1.Teori ETIKA

TEORI ETIKATEORI ETIKA

Teleology...Teleology... an act is considered morally right or an act is considered morally right or

acceptable if it produces some desired result, acceptable if it produces some desired result, i.e., pleasure, knowledge, career growth, a i.e., pleasure, knowledge, career growth, a self-interest, or utilityself-interest, or utility

assessing the moral worth of a behavior by assessing the moral worth of a behavior by looking at its consequences (consequentialism)looking at its consequences (consequentialism)

Two Teleological Two Teleological Philosophies...Philosophies...

Egoism: right or acceptable behavior in terms of Egoism: right or acceptable behavior in terms of consequences for the individualconsequences for the individual maximize your self-interest, concerned with the maximize your self-interest, concerned with the

consequences, seeking alternative that contributes the consequences, seeking alternative that contributes the most to self-interestsmost to self-interests

Utilitarianism: concern with consequences in Utilitarianism: concern with consequences in terms of seeking the greatest good for the greatest terms of seeking the greatest good for the greatest number of peoplenumber of people looking for the greatest benefit for all those affected by looking for the greatest benefit for all those affected by

a decisiona decision

Utilitarianism:Utilitarianism:

An action is right if and only if it achieves the An action is right if and only if it achieves the greatest good for the greatest number.greatest good for the greatest number.

Utilitarianism makes moral judgments based Utilitarianism makes moral judgments based on the consequences of actions, or on the consequences of actions, or consequences of rules of actionsconsequences of rules of actions

Deontology:Deontology:(Greek: deon-duty; logos-science)(Greek: deon-duty; logos-science)

An action is right if it is an action of a certain An action is right if it is an action of a certain kind; if it is your duty to perform. An action is kind; if it is your duty to perform. An action is wrong if it is your duty not to perform.wrong if it is your duty not to perform.

For example, always wrong to torture, rape, For example, always wrong to torture, rape, enslave someone, no matter what the enslave someone, no matter what the consequences are.consequences are.

Deontology...Deontology...

focuses on the rights of the individual and on focuses on the rights of the individual and on the intentions associated with behavior the intentions associated with behavior not not on on the consequencesthe consequences

believe there are some things we should believe there are some things we should notnot do regardless of the utilitydo regardless of the utility

An analytical approach to ethical problemsAn analytical approach to ethical problems

Step 1

Ask

NoYesNoYesNoYes

UtilityDo benefits

exceed costs?

RightsAre human

rightsrespected?

JusticeAre benefits

and costsfairly

distributed?

Step 2

Compare results

If yes is the answer to all three questions, it is

probably ethical

If the answers aremixed, it could be either

ethical or unethical

If no is the answer to allthree questions, it is probably unethical

Step 3

Assign priorities to

Utility Rights Justice

ETIKA BISNIS & ETIKA BISNIS & PENERAPANNYA DI PENERAPANNYA DI

PERUSAHAANPERUSAHAAN

Business Ethics: What Does It Business Ethics: What Does It Really Mean?Really Mean?

DefinitionsDefinitions EthicsEthics involves a discipline that examines involves a discipline that examines

good or bad practices within the context of a good or bad practices within the context of a moral dutymoral duty

Moral conductMoral conduct is behavior that is right or is behavior that is right or wrongwrong

Business ethicsBusiness ethics include practices and include practices and behaviors that are good or badbehaviors that are good or bad

Business Ethics: What Does It Really Business Ethics: What Does It Really Mean?Mean?

Ex p

e cte

d a n

d A

c tu a

l Lev

e ls

of B

usin

ess

Eth

ics

Ethical Problem

Ethical Problem

Society’s Expectations of Business Ethics

Actual Business Ethics

1950s Early 2000sTime

Business Ethics:Today vs. Earlier Period

Why ethical problems occur in businessWhy ethical problems occur in business

Reason Nature of

ethical problem

Typical

approach

Attitude

Personal gain and selfish

interest

Selfish interest versus others'

interests

Egoistical mentality

"I want it!"

Competitive pressures on

profits

Firm's interest versus others'

interests

Bottom-line mentality

"We have to beat the

others at all costs!"

Business goals versus personal

values

Boss's interests versus

subordinates’ values

Authoritarian mentality

"Do as I say, or else!"

Cross-cultural contradictions

Company's interests versus diverse cultural traditions and

values

Ethnocentric mentality

"Foreigners have a funny

notion of what's right and wrong."

Ethics and the LawEthics and the Law

Law often represents an ethical minimumLaw often represents an ethical minimum Ethics often represents a standard that exceeds Ethics often represents a standard that exceeds

the legal minimumthe legal minimum

Ethics Law

Frequent Overlap

Why should business be ethical?Why should business be ethical?

• Fulfill public expectation for business.

• Prevent harming others.

• Seek profitability.

• Improve business relations and employee productivity.

• Reduce penalties under U.S. Corporate Sentencing Guidelines.

• Protect business from others.

• Protect employees from their employers.

• Promote personal morality.

Factors Influencing Ethical BehaviorFactors Influencing Ethical Behavior

Leadership

CorporateCulture

Strategy and Performance

IndividualCharacteristics

Have anethical day!

Sources of Ethical NormsSources of Ethical Norms

Fellow Workers

Family

Friends

The Law

Regions of Country

Profession

Employer

Society at Large

Fellow Workers

Religious Beliefs

The Individual

Conscience

Developing Moral JudgmentDeveloping Moral Judgment

6-22

Stages of moral development and ethical reasoning

Age group Development stage and major ethics referent

Basis of ethics reasoning

Mature adulthood Stage 6 Universal principles: Justice, fairness, universal human rights

Principle-centered reasoning

Mature adulthood Stage 5 Moral beliefs above and beyond specific social custom: Human rights, social contract, broad constitutional principles

Principle-centered reasoning

Adulthood Stage 4 Society at large: Customs, traditions, laws

Society-and-law centered reasoning

Early adulthood, adolescence

Stage 3 Social groups: Friends, school, coworkers, family

Group-centered reasoning

Adolescence, youth

Stage 2 Reward seeking: Self-interest, own needs, reciprocity

Ego-centered reasoning

Childhood Stage 1 Punishment avoidance: Punishment avoidance, obedience to power

Ego-centered reasoning

Source: Adapted from Lawrence Kohlberg, The Philosophy of Moral Development (New York: Harper & Row, 1981).

Elements of Moral JudgmentElements of Moral Judgment

Amoral Managers Moral Managers

Moral ImaginationMoral IdentificationMoral EvaluationTolerance of Moral Disagreement and AmbiguityIntegration of Managerial and Moral CompetenceA Senses of Moral Obligation

The components of ethical climatesThe components of ethical climates

Individual person

Company Society

Egoism (self-centered approach)

Self-interest

Company interest

Economic efficiency

Benevolence (concern-for-others approach)

Friendship Team interest

Social responsibility

Principle (integrity approach)

Personal morality

Company rules and procedures

Laws and professional codes

Focus of ethical concernE

thic

al c

rite

ria

Source: Adapted from Bart Victor and John B. Cullen, “The Organizational Bases of Ethical Work Climates,” Administrative Sciences Quarterly 33(1988), p. 104.

How to Build in EthicsHow to Build in Ethics

TOP MANAGEMENT COMMITMENTTOP MANAGEMENT COMMITMENT

MISSION STATEMENTMISSION STATEMENT

ETHICS CODEETHICS CODE

POLICIES/PROCEDURESPOLICIES/PROCEDURES

TRAININGTRAINING

WHISTLE-BLOWER’S HOTLINEWHISTLE-BLOWER’S HOTLINE

ETHICS OFFICERETHICS OFFICER

INDEPENDENT AUDITINDEPENDENT AUDIT

DISCIPLINARY ACTIONDISCIPLINARY ACTION

Codes of ConductCodes of Conduct

Must provide clear direction about ethical Must provide clear direction about ethical behavior when temptation to behave behavior when temptation to behave unethically is strongest.unethically is strongest.

But, also must leave room for a manager to use But, also must leave room for a manager to use his or her judgment in situations requiring his or her judgment in situations requiring cultural sensitivity.cultural sensitivity.

Intl. managers who are not prepared to grapple Intl. managers who are not prepared to grapple with moral ambiguity and tension should pack with moral ambiguity and tension should pack their bags and come hometheir bags and come home

How to support ethical decision How to support ethical decision making in the organization?making in the organization?

culture, values & programsculture, values & programs compliance & leadershipcompliance & leadership recognition of the role of co-workers & recognition of the role of co-workers &

managersmanagers balancing stakeholder interestsbalancing stakeholder interests management of situational pressuresmanagement of situational pressures rewards beyond short-term performancerewards beyond short-term performance

Creating an Ethical Corporate Creating an Ethical Corporate CultureCulture

Core values are not specific enough to guide managers Core values are not specific enough to guide managers through actual ethical dilemnas.through actual ethical dilemnas.

Managers should be guided by precise statements that spell Managers should be guided by precise statements that spell out the behavior and operating practices that the company out the behavior and operating practices that the company demands.demands.

90% of all Fortune 500 companies have codes of conduct.90% of all Fortune 500 companies have codes of conduct. 70% have statements of vision and values.70% have statements of vision and values. In Europe and the Far East, the percentages are lower but are In Europe and the Far East, the percentages are lower but are

rising rapidly.rising rapidly.

Business Ethics: It Begins with Business Ethics: It Begins with LeadershipLeadership

As As LeadersLeaders, we must do a better job at creating , we must do a better job at creating and sustaining organizational cultures that and sustaining organizational cultures that support ethical behaviorsupport ethical behavior….….

Guidelines for Ethical LeadershipGuidelines for Ethical Leadership Treat corporte values and formal standards of Treat corporte values and formal standards of

conduct as absolutes.conduct as absolutes. Design and implement conditions of Design and implement conditions of

engagement for suppliers afnd customers.engagement for suppliers afnd customers. Allow forwign business units to help Allow forwign business units to help

forlmulate ethical standards and interpret forlmulate ethical standards and interpret ethical issues.ethical issues.

In host countries, support efforts to decrease In host countries, support efforts to decrease institutional corruptions.institutional corruptions.

Exercise moral imagination.Exercise moral imagination.

Two approaches to ethics programsTwo approaches to ethics programsand their effectivenessand their effectiveness

Compliance-based programs

• Rooted in avoiding legal sanctions.

• Companies will establish rules and guidelines for employees to follow.

• Emphasizes threat of detection and punishment.

• Assumes employees are driven by self-interest.

• Research evidence shows that employees do care about moral correctness of their actions.

Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117 and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on

Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.

Two approaches to ethics programsand their effectiveness

Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117 and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on

Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.

Integrity-based ethics programs• Combine a concern for the law with an emphasis on employee responsibility for ethical conduct.

• Establish a climate of self-governance for employees based on general principles as guidelines.

• Employees told to act with integrity and conduct business dealings in an environment of honesty and fairness.

• Employees are thought of as social beings, concerned for the well-being of others.

• Researchers found that these programs fostered lower observed unethical conduct.