Transcript Management 8e. - Robbins and Coulter

Managerial Ethics
• Ethics Defined
– The rules and principles that define right and
wrong conduct
• Four Views of Ethics
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–
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Utilitarian view
Rights view
Theory of justice view
Integrative social contracts theory
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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Managerial Ethics
• Utilitarian View
– Greatest good is provided for the greatest
number
• Encourages efficiency and productivity and is
consistent with the goal of profit maximization
• Rights View
– Respecting and protecting individual liberties
and privileges
• Seeks to protect individual rights of conscience, free
speech, life and safety, and due process
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Managerial Ethics
• The Theory of Justice
– Organizational rules are enforced fairly and impartially
and follow all legal rules and regulations
• Protects the interests of underrepresented stakeholders and the
rights of employees
• Integrative Social Contracts Theory
– Ethical decisions should be based on existing ethical
norms in industries and communities
• Based on integration of the general social contract and the
specific contract between community members
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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Exhibit 4.6 Factors That Affect
Ethical and Unethical Behaviour
Individual
Characteristics
Ethical
Dilemma
Stage of Moral
Development
Issue
Intensity
Moderators
Structural
Variables
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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Ethical/Unethical
Behaviour
Organizational
Culture
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Factors That Affect Employee Ethics
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•
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•
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Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
A measure of independence from outside influences
Levels of Individual Moral Development
Pre-conventional level
Conventional level
Principled level
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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Exhibit 4.7 Stages of Moral
Development
Level
Description of Stage
Principled
6. Follow ing self-chosen ethical principles even if
they violate the law
5. Valuing rights of others and upholding absolute
values and rights regardless of the majority ’s
opinion
Conventional
4. Maintaining conventional order by fulfilling obligations
to w hich you have agreed
3. Living up to w hat is expected by people close to you
Preconventional
2. Follow ing rules only w hen doing so is in your immediate interest
1. Sticking to rules to avoid physical punishment
Source: Based on L. Kohlberg, “Moral Stages and Moralization: The CognitiveDevelopment Approach,” in T. Lickona (ed.). Moral Development and Behavior: Theory,
Research, and Social Issues (New York: Holt, Rinehart & Winston, 1976), pp. 34–35.
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Factors That Affect Employee Ethics
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•
•
•
•
Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Stage of moral development interacts with:
Individual characteristics
The organization’s structural design
The organization’s culture
The intensity of the ethical issue
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Factors That Affect Employee Ethics
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•
•
•
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Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Research Conclusions:
• People proceed through the stages of moral development
sequentially
• There is no guarantee of continued moral development
• Most adults are in Stage 4 (“good corporate citizen”)
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Factors That Affect Employee Ethics
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•
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•
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Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Values
• Basic convictions about what is right or wrong on a broad range of
issues
Ego strength
• A personality measure of the strength of a person’s convictions
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Factors That Affect Employee Ethics
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•
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•
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Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Locus of Control
A personality attribute that measures the degree to which
people believe they control their own life
• Internal locus: the belief that you control your destiny
• External locus: the belief that what happens to you is due to
luck or chance
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Factors That Affect Employee Ethics
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•
•
•
•
Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Organizational characteristics and mechanisms that
guide and influence individual ethics:
–Performance appraisal systems
–Reward allocation systems
–Behaviours (ethical) of managers
–An organization’s culture
–Intensity of the ethical issue
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Factors That Affect Employee Ethics
•
•
•
•
•
Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Good structural design minimizes ambiguity and
uncertainty and fosters ethical behaviour
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Factors That Affect Employee Ethics
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•
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Stages of moral development
Individual characteristics
Structural variables
Organizational culture
Issue intensity
Cultures high in risk tolerance, control, and conflict
tolerance are most likely to encourage high ethical
standards
Weak cultures have less ability to encourage high ethical
standards
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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Exhibit 4.8 Determinants of Issue Intensity
How much agreement
is there that this
action is wrong?
How likely is it
that this action
will cause harm?
How many people
will be harmed?
Consensus
of Wrong
Greatness
of Harm
Probability
of Harm
Issue Intensity
Concentration
of Effect
How concentrated
is the effect of the
action on the victim(s)?
Immediacy of
Consequences
Proximity to
Victim(s)
Will harm be felt
immediately?
How close are the
potential victims?
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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Ethics in an International Context
• Ethical standards are not universal
– Social and cultural differences determine
acceptable behaviours
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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The Global Compact
Human Rights
• Principle 1: Support and respect the protection of international
human rights within their sphere of influence
• Principle 2: Make sure business corporations are not complicit in
human rights abuses
Labour Standards
• Principle 3: Freedom of association and the effective recognition
of the right to collective bargaining
• Principle 4: Eliminate all forms of forced and compulsory labour
• Principle 5: Abolish child labour
• Principle 6: Eliminate discrimination in respect of employment and
occupation
Source: The Global Compact Web Site (www.unglobalcompact.org), November 7, 2004.
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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The Global Compact
Environment
• Principle 7: Support a precautionary approach to environmental
challenges
• Principle 8: Undertake initiatives to promote greater environmental
responsibility
• Principle 9: Encourage the development and diffusion of
environmentally friendly technologies
Anticorruption
• Principle 10: Work against all forms of corruption, including
extortion and bribery
Source: The Global Compact Web Site (www.unglobalcompact.org), November 7, 2004.
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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How Managers Can Improve Ethical
Behaviour in an Organization
• Hire individuals with high ethical standards.
• Establish codes of ethics and decision rules.
• Lead by example.
• Delineate job goals and performance appraisal
mechanisms.
• Provide ethics training.
• Conduct independent social audits.
• Provide support for individuals facing ethical dilemmas.
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Code of Ethics
• A formal statement of an organization’s
primary values and the ethical rules it expects
its employees to follow
– Be a dependable organizational citizen
– Don’t do anything unlawful or improper that will
harm the organization
– Be good to customers
Source: F.R. David, “An Empirical Study of Codes of Business Ethics: A Strategic Perspective.” Paper
presented at the 48th Annual Academy of Management Conference, Anaheim, California, August 1988.
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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Effective Use of a Code of Ethics
• Develop a code of ethics to guide decision
making
• Communicate the code regularly
• Have all levels of management show
commitment to the code
• Publicly reprimand and consistently discipline
those who break the code
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Exhibit 4.9 Examining Ethics
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
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Ethical Leadership
• Managers must provide a good role model by:
– Being ethical and honest at all times
– Telling the truth
– Admitting failure and not trying to cover it up
– Communicating shared ethical values to employees
through symbols, stories, and slogans
– Rewarding employees who behave ethically and
punishing those who do not
– Protecting employees (whistleblowers) who bring to light
unethical behaviours or raise ethical issues
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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The Value of Ethics Training
• Training can make a difference in ethical
behaviours
• Training increases employee awareness of
ethical issues in business decisions
• Training clarifies and reinforces the standards
of conduct
• Employees are more confident of support when
taking unpopular but ethically correct stances
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Summary and Implications
• What is corporate social responsibility?
– Defined as a business’s obligation, beyond that
required by law and economics, to pursue longterm goals that are good for society
• Can being socially responsible help
performance?
– There is little evidence to say that a company’s
social actions hurt its long-term economic
performance
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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Summary and Implications
• How do organizations go green?
– One model uses the phrase shades of green to describe the
different approaches that organizations take to go green
• How do values influence management?
– An organization’s values reflect what it stands for and
what it believes in
• What is ethics and how can ethical behaviour be
encouraged?
– Ethics refers to rules and principles defining right and
wrong behaviour. Ethical behaviour is encouraged or
discouraged through organizational culture
Chapter 4, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition
Copyright © 2009 Pearson Education Canada
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