Values

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Chapter 6 Values and Workplace Ethics
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Objectives

• Describe how organizations foster unethical
  business
• Explain how organizations can promote ethical
  behavior
• Define ethics and values
• Better articulate your own values

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Objectives

• Distinguish between ethical and non-ethical
  values
• Explain and recognize the stages of moral
  reasoning
• Describe five ethical models
• Explain corporate social responsibility and its
  benefits

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What Was Your Score on the Corporate Integrity
Checkup?

• Compare your score with your neighbors and
  describe your organizations perspective on
  ethics
• Who had the highest score in the room? The
  lowest?

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Unethical Business Practices
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Unethical Business Practices
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How to Foster Ethical Behavior

• Communicate expectations and define what ethical
  behavior means
• Hire top executives who set a good example
• Reward ethical behavior and punish unethical
  behavior
• Teach the tools of ethical decision making
• Encourage discussion of ethical issues

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The Ethics Warning System

• Golden Rule Are you treating others as you
  would want to be treated?
• Publicity Would you be comfortable if your
  reasoning and decision were on the front page of
  tomorrows newspaper?
• Kid on your shoulder Would you
• be comfortable if your children
• were observing you?

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Ethics - Defined

• Standards of conduct that indicate how one
  should behave based on moral duties and virtues
  arising from principles about right and wrong

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Values - Defined

• Core beliefs or desires that guide or motivate
  attitudes and actions

The Toyota Way
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Terminal Values - Defined

• Desirable end states of existence or the goals
  that a person would like to achieve
• Two types personal and social values

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Instrumental Values - Defined

• Instrumental values are preferable modes of
  behavior or the means to achieving ones terminal
  values
• Two types moral and competence values

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Schwartz and Bilskys Seven Universal Values

• Prosocial Active protection or enhancement of
  the welfare of others
• Restrictive conformity Restraint of actions and
  impulses likely to harm others and to violate
  sanctioned norms
• Enjoyment Pleasure, sensuous and emotional
  gratification

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Schwartz and Bilskys Seven Universal Values

• Achievement Personal success through
  demonstrated competence
• Maturity Appreciation, understanding, and
  acceptance of oneself, others, and the
  surrounding world
• Self-direction Independent thought and
  actionchoosing, creating, exploring
• Security Safety, harmony and stability in
  society, identity groups, relationships and self

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Ethical Vs. Non-ethical Values
EthicalRelated to what is right and proper

• Trustworthiness, respect, responsibility,
  justice and fairness, caring, civic virtue, and
  citizenship

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Ethical Vs. Non-ethical Values

Non-ethicalRelated to things we like, desire,
or find personally important
Money, fame, status, happiness, being liked
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Kohlbergs Three Levels of Moral Development

• Level OneSelf-Centered (Preconventional)
• Stage One Obedience and Punishment Orientation
• Stage Two Instrumental Purpose and Exchange
• Level TwoConformity (Conventional)
• Stage Three Interpersonal Accord, Conformity,
  Mutual Expectations
• Stage Four Social Accord and System Maintenance
• Level ThreePrincipled (Postconventional)
• Stage Five Social Contract, Individual Rights
• Stage Six Universal Ethical Principles

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Five Ethical Approaches
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International Ethics

• Making ethical decisions is even more
• difficult in international business due to
• different value systems and practices
• Example Different attitudes toward bribery
• But ethical behavior is a competitive advantage
  because it builds trust

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Corruption - Defined

• The abuse of public power for private gain
• Out of 159 countries evaluated for the 2005
  Corruption Perceptions Index, 70 countries have
  high levels of corruption
• Corruption correlates with high power distance
  and achievement cultures, socio-political
  instability, and the absence of a tradition of
  well-established law and order

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Corporate Social Responsibility - Defined

• CSR is broadly defined as a companys
  commitment and contribution to the quality of
  life of employees, their families and the local
  community and society overall to support
  sustainable economic development
• Provides a competitive advantage in business and
  in attracting and retaining employees

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When Is Whistle Blowing Legitimate?

• It would benefit the public interest
• The revelation is of major importance and very
  specific
• The facts have been checked and rechecked for
  accuracy
• All other avenues within the organization have
  been exhausted
• The whistleblower is above reproach and has
  nothing to gain personally by revealing the info

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Ways of Handling Unethical Behavior

• Sabotaging or refusing (quietly or vocally) to
  implement unethical behavior
• Indicating your unwillingness to support a
  cover-up in case the wrong-doers are caught

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...Ways of Handling Unethical Behavior

• Secretly or publicly blowing the whistle within
  the organization
• Secretly or publicly threatening the offender or
  a responsible higher-level manager with blowing
  the whistle inside or outside the organization
• Secretly or publicly blowing the whistle outside
  the corporation

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