1. Managing to be Ethical: Debunking Five Business Ethics Myths
Linda Klebe Trevino
Michael E. Brown
Presented By
Robert Wood

2. AUTHORS Linda Klebe Triviño Michael E. Brown
Professor of Organizational Behavior
The Smeal College of Business Administration , Penn State
411
Ph.D. in Management, 1987, Texas A & M University
M.L.S., 1972, Rutgers University
B.A., French language and literature, Douglass College, Rutgers University, 1971
55 articles written, 4 books and numerous other publications.
Michael E. Brown
Associate Professor of Management
Penn State

3. Myth 1 It’s Easy to be Ethical
Ethical Decisions are Not Easy!
Consequentialist
How actions impact society? Good and Bad
Deontological
Looks at such principles as Justice and Rights
Virtue Ethics
The Moral actor’s own integrity is analyzed

4. The Right Answer? In many real life situations the “right” or “ethical” answer may not always be the easiest or best.
Child Labor in Developing Nations Globalization- Development in countries that have natural resources we want When employees “get back” at a the company they feel has wronged them

5. At this point in the game it is all about wording.
Moral Awareness
Many times, People do not think what they are facing is a moral dilemma.
This recognition of a moral issue starts when we realize the ethical nature of the problem
Moral Awareness
Ethical Recognition
Ethical Sensitivity
T.M. Jones- 2 dimensions of moral awareness
1. Magnitude of Consequence
Does it really hurt anyone else?
2. Social Consensus
People generally agree its Ethically Problematic
At this point in the game it is all about wording.

6. Lawrence Kohlberg’s Theory of Cognitive Development
2. Moral Judgment Is it Justifiable? 3. Moral Motivation Intention behind the act. 4. Moral Character Getting the Job Done. No matter what the obstacles
Lawrence Kohlberg’s Theory of Cognitive Development

7. Pressures of the Workplace
A boss that wants results
Going above the bosses head
Telling colleagues the way they do business is unethical
“snitches get stitches” or at least no one talks to them.
“The reasons for their ostracism are not fully known, but they may have to do with humans’ social nature and the importance of social group maintenance.”

8. Myth 2 Unethical Behavior in Business is Simply the Result of “Bad Apples”
Most people are a product of their surroundings.
The unethical behavior is condoned and supported in the context it occurs
Direct Reinforcement
Benign Neglect

9. Myth 3 Ethics Can be Managed Through Formal Ethics Codes and Programs
1991- U.S. Sentencing Commission created guidelines for organizations convicted of Federal Crimes
Written standards of conduct
Ethics Trainings
Ethics advice
Systems for anonymous reporting
The most important factor is the perceived view of management as ethical.

10. Myth 4 Ethical Leadership is Mostly about Leader Integrity
Leaders have to be perceived as Ethical. 1.Moral Person 2.Moral Manager

11. Executive Ethical Leadership Reputation Matrix
Moral Person
Moral
Manager
Weak
Strong
Hypocritical Leader
Strong
Ethical Leader ?
Unethical Leader
Weak
Ethically neutral (silent) leader

12. Myth 5 People are Less Ethical Than They Used to be
The Talmud has sections on how to do business. New technology makes cheating sometimes easier and look different than traditional methods. Alan Greenspan “It is not that humans have become any more greedy than in generations past. It is the avenues to express greed have grown enormously.”

14. What Executives Can Do: Guidelines for Effective Ethics Management
1. Understand the Existing Ethical Culture 2. Communicate the Importance of Ethical Standards 3. Focus on Reward System 4. Promote Ethical Leadership Throughout the Firm

15. References
Treviño, L., Hartman, L., & Brown, M. (2000). Moral person and moral manager: how executives develop a reputation for ethical leadership. California Management Review, 42(4),
Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior And Human Decision Processes, 97(2), doi: /j.obhdp
Levine, C., Kohlberg, L., & Hewer, A. (1985). The current formulation of Kohlberg's theory and a response to critics. Human Development ( X),
Rubin, R. S., Dierdorff, E. C., & Brown, M. E. (2010). Do Ethical Leaders Get Ahead? Exploring Ethical Leadership and Promotability. Business Ethics Quarterly, 20(2),