1. MGMT 371: Ethics and Culture
What are ethics and why do we care about them?
What influences ethical behavior?
Are ethics culturally bound?
What’s the difference between ethics and morals?
Do morals vary by gender?
What are the Magnificent Seven? Can they be taught?
How can we promote an ethical climate?

2. Ethical Behavior
acting in ways consistent with one’s personal values and the commonly held values of the organization and society 19

3. Values
Instrumental – values that represent the acceptable behaviors to be used in achieving some end state.
Terminal – values that represent the goals to be achieved, or the end states of existence 15

4. WHAT INFLUENCES ETHICAL BEHAVIOR?
Internal
External
MORAL INTELLIGENCE
“Mental capacity to determine how human principles should be applied to our values, goals, actions”
Moral compass

5. A Model of Ethical Behavior in the Workplace
Cultural Influences
Family
Education
Religion
Media/entertainment
Individual
- Personality
- Values
- Moral
principles
- History of
reinforcement
- Gender
Role Expectations
Organizational Influences
Ethical codes
Organizational culture
Role models
Perceived pressure for results
Rewards/punishment system
Ethical behavior
Political/Legal/
Economic
Influences

6. Ethics and the Individual
Ethical decision making requires three qualities of individuals
Competence to identify ethical issues and
evaluate the consequences of alternate actions.
Self-confidence to seek out different
opinions and decide what is right.
Willingness to make decisions when there
is no unambiguous solution.

7. Do Moral Principles Vary by Gender?
Men and Women tend to view moral problems and situations differently
Men:
Justice Perspective based on the ideal of reciprocal rights and driven by rules and regulations
Women:
Care Perspective involves compassion and an ideal of attention and response to need

8. Do We All View Ethics the Same Way?
4 CONTRASTING ETHICAL ORIENTATIONS:
Consequentialists
Intentionalists
Absolutists
Relativists

9. Ethical Theories [Rule-Based Theory] [Consequential Theory]
an ethical theory that emphasizes the character of the act
itself rather than its effects
[Consequential Theory]
an ethical theory that emphasizes the consequences or
results of behavior
[Character Theory]
an ethical theory that emphasizes the character, personal
virtues, and integrity of the individual

10. THE MAGNIFICENT SEVEN Dignity of human life Autonomy Honesty Loyalty
Fairness
Humaneness
Common good

11. Organizational Justice
Distributive Justice –
fairness of the outcomes
that individuals receive
in an organization
Procedural Justice –
fairness by which the
outcomes are allocated
in an organization

12. Individual and Organizational Responsibility
Whistle-Blower – an employee who informs authorities of the wrongdoing of his or her company or coworkers
Public Hero or Vile Wretch?
Social Responsibility – the obligation of an organization to behave ethically

13. How to create/improve the ethical climate of an organization:
Model ethical behavior
Screen pre-hire
Code of ethics that is enforced
Ethics training
Reinforce ethical behavior
Have people and/or systems that deal with ethics

14. How to make ethical decisions:
Transparency: Are you comfortable with making the decision public?
Effect: Have you considered all potential harmful/wrong effects?
Fairness: Would EVERYONE consider the decision fair?

15. The Four Way Test Is it the TRUTH? Is it FAIR to all concerned?
Will it build GOODWILL and better friendships?
Will it be BENEFICIAL to all concerned?

16. How are we doing? Nat’l. Bus. Ethics Survey Results (2005)
Written codes up 19% since 1994
Ethics training up 32%
Vehicle for ethics advice, info up 15% since 2000
Vehicle for reporting up 7% since 2003
Discipline for violation of stds. Up 4% since 2003
Part of employee eval. Down 7%
since 2003

17. How are we doing? Nat’l. Bus. Ethics Survey Results (2005)
Outcomes:
Little change in observed misconduct
2005: 52% ees observed 1; 36% observed 2 or more
Willingness to report declined
2005: 55% reported; 2003: 65% reported
Little change in pressure to compromise stds.
2005: 10% feel pressure always or fairly often

18. How are we doing? Nat’l. Bus. Ethics Survey Results (2005)
Formal programs are better
Culture matters!
Top mgmt modeling is huge
Co-worker influence matters
When employees perceive others are held accountable, overall satisfaction increases 32%
Birth of the ethics industry!