1. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-1 Copyright © 2007 Pearson Education Canada Chapter 12 (cont.) Ethical Decision Making

2. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-2 Copyright © 2007 Pearson Education Canada Ethical Values Ethics –The study of moral values or principles that guide our behaviour, and inform us whether actions are right or wrong. Ethical values are related to moral judgments about right and wrong.

3. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-3 Copyright © 2007 Pearson Education Canada Four Criterion for Making Ethical Choices Utilitarian criterion –A decision focused on outcomes or consequences that emphasize the greatest good for the greatest number of people. Rights criterion –Decisions consistent with fundamental liberties and privileges as set forth in documents like the Canadian Charter of Rights and Freedoms. Justice criterion –Decisions that impose and enforce rules fairly and impartially so there is an equitable distribution of benefits and costs. Care criterion –Decisions “…that expresses care in protecting the special relationships that individuals have with each other.”

4. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-4 Copyright © 2007 Pearson Education Canada Factors Affecting Ethical Decision- Making Behaviour Stage of moral development Organization environment Locus of control Ethical decision-making behaviour

5. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-5 Copyright © 2007 Pearson Education Canada Stages of Moral Development 6. Following self-chosen ethical principles even if they violate the law. 5. Valuing rights of others and upholding absolute values and rights regardless of the majority’s opinion. 4. Maintaining conventional order by fulfilling obligations to which you have agreed. 3. Living up to what is expected by people close to you. 2. Following rules only when doing so is in your immediate interest. 1. Sticking to rules to avoid physical punishment. Conventional Principled Preconventional

6. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-6 Copyright © 2007 Pearson Education Canada Is a Decision Ethical? Unethical Ethical o N o N o N s e Y s e Y s e Y Does the decision respect the rights of the individuals affected? Is the decision motivated by self-serving interests? Is the decision fair and equitable? Question 1 Question 2 Question 3

7. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-7 Copyright © 2007 Pearson Education Canada Corporate Response to Ethics Demands Explosion in demand for more ethical behaviour. –Ethics specialists –Ethics officers –Codes of ethics –Ethics auditors

8. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-8 Copyright © 2007 Pearson Education Canada What CEOs Identify as Key Leadership Qualities Quality Communication skills Ability to motivate people Honesty Ability to listen Team-building expertise Analytical skills Aggressiveness in business CEOs Rating It Most Important (%) 52 47 34 25 24 19 10

9. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-9 Copyright © 2007 Pearson Education Canada Developing a Meaningful Code of Ethics Clearly state basic principles and expectations. Realistically focus on potential ethical dilemmas that employees face. Distribute the code to all employees. Enforce violations of the code.

10. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-10 Copyright © 2007 Pearson Education Canada Codes of Ethics Malaspina Faculty http://www.mala.ca/policies/policy.asp?rdPolicyNumber=31.12 http://www.mala.ca/policies/policy.asp?rdPolicyNumber=31.12 Microsoft http://www.microsoft.com/about/legal/buscond/default.mspx#standards http://www.microsoft.com/about/legal/buscond/default.mspx#standards

11. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-11 Copyright © 2007 Pearson Education Canada Ethical Dilemmas: What Would You Do? You’ve seen a classmate cheat on an exam or an assignment. Do you do something about this or ignore it?

12. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-12 Copyright © 2007 Pearson Education Canada Ethical Dilemmas: What Would You Do? You have the opportunity to steal $100 000 from your company with absolute certainty that you would not be detected or caught. Would you do it?

13. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-13 Copyright © 2007 Pearson Education Canada Your company policy on reimbursement for meals while traveling on company business is that you will be repaid for your out-of-pocket costs, which are not to exceed $50 a day. You don’t need receipts for these expenses—the company will take your word. When traveling, you tend to eat at fast-food places and rarely spend in excess of $15 a day. Most of your colleagues submit reimbursement requests in the range of $40 to $45 a day regardless of what their actual expenses are. How much would you request for your meal reimbursements? Ethical Dilemmas: What Would You Do?

14. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-14 Copyright © 2007 Pearson Education Canada You want to get feedback from people who are using one of your competitor’s products. You believe you will get much more honest responses from these people if you disguise the identity of your company. Your boss suggests you contact possible participants by using the fictitious name of the Consumer Marketing Research Corporation. What would you do? Ethical Dilemmas: What Would You Do?

15. Chapter 11, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition 11-15 Copyright © 2007 Pearson Education Canada You have discovered that one of your closest friends at work has stolen a large sum of money from the company. Would you: –Do nothing? –Go directly to an executive to report the incident before talking about it with the offender? –Confront the individual before taking action? –Make contact with the individual with the goal of persuading that person to return the money? Ethical Dilemmas: What Would You Do?