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Personal and Organizational Ethics

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Presentation on theme: "Personal and Organizational Ethics"— Presentation transcript:

1 Personal and Organizational Ethics
7 Personal and Organizational Ethics Search the Web Nortel has posted its ethics policies on the Internet. To read it, navigate your web browser to: 1 1

2 Chapter Seven Objectives
To understand the different levels at which business ethics may be addressed To appreciate principles of personal ethical decision-making To identify factors affecting an organization’s moral climate Describe actions or strategies to improve ethical climate 2 2

3 Chapter Seven Outline Levels at which Ethical Issues May Be Addressed
Personal and Managerial Ethics Managing Organizational Ethics From Moral Decisions to Moral Organizations Summary Levels at Which Ethical Issues May Be Addressed Personal Level Organizational Level Industry Level Societal and International Levels Personal and Managerial Ethics Principles Approach to Ethics Ethical Tests Approach Managing Organizational Ethics Factors Affecting the Organization’s Moral Climate Improving the Organization’s Ethical Climate Summary

4 Introduction to Chapter Seven
This chapter focuses on the day-to-day ethical issues that managers face

5 Levels at Which Ethical Issues May Be Addressed
Personal level—situations faced in personal life (income tax, doing kid’s homework, etc.) Organizational level—workplace situations faced as managers and employees (cutting corners, etc.)

6 Levels at Which Ethical Issues May Be Addressed
Industrial level—situations confronted as professionals (the practices of stockbrokers, accountants, etc.) Societal and international levels—local-to-global situations confronted indirectly as a management team

7 Personal and Managerial Ethics
Resolving Ethical Conflicts Three Approaches Conventional (covered in Chapter 6) Principles Ethical tests

8 Personal and Managerial Ethics
Principles Approach Anchors decision making on an ethical principle such as: Utilitarianism Rights Justice Caring Virtue ethics Servant leadership Golden Rule

9 Personal and Managerial Ethics
Principle of Utilitarianism focuses on an act that produces the greatest ratio of good to evil for everyone Consequentialist theory

10 Personal and Managerial Ethics
Principle of Rights focuses on examining and possibly protecting individual moral or legal rights

11 Personal and Managerial Ethics

12 Personal and Managerial Ethics
Principle of justice involves considering what alternative promotes fair treatment of people Types of justice Distributive Compensatory Procedural Rawlsian

13 Personal and Managerial Ethics
Rawls’ Justice Each person has an equal right to the most basic liberties comparable with similar liberties for others Social and economic inequalities are arranged so that they are both: reasonably expected to be to everyone’s advantage and attached to positions and offices open to all people

14 Personal and Managerial Ethics
Principle of caring focuses on a person as a relational (cooperative) and not as an individual Feminist theory Virtue ethics focuses on individuals becoming imbued with virtues Aristotle and Plato

15 Personal and Managerial Ethics
Servant leadership focuses on serving others first such as employees, customers, community and so on

16 Personal and Managerial Ethics
Characteristics of Servant Leaders Foresight Conceptualization Commitment to the growth of people Stewardship Building community Listening Empathy Healing Persuasion Awareness

17 Personal and Managerial Ethics
Golden rule focuses on the premise that you should of unto others as you would have them do unto you

18 Personal and Managerial Ethics
Concerns to be Addressed in Ethical Conflicts Obligations Ideals Effects

19 Personal and Managerial Ethics
When Our Obligations, Ideals and Effects Conflicts When two or more moral obligations conflict, use the stronger one When two or more ideals conflict, or when ideals conflict with obligations, honor the more important one When effects are mixed, choose the action that produces the greatest good and the least harm

20 Personal and Managerial Ethics
Ethics Test Approach Test of common sense Test of one’s best self Test of making something public Test of ventilation Gag test

21 Managing Organizational Ethics
Factors Affecting the Morality of Managers Superiors Policies Peers Individual (One’s personal situation) Society’s Moral Climate Business’s Moral Climate Industry’s Moral Climate

22 Managing Organizational Ethics
Factors Influencing Unethical Behavior Behavior of superiors Ethical practices of one’s industry or profession Behavior of one’s peers in the organization Formal organizational policy (or lack of one) Personal financial need

23 Managing Organizational Ethics

24 Managing Organizational Ethics
Questionable Behaviors of Superiors or Peers Amoral decision making Unethical acts, behaviors or practices Acceptance or legality as the standard behavior Absence of ethical leadership

25 Managing Organizational Ethics
Questionable Behaviors of Superiors or Peers Objects and evaluation systems overemphasizing profits Insensitivity toward how subordinates perceive pressure to meet goals Inadequate formal ethics policies

26 Improving Ethical Climate
Ethics Programs & Officers Effective Communication Ethics Audit Realistic Objectives Top Management Leadership Ethics Training Ethical Decision-making Processes Codes of Conduct Codes of Conduct Discipline of Violators Whistle-blowing Mechanisms (“Hotlines”)

27 Ethical Decision-Making
Identify decision you are about to make Articulate all dimensions of proposed decision Conventional Approach Standards/Norms -Personal -Organizational -Societal -International Principles Approach Ethical Principles -Justice -Rights -Utilitarianism -Golden Rule Ethical Tests Approach Ethical Tests -Common sense -One’s best self -Public disclosure -Gag test . . . Course of action fails ethics screen Course of action passes ethics screen Do not engage in course of action Engage in course of action Identify new course of action

28 Ethics Audits and Self-Assessment

29 From Moral Decisions to Moral Organizations
Moral Manager(s) Moral Organization

30 Selected Key Terms Codes of conduct Codes of ethics
Compensatory justice Distributive justice Ethical tests Ethical audits Golden rule Legal rights Moral rights Principle of caring Principle of justice Principle of rights Principle of utilitarianism Procedural justice Rights Servant leadership Utilitarianism Virtue ethics

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