Transcript Moral Management Models

Three Major Approaches
to Business Ethics
Conventional Approach •
Based on how the average person views
business ethics, and on common sense.
Principles Approach •
Based on the use of ethics principles to justify
and direct behavior, actions, and policies.
Ethical Tests Approach •
Based on short, practical questions to guide
ethical decision making and behavior and
practices.
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The Conventional Approach
to Business Ethics
The conventional approach to business ethics involves a
comparison of a decision or practice to prevailing societal
norms.
Decision, Behavior,
or Practice
Prevailing Norms
of Acceptability
Ethical Egoism •
An ethical principle based on the idea that the individual
should seek to maximize his or her own self interests as a
legitimate factor.
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Sources of Ethical Norms
Fellow
Workers
Family
Friends
The Law
Local
Community
Regions of
Country
The Individual
Profession
One’s SelfInterest and
Conscience
Employer
Religious
Beliefs
Society at
Large
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Ethics and the Law
• The law and ethics can overlap in many
respects.
• The law is a reflection of what society thinks
are minimal standards of conduct and
behavior.
• Research of illegal corporate behavior
focuses on two questions:
1. What leads firms to behave illegally?
2. What are the consequences of engaging
in illegal behavior?
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Making Ethical Judgments
Behavior or act that has
been committed
Compared with
Prevailing norms of
acceptability
Value judgments and
perceptions of the observer
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The Danger of Ethical Relativism
• A serious danger of using the
conventional approach to business
ethics is:
Ethical Relativism • One picks and chooses which source of
norms one wishes to use based on what
will justify current actions or maximize
freedom.
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Ethics, Economics, and Law –
A Venn Model
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Three Models of
Management Ethics
Immoral Management • An approach devoid of ethical principles and an
active opposition to what is ethical.
• The operating strategy of immoral management is
focused on exploiting opportunities for corporate or
personal gain.
Moral Management • Conforms to highest standards of ethical behavior
or professional standards of conduct.
Amoral Management –
• Different in nature from the others, it has two kinds:
• Intentional: Does not consider ethical factors.
• Unintentional: Casual or careless about ethical
factors.
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Characteristics of Immoral ManagersThese Managers:
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Intentionally do wrong
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Are Self-centered and self-absorbed
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Care only about self or organization’s profits or
success
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Actively oppose what is right, fair, or just
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Exhibit no concern for stakeholders
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Are the “bad guys”
An ethics course probably would not help
them
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Examples of Immoral Management • Stealing petty cash
• Cheating on expense reports
• Taking credit for another’s accomplishments
• Lying on time sheets
• Coming into work hungover
• Telling a demeaning joke
• Taking office supplies for personal use
• Showing preferential treatment toward certain
employees
• Rewarding employees who display wrong behaviors
• Harassing a fellow employee
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Characteristics of Moral Managers
These Managers:
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Conform to the highest standards of ethical
behavior or professional standards of
conduct.
Ethical Leadership is commonplace.
Their goal is to succeed within the confines of
sound ethical precepts
Demonstrate high integrity in thinking,
speaking and doing.
Follow both the letter and the spirit of the
law
Possess an acute moral sense and moral
maturity
Moral managers are the “good guys”
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Habits of Moral Leaders 1. They have a passion to do right.
2. They are morally proactive.
3. They consider all stakeholders.
4. They have a strong ethical character.
5. They have an obsession with fairness.
6. They undertake principled decisionmaking.
7. They integrate ethics wisdom with
management wisdom.
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Positive Ethical Behaviors
of Moral Leaders •
Giving proper credit where it is due
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Being straightforward and honest with other
employees
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Treating all employees equally
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Being a responsible steward of company assets
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Resisting pressure to act unethically
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Recognizing and rewarding ethical behavior of
others
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Talking about the importance of ethics and
compliance on a regular basis
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Characteristics of Amoral ManagersIntentionally Amoral Managers
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Don’t think ethics and business should “mix.”
Business and ethics exist in separate spheres.
A vanishing breed.
Unintentionally Amoral Managers
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Don’t consider the ethical dimension of decisionmaking.
Don’t “think ethically.”
Have no “ethics buds.”
Well-intentioned, but morally casual or
unconscious.
Ethical gears are in neutral.
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Three Models of Management
Morality and Emphases on CSR
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Moral Management Models And Acceptance
or Rejection of Stakeholder Thinking
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Why Managers and Employees
Behave Ethically
1. To avoid some punishment
Most of Us
2. To receive some reward
Many of Us
3. To be responsive to family, friends,
or superiors
4. To be a good citizen
Very Few Of Us
5. To do what is right, pursue some ideal
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