Questions of Values and Ethics

Values

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 Religion Philosophy Family teachings

Instrumental values

As the means to an end they become the ingrained ways of behavior: Rituals Politesse Good habits

Terminal valuesWith the end always in sight:

Heaven Respect Financial Success Personal Independence Power

Ethics The study of moral obligation

involving the distinction between right and wrong.

Business Ethics: right or wrong in the workplace – value management.

Relativism

Egoism

Utilitarianism

Universalism

TheThe 44 ConceptsConcepts ofof

EthicsEthics

ETHICS THEORY/THEORISTS

“Ethicists”

Ethical Tests

Is It Legal Test?

Quadrant II

Ethical and Illegal

Quadrant IV

Unethical and Illegal

Quadrant I

Ethical and Legal

Quadrant III

Unethical and Legal

Ethical

Unethical

LegalIllegalCorporate

Decisions

Codification

Manifestation

Two Areas of Business Ethics

Moral mazes RIGHT vs. RIGHT

Obvious mischief

Common Misconduct in Organizations 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

Pressure Fear Greed Convenience

Causes of Unethical Behavior (cont’d) 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

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

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)

Ethics can’t be managed. Being legal = being ethical. Managing ethics has little practical

relevance.

Ethical Tips for Organizations

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

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)

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

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

ETHICAL SITUATION

CHARACTERISTICS OF THE DECISION MAKER

SIGNIFICANT INFLUENCES

OUTCOMESDECISION

Individual Characteristics of the Decision Maker that Influence the Ethical Decision-Making Process

ETHICAL SITUATION

CHARACTERISTICS OF THE DECISION MAKER

SIGNIFICANT INFLUENCES

OUTCOMESDECISION

* Achievement motivation * Knowledge* Need for affiliation * Experience* Ego strength * Risk taking* Locus of control * Machiavellianism

Significant Influences on the Ethical Decision-Making Process

ETHICAL SITUATION

CHARACTERISTICS OF THE DECISION MAKER

SIGNIFICANT INFLUENCES

OUTCOMESDECISION

* The organization * Technology* Work * Significant others; customers,* The law peers, immediate supervisor,* Economics top managers, family, friends,* Professionalism other “opinion leaders”

Outcomes that Result from the Ethical Decision-Making Process

ETHICAL SITUATION

CHARACTERISTICS OF THE DECISION MAKER

SIGNIFICANT INFLUENCES

OUTCOMESDECISION

* Performance * Feedback* Rewards * Promotions* Satisfaction * Learning

Elements of the Ethical Decision-Making Process

Characteristics of Decision Makers

Significant Influences

Outcomes

PERCEIVED ETHICAL PROBLEM

PERCEIVED ALTERNATIVES,

PRODUCT, PRICE, PROMOTION,

DISTRIBUTION INFO

PERCEIVED CONSQUENCES

ELEMENTS OF THE DECISION

Information acquiredInformation processed

Ethical decision historyExpectationsSent and received rolesEthics norms (personal & those of others)

Information acquiredInformation processed

Probability of consequencesDesirability of consequences

JUDGMENT

DECISIONEthical

Situation

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

Inside an Organization:How ethics affects the

everyone!

Ethics of Accounting

Creative accounting practices and misleading financial analysis.

White-collar crimes Executive compensation Bribery, kickbacks, political lobbying

Ethics of Sales and Marketing

Pricing: price fixing, discrimination, skimming. Unethical marketing strategies Content of Advertisements Children and marketing Black and grey markets.

Ethics of Production

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)

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

Political Economic Socio-cultural Technological Legal Environment Government