Download Managing ethics - University of Minnesota Duluth

Managing Ethics
(Based on Managing Business Ethics,
Trevino & Nelson, chapter 1)
Geoffrey G. Bell, PhD, CA
University of Minnesota Duluth
September 2004
Is business ethics just a fad?
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Business ethics as a “hot topic” in the
popular media appears to be a fad, or at
least a cyclic phenomenon.
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Forbes’ corporate scandal sheet hasn’t been
updated since Sept 2002.
However, academic interest and research in
the topic continues.
If a fad, it’s a pervasive one – see Forbes’
corporate scandal sheet.
“Bad apples” vs. “bad barrels”

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This gets down to a question of whether ethical
lapses as seen recently are systemic or one-of-akind.
People are complex actors who often lead
compartmentalized lives (e.g., Ken Lay).
Systemic sources:
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Organizations may knowingly or unknowingly reward and
thereby foster unethical behavior.
Organizational systems may force ethical people to act
unethically.
Organizational checks and balances (e.g., the audit
committee of the board) may not be functioning well.
Ethics as principle vs. ethics as action
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If ethics is defined in terms of “a set of principles”
then how can one differentiate between sets of
principles?
Text (and class) will focus on conduct – actions – as
basis of ethics.
–
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Ethical behavior is focus.
Therefore, text (and class) is about managing
behavior rather than developing principles, although
course will challenge your principles (why you
believe what you do).
A model of the ethical decision-making
process
Individual characteristics:
•Individual differences
•Cognitive biases
Individual ethical decisionmaking & behavior
Moral
awareness
Moral
judgment
Ethical
Behavior
Organizational characteristics:
•Group & organizational pressures
•Organizational culture
Ethics and the law
Ethics
Ethics
Law
Law
America
China