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A Dialogue on Ethics
in Organizations
University of Wisconsin – Stout
Julie A. Paleen Aronow
Introduction
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Ethics – A Working Definition
Multiple Ethical Lenses
Business Ethics
HRD’s Current Focus
Ethical Dilemmas
The HRD Call
Ethically Led Organizations
Ethics – A Working Definition
Ethics is the study of individual and collective
moral awareness, judgment, character, and
conduct.
Petrick & Quinn (1997)
Multiple Ethical Lenses
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The Utilitarian Approach
• The action resulting in greatest benefits and
least harm.
The Rights Approach
• The action that respects the moral rights of
everyone.
The Fairness or Justice Approach
• The action that treats everyone in the same
way; does not show favoritism.
Ethical Lenses
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The Common-Good Approach
• Members of the same community in which
social systems, policies, practices support
shared goals.
The Virtue Approach
• There are ideals toward which we ought to
strive which provide the full development of
our humanity.
Velasquez, Andre, Shanks, Meyer (2003), Applied Ethics, Santa Clara, University
Business Ethics
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Business Ethics is the study of conflict
between:
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economics and values,
competition, commerce, and capitalism,
morality, integrity, and responsibility.
Business ethics is the examination of values
and the way values are carried out in the workrelated systems.
Hatcher, (2002)
Two Views of the Organization
An Organization’s Primary Responsibility Is To:
 SHAREHOLDERS
• The business of business is business.
• Shareholder return is paramount.
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STAKEHOLDERS
• The business of business is to meet the
needs of a wide range of stakeholders.
• Community return is paramount.
Business Dilemma
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“The more stress we put on our organizations the
more their tendency will be to revert to their most
primitive behaviors.”
Peter Senge (1997)
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The fact is, a company with a myopic goal of
making as much money as possible, or responding
solely to the capriciousness of Wall Street…is
capable of harming more than itself.
Winstanley, Woodall (2000)
ROI Versus ROC
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Return on investments:
do the benefits out
weigh the costs?
It’s a balancing act
Profits
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Delighted
Customers
Return on Culture:
do the business
decisions support the
espoused values of the
organization?
Interdependent Team Environment
HRD’s Current Focus
Contemporary HR has taken the focus
away from ethics, towards issues such
as strategy and effectiveness, while at
the same time creating the conditions
which make ethical exploration more
urgent, as new ethical concerns and
dilemmas emerge.
Winstanely, Woodall (2000)
2003 SHRM/ERC Survey
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24% - feel pressured to compromise ethics
standards all the time, fairly often, or
periodically.
WHY?
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need to follow bosses directives – 49%
need to meet overly aggressive objectives – 48%
need to help the organization survive – 40%
need to meet schedule pressures – 35%
want to be a team player – 27%
Doing the Right Thing
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According to a 2000 study of workers’
attitudes toward workplace ethics, 90%
of American workers say they “expect
their employers to do what is right, not
just what is profitable.”
Ethics Resource Center (2000)
Ethical Dilemmas
True Stories
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It’s yearend and a manager’s sales figures are just
short of making the larger bonus….he asks the
finance director to fudge a bit on the
numbers…just this time. (CFO, large retailer)
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A qualified candidate is interviewed for an open
position, but it is suggested you hire a less
qualified friend of the boss. (Recruiter, local
financial services firm)
Ethical Dilemmas
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An entry level accountant is having
difficulty on the job, six months go by
and she hasn’t received any feedback.
She thinks things must be okay. The
manager is so frustrated and tells you
he’s “lost confidence in her. She needs
to go.”
(HR Manager, regional accounting firm)
Ethical Dilemmas
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You’re meeting with a well-known
consultant regarding an engagement
with your organization. In the meeting,
she shares sensitive information about
someone at another firm. You’re
uncomfortable but your boss wants to
hire her.
(HRD, regional knowledge management firm)
Ethical Dilemmas
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Information Technology staff member is asked
to monitor an employee’s internet and email
usage to “see what’s going on.”
(IT Director, law firm)
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A director delays annual performance
evaluations and compensation reviews for his
staff because he feels unfairly treated.
(Finance Director, Professional Services firm)
HRD’s Purpose is to…
Enhance the organization’s strategic initiatives
through:
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Employee Development
Compensation designs
Recruitment and Selection
HRIS management reporting
Employee relations consulting
Diversity initiatives
Executive Coaching
Leadership Development
The HRD Call
The task is to “prove that HRD should be
central to the creation of ethical and
responsible organizations…to date,
HRD’s contribution to ethics and the
social responsibility of our organizations
appears trivial.”
Hatcher (2002)
HRD Comparison
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View One
“At the Table”
A business partner
Aligned to business
goals
Fingers on the pulse
ROI
Civic minded
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View Two
“Respected Advisor”
A leader & strategist
Co-Architect of
business goals
Creator of the pulse
ROI and ROC
Social activist
A Crisis In The Workplace
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Manufacturing Plant
450 Employees
Average Pay:
22.00/hr.
Decision to move to
Mexico
Average Pay:
3.00/hr.
Rationale: Good
business decision
This is not a
question of
ethics! It’s a
business decision.
Ask Questions
• What benefits/harms will result?
• What are the moral rights of affected parties?
• Which course of action limits favoritism?
• Which course of action advances the common
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good?
Which course of action respects individual
virtues?
Ethically Led Organizations
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Open up the dialogue – inclusive
Ask the employees for solutions
Focus on the long term versus short term gain
Reward “doing the right thing” behavior
Share the pain – Share the gain
Model ethical behavior
Own results
Promote people who exemplify integrity and have a
social conscience
Live stated values
HRD Professionals Can
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Create Personal Values Statement
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Employ better than best practices
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Act like people are our business
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Model ethical behavior/decision-making
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Promote change management practices
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Create venues for open dialogue
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Create atmospheres of trust
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Refuse to buy into “If it’s not illegal, it’s okay” thinking
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Be honest when the organization’s DNA is skewed
A Call to Action
Are ethical organizations
your responsibility?
If so,
Embrace the challenge!