MGMT 371: Ethics and Culture

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MGMT 371 Ethics and Culture

• What are ethics and why do we care about them?
• What influences ethical behavior?
• Are ethics culturally bound?
• Whats 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?

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Ethical Behavior

• acting in ways consistent with ones personal
  values and the commonly held values of the
  organization and society

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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

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WHAT INFLUENCES ETHICAL BEHAVIOR?

• INFLUENCES
• Internal
• External
• MORAL INTELLIGENCE
• Mental capacity to determine how human
  principles should be applied to our values,
  goals, actions
• Moral compass

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A Model of Ethical Behavior in the Workplace

• Cultural Influences
• Family
• Education
• Religion
• Media/entertainment

Individual - Personality - Values - Moral
principles - History of reinforcement - Gender
RoleExpectations

• Organizational Influences
• Ethical codes
• Organizational culture
• Role models
• Perceived pressure for results
• Rewards/punishment system

Ethical behavior
Political/Legal/ Economic Influences

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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.
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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

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Do We All View Ethics the Same Way?

• 4 CONTRASTING ETHICAL ORIENTATIONS
• Consequentialists
• Intentionalists
• Absolutists
• Relativists

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Ethical Theories
Rule-Based 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
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THE MAGNIFICENT SEVEN

• Dignity of human life
• Autonomy
• Honesty
• Loyalty
• Fairness
• Humaneness
• Common good

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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
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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

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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

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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?
• www.businessballs.com

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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?

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How are we doing?Natl. 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

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How are we doing?Natl. 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

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How are we doing?Natl. 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!