1. 2-1 Moral Values Versus Ethics

2. Type of EthicsRightness is defined by…Basis of actions End Results -effect/consequences it has -utility of ends --Actions are aimed to promote (collective) happiness, --Actions that promote more happiness are more right Duty -obligations to apply universal standards in all situations -intentions of actor rather than effects --Actions that promote virtue rather than pleasure --behaviour should be based on principles/rules Social Contract --Customs or norms of a community --Community defines morality which defines right & wrong --Duty binds individual to community --What is best for community is ultimate standard Personal-isitcOne’s conscience-stand up for what one believes -no absolute formulas for living

3. Sources determining Managerial Ethics 3

4. Causes of Unethical Behaviour -- I Gain –Anticipation of healthy reinforcement for following an unethical course of action, especially if no punishment is expected. Role conflict –“Bureaucratic” role as an organizational employee is at odds with one’s role as the member of a profession. Competition –Stiff competition for scarce resources. –Temptation to make unethical decisions in situations in which essentially no competition exists.

5. Copyright © 2011 Pearson Canada Inc. Causes of Unethical Behaviour – II Personality & Values –Certain personality types are more prone to unethical behaviour (e.g., economic values, high need for personal power).  Bottom line mentality - financial success is the only value to be considered  Exploitative mentality - use people in a way that promotes stereotypes and undermines empathy and compassion  Madison Avenue mentality - anything is right if the public can be made to see it as right  Workers emulate the unethical behavior of their superiors

6. Causes of Unethical Behaviour – III Other individual factors –There are individual differences in the degree of sophistication that people use in thinking about moral issues. –Less disengagement and more attentiveness is associated with more ethical behaviour –Individual differences in cognitive moral development.

7. Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall 2-7 Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall 2-7 Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall Kohlberg’s Theory of Moral Development

8. Copyright © 2011 Pearson Canada Inc. Causes of Unethical Behaviour – IV Organizational and Industry Culture –Aspects of an organization’s culture (and its subcultures) Corporate cultures that reward unethical behaviour. A culture of greed and exclusive focus on positive financial results.  Stonewalling  Counternorms –Corporate codes of conduct might have an impact on culture and ethical decision making.

9. 12-9 Guidelines for Determining Ethical Action Will the political tactics promote purely selfish interests (as opposed to also promoting organ- -izational goals?) Question 1 Does the political activity respect the rights of the individuals affected? Question 2 Does the activity conform to standards of equity and justice; is it fair? Question 3 Unethical YesNo Yes Ethical Yes