1 Chapter 4 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved Ethical and Unethical Workplace Behavior Ethics The set of moral principles or values that defines right and wrong for a person or group.
Oct 15, 2014
1
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethical and Unethical Workplace Behavior
Ethics
The set of moral principles or values that defines right and wrong for a person or group.
2
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethics and the Nature of Management Jobs
Unethical Managerial BehaviorUnethical Managerial Behavior
Authority and PowerAuthority and Power
Handling InformationHandling Information
Influencing the Behavior of OthersInfluencing the Behavior of Others
Setting GoalsSetting Goals
11
3
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethics and the Nature of Management Jobs
Managers can encourage ethical behaviors by…
using resources for company business only
handling information confidentially
not influencing others to engage in unethical behavior
not creating policies that reward employees for unethical behavior
setting reasonable goals
11
4
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Workplace Deviance
22
Workplace Deviance
Unethical behavior that violates organizational norms about right and wrong
Two dimensions Degree of deviance Target of deviant behavior
5
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Types of Workplace Deviance
22Adapted from Exhibit 4.1
Production Deviance
Production Deviance
Property DevianceProperty Deviance
Political DeviancePolitical Deviance
Personal AggressionPersonal
Aggression
Minor Serious
Organizational
Interpersonal
6
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Production Deviance
Leaving early Taking excessive breaks Intentionally working slow Wasting resources
22
7
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Property Deviance
Sabotaging equipment
Accepting kickbacks
Lying about hours worked
Stealing from company
22
8
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Political Deviance
Showing favoritism Gossiping about
coworkers Blaming coworkers Competing nonbeneficially
22
9
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Personal Aggression
Sexual harassment Verbal abuse Stealing from coworkers Endangering coworkers
22
10
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
U.S. Sentencing Commission Guidelines
Companies can be prosecuted and punished even if management didn’t know about
the unethical behavior.
33
11
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Who, What, and Why?
Nearly all businesses are covered
Punishes a number of offenses
Encourages businesses to be proactive
3.13.1
12
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Partial List of Offenses
3.13.1
Invasion of privacy
Price fixing
Fraud
Customs violations
Antitrust violations
Civil rights violations
Theft
Money laundering
Conflicts of interest
Embezzlement
Dealing in stolen goods
Copyright infringements
Extortion
…and more
13
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Steps in determining fine size
1. determine the base fine
2. compute a culpability score
3. multiply the base fine by the culpability score
Steps in determining fine size
1. determine the base fine
2. compute a culpability score
3. multiply the base fine by the culpability score
Compliance Program Steps
Smaller fines for companies that are
proactive
3.23.2
14
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Compliance Program Steps
Adapted from Exhibit 4.3
1. Establish standards and procedures.
7. Improve program after violations.
6. Enforce standards consistently and fairly.
5. Train employees on standards and procedures.
3. Delegate decision-making authority only to ethical employees.
4. Encourage employees to report violations.
2. Assign upper-level managers to be in charge.
3.23.2
Revise if required
15
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Influences on Ethical Decision Making
EthicalEthicalAnswersAnswersDepend Depend
on…on…
EthicalEthicalAnswersAnswersDepend Depend
on…on…
Ethical Intensity of DecisionEthical Intensity of Decision
Moral Development of ManagerMoral Development of Manager
Ethical Principles UsedEthical Principles Used
44
16
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethical Intensity Depends on…
Concentration of effectConcentration of effect
Magnitude of consequencesMagnitude of consequences
Social consensusSocial consensus
Probability of effectProbability of effect
Proximity of effectProximity of effect
Temporal immediacyTemporal immediacy
4.14.1
17
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Moral Development
4.24.2Adapted from Exhibit 4.4
Societal Societal ExpectationsExpectationsSelfishSelfish InternalizedInternalized
PrinciplesPrinciples
PreconventionalPreconventionalPreconventionalPreconventional ConventionalConventionalConventionalConventional PostconventionalPostconventionalPostconventionalPostconventional
Kohlberg’s Stages of Moral Development
18
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Stages of Moral Development
PreconventionalPreconventionalPreconventionalPreconventional
1. Punishment andObedience
2. InstrumentalExchange
1. Punishment andObedience
2. InstrumentalExchange
ConventionalConventionalConventionalConventional
3. Good boy, nice girl
4. Law and order
3. Good boy, nice girl
4. Law and order
PostconventionalPostconventionalPostconventionalPostconventional
5. Social contract
6. Universalprinciple
5. Social contract
6. Universalprinciple
4.24.2
19
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Principles of Ethical Decision Making
Long-term self-interestLong-term self-interest
Personal virtuePersonal virtue
Religious injunctionsReligious injunctions
Government requirementsGovernment requirements
Utilitarian benefitsUtilitarian benefits
Individual rightsIndividual rights
Distributive justiceDistributive justice4.34.3
20
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Principle of long-term self-interestPrinciple of long-term self-interest
Never take any action not in your organization’s long-term self-interest.
Never take any action not in your organization’s long-term self-interest.
4.34.3
Principles of Ethical Decision Making
21
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Principles of Ethical Decision Making
Principle of Personal VirtuePrinciple of Personal Virtue
Never do anything that is not honest, open, and truthful and that you would not beglad to see reported in the newspapers
or on TV.
Never do anything that is not honest, open, and truthful and that you would not beglad to see reported in the newspapers
or on TV.
4.34.3
22
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Principles of Ethical Decision Making
Principle of Religious InjunctionsPrinciple of Religious Injunctions
Never take any action that is not kindand that does not build a
sense of community.
Never take any action that is not kindand that does not build a
sense of community.
4.34.3
23
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Principles of Ethical Decision Making
Principle of Government RequirementsPrinciple of Government Requirements
Never take any action that violates the law,for the law represents the minimal
moral standard.
Never take any action that violates the law,for the law represents the minimal
moral standard.
4.34.3
24
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Principles of Ethical Decision Making
Principle of Utilitarian BenefitPrinciple of Utilitarian Benefit
Never take any action that does not result ingreater good for society.
Never take any action that does not result ingreater good for society.
4.34.3
25
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Principles of Ethical Decision Making
Principle of Individual RightsPrinciple of Individual Rights
Never take any action that infringes on others’ agreed-upon rights.
Never take any action that infringes on others’ agreed-upon rights.
4.34.3
26
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Principles of Ethical Decision Making
Principle of Distributive JusticePrinciple of Distributive Justice
Never take any action that harms the least among us:
the poor, the uneducated,the unemployed.
Never take any action that harms the least among us:
the poor, the uneducated,the unemployed.
4.34.3
27
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Practical Steps to Ethical Decision Making
Select and hire ethical employeesSelect and hire ethical employees
Establish a Code of EthicsEstablish a Code of Ethics
Train employees to make ethical decisionsTrain employees to make ethical decisions
Create an ethical climateCreate an ethical climate
55
28
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Practical Steps to Ethical Decision Making
Overt Integrity Tests Personality-Based Integrity Tests
Select and hire ethical employeesSelect and hire ethical employees
If you found a wallet containing $50, would you return it with the money?
5.15.1
29
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Doing the Right Thing
If You Cheat in College, Will You Cheat in the Workplace?
College students who cheat are likely to cheat again.
70 percent of students don’t see cheating as a problem.
People who cheat and cheat again see their behavior as normal.
60 percent of people who cheat their employers don’t feel guilty for doing so.
If You Cheat in College, Will You Cheat in the Workplace?
College students who cheat are likely to cheat again.
70 percent of students don’t see cheating as a problem.
People who cheat and cheat again see their behavior as normal.
60 percent of people who cheat their employers don’t feel guilty for doing so.
30
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
What Really Works
Studies show that Integrity Tests…
Help reduce workplace deviance Help hire workers who are better performers
Studies show that Integrity Tests…
Help reduce workplace deviance Help hire workers who are better performers
However they have a smaller effect on assessing theft.
31
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethics Question
What is?
What are your personal ethics?
What are your organization’s ethics?
What are the ethics of your industry?
What are society’s ethics?
What are global ethics?
32
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethics Question
What ought to be?
How ought we treat our aging employees? How safe ought we make this product? How clean an environment should we aim
for? How should we treat long-term employees
when downsizing?
33
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethics Question
How do we get from What is to What ought to be?
What is our Motivation?
34
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Practical Steps to Ethical Decision Making
Establish a Code of EthicsEstablish a Code of Ethics
Communicate code of ethics to both inside and outside the company
Develop ethical standards and proceduresspecific to business
5.25.2http://www.nortelnetworks.comWeb Link
35
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethics Training
Ethics TrainingEthics Training
Develops employee awareness of ethics
Achieves credibility with employees
Teaches a practical model of ethical decision making
5.35.3http://ethics.bellsouth.com“Ethics Scenarios Game”
Web Link
36
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
A Basic Model of Ethical Decision Making
1. Identify the problem1. Identify the problem
2. Identify the constituents2. Identify the constituents
3. Diagnose the situation3. Diagnose the situation
4. Analyze your options 4. Analyze your options
5. Make your choice5. Make your choice
6. Act6. Act
Adapted from Exhibit 4.6
5.35.3
37
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Ethical Climate
Managers:
1. Act ethically
2. Are active in company ethics programs
3. Report potential ethics violations
4. Punish those who violate the code of ethics
Establishing an Ethical ClimateEstablishing an Ethical Climate
5.45.4http://www.whistleblowers.orgWeb Link
38
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
What Is Social Responsibility?
Social Responsibility
A business’s obligation to… pursue policies make decisions take actions that benefit society
39
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
To Whom Are Organizations Socially Responsible?
StakeholderModel
StakeholderModel
Satisfy Interests of Multiple Stakeholders
Satisfy Interests of Multiple Stakeholders
ShareholderModel
ShareholderModel Maximize ProfitsMaximize Profits
66
40
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
ProsPros
Shareholder Model
Firm maximizes shareholder wealth and satisfaction
The company stock increases in value
66
ConsCons
Organizations cannot act effectively as moral agents for shareholders
Time, money, and attention diverted to social causes undermine market efficiency
41
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Stakeholder Model
Primary Stakeholders:
ShareholdersEmployeesCustomersSuppliers
GovernmentsLocal Communities
Primary Stakeholders:
ShareholdersEmployeesCustomersSuppliers
GovernmentsLocal Communities
Secondary Stakeholders:
MediaSpecial Interest Groups
Trade Associations
Secondary Stakeholders:
MediaSpecial Interest Groups
Trade Associations
66
42
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Organization’s Social Responsibilities
Abide by principlesAbide by principlesof right and wrongof right and wrong
Obey laws andObey laws andregulationsregulations
EthicalEthical
LegalLegal
EconomicEconomic
DiscretionaryDiscretionary
Be profitableBe profitable
Serve a social roleServe a social role
77
$
?
43
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Responses to Demands for Social Responsibility
88
ReactiveReactive DefensiveDefensive Accommo-dative
Accommo-dative ProactiveProactive
Fight all the way
DO NOTHING
DO MUCH
Withdrawal
Do only what is required
Legal Approach
BargainingProblemSolving
PublicRelationsApproach
Beprogressive
Lead theindustry
44
Chapter 4Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
Social Responsibility and Economic Performance
Realities ofSocial
Responsibility
Can cost a companyCan cost a company
Sometimes it does paySometimes it does pay
Does not guarantee profitability
Does not guarantee profitability
99