Transcript Chapter 5 Slides

Chapter 5
Developing Ethical Guideposts
Management: A Skills Approach, 2/e
by Phillip L. Hunsaker
Copyright © 2005 Prentice-Hall
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Learning Objectives
• Develop Your Own Ethical Parameters
• Assess Your Organization’s Ethics
• Evaluate Business Situations to
Determine Ethical Courses of Action
• Create a Positive Ethical Environment
for Subordinates
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What is Ethics?
Ethics –the rules and
principles that define
right and wrong
conduct
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Why are Ethics Important for
Managers?
• Managers’ decisions
set the standard for
employees and help
create a tone for the
organization as a
whole.
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Why are Ethics Important for
Organizations?
• Build organization’s
image
• Violations can
destroy a company.
• Managerial behavior
under increasing
scrutiny
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Why Adhere to Ethics?
• Improves the Quality
of Work Life
• Ethical Reputations
Are Good for
Business
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How Strong Are Business
Ethics?
• 25% of working Americans have
been asked or told to do
something unethical on the job.
• Of those asked, 40% did the
unethical act.
• Most feel they have some ability
to affect ethical behavior in the
workplace.
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Ethical Dilemmas?
• Often the decision is not between good
and bad or between fair and unfair
alternatives as much as it is a choice
among competing goods or lesser evils.
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Ethics Questions Are Tougher
Than They Seem
• Often, there is no
single “correct”
answer.
• There are no easy
answers.
• Opinions differ on
key questions to ask
when faced with
ethical dilemmas.
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Questions to Determine if Your
Behavior is Ethical?
(Peale and Blanchard)
Is it legal? Will I be violating either civil law or
company policy?
Is it balanced? Is it fair to all concerned in the short
as well as long term? Does it promote win-win
relationships?
How will it make me feel about myself? Will it
make me proud? Would I feel good if my decision
were published in the newspaper? Would I feel good
if my family knew about it?
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Factors Affecting
Managerial Ethics
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The Individual’s Characteristics
The Organization’s Culture
The Organization’s Structure
The Intensity of the Issue
The National Culture
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Individual’s Characteristics
• People who lack a strong moral sense
are much less likely to do the wrong
things if they are constrained by rules,
job descriptions or strong cultural norms
that discourage such behaviors.
• Moral people can be corrupted by an
organizational culture that permits
unethical practices.
5-12
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Factors in Organizational
Culture Undermining Ethics
• Bottom-line
mentality
• Exploitive
mentality
• “Madison Avenue”
mentality
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The Organization’s Structure
A supportive structure:
• Constantly reminds
managers about
what is ethical
• Disciplines those
who use bad
judgment
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How Can Organizations
Encourage Ethical Behavior?
• Make Better Personnel
Selections
• Develop a Code of
Ethics
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Variables Found in
Corporate Codes of Business Ethics
Cluster 1. Be a Dependable Organizational Citizen.
1. Comply with safety, health, and security regulations.
2. Demonstrate courtesy, respect, honesty, and fairness.
3. Illegal drugs and alcohol at work are prohibited.
Cluster 2. Do Not Do Anything Unlawful or Improper That
Will Harm the Organization.
1. Conduct business in compliance with all laws.
2. Payments for unlawful purposes are prohibited.
3. Bribes are prohibited.
Cluster 3. Be Good to Customers
1. Convey true claims in product advertisements.
2. Perform assigned duties to the best of your ability.
3. Provide products and services of the highest quality.
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How Can Organizations
Encourage Ethical Behavior?
(continued)
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Lead by Example
Set Realistic Job Goals
Provide Ethics Training
Use Comprehensive
Performance Appraisals
• Do Independent Social Audits
• Create Ethics Officers
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What You As An
Individual Can Do
• Develop Your Own Ethical
Guideposts and Decisionmaking Processes
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Why Do Individuals Make
Poor Choices on Ethical Issues?
1. Individual and/or organization is immature.
2. Economic self-interest is overwhelming.
3. Special circumstances outweigh ethical
concerns.
4. People are uneducated in ethical decisionmaking.
5. Possible rewards outweigh possible
punishments for unethical behavior.
6. The prevailing attitude is “All’s fair in love, war,
and business.”
7. There is powerful organizational pressure to
commit unethical acts.
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Skill Guidelines for Developing
and Applying Ethical Guideposts:
• Know and
Understand Your
Organization’s
Policy on Ethics
• Anticipate Unethical
Conflict
• Think Before You
Act
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Skill Guidelines for Developing
and Applying Ethical Guideposts
[Continued]
• Ask Yourself What-if
Questions
• Seek Opinions from
Others
• Do Not Allow
Yourself to Become
Isolated
• Do What You Truly
Believe Is Right
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Ethical Screening
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Gather the Facts
Define the Ethical Issues
Identify the Affected Parties
Identify the Consequences
Consider Your Character and Integrity
Think Creatively about Alternatives
Check Your Intuition
Prepare to Defend Your Action
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