ETHICS II
◆ Study the ethics of organizations which have

reputations for being ethical.
◆ Build ethics into organization policies and
practices.
◆ Make sure quality and service and integrity
permeate the entire organization.
◆ Develop high expectations of all members of
your organization.
THE ESSENCE OF ETHICS II
◆ Create an organizational culture that
✼ encourages...…
✼ open and honest communication
✼ continual learning
✼ personal development
✼ respect for people
Background
Slides
You will be Responsible for this Material!
Company Threats to Ethical Behavior
▼A firm that…
✦ routinely ignores or violates internal codes of ethics
✦ always looks for simple solutions to ethical problems and is satisfied
with “quick fixes”
✦ unwilling to take an ethical stand when there is financial cost to the
decision
✦ creates an internal environment that either encourages unethical
behavior or discourages ethical behavior
✦ usually sends its ethical problems to the legal department
✦ looks at ethics solely as a public relations tool to enhance its image
Company Threats to Ethical Behavior
▼A firm that…
✦ treats its employees differently from its customers
✦ is unfair or arbitrary in its performance appraisal standards
✦ has no procedures or policies for handling ethical problems
✦ provides no mechanisms for internal whistle-blowing
✦ lacks clear lines of communication within the organization
✦ is sensitive only to the needs of shareholders
✦ encourages its employees to leave their personal ethical values
at the door
FIVE WARNING SIGNS OF ETHICAL COLLAPSE
(Jennings article)
◆ surround yourself with subordinates who are

young, inexperienced, enthralled with power and
deep in debt
◆ send a clear message that you expect results at
any cost
◆ be certain the CEO is tyrannical and prone to
anger
◆ when an employee’s public statements bring
criticism to the company, cut the employee
loose
◆ when an ethical lapse is discovered, never admit
anything. Conceal, spin and gloss.
Do College Honor Codes Make Moral
Sense on Today’s Campus?
(Brownfield)
Information on College Students

➔ 70% have cheated on a test at least once
➔ 87% have cheated on some type of written work
➔ 49% have collaborated with others on an assignment
➔ 52% have copied from someone
➔ 87% business majors have cheated at least once
Conclusion: grade > learning short-run > long-run

chaos > standards negligence > integrity
laziness > diligence
Do College Honor Codes Make Moral
Sense on Today’s Campus?
(Brownfield)
Is an Honor Code a reasonable ideal for

Today’s students???
Today, we have a…
➔ Questionable moral climate,
➔ Lack of strong, value-based up-bringing, and
➔ Celebration of negative role models
Can we arrive at consistency in global
ethics standards?
– Companies are identified by their corruption
– Who will want to partner with such
companies?
PR vs. Performance
Real transformations require a change in core

values, attitudes, relationships, leadership with
experience for change
Sound organizations provide freedom to act, but

also have some controls
A culture built around “star players” cannot foster

teamwork
Chapter #5 - Conducting Business
Ethically and Responsible
◆ Companies must be
committed to ethics
✱ Codes ◆ Company
✱ Ethics Programs
Responsibilities
✱ Ethics Orientation
✱ Customers
◆ Social ✱ Employees
Responsibility ✱ Investors
✱ Not the same as ✱ Others
ethics
✱ Related to ethics
Chapter #5 - Conducting Business
Ethically and Responsible
◆ Can businesses that conduct
themselves in an ethical way be
profitable?
◆ How can ethical behavior be
encouraged?
◆ What do short-term and long-term
thinking have to do with ethics?
You Will be Responsible for
this Material on the TEST
Alternative Courses of Action
Available in Ethical Situations
ACTIONS ADVANTAGES DISADVANTAGES
◆NOT THINK Avoids the danger of The risk of going in the
ABOUT IT getting into a zero-sum wrong direction
game with colleagues
◆GO ALONG & Same as “not think Same as “not to think

GET ALONG
about it” about it”
Individuals slowly
conform… maybe to the
wrong direction
◆PROTEST
Individual feels good Organization disregards
about making effort to protest & punishes
stop unethical protester
behavior
◆CONSCIENTIOUSLY
Makes clear statement Few organizations
OBJECT
that one person feels recognize individual
that action is unethical rights to object
Person feels good May hurt chances for
about self for making rewards and
effort to stop unethical advancement
behavior
Signals that Most people are

◆ LEAVE organization will lose replaceable and if
good people if unethical replacement
behavior continues cooperates with
Person who leaves may unethical behavior,
join a competitor, feels what is gained?
better because he/she
did not cooperate with
unethical behavior
Can be very effective - Feelings of cowardice
◆SECRETLY BLOW - Creation of
THE WHISTLE If whistle-blower atmosphere of mistrust
remains secret, - What
retaliation cannot will whistle-blower do if
occur confronted by firm - tell the
truth or lie?
Can be effective
◆PUBLICLY BLOW
Whistle-blower may - Organization may attack the
THE WHISTLE be treated as a hero whistle-blower
- It is difficult to interact
by many with those one is criticizing
- It may be difficult to
work with those who hold a
grudge
Can be very effective
◆SECRETLY
THREATEN TO When it works, - Does not permit dialogue
BLOW THE
organization is not between upper&lower
WHISTLE
hurt by bad publicity managers
- Might prevent injured
consumers or clients from
◆SABOTAGE Can be effective Sabotage is not dialogue
Identity of saboteur Retaliation might occur
might be protected against the saboteur or
against others
Innocent people may be
fired
◆NEGOTIATE Individual action may Does not work well in

lead to small-group situations that are zero-
consensus that will be sum, lose-win, in nature
more effective than
individual action Individual who perceives
ethical problem may not
Win-win solutions are know how to negotiate, my
possible lose “cool”
SELECTED PRINCIPLES OF
ETHICAL CONDUCT
◆ KANT’S CATEGORICAL IMPERATIVE: Act in a way that you
believe is right and just for any other person in a similar
situation.
◆ CARR’S CONVENTIONALIST ETHIC: Bluff and take advantage
of all legal opportunities and widespread practices and
customs
◆ THE DISCLOSURE RULE: Ask how it would feel to see the
thinking and details of the decision disclosed to a wide
audience
◆ THE GOLDEN RULE: Look at the problem from the position of
another party affected by the decision and try to determine
what response the other person would expect as the most
virtuous
ETHICAL CONDUCT
◆ THE HEDONISTIC ETHIC: Do whatever you find to be in
your own self-interest
◆ MOORE’S INTUITION ETHIC: Go with your “gut” feeling or
what you understand to be right in a given situation
◆ SMITH’S MARKET ETHIC: Take selfish actions and be
motivated by personal gains in business dealings
◆ MACHIAVELLI’S MEANS-END ETHIC: Ask whether some
overall good justifies any moral transgression
◆ NIETZSCHE/MARX MIGHT-EQUALS-RIGHT ETHIC: Seize

what advantage you are strong enough to use without
respect to ordinary social conventions and laws
ETHICAL CONDUCT
◆ THE ORGANIZATION ETHIC: Ask whether actions are consistent
with organizational goals and do what is good for the organization
◆ GARRETT’S PRINCIPLE OF PROPORTIONALITY: Do whatever you

will if there is a proportional reason for doing so
◆ THE PROTESTANT ETHIC: Do only that which can be explained

before a committee of your peers
◆ THE REVELATION ETHIC: Pray, mediate, or otherwise commune
with a superior force or being
◆ BENTHAM / MILL’S UTILITARIAN ETHIC: Determine whether the

harm in an action is outweighed by the good
MORAL TYPES DESCRIPTORS
❶ Hedontist 1. Make physical pleasures the supreme goal in their
lives.
◆ KEY QUESTION: Which course of action will yield the
greatest pleasure?
2. Goal of making as much money as possible
❷ Profit- ◆ KEY QUESTION: which course of action will make the
most money?
maximizer ◆ All their feelings and associations can be melted
down to dollars
3. A social butterfly, a party animal

◆ KEY QUESTION: Which course of action will help me
❸ Socialite best get along with the group?
◆ If you want to know what this person thinks, find out
who spoke to him or her most recently
❹ Politician 4. Life centers around power and glory.
◆ KEY QUESTION: Which course of action will increase
my power and glory?
◆ These people have enormous egos, boundless
ambitions, and undertake reckless actions.
5. Spiritual values predominate
◆ KEY QUESTION: which course of action will help me
❺ Self- become a better person?
actualizer ◆ These people have new insights, reform old ways,
initiate new ways of thinking, strike out on new paths
6. A technician
◆ POSITIVES: Creative, knowledgeable, independent,
self-reliant, hardworking
◆ NEGATIVES: Sadistic, forceful, manipulative, non-
❻ Craftsman trustworthy
❼ Company person
7. Main goal in life to belong to an organization
◆ POSITIVES: Service oriented, loyal, responsible,
humble, sensitive to the needs of others,
dependable, pleasant, trustworthy
◆ NEGATIVES: Fear, worry, dependency, lacking
vision, risk aversive, low drive, indecisive, change
resistant
8. Dominant goal in life to gain prestige, glory, fame

◆ POSITIVES: Inventive, flexible, change oriented,
competitive, team player, independent, risk taker,
impartial, high energy, idealistic
◆ NEGATIVES: Lack of conviction, rebellious,
❽ Gamesman manipulative, lack of intimacy, lonely
Models of Personal and
Organizational Moral Development
PERSONAL MORAL ORGANIZATIONAL MORAL
PERSONAL MORAL
DEVELOPMENT ORGANIZATIONAL MORAL
DEVELOPMENT
DEVELOPMENT DEVELOPMENT
1. Physical consequences 1. Social Darwinism - Fear of
determine moral extinction and the urgency
behavior. Avoidance of of financial survival dictate
punishment and moral conduct. The direct
deference to power are use of force is the
typical of this stage acceptable norm.
2. Individual pleasure 2. Machiavellianism -

needs are the primary Organizational gain guides
concern and dictate actions. Successfully
attitudes toward attaining goals justifies the
behavior
use of any effective means,
including individual
manipulation
PERSONALDEVELOPMENT
MORAL DEVELOPMENT
ORGANIZATIONAL MORAL
3. The approval of others 3. Cultural conformity - A tradition
determines behavior. The good
person is one who satisfies
of standard operating
family, friends, associates. procedures and caring groups.
Peer professional pressure to
adhere to social norms dictates
what is the right and wrong
4. Compliance with authority, behavior
upholding of the social order,
and “doing one’s duty” are Allegiance to authority-
primary concerns
Directions from legal authority
determine moral standards.
Right and wrong are based on
the decisions of those with
legitimate hierarchical power
DEVELOPMENT
PERSONAL MORAL DEVELOPMENT
ORGANIZATIONAL MORAL
5. Tolerance for rational 5. Democratic participation -
dissent and acceptance of Participation in decision-making
majority rule become reliance on majority rule become
organizational moral standards.
primary ethical concerns Participative management
becomes institutionalized
6. What is right and good is Organizational integrity-
a matter of individual Justice and individual rights
conscience and are the moral ideals. Balanced
responsibly chosen judgment between competing
commitment. Morality is interests shapes organizational
based on principled character which, in turn,
determines the validity of the
personal convictions behavior

Ethics - PPT (Bus1301)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ethics - PPT (Bus1301)

Uploaded by

Copyright:

Available Formats

ethics.

5. Do not buy (75% consumers)

- Corporate layoffs - theft

◆ Our ethics tend to flow from our

◆ People have intrinsic worth.

Individual behavior is strongly influenced by

Self-regulation and standard setting

ETHICAL DECISION OUTCOMES

* Achievement motivation * Knowledge

ETHICAL DECISION OUTCOMES

* The organization * Technology

ETHICAL DECISION OUTCOMES

Decision-Making Process Ethical

ELEMENTS OF THE DECISION

Ethical decision history

◆ Codes of ethics do not necessarily lead to

◆ Study the ethics of organizations which have

◆ Create an organizational culture that

You will be Responsible for this Material!

◆ surround yourself with subordinates who are

Information on College Students

Conclusion: grade > learning short-run > long-run

Is an Honor Code a reasonable ideal for

Real transformations require a change in core

Sound organizations provide freedom to act, but

A culture built around “star players” cannot foster

◆GO ALONG & Same as “not think Same as “not to think

Signals that Most people are

◆NEGOTIATE Individual action may Does not work well in

◆ NIETZSCHE/MARX MIGHT-EQUALS-RIGHT ETHIC: Seize

◆ GARRETT’S PRINCIPLE OF PROPORTIONALITY: Do whatever you

◆ THE PROTESTANT ETHIC: Do only that which can be explained

◆ BENTHAM / MILL’S UTILITARIAN ETHIC: Determine whether the

3. A social butterfly, a party animal

8. Dominant goal in life to gain prestige, glory, fame

2. Individual pleasure 2. Machiavellianism -

You might also like