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Moral Values Versus Ethics 2-1 2-1 Type of Ethics Rightness is defined by… Basis of actions End Results -effect/consequences it has --Actions are aimed to promote -utility of ends (collective) happiness, --Actions that promote more happiness are more right Duty Social Contract -obligations to apply universal standards in all situations -intentions of actor rather than effects --Customs or norms of a community Personal-isitc One’s conscience --Actions that promote virtue rather than pleasure --behaviour should be based on principles/rules --Community defines morality which defines right & wrong --Duty binds individual to community --What is best for community is ultimate standard -stand up for what one believes -no absolute formulas for living Sources determining Managerial Ethics Org. Culture – Rituals, slogans, symbols, etc. External Stakeholders – Government, clients, market, etc. Personal ethics – Beliefs, moral development, etc. Org. Systems – Code, reward system, rules, etc. Managerial Ethics 3 Causes of Unethical Behaviour -- I • Gain – Anticipation of healthy reinforcement for following an unethical course of action, especially if no punishment is expected. • Role conflict – “Bureaucratic” role as an organizational employee is at odds with one’s role as the member of a profession. • Competition – Stiff competition for scarce resources. – Temptation to make unethical decisions in situations in which essentially no competition exists. Causes of Unethical Behaviour – II • Personality & Values – Certain personality types are more prone to unethical behaviour (e.g., economic values, high need for personal power). Bottom line mentality - financial success is the only value to be considered Exploitative mentality - use people in a way that promotes stereotypes and undermines empathy and compassion Madison Avenue mentality - anything is right if the public can be made to see it as right Workers emulate the unethical behavior of their superiors Copyright © 2011 Pearson Canada Inc. Causes of Unethical Behaviour – III • Other individual factors – There are individual differences in the degree of sophistication that people use in thinking about moral issues. – Less disengagement and more attentiveness is associated with more ethical behaviour – Individual differences in cognitive moral development. Kohlberg’s Theory of Moral Development Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall 2-7 2-7 Causes of Unethical Behaviour – IV • Organizational and Industry Culture – Aspects of an organization’s culture (and its subcultures) • Corporate cultures that reward unethical behaviour. • A culture of greed and exclusive focus on positive financial results. Stonewalling Counternorms – Corporate codes of conduct might have an impact on culture and ethical decision making. Copyright © 2011 Pearson Canada Inc. 12-9 Guidelines for Determining Ethical Action Ethical Yes Question 3 Does the activity conform to standards of equity and justice; is it fair? Yes Question 2 Does the political activity respect the rights of the individuals affected? Question 1 Will the political tactics promote purely selfish interests (as opposed to also promoting organ-izational goals?) No Yes No Unethical No