Transcript Chapter 6 Power Point

Chapter
6
Ethical Reasoning and
Corporate Programs
6-1
Business
and
Society
POST, LAWRENCE, WEBER
McGraw-Hill/ Irwin
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Figure 6-1
Percentage of U.S. managers emphasizing
a value focus in 1990 (N=413)
6-2
Goal-oriented values
Self-focus
Other-focus
Totals
Competency
focus
53.5%
21.8%
75.3%
Moral focus
18.4%
6.3%
24.7%
Totals
71.9%
28.1%
Source: Adapted from James Weber, “Managerial Value Orientations: A Typology and Assessment.”
International Journal of Value-Based Management 3 (1990), pp. 37-54.
McGraw-Hill/ Irwin
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Figure 6-2
Stages of moral development and
ethical reasoning
Age group
Development stage and
major ethics referent
Basis of ethics
reasoning
Mature adulthood Stage 6 Universal principles:
Justice, fairness, universal
human rights
Principle-centered
reasoning
Mature adulthood Stage 5 Moral beliefs above
and beyond specific social
custom: Human rights, social
contract, broad constitutional
principles
Adulthood
Stage 4 Society at large:
Customs, traditions, laws
Principle-centered
reasoning
Early adulthood,
adolescence
Adolescence,
youth
Childhood
Stage 3 Social groups: Friends,
school, coworkers, family
6-3
Society-and-law
centered reasoning
Group-centered
reasoning
Stage 2 Reward seeking:
Self-interest, own needs,
reciprocity
Ego-centered
reasoning
Stage 1 Punishment avoidance:
Punishment avoidance,
obedience to power
Ego-centered
reasoning
Source: Adapted from Lawrence Kohlberg, The Philosophy of Moral Development (New York: Harper & Row, 1981).
McGraw-Hill/ Irwin
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Figure 6-3
The components of ethical climates
Focus of ethical concern
Ethical criteria
Individual Company
person
Egoism
(self-centered
approach)
Benevolence
(concern-forothers approach)
Principle
(integrity
approach)
Selfinterest
Company
interest
6-4
Society
Economic
efficiency
Friendship Team
interest
Social
responsibility
Personal
morality
Laws and
professional
codes
Company
rules and
procedures
Source: Adapted from Bart Victor and John B. Cullen, “The Organizational Bases of Ethical Work Climates,”
Administrative Sciences Quarterly 33(1988), p. 104.
McGraw-Hill/ Irwin
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Figure 6-4
Three methods of ethical reasoning
Method
Critical
determining
factor
Utilitarian Comparing
benefits and
costs
Rights
Justice
McGraw-Hill/ Irwin
An action is
Limitations
ethical
when…
Net benefits Difficult to measure
exceed net
some human and social
costs
costs. Majority may
disregard rights of the
minority.
Respecting
Basic human Difficult to balance
entitlements
rights are
conflicting rights.
respected
Distributing fair Benefits and Difficult to measure
shares
costs are
benefits and costs.
fairly
Lack of agreement on
distributed
fair shares.
6-5
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Figure 6-5a
An analytical approach to ethical problems
Step 1
6-6
Ask
Utility
Do benefits
exceed costs?
Yes
McGraw-Hill/ Irwin
No
Rights
Are human
rights
respected?
Yes
No
Justice
Are benefits
and costs
fairly
distributed?
Yes
No
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Figure 6-5b
An analytical approach to ethical problems
Step 2
6-7
Compare results
If yes is the answer to all
three questions, it is
probably ethical
If no is the answer to all
three questions, it is
probably unethical
If the answers are
mixed, it could be either
ethical or unethical
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© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Figure 6-5c
An analytical approach to ethical problems
Step 3
6-8
Assign priorities to
Utility
McGraw-Hill/ Irwin
Rights
Justice
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Figure 6-6
Organization’s ethics safeguards at work
Ethical
safeguard
1992
1999
1996 SWPa.
Fortune Fortune organizations
1000
1000
Promoted ethics
93%
71%
at work
Developed code
93%
98%
57%
of ethics
Established
13%
14%
ethics
committee
Created ethics
17%
office
--ethics hot line
9%
--ethics office
or hot line
Offered ethics
training
Conducted
audit/evaluation
McGraw-Hill/ Irwin
2000 1,500
employees
6-9
79%
30%
51%
50%
25%
20%
55%
11%
23%
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Exhibit 6-A
Two approaches to ethics programs
and their effectiveness
6-10
Compliance-based programs
• Rooted in avoiding legal sanctions.
• Companies will establish rules and guidelines for employees to follow.
• Emphasizes threat of detection and punishment.
• Assumes employees are driven by self-interest.
• Research evidence shows that employees do care about moral
correctness of their actions.
Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117
and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on
Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.
McGraw-Hill/ Irwin
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.
Exhibit 6-A(continued)
Two approaches to ethics programs
and their effectiveness
Integrity-based ethics programs
• Combine a concern for the law with an emphasis on employee
responsibility for ethical conduct.
6-11
• Establish a climate of self-governance for employees based on
general principles as guidelines.
• Employees told to act with integrity and conduct business dealings
in an environment of honesty and fairness.
• Employees are thought of as social beings, concerned for the
well-being of others.
• Researchers found that these programs fostered lower
observed unethical conduct.
Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117
and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on
Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.
McGraw-Hill/ Irwin
© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved.