Organizational Relationships and Conflicts: Influences on Ethical Decision Making

1. Chapter 7 Organizational Relationships and Conflicts in Ethical Decision Making

2. Key Influences on Ethical Behavior • society • corporate culture • peers & coworkers • strength of the individual’s personal values • opportunity • exposure to others that behave (un)ethically • informal relationships • formal relationships

3. Responsibility of the Corporation as a Moral Agent • chartered as citizens of a state and nation, therefore, they have all the right s & responsibilities of individuals • responsible to society for its decisions • business ethics & social responsibility are assigned to the organization as an entity • must require compliance with ethical policies representing the interests of all stakeholders

4. Variation in Employee Conduct • 10%-will take advantage of situations to further their own personal interests • 40%-will go along with the work group on most matters • 40%-will try to follow company policies & rules & have a strong grasp of the corporate culture • 10%-maintain formal standards that focus on rights, duties & rules

5. Socialization... • the process through which a person learns the values & behavior patterns considered appropriate by an organization or group • has a significant influence on ethical behavior • ethical conflict arises when the values & norms of the individual conflict with those taught through socialization

6. Role-Set... • the total of all role relationships in which an individual is involved because of his or her position in an organization • role sets may help predict ethical behavior • persons in the same department are socialized similarly and share the same specialization & knowledge base • members of an organization have more in common with one another than with members of other organizations

7. Differential Association... • refers to the idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or other intimate personal groups • if interaction is with those who behave unethically, parallel behavior may be expected • superiors have strong influence on the ethics of their subordinates • differential association with peers & opportunity are better predictors of unethical behavior than is the person’s own ethical belief system

8. Whistle Blowing... • when unethical or illegal behavior occurs in the organization and individual interpersonal conflict occurs • exposing an employer’s wrongdoing to outsiders such as the media or government regulatory agencies • provides an in-house mechanism for employees or voice concerns • usually anonymous

9. Organizational Pressure & Ethical Decision Making • success in organizations is determined through the achievement of organizational goals • internal organizational pressure stemming from role-set relationships & differential association is a major predictor of unethical behavior • top management & superiors play crucial roles in developing the environment that influences ethical behavior

10. Opportunity Creates Ethical Dilemmas • opportunity is a set of conditions that limit unfavorable behavior or reward favorable behavior • rewards may be internal (self-worth, enjoyment) • rewards may be external (raises, promotion) • a person who behaves unethically & is rewarded is likely to continue the behavior; punishment is a more suitable deterrent

11. Opportunity also comes from Knowledge • a person with information, expertise or competitive knowledge has the opportunity to exploit this knowledge • long term employment with one company leads to gatekeeping-socializing newer employees regarding culture, tradition, rules, unwritten traditions, etc. • trainers & mentors influence new employees behavior

12. Conflict Resolution... • occurs when it is not clear which goals or values take precedence-those of the organization or a group within the organization • personal-organizational conflict • personal-societal conflict • organizational-societal

13. Improving Ethical Behavior • ethical behavior depends on: • the embedded organizational value system (corporate culture) • significant others • personal value preferences