201228429 slideshare

Ethics and Ethics and BehaviorBehavior

in in OrganizationsOrganizations

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INTRODUCTION

What is ethical behavior?

How do ethical dilemmas complicate the workplace?

How can high ethical standards be maintained?

What is corporate social responsibility?

How do organizations and governments work together in society?

What is ethical behavior?What is ethical behavior?

Ethics

Code of moral principles.

Set standards of “good” and “bad” as opposed to “right” and “wrong.”

Ethical behavior

What is accepted as good and right in the context of the governing moral code.


Law, values, and ethical behavior:

Legal behavior is not necessarily ethical behavior.

Personal values help determine individual ethical behavior.

Terminal values

Instrumental values

.

Four views of ethical Four views of ethical behavior.behavior.


Cultural issues in ethical behavior:

Cultural relativism

Ethical behavior is always determined by cultural context.

Cultural universalism

Behavior that is unacceptable in one’s home environment should not be acceptable anywhere else.

The extremes of cultural relativism and ethical The extremes of cultural relativism and ethical imperialism in international business ethics.imperialism in international business ethics.

Respect for human dignity• Create culture that values employees, customers, and

suppliers.• Keep a safe workplace.• Produce safe products and services.

Respect for basic rights• Protect rights of employees, customers, and communities.• Avoid anything that threatening safety, health, education, and

living standards.

Be good citizens• Support social institutions, including economic and educational

systems.• Work with local government and institutions to protect

environment.

How do ethical dilemmas How do ethical dilemmas complicate the workplace? complicate the workplace? An ethical dilemma occurs when

choices, although having potential for personal and/or organizational benefit, may be considered unethical.

Ethical dilemmas include: Discrimination Sexual harassment Conflicts of interest Customer confidence Organizational resources

How do ethical dilemmas complicate the workplace?

Ethical behavior can be rationalized by

convincing yourself that:

Behavior is not really illegal.

Behavior is really in everyone’s best interests.

Nobody will ever find out.

The organization will “protect” you.

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Factors influencing ethical behavior include:The person

Family influences, religious values, personal standards, and personal needs.

The organizationSupervisory behavior, peer group norms and behavior,

and policy statements and written rules.

The environmentGovernment laws and regulations, societal norms and

values, and competitive climate in an industry.

Factors influencing ethical managerial behavior—Factors influencing ethical managerial behavior—the person, organization, and environment.the person, organization, and environment.

How can high ethical standards be How can high ethical standards be maintained? maintained?

Ethics training:Structured programs that help

participants to understand ethical aspects of decision making.

Helps people incorporate high ethical standards into daily life.

Helps people deal with ethical issues under pressure.

How can high ethical standards How can high ethical standards be maintained?be maintained?

Ethical role models:

Top managers serve as ethical role models.

All managers can influence the ethical behavior

of people who work for and with them.

Excessive pressure can foster unethical

behavior.

Managers should be realistic in setting

performance goals for others.

How can high ethical standards be How can high ethical standards be maintained? maintained?

Codes of ethics: Formal statement of an organization’s

values and ethical principles regarding how to behave in situations susceptible to the creation of ethical dilemmas.

Areas often covered by codes of ethics: Bribes and kickbacks Political contributions Honesty of books or records Customer/supplier relationships Confidentiality of corporate information


Corporate social responsibility:

Looks at ethical issues on the organization level.

Obligates organizations to act in ways that serve both its

own interests and the interests of society at large.

What is corporate social responsibility?What is corporate social responsibility?

Beliefs that guide socially responsible business practices:People do their best with a balance of work and

family life.Organizations perform best in healthy

communities.Organizations gain by respecting the natural

environment.Organizations must be managed and led for long-

term success.Organizations must protect their reputations.


Arguments against social responsibility: Reduced business

profits Higher business

costs Dilution of business

purpose Too much social

power for business Lack of public

accountability

Arguments in favor of social responsibility: Adds long-run

profits Improved public

image Avoids more

government regulation

Businesses have resources and ethical obligation

Four strategies of corporate social responsibility

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How do organizations and governments work together in society? How government influences organizations:

Common areas of government regulation of business affairs:

Occupational safety and health

Fair labor practices

Consumer protection

Environmental protection

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Centrality of ethics and social responsibility Centrality of ethics and social responsibility in leadership and the managerial role.in leadership and the managerial role.

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REFERENCES:REFERENCES:

Source: Developed from Thomas Donaldson, “Values in Tension: Ethics Away from Home,” Harvard Business Review, vol. 74 (September-October 1996), pp. 48-62.

2004 © John Wiley & Sons, Inc

Ethical behavior code

Theories of ethics

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