1. Questions of Values and Ethics

2. Values
Abstract ideals that shape an individual’s thinking and behavior – a moral compass
Instrumental values – certain way of behaving is appropriate in all situations – “means”.
Terminal values – enduring belief in the attainment of a certain end state – “ends”.

3. A moral compass These abstract ideals can result from Religion
Philosophy
Family teachings

4. Instrumental values
As the means to an end they become the ingrained ways of behavior:
Rituals
Politesse
Good habits

5. Terminal values With the end always in sight: Heaven Respect
Financial Success
Personal Independence
Power

6. Ethics
The study of moral obligation involving the distinction between right and wrong.
Business Ethics: right or wrong in the workplace – value management.

7. Relativism Egoism The 4 Concepts of Ethics Utilitarianism Universalism7

8. ETHICS THEORY/THEORISTS
“Ethicists” 8

9. Ethical Tests 9

10. Is It Legal Test? Ethical Quadrant II Ethical and Illegal Quadrant I
Ethical and Legal
Codification
Manifestation
Corporate
Decisions
Illegal
Legal
Quadrant IV
Unethical and Illegal
Quadrant III
Unethical and Legal
Unethical 10

11. Two Areas of Business Ethics
Obvious mischief
Moral mazes
RIGHT vs. RIGHT

12. Common Misconduct in Organizations
Misrepresenting hours worked
Employees lying to supervisors
Management lying to employees, customers, vendors or the public
Misuse of organizational assets
Lying on reports/falsifying records
Sexual harassment
Stealing/theft
Accepting or giving bribes or kickbacks
Withholding needed information from employees, customers, vendors or public

13. Common Causes of Unethical Behavior
Pressure
Fear
Greed
Convenience

14. Causes of Unethical Behavior (cont’d)
Following boss’s directives
Meeting overly aggressive business/financial objectives
Helping the organization survive
Meeting schedule pressures
Be a team player (group think)
Rationalizing that others do it
Resisting competitive threats
Advancing own career

15. Ethical Dilemmas
Making decisions under stress or dealing with complex issues that have no clear indication of what is right or wrong.
There are NO simple ethical dilemmas…
all have layers of meaning and effect.

16. Business Ethics Myths Business ethics is a new fad.
Business ethics – religion vs. management.
Business ethics is obvious – “do good!”
Business ethics is good guys preaching to bad guys.

17. “Whistleblower’s” Reluctance
Didn’t believe action would be taken.
Feared retaliation from mgmt.
Didn’t trust confidentiality.
Feared not being a team player.
Feared retaliation from co-workers.
Didn’t know who to contact.
Nobody cares, why should I?

18. Business Ethics Myths (cont’d)
Ethics can’t be managed.
Being legal = being ethical.
Managing ethics has little practical relevance.

19. Ethical Tips for Organizations
Develop a code of ethics.
Communicate code and bake it into culture top-down.
Treat ethics as a process.
Create open lines of communication.
Set good examples.
Educate employees – frame issues through storytelling.
Value forgiveness.

20. Benefits of Managing Ethics in the Workplace
Improves society.
Maintains a moral course in turbulent times.
Cultivates employee teamwork, productivity, morale and development.
Acts as an insurance policy.

21. Benefits of Managing Ethics in the Workplace (cont’d)
Establishes values for quality management, strategic planning and diversity management.
Promotes strong public image.
It is the RIGHT thing to do!

22. Ethical Tips for Individuals
Establish personal values.
Be aware of ethical events.
Develop critical thinking techniques.
Be reflective.
Make it a priority every day.

23. “The simple step of a simple courageous man is to not take part in the lie, not to support deceit. Let the lie come into the world, even dominate the world, but not through me.”
-- Alexander Solzhenitsyn

24. As we watch the video vignettes, keep these questions in mind:
Puzzling things out….
As we watch the video vignettes, keep these questions in mind:
What is the ethical dilemma?
What is the apparent cause of the unethical behavior?
Is there an ethical resolution to the problem portrayed?
If so, who should do what?

25. Decision-Making Process25

26. A General Framework of the Ethical Decision-Making Process
CHARACTERISTICS OF THE DECISION MAKER
OUTCOMES
ETHICAL SITUATION
DECISION
SIGNIFICANT INFLUENCES 26

27. CHARACTERISTICS OF THE DECISION MAKER SIGNIFICANT INFLUENCES
Individual Characteristics of the Decision Maker that Influence the Ethical Decision-Making Process
CHARACTERISTICS OF THE DECISION MAKER
ETHICAL SITUATION
OUTCOMES
DECISION
SIGNIFICANT INFLUENCES
* Achievement motivation * Knowledge
* Need for affiliation * Experience
* Ego strength * Risk taking
* Locus of control * Machiavellianism 27

28. Significant Influences on the Ethical Decision-Making Process
CHARACTERISTICS OF THE DECISION MAKER
ETHICAL SITUATION
OUTCOMES
DECISION
SIGNIFICANT INFLUENCES
* The organization * Technology
* Work * Significant others; customers,
* The law peers, immediate supervisor,
* Economics top managers, family, friends,
* Professionalism other “opinion leaders” 28

29. Outcomes that Result from the Ethical Decision-Making Process
CHARACTERISTICS OF THE DECISION MAKER
ETHICAL SITUATION
OUTCOMES
DECISION
SIGNIFICANT INFLUENCES
* Performance * Feedback
* Rewards * Promotions
* Satisfaction * Learning 29

30. Elements of the Ethical Decision-Making Process
Characteristics of Decision Makers
Ethical Situation
DECISION
Outcomes
Significant Influences
ELEMENTS OF THE DECISION
Information acquired
Information processed
PERCEIVED ETHICAL PROBLEM
Ethical decision history
Expectations
Sent and received roles
Ethics norms (personal &
those of others)
PERCEIVED ALTERNATIVES, PRODUCT, PRICE, PROMOTION, DISTRIBUTION INFO
JUDGMENT
Information acquired
Information processed
PERCEIVED CONSQUENCES
Probability of consequences
Desirability of consequences 30

31. A Successful Code of Ethics
Have support of top
management
Be practical and realistic
Followed by top management
Include penalties for
disobedience
Clearly explained to all
employees
Continuously implemented by a
"watchdog committee" that has
authority to take disciplinary
actions 31

32. Inside an Organization: How ethics affects the everyone!
Human Resources (HR)
Accounting
Sales/Marketing
Production
Information Technology (IT)
Research & Development
(R&D)
International
Affairs
Inside an Organization:
How ethics affects the everyone! 32

33. Ethics of Accounting
Creative accounting practices and misleading financial analysis.
White-collar crimes
Executive compensation
Bribery, kickbacks, political lobbying 33

34. Ethics of Sales and Marketing
Pricing: price fixing, discrimination, skimming.
Unethical marketing strategies
Content of Advertisements
Children and marketing
Black and grey markets. 34

35. Ethics of Production Defective products Quality vs. Quantity
Addictive and inherently dangerous products and services (e.g. tobacco, alcohol, weapons, motor vehicles, chemical manufacturing).
Environmental issues
Safety
Patent infringement 35

36. Ethics of Research & Development (R&D)
Ethical problems arising out of new technologies: genetically modified food, mobile phone radiation and health.
Product testing ethics: animal rights and animal testing.
Use of economically disadvantaged groups (such as students) as test objects.
Intellectual property 36

37. Ethics of International Business
Political
Economic
Socio-cultural
Technological
Legal
Environment
Government 37

38. THANK YOU!