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Questions of Values and Ethics

Questions of Values and Ethics. Values. Abstract ideals that shape an individual’s thinking and behavior – a moral compass Instrumental values – certain way of behaving is appropriate in all situations – “means”.

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Questions of Values and Ethics

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  1. Questions of Values and Ethics

  2. Values • Abstract ideals that shape an individual’s thinking and behavior – a moral compass • Instrumental values – certain way of behaving is appropriate in all situations – “means”. • Terminal values – enduring belief in the attainment of a certain end state – “ends”.

  3. A moral compass These abstract ideals can result from • Religion • Philosophy • Family teachings

  4. Instrumental values As the means to an end they become the ingrained ways of behavior: • Rituals • Politesse • Good habits

  5. Terminal values With the end always in sight: • Heaven • Respect • Financial Success • Personal Independence • Power

  6. Ethics • The study of moral obligation involving the distinction between right and wrong. • Business Ethics: right or wrong in the workplace – value management.

  7. Relativism Egoism The4ConceptsofEthics Utilitarianism Universalism

  8. ETHICS THEORY/THEORISTS “Ethicists”

  9. Ethical Tests

  10. Is It Legal Test? Ethical Quadrant II Ethical and Illegal Quadrant I Ethical and Legal Codification Manifestation Corporate Decisions Illegal Legal Quadrant IV Unethical and Illegal Quadrant III Unethical and Legal Unethical

  11. Two Areas of Business Ethics • Obvious mischief • Moral mazes RIGHT vs. RIGHT

  12. 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

  13. Common Causes of Unethical Behavior • Pressure • Fear • Greed • Convenience

  14. 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

  15. 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.

  16. 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.

  17. “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 co-workers. • Didn’t know who to contact. • Nobody cares, why should I?

  18. Business Ethics Myths (cont’d) • Ethics can’t be managed. • Being legal = being ethical. • Managing ethics has little practical relevance.

  19. 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.

  20. 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.

  21. 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!

  22. Ethical Tips for Individuals • Establish personal values. • Be aware of ethical events. • Develop critical thinking techniques. • Be reflective. • Make it a priority every day.

  23. “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

  24. Puzzling things out…. As we watch the video vignettes, keep these questions in mind: • What is the ethical dilemma? • What is the apparent cause of the unethical behavior? • Is there an ethical resolution to the problem portrayed? • If so, who should do what?

  25. Decision-Making Process

  26. A General Framework of the Ethical Decision-Making Process CHARACTERISTICS OF THE DECISION MAKER OUTCOMES ETHICAL SITUATION DECISION SIGNIFICANT INFLUENCES

  27. Individual Characteristics of the Decision Maker that Influence the Ethical Decision-Making Process CHARACTERISTICS OF THE DECISION MAKER ETHICAL SITUATION OUTCOMES DECISION SIGNIFICANT INFLUENCES *Achievement motivation * Knowledge * Need for affiliation * Experience * Ego strength * Risk taking * Locus of control * Machiavellianism

  28. Significant Influences on the Ethical Decision-Making Process CHARACTERISTICS OF THE DECISION MAKER ETHICAL SITUATION OUTCOMES DECISION SIGNIFICANT INFLUENCES *The organization * Technology * Work * Significant others; customers, * The law peers, immediate supervisor, * Economics top managers, family, friends, * Professionalism other “opinion leaders”

  29. Outcomes that Result from the Ethical Decision-Making Process CHARACTERISTICS OF THE DECISION MAKER ETHICAL SITUATION OUTCOMES DECISION SIGNIFICANT INFLUENCES *Performance * Feedback * Rewards * Promotions * Satisfaction * Learning

  30. Elements of the Ethical Decision-Making Process Characteristics of Decision Makers Ethical Situation Outcomes DECISION Significant Influences ELEMENTS OF THE DECISION Information acquired Information processed PERCEIVED ETHICAL PROBLEM Ethical decision history Expectations Sent and received roles Ethics norms (personal & those of others) PERCEIVED ALTERNATIVES, PRODUCT, PRICE, PROMOTION, DISTRIBUTION INFO JUDGMENT Information acquired Information processed PERCEIVED CONSQUENCES Probability of consequences Desirability of consequences

  31. A Successful Code of Ethics

  32. Inside an Organization: How ethics affects the everyone!

  33. Ethics of Accounting Creative accounting practices and misleading financial analysis. White-collar crimes Executive compensation Bribery, kickbacks, political lobbying

  34. Ethics of Sales and Marketing Pricing: price fixing, discrimination, skimming. Unethical marketing strategies Content of Advertisements Children and marketing Black and grey markets.

  35. Ethics of Production Defective products Quality vs. Quantity Addictive and inherently dangerous products and services (e.g. tobacco, alcohol, weapons, motor vehicles, chemical manufacturing). Environmental issues Safety Patent infringement

  36. Ethics of Research & Development (R&D) Ethical problems arising out of new technologies: genetically modified food, mobile phone radiation and health. Product testing ethics: animal rights and animal testing. Use of economically disadvantaged groups (such as students) as test objects. Intellectual property

  37. Ethics of International Business Political Economic Socio-cultural Technological Legal Environment Government

  38. THANK YOU!

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