Download Business Environment

Business Ethics
Outline
• What is ethics?
• Three approaches to resolving ethical
conflicts
• Making ethical decisions
Ethics: What Does It Really Mean?
Definitions
• Ethics involves a discipline that examines
good or bad practices within the context of a
moral duty
• Moral conduct is behavior that is right or
wrong
Two Key Branches of Ethics
• Descriptive ethics involves describing,
characterizing and studying morality
– “What is”
• Normative ethics involves supplying and
justifying moral systems
– “What should be”
3 Models of Leadership Ethics
1.
Immoral Leadership—A style devoid of ethical
principles and active opposition to what is ethical.
2.
Moral Leadership—Conforms to high standards of
ethical behavior.
3.
Amoral Leadership
–
–
Intentional - does not consider ethical factors
Unintentional - casual or careless about ethical
considerations in business
Resolving Ethical Conflicts
Three Approaches
• Conventional
• Principles
• Ethical tests
Conventional Approach to Ethics
• Conventional approach to ethics involves a
comparison of a decision or practice to
prevailing societal norms
– Pitfall: ethical relativism
Decision or Practice
Prevailing Norms
Leadership and Ethics
Culture Relativism
Descriptive relativism claims that members of
different cultures have different moral beliefs.
Normative relativism claims that the truth of
moral beliefs depends upon particular cultures,
such that the belief that cannibalism is right
can be true for culture A but false for culture
B.
Leadership and Ethics
Culture Relativism
Normative relativism has some rather undesirable
implications:
– it prohibits us from ever morally condemning another
culture’s values and practices;
– it suggests that we need look no further that our own
culture for moral guidance;
– it renders the notions of moral progress and moral reform
incoherent.
Sources of Ethical Norms
Fellow Workers
Fellow Workers
Family
Regions of
Country
Profession
The Individual
Conscience
Friends
The Law
Employer
Religious
Beliefs
Society at Large
Making Ethical Judgments
Behavior or act
that has been
committed
compared with
Value judgments
and perceptions of
the observer
Prevailing norms
of acceptability
Principles Approach to Ethics
Principles Approach
Anchors decision making
on an ethical principle such as:
• Utilitarianism
• Rights
• Justice
• Caring
• Virtue ethics
• Golden Rule
Principles Approach to Ethics
Principle of Utilitarianism focuses on an
act that produces the greatest ratio of good to
evil for everyone
– Consequentialist theory
Principles Approach to Ethics
Principle of Rights focuses on examining
and possibly protecting individual moral or
legal rights
Principles Approach to Ethics
Principles Approach to Ethics
• Principle of justice involves considering
what alternative promotes fair treatment of
people
• Types of justice
– Distributive
– Compensatory
– Procedural
Principles Approach to Ethics
• Principle of caring focuses on a person as a
relational (cooperative) and not as an
individual
– Feminist theory
• Virtue ethics focuses on individuals
becoming imbued with virtues
– Aristotle and Plato
Golden Rule
Golden rule focuses on the premise that you
should of unto others as you would have
them do unto you
Ethical Decision-Making
Identify decision you
are about to make
Articulate all dimensions
of proposed decision
Conventional Approach
Standards/Norms
-Personal
-Organizational
-Societal
-International
Principles Approach
Ethical Principles
-Justice
-Rights
-Utilitarianism
-Golden Rule
Course of action passes
ethics screen
Engage in course of
action
Ethical Tests Approach
Ethical Tests
-Common sense
-One’s best self
-Public disclosure
-Gag test . . .
Course of action fails
ethics screen
Do not engage in course
of action
Identify new course of
action
Ethical Decision 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
harms among individuals in a fair, equitable, or
impartial way.
Ethical Models
Justice
Utilitarian
IDEAL
Outcome
Moral Rights
Steps to Ethical Decision Making
What are the consequences
of your decision
How can the option be implemented
Decide which option is most ethical
Consider options
Think through dilemma;
identify all components as objectively as possible.
Common Misconduct in
Organizations
• Misrepresenting hours worked
• Employees lying to supervisors
• Management lying to employees, customers,
vendors or the public
• Misuse of organizational assets
• Lying on reports/falsifying records
• Sexual harassment
• Stealing/theft
• Accepting or giving bribes or kickbacks
• Withholding needed information from
employees, customers, vendors or public
Common Causes of Unethical
Behavior
•
•
•
•
Pressure
Fear
Greed
Convenience
Causes of Unethical Behavior
(cont’d)
•
•
•
•
•
•
•
•
Following boss’s directives
Meeting overly aggressive business/financial objectives
Helping the organization survive
Meeting schedule pressures
Be a team player (group think)
Rationalizing that others do it
Resisting competitive threats
Advancing own career
Ethical Dilemmas
Making decisions under stress or
dealing with complex issues that
have no clear indication of what is
right or wrong.
There are NO simple ethical dilemmas…
all have layers of meaning and effect.
Business Ethics Myths
• Business ethics is a new fad.
• Business ethics – religion vs.
management.
• Business ethics is obvious – “do
good!”
• Business ethics is good guys
preaching to bad guys.
“Whistleblower’s”
Reluctance
• Didn’t believe action would be
taken.
• Feared retaliation from mgmt.
• Didn’t trust confidentiality.
• Feared not being a team player.
• Feared retaliation from coworkers.
• Didn’t know who to contact.
• Nobody cares, why should I?
Business Ethics Myths (cont’d)
• Ethics can’t be managed.
• Being legal = being ethical.
• Managing ethics has little practical
relevance.
Ethical Tips for Organizations
• Develop a code of ethics.
• Communicate code and bake it
into culture top-down.
• Treat ethics as a process.
• Create open lines of
communication.
• Set good examples.
• Educate employees – frame issues
through storytelling.
• Value forgiveness.
Benefits of Managing Ethics in the
Workplace
• Improves society.
• Maintains a moral course in
turbulent times.
• Cultivates employee teamwork,
productivity, morale and
development.
• Acts as an insurance policy.
Benefits of Managing Ethics in the
Workplace (cont’d)
• Establishes values for quality
management, strategic planning
and diversity management.
• Promotes strong public image.
• It is the RIGHT thing to do!
Ethical Tips for
Individuals
• Establish personal values.
• Be aware of ethical events.
• Develop critical thinking
techniques.
• Be reflective.
• Make it a priority every day.
“The simple step of a
simple courageous man is
to not take part in the lie,
not to support deceit. Let
the lie come into the world,
even dominate the world,
but not through me.”
-- Alexander Solzhenitsyn