Schermerhorn - Chapter 62 Ethics –code of moral principles –sets standards of good & bad and right & wrong Ethical behavior –what is accepted as “good” and “right” in the context of the governing moral code What is Ethical Behavior?

Schermerhorn - Chapter 63 Law, Values, and Ethical Behavior legal component to ethical behavior –not illegal is not necessarily ethical personal values help determine individual behavior

Schermerhorn - Chapter 64 Alternative Views of Ethical Behavior Utilitarian - greatest good to the greatest number of people Individualism - primary commitment is to one’s long tem self-interests Moral-rights - respect the fundamental rights of people Justice - ethical decisions treat people fairly according to rules

Moral Philosophies TeleologyDeontology Natural Law Casuistry Virtue Ethics

Four Principles of Ethics Respect for Persons –Autonomy –Truth telling –Confidentiality –Fidelity Beneficence Nonmaleficence Justice

Schermerhorn - Chapter 67 Cultural Issues in Ethical Behavior Cultural Relativism – ethical behavior is always determined by cultural context

Schermerhorn - Chapter 68 Cultural Issues in Ethical Behavior Ethical Imperialism –attempt to externally impose one’s ethical standards on others

Schermerhorn - Chapter 69 Manager’s Notepad 6.1 How Companies Can Respect Core or Universal Values Respect for human dignity Create corporate culture that values employees, customers, suppliers Keep a safe workplace Produce safe products and services Respect for basic rights Protect rights of employees, customers, communities Avoid anything threatening peoples’ rights to safety, health, education living standards Be good citizens Support social, economic and educational systems Protect the environment through work with local govt. and institutions

Schermerhorn - Chapter 610 What is an Ethical Dilemma? Situation that requires choosing a course of action –offers potential for personal and/or organizational benefit –may be considered unethical

Schermerhorn - Chapter 611 Rationalizations for Unethical Behavior Convincing oneself that: –behavior is not really illegal –behavior is really in everyone’s best interests –nobody will ever find out –the organization will “protect” you

Schermerhorn - Chapter 612 Factors Influencing Ethical Behavior Person Organization Environment

Schermerhorn - Chapter 613 Maintaining High Ethical Standards Ethics Training –structured programs that help participants to understand ethical aspects of decision making

Schermerhorn - Chapter 614 Maintaining High Ethical Standards Whistleblowers –expose misdeeds of others to preserve ethical standards protect against wasteful, harmful, illegal acts

Schermerhorn - Chapter 615 Whistleblower Protection Barriers to whistleblowing –strict chain of command –strong work group identities –ambiguous priorities State laws protecting whistleblowers vary Federal laws protect government workers

Schermerhorn - Chapter 616 Maintaining High Ethical Standards Top management support –model appropriate ethical behavior Formal codes of ethics –official written guidelines on how to behave

Schermerhorn - Chapter 617 Government Regulation of Business Governmental agencies that monitor compliance with government mandates –Federal Aviation Administration (FAA) –Environmental Protection Agency (EPA) –Occupational Safety & Health Administration (OSHA) –Food & Drug Administration (FDA)

Schermerhorn - Chapter 618 Complex Legal Environment Areas of government intervention –occupational safety and health –fair labor practices –consumer protection –environmental protection