1. Chapter 6
Values
and
Workplace Ethics

2. Objectives Describe how organizations foster unethical business
Explain how organizations can promote ethical behavior
Define ethics and values
Better articulate your own values
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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3. …Objectives Distinguish between ethical and non-ethical values
Explain and recognize the stages of moral reasoning
Describe five ethical models
Explain corporate social responsibility and its benefits
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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4. What Was Your Score on the Corporate Integrity Checkup?
Compare your score with your neighbor’s and describe your organization’s perspective on ethics
Who had the highest score in the room? The lowest?
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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5. Unethical Business Practices
Overemphasis on individual and firm performance
Sole objective is profit
Unethical Business Practices
Intense internal and external competition
“Letter of the law” rather than the “spirit of the law”
Ambiguous “window-dressing” policies
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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6. Unethical Business Practices
Inadequate controls
Expediency reigns
Indifference to customers’ best interests
Unethical Business Practices
Failure to understand public’s ethical concerns
“Let the buyer beware”
Groupthink mentality
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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7. How to Foster Ethical Behavior
Communicate expectations and define what ethical behavior means
Hire top executives who set a good example
Reward ethical behavior and punish unethical behavior
Teach the tools of ethical decision making
Encourage discussion of ethical issues
Organizational Behavior: An Experiential Approach 8/E
Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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8. The Ethics Warning System
Golden Rule – Are you treating others as you would want to be treated?
Publicity – Would you be comfortable if your reasoning and decision were on the front page of tomorrow’s newspaper?
Kid on your shoulder – Would you
be comfortable if your children
were observing you?
Organizational Behavior: An Experiential Approach 8/E
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9. Ethics - Defined
Standards of conduct that indicate how one should behave based on moral duties and virtues arising from principles about right and wrong
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10. Core beliefs or desires that guide or motivate attitudes and actions
Values - Defined
Core beliefs or desires that guide or motivate attitudes and actions
The Toyota Way
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11. Terminal Values - Defined
Desirable end states of existence or the goals that a person would like to achieve
Two types: personal and social values
Organizational Behavior: An Experiential Approach 8/E
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12. Instrumental Values - Defined
Instrumental values are preferable modes of behavior or the means to achieving one’s terminal values
Two types: moral and competence values
Organizational Behavior: An Experiential Approach 8/E
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13. Schwartz and Bilsky’s Seven Universal Values
Prosocial – Active protection or enhancement of the welfare of others
Restrictive conformity – Restraint of actions and impulses likely to harm others and to violate sanctioned norms
Enjoyment – Pleasure, sensuous and emotional gratification
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14. …Schwartz and Bilsky’s Seven Universal Values
Achievement – Personal success through demonstrated competence
Maturity – Appreciation, understanding, and acceptance of oneself, others, and the surrounding world
Self-direction – Independent thought and action—choosing, creating, exploring
Security – Safety, harmony and stability in society, identity groups, relationships and self
Organizational Behavior: An Experiential Approach 8/E
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15. Ethical Vs. Non-ethical Values
Ethical—Related to what is
right and proper
Trustworthiness, respect, responsibility, justice and fairness, caring, civic virtue, and citizenship
Organizational Behavior: An Experiential Approach 8/E
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16. …Ethical Vs. Non-ethical Values
Non-ethical—Related to things we like,
desire, or find personally important
Money, fame, status,
happiness, being liked
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17. Kohlberg’s Three Levels of Moral Development
Level One—Self-Centered (Preconventional)
Stage One: Obedience and Punishment Orientation
Stage Two: Instrumental Purpose and Exchange
Level Two—Conformity (Conventional)
Stage Three: Interpersonal Accord, Conformity, Mutual Expectations
Stage Four: Social Accord and System Maintenance
Level Three—Principled (Postconventional)
Stage Five: Social Contract, Individual Rights
Stage Six: Universal Ethical Principles
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18. Five Ethical Approaches
Utilitarianism – greatest good for greatest number
Individual Rights – personal entitlements
Justice – fairness, equity, impartiality
Caring – well-being of other people
Environmentalism – stewardship of the earth
Organizational Behavior: An Experiential Approach 8/E
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19. Example: Different attitudes toward bribery
International Ethics
Making ethical decisions is even more
difficult in international business due to
different value systems and practices
Example: Different attitudes toward bribery
But ethical behavior is a competitive advantage because it builds trust
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20. “The abuse of public power for private gain”
Corruption - Defined
“The abuse of public power for private gain”
Out of 159 countries evaluated for the 2005 Corruption Perceptions Index, 70 countries have high levels of corruption
Corruption correlates with high power distance and achievement cultures, socio-political instability, and the absence of a tradition of well-established law and order
Organizational Behavior: An Experiential Approach 8/E
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21. Corporate Social Responsibility - Defined
“ CSR is broadly defined as a company’s commitment and contribution to the quality of life of employees, their families and the local community and society overall to support sustainable economic development”
Provides a competitive advantage in business and in attracting and retaining employees
Organizational Behavior: An Experiential Approach 8/E
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22. When Is Whistle Blowing Legitimate?
It would benefit the public interest
The revelation is of major importance and very specific
The facts have been checked and rechecked for accuracy
All other avenues within the organization have been exhausted
The whistleblower is above reproach and has nothing to gain personally by revealing the info
Organizational Behavior: An Experiential Approach 8/E
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23. Ways of Handling Unethical Behavior
Sabotaging or refusing (quietly or vocally) to implement unethical behavior
Indicating your unwillingness to support a cover-up in case the wrong-doers are caught
Ch. 5 Do you think we should use “cont.” when one slide isn’t big enough or is that unnecessary?
Organizational Behavior: An Experiential Approach 8/E
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24. ...Ways of Handling Unethical Behavior
Secretly or publicly blowing the whistle within the organization
Secretly or publicly threatening the offender or a responsible higher-level manager with blowing the whistle inside or outside the organization
Secretly or publicly blowing the whistle outside the corporation
Ch. 5
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Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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