3Asking Key Questions What are my core values and beliefs? What are the core values and beliefs of my organization?Whose values, beliefs and interests may be at risk in this decision, and Why?Who will be harmed or helped by my decision or the decision of the organization?How will I, and my organization be affected by the decision?
4Why use Ethical reasoning in business? Many times laws do not cover all aspects or “grey areas” of a problemEXAMPLESFree-market and regulated-market mechanisms do not inform owners/ managers how to respond to far reaching ethical consequences.Many complex moral problems require an “intuitive/ learned understanding of fairness, justice to the community.
5Inventory of Ethical Issues in Business Employer-Employee RelationsCompany-Customer RelationsCompany-Shareholder RelationsCompany-Community/Public Interest
6Business Ethics: What Does It Really Mean? Business Ethics:Today vs. Earlier PeriodSociety’s Expectations of Business EthicsExpected and Actual Levels of Business EthicsEthical ProblemActual Business EthicsEthical Problem1950sTimeEarly 2000s
7Business Ethics: What Does It Really Mean? DefinitionsEthics involves a discipline that examines good or bad practices within the context of a moral dutyMoral conduct is behavior that is right or wrongBusiness ethics include practices and behaviors that are good or bad
8Business Ethics: What Does It Really Mean? Two Key Branches of EthicsDescriptive ethicsHow people behave and what sort of moral standards they claim to follow. “What is” true and factual.Normative ethics involves supplying and justifying moral systems“What should be”
9Conventional Approach to Business Ethics Conventional approach to business ethics involves a comparison of a decision or practice to prevailing societal normsPitfall: ethical relativismDecision or Practice Prevailing Norms
10Sources of Ethical Norms Fellow WorkersFamilyFriendsThe LawRegions of CountryProfessionEmployerSociety at LargeReligious BeliefsThe IndividualConscience
12Four Important Ethical Questions What is?What ought to be?How do we get from what is to what ought to be?What is our motivation for acting ethically?
133 Models of Management Ethics Immoral Management—A style devoid of ethical principles and active opposition to what is ethical.Moral Management—Conforms to high standards of ethical behavior.Amoral ManagementIntentional - does not consider ethical factorsUnintentional - casual or careless about ethical considerations in business
143 Models of Management Ethics Three Types Of Management EthicsMoralAmoralImmoral
19Developing Moral Judgment External Sources of a Manager’s ValuesReligious valuesPhilosophical valuesCultural valuesLegal valuesProfessional values
20Developing Moral Judgment Internal Sources of a Manager’s ValuesRespect for the authority structureLoyaltyConformityPerformanceResults
21Elements of Moral Judgment Moral imaginationMoral identification and orderingMoral evaluationTolerance of moral disagreement and ambiguityIntegration of managerial and moral competenceA sense of moral obligation