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Day 2 • Discuss Ethics Learning Module – What makes a decision unethical? – Use notes in film Ethics Learning Module Hands on Exercise (p 30) • On a separate sheet of paper, write down your response and compute your average. • Compare/discuss your answers on items where there is disagreement. • Were there more or less items where group members agreed? Disagreed? Ethics • Study of moral issues and choices • Moral implications spring from virtually every decision . . . on and off the job A Model of Ethical Behavior in the Workplace Cultural Influences - Family - Education -Religion - Media/entertainment Organizational Influences - Ethical codes - Organizational culture - Role models - Perceived pressure for results - Rewards/punishment system Political/legal/ economic influences Individual - Personality - Values - Moral principles - History of reinforcement - Gender Ethical behavior Approaches to Ethical Situations • Ethical decision tree • Ethical Models: Approach to ethical situations requiring an understanding of relevant stakeholders and criteria for deciding on “ethics” of a situation Ethical Models • Utilitarian model: An ethical decision is one that produces the greatest good for the greatest number of people. • Moral rights model: An ethical decision is one that best maintains and protects the fundamental rights and privileges of the people affected by it. • Justice model: An ethical decision is one that distributes benefits and harm among stakeholders in a fair, equitable, or impartial way. Ethical Challenge • Stakeholders: individuals or groups with an interest, claim, or stake in an organization. – Stockholders, management, employees – Customers, suppliers, community, the public – These stakeholders provide inputs and derive something from the company. • An ethical challenge arises when a situation or decision forces a dilemma: which stakeholder to please and which to displease. Fourth Quarter Deal • As a group, describe the ethical dilemma facing the manager. Use either: – Ethical decision tree – Ethical models IBM Cuts . . . (p.26) • As a group, describe the ethical dilemma from the point of view of senior management. Use either: – Ethical decision tree – Ethical models General Moral Principles • Dignity of human life • Autonomy . . right to self determination • Honesty . . the truth should be told to those who have the right to know • Loyalty . . fidelity, keep promises, etc. • Fairness • Humaneness • Common good Ethical Behavior – Additional Thoughts • Hiring right people, firing undesirables, modeling behavior, etc. not sufficient. • Example: Women in SUNAT and police women in Peru • Reduce opportunities for unethical behavior (through design of control systems and processes)