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Ethics and Ethics and BehaviorBehavior
in in OrganizationsOrganizations
.
INTRODUCTION
What is ethical behavior?
How do ethical dilemmas complicate the workplace?
How can high ethical standards be maintained?
What is corporate social responsibility?
How do organizations and governments work together in society?
What is ethical behavior?What is ethical behavior?
Ethics
Code of moral principles.
Set standards of “good” and “bad” as opposed to “right” and “wrong.”
Ethical behavior
What is accepted as good and right in the context of the governing moral code.
What is ethical behavior?What is ethical behavior?
Law, values, and ethical behavior:
Legal behavior is not necessarily ethical behavior.
Personal values help determine individual ethical behavior.
Terminal values
Instrumental values
.
Four views of ethical Four views of ethical behavior.behavior.
What is ethical behavior?What is ethical behavior?
Cultural issues in ethical behavior:
Cultural relativism
Ethical behavior is always determined by cultural context.
Cultural universalism
Behavior that is unacceptable in one’s home environment should not be acceptable anywhere else.
The extremes of cultural relativism and ethical The extremes of cultural relativism and ethical imperialism in international business ethics.imperialism in international business ethics.
Respect for human dignity• Create culture that values employees, customers, and
suppliers.• Keep a safe workplace.• Produce safe products and services.
Respect for basic rights• Protect rights of employees, customers, and communities.• Avoid anything that threatening safety, health, education, and
living standards.
Be good citizens• Support social institutions, including economic and educational
systems.• Work with local government and institutions to protect
environment.
How do ethical dilemmas How do ethical dilemmas complicate the workplace? complicate the workplace? An ethical dilemma occurs when
choices, although having potential for personal and/or organizational benefit, may be considered unethical.
Ethical dilemmas include: Discrimination Sexual harassment Conflicts of interest Customer confidence Organizational resources
How do ethical dilemmas complicate the workplace?
Ethical behavior can be rationalized by
convincing yourself that:
Behavior is not really illegal.
Behavior is really in everyone’s best interests.
Nobody will ever find out.
The organization will “protect” you.
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Factors influencing ethical behavior include:The person
Family influences, religious values, personal standards, and personal needs.
The organizationSupervisory behavior, peer group norms and behavior,
and policy statements and written rules.
The environmentGovernment laws and regulations, societal norms and
values, and competitive climate in an industry.
Factors influencing ethical managerial behavior—Factors influencing ethical managerial behavior—the person, organization, and environment.the person, organization, and environment.
How can high ethical standards be How can high ethical standards be maintained? maintained?
Ethics training:Structured programs that help
participants to understand ethical aspects of decision making.
Helps people incorporate high ethical standards into daily life.
Helps people deal with ethical issues under pressure.
How can high ethical standards How can high ethical standards be maintained?be maintained?
Ethical role models:
Top managers serve as ethical role models.
All managers can influence the ethical behavior
of people who work for and with them.
Excessive pressure can foster unethical
behavior.
Managers should be realistic in setting
performance goals for others.
How can high ethical standards be How can high ethical standards be maintained? maintained?
Codes of ethics: Formal statement of an organization’s
values and ethical principles regarding how to behave in situations susceptible to the creation of ethical dilemmas.
Areas often covered by codes of ethics: Bribes and kickbacks Political contributions Honesty of books or records Customer/supplier relationships Confidentiality of corporate information
What is corporate social responsibility?
Corporate social responsibility:
Looks at ethical issues on the organization level.
Obligates organizations to act in ways that serve both its
own interests and the interests of society at large.
What is corporate social responsibility?What is corporate social responsibility?
Beliefs that guide socially responsible business practices:People do their best with a balance of work and
family life.Organizations perform best in healthy
communities.Organizations gain by respecting the natural
environment.Organizations must be managed and led for long-
term success.Organizations must protect their reputations.
What is corporate social responsibility?
Arguments against social responsibility: Reduced business
profits Higher business
costs Dilution of business
purpose Too much social
power for business Lack of public
accountability
Arguments in favor of social responsibility: Adds long-run
profits Improved public
image Avoids more
government regulation
Businesses have resources and ethical obligation
Four strategies of corporate social responsibility
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How do organizations and governments work together in society? How government influences organizations:
Common areas of government regulation of business affairs:
Occupational safety and health
Fair labor practices
Consumer protection
Environmental protection
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Centrality of ethics and social responsibility Centrality of ethics and social responsibility in leadership and the managerial role.in leadership and the managerial role.
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REFERENCES:REFERENCES:
Source: Developed from Thomas Donaldson, “Values in Tension: Ethics Away from Home,” Harvard Business Review, vol. 74 (September-October 1996), pp. 48-62.
2004 © John Wiley & Sons, Inc
Ethical behavior code
Theories of ethics
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