Questions of Values and Ethics

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Questions of Values and Ethics
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Values

• Abstract ideals that shape an individuals
  thinking and behavior a moral compass
• Instrumental values certain way of behaving is
  appropriate in all situations means.
• Terminal values enduring belief in the
  attainment of a certain end state ends.

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A moral compass

• These abstract ideals can result from
• Religion
• Philosophy
• Family teachings

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Instrumental values

• As the means to an end they become the ingrained
  ways of behavior
• Rituals
• Politesse
• Good habits

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Terminal values

• With the end always in sight
• Heaven
• Respect
• Financial Success
• Personal Independence
• Power

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Ethics

• The study of moral obligation involving the
  distinction between right and wrong.
• Business Ethics right or wrong in the workplace
  value management.

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Relativism
Egoism
The 4 Concepts of Ethics
Utilitarianism
Universalism
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ETHICS THEORY/THEORISTS

• Ethicists

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Ethical Tests
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Is It Legal Test?
Ethical
Quadrant II Ethical and Illegal
Quadrant I Ethical and Legal
Codification
Manifestation
Corporate Decisions
Legal
Illegal
Quadrant IV Unethical and Illegal
Quadrant III Unethical and Legal
Unethical
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Two Areas of Business Ethics

• Obvious mischief

• Moral mazes
• RIGHT vs. RIGHT

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Common Misconduct in Organizations

• Misrepresenting hours worked
• Employees lying to supervisors
• Management lying to employees, customers, vendors
  or the public
• Misuse of organizational assets
• Lying on reports/falsifying records
• Sexual harassment
• Stealing/theft
• Accepting or giving bribes or kickbacks
• Withholding needed information from employees,
  customers, vendors or public

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Common Causes of Unethical Behavior

• Pressure
• Fear
• Greed
• Convenience

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Causes of Unethical Behavior (contd)

• Following bosss directives
• Meeting overly aggressive business/financial
  objectives
• Helping the organization survive
• Meeting schedule pressures
• Be a team player (group think)
• Rationalizing that others do it
• Resisting competitive threats
• Advancing own career

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Ethical Dilemmas

• Making decisions under stress or dealing with
  complex issues that have no clear indication of
  what is right or wrong.

There are NO simple ethical dilemmas all have
layers of meaning and effect.
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Business Ethics Myths

• Business ethics is a new fad.
• Business ethics religion vs. management.
• Business ethics is obvious do good!
• Business ethics is good guys preaching to bad
  guys.

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Whistleblowers Reluctance

• Didnt believe action would be taken.
• Feared retaliation from mgmt.
• Didnt trust confidentiality.
• Feared not being a team player.
• Feared retaliation from co-workers.
• Didnt know who to contact.
• Nobody cares, why should I?

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Business Ethics Myths (contd)

• Ethics cant be managed.
• Being legal being ethical.
• Managing ethics has little practical relevance.

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Ethical Tips for Organizations

• Develop a code of ethics.
• Communicate code and bake it into culture
  top-down.
• Treat ethics as a process.
• Create open lines of communication.
• Set good examples.
• Educate employees frame issues through
  storytelling.
• Value forgiveness.

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Benefits of Managing Ethics in the Workplace

• Improves society.
• Maintains a moral course in turbulent times.
• Cultivates employee teamwork, productivity,
  morale and development.
• Acts as an insurance policy.

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Benefits of Managing Ethics in the Workplace
(contd)

• Establishes values for quality management,
  strategic planning and diversity management.
• Promotes strong public image.
• It is the RIGHT thing to do!

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Ethical Tips for Individuals

• Establish personal values.
• Be aware of ethical events.
• Develop critical thinking techniques.
• Be reflective.
• Make it a priority every day.

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• The simple step of a simple courageous man is to
  not take part in the lie, not to support deceit.
  Let the lie come into the world, even dominate
  the world, but not through me.
• -- Alexander Solzhenitsyn

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Puzzling things out.
As we watch the video vignettes, keep these
questions in mind

1. What is the ethical dilemma?
2. What is the apparent cause of the unethical
   behavior?
3. Is there an ethical resolution to the problem
   portrayed?
4. If so, who should do what?

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Decision-Making Process
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A General Framework of the Ethical
Decision-Making Process
CHARACTERISTICS OF THE DECISION MAKER
OUTCOMES
ETHICAL SITUATION
DECISION
SIGNIFICANT INFLUENCES
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Individual Characteristics of the Decision Maker
that Influence the Ethical Decision-Making Process
CHARACTERISTICS OF THE DECISION MAKER
ETHICAL SITUATION
OUTCOMES
DECISION
SIGNIFICANT INFLUENCES
Achievement motivation Knowledge Need for
affiliation Experience Ego strength
Risk taking Locus of control
Machiavellianism
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Significant Influences on the Ethical
Decision-Making Process
CHARACTERISTICS OF THE DECISION MAKER
ETHICAL SITUATION
OUTCOMES
DECISION
SIGNIFICANT INFLUENCES
The organization Technology Work
Significant others customers, The law
peers, immediate supervisor, Economics top
managers, family, friends, Professionalism
other opinion leaders
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Outcomes that Result from the Ethical
Decision-Making Process
CHARACTERISTICS OF THE DECISION MAKER
ETHICAL SITUATION
OUTCOMES
DECISION
SIGNIFICANT INFLUENCES
Performance Feedback Rewards
Promotions Satisfaction Learning
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Elements of the Ethical Decision-Making Process
Characteristics of Decision Makers
Ethical Situation
Outcomes
DECISION
Significant Influences
ELEMENTS OF THE DECISION
Information acquired Information processed
PERCEIVED ETHICAL PROBLEM
Ethical decision history Expectations Sent and
received roles Ethics norms (personal those of
others)
PERCEIVED ALTERNATIVES, PRODUCT, PRICE,
PROMOTION, DISTRIBUTION INFO
JUDGMENT
Information acquired Information processed
PERCEIVED CONSQUENCES
Probability of consequences Desirability of
consequences
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A Successful Code of Ethics
Have support of top management Be practical and realistic
Followed by top management Include penalties for disobedience
Clearly explained to all employees Continuously implemented by a "watchdog committee" that has authority to take disciplinary actions

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Inside an Organization How ethics affects the
everyone!
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Ethics of Accounting

• Creative accounting practices and misleading
  financial analysis.
• White-collar crimes
• Executive compensation
• Bribery, kickbacks, political lobbying

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Ethics of Sales and Marketing

• Pricing price fixing, discrimination, skimming.
• Unethical marketing strategies
• Content of Advertisements
• Children and marketing
• Black and grey markets.

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Ethics of Production

• Defective products
• Quality vs. Quantity
• Addictive and inherently dangerous products and
  services (e.g. tobacco, alcohol, weapons, motor
  vehicles, chemical manufacturing).
• Environmental issues
• Safety
• Patent infringement

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Ethics of Research Development (RD)

• Ethical problems arising out of new technologies
  genetically modified food, mobile phone radiation
  and health.
• Product testing ethics animal rights and animal
  testing.
• Use of economically disadvantaged groups (such as
  students) as test objects.
• Intellectual property

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Ethics of International Business

• Political
• Economic
• Socio-cultural
• Technological
• Legal
• Environment
• Government

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THANK YOU!