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Learning Module
A Model of Ethical Behavior in the
Workplace
A-1 Figure A-1
Internal Organizational
Influences
Individual
- Personality
- Values
- Moral
principles
- History of
reinforcement
- Gender
Neutralizing
Enhancing
Factors
Ethical
behavior
External Organizational
Influences
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McGraw-Hill/Irwin
©©2006
2005 The McGraw-Hill Companies, Inc. All rights reserved.
Neutralizing/Enhancing Factors
A-2
 Top Management Team (TMT): consists of the CEO
and his or her direct reports.
 An older, more experienced group of leaders is less
likely to allow unethical behavior to occur.
 Prior military experience favorably influences the
ethical behavior of executives.
 Increasing the diversity of the TMT will reduce the
chances of unethical decision making.
McGraw-Hill
McGraw-Hill/Irwin
©©2006
2005 The McGraw-Hill Companies, Inc. All rights reserved.
An Ethical Decision Tree
A-3 Figure A-2
Yes
Do it.
Is it ethical?
Yes
No
Yes
Does it
maximize
shareholder
value?
Is the
proposed
action legal?
No
No
Don’t do it.
Yes
Don’t do it.
Would it be
ethical not to
take action?
No
McGraw-Hill
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Don’t do it.
Do it.
©©2006
2005 The McGraw-Hill Companies, Inc. All rights reserved.
Do Moral Principles Vary by Gender?
A-4
 Males perceived moral problems in terms of a justice
perspective. Women relied on a care perspective
Justice Perspective
 Based on the ideal of
reciprocal rights and
driven by rules and
regulations
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Care Perspective
 Involves compassion and
an ideal of attention and
response to need
©©2006
2005 The McGraw-Hill Companies, Inc. All rights reserved.
How to Improve the Organization’s
Ethical Climate
A-5
 Behave ethically yourself
 Screen potential employees
 Develop a meaningful code of ethics
 Provide ethics training
 Reinforce ethical behavior
 Create positions, units, and other structural
mechanisms to deal with ethics
McGraw-Hill
McGraw-Hill/Irwin
©©2006
2005 The McGraw-Hill Companies, Inc. All rights reserved.
Developing a Meaningful Code of Ethics
A-6
Codes of ethics can have a positive impact if they
satisfy four criteria:




Distributed to every employee
Firmly supported by top management
Refer to specific practices and ethical dilemmas
likely to be encountered by target employees
Evenly enforced with rewards for compliance and
strict penalties for noncompliance
McGraw-Hill
McGraw-Hill/Irwin
©©2006
2005 The McGraw-Hill Companies, Inc. All rights reserved.
The Magnificent Seven: General Moral
Principles for Managers
A-7 Table A-1
Dignity of Human Life: The lives of people are to be respected.
Autonomy: All persons are intrinsically valuable and have the right
to self-determination.
Honesty: The truth should be told to those who have a right to
know it.
Loyalty: Promises, contracts, and commitments should be
honored.
Fairness: People should be treated justly
Humaneness: 1. Our actions ought to accomplish good, and 2. we
should avoid doing evil.
The common good: Actions should accomplish the ‘greatest good
for the greatest number” of people.
McGraw-Hill
McGraw-Hill/Irwin
©©2006
2005 The McGraw-Hill Companies, Inc. All rights reserved.