Transcript 06. Questions of Values and Ethics

Questions of
Values and Ethics
Values
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Abstract ideals that shape an individual’s
thinking and behavior – a moral compass
Instrumental values – certain way of
behaving is appropriate in all situations –
“means”.
Terminal values – enduring belief in the
attainment of a certain end state –
“ends”.
A moral compass
These abstract ideals can result from
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Religion
Philosophy
Family teachings
Instrumental values
As the means to an end they become
the ingrained ways of behavior:
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Rituals
Politesse
Good habits
Terminal values
With the end always in sight:
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Heaven
Respect
Financial Success
Personal Independence
Power
Ethics
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The study of moral obligation
involving the distinction between
right and wrong.
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Business Ethics: right or wrong in
the workplace – value
management.
Relativism
Egoism
The 4
Concepts of
Ethics
Utilitarianism
Universalism
ETHICS
THEORY/THEORISTS
“Ethicists”
Ethical Tests
Is It Legal Test?
Ethical
Quadrant II
Ethical and
Illegal
Illegal
Quadrant I
Codification
Ethical and Legal
Manifestation
Corporate
Legal
Decisions
Quadrant IV
Quadrant III
Unethical and Illegal
Unethical and Legal
Unethical
Two Areas of Business
Ethics
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Obvious mischief
Moral mazes
RIGHT vs. RIGHT
Common Misconduct
in Organizations
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Misrepresenting hours worked
Employees lying to supervisors
Management lying to employees,
customers, vendors or the public
Misuse of organizational assets
Lying on reports/falsifying records
Sexual harassment
Stealing/theft
Accepting or giving bribes or kickbacks
Withholding needed information from
employees, customers, vendors or public
Common Causes of
Unethical Behavior
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Pressure
Fear
Greed
Convenience
Causes of Unethical
Behavior (cont’d)
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Following boss’s directives
Meeting overly aggressive
business/financial objectives
Helping the organization survive
Meeting schedule pressures
Be a team player (group think)
Rationalizing that others do it
Resisting competitive threats
Advancing own career
Ethical Dilemmas
Making decisions under stress or
dealing with complex issues that
have no clear indication of what is
right or wrong.
There are NO simple ethical dilemmas…
all have layers of meaning and effect.
Business Ethics Myths
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Business ethics is a new fad.
Business ethics – religion vs.
management.
Business ethics is obvious – “do
good!”
Business ethics is good guys
preaching to bad guys.
“Whistleblower’s”
Reluctance
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Didn’t believe action would be
taken.
Feared retaliation from mgmt.
Didn’t trust confidentiality.
Feared not being a team player.
Feared retaliation from co-workers.
Didn’t know who to contact.
Nobody cares, why should I?
Business Ethics Myths
(cont’d)
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Ethics can’t be managed.
Being legal = being ethical.
Managing ethics has little practical
relevance.
Ethical Tips for
Organizations
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Develop a code of ethics.
Communicate code and bake it
into culture top-down.
Treat ethics as a process.
Create open lines of
communication.
Set good examples.
Educate employees – frame issues
through storytelling.
Value forgiveness.
Benefits of Managing
Ethics in the Workplace
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Improves society.
Maintains a moral course in
turbulent times.
Cultivates employee teamwork,
productivity, morale and
development.
Acts as an insurance policy.
Benefits of Managing
Ethics in the Workplace
(cont’d)
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Establishes values for quality
management, strategic planning
and diversity management.
Promotes strong public image.
It is the RIGHT thing to do!
Ethical Tips for
Individuals
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Establish personal values.
Be aware of ethical events.
Develop critical thinking
techniques.
Be reflective.
Make it a priority every day.
“The simple step of a simple
courageous man is to not take
part in the lie, not to support
deceit. Let the lie come into the
world, even dominate the world,
but not through me.”
-- Alexander Solzhenitsyn
Puzzling things out….
As we watch the video vignettes,
keep these questions in mind:
1) What is the ethical dilemma?
2) What is the apparent cause of the
unethical behavior?
3) Is there an ethical resolution to the
problem portrayed?
4) If so, who should do what?
Decision-Making Process
A General Framework of the Ethical
Decision-Making Process
CHARACTERISTICS OF
THE DECISION MAKER
ETHICAL
SITUATION
DECISION
SIGNIFICANT
INFLUENCES
OUTCOMES
Individual Characteristics of the Decision
Maker that Influence the Ethical DecisionMaking Process
CHARACTERISTICS OF
THE DECISION MAKER
ETHICAL
SITUATION
OUTCOMES
DECISION
SIGNIFICANT INFLUENCES
* Achievement motivation
* Need for affiliation
* Ego strength
* Locus of control
* Knowledge
* Experience
* Risk taking
* Machiavellianism
Significant Influences on the Ethical
Decision-Making Process
CHARACTERISTICS OF
THE DECISION MAKER
ETHICAL
SITUATION
DECISION
OUTCOMES
SIGNIFICANT INFLUENCES
* The organization
* Work
* The law
* Economics
* Professionalism
* Technology
* Significant others; customers,
peers, immediate supervisor,
top managers, family, friends,
other “opinion leaders”
Outcomes that Result from the Ethical
Decision-Making Process
CHARACTERISTICS OF
THE DECISION MAKER
ETHICAL
SITUATION
DECISION
OUTCOMES
SIGNIFICANT INFLUENCES
* Performance
* Rewards
* Satisfaction
* Feedback
* Promotions
* Learning
Elements of the Ethical
Decision-Making Process
Characteristics of
Decision Makers
Ethical
Situation
DECISION
Outcomes
Significant
Influences
ELEMENTS OF THE DECISION
PERCEIVED ETHICAL
PROBLEM
PERCEIVED
ALTERNATIVES,
PRODUCT, PRICE,
PROMOTION,
DISTRIBUTION INFO
Information acquired
Information processed
Ethical decision history
Expectations
Sent and received roles
Ethics norms (personal &
those of others)
Information acquired
Information processed
PERCEIVED
CONSQUENCES
Probability of consequences
Desirability of consequences
JUDGMENT
A Successful Code of Ethics
• Have support of top
management
• Be practical and realistic
• Followed by top management
• Include penalties for
disobedience
• Clearly explained to all
employees
• Continuously implemented by a
"watchdog committee" that has
authority to take disciplinary
actions
Human Resources
(HR)
International
Affairs
Research &
Development
(R&D)
Accounting
Inside an Organization:
How ethics affects the
everyone!
Information
Technology
(IT)
Production
Sales/Marketing
Ethics of Accounting
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Creative accounting practices and
misleading financial analysis.
White-collar crimes
Executive compensation
Bribery, kickbacks, political lobbying
Ethics of Sales and Marketing
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Pricing: price fixing, discrimination, skimming.
Unethical marketing strategies
Content of Advertisements
Children and marketing
Black and grey markets.
Ethics of Production
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Defective products
Quality vs. Quantity
Addictive and inherently dangerous products and
services (e.g. tobacco, alcohol, weapons, motor
vehicles, chemical manufacturing).
Environmental issues
Safety
Patent infringement
Ethics of Research &
Development (R&D)
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Ethical problems arising out of new technologies:
genetically modified food, mobile phone radiation
and health.
Product testing ethics: animal rights and animal
testing.
Use of economically disadvantaged groups (such
as students) as test objects.
Intellectual property
Ethics of International Business
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Political
Economic
Socio-cultural
Technological
Legal
Environment
Government