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?

Ethical Behavior

acting in ways consistent with one’s

personal values and the commonly

held values of the organization and

society

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

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

A Model of Ethical Behavior in the Workplace

Cultural Influences Family Education Religion Media/entertainment

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

Individual- Personality

- Values- Moral

principles- History of

reinforcement- Gender

Political/Legal/EconomicInfluences

Ethical behavior

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Ethical decision making requires three qualities of

individuals

Ethics and the Individual

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.

Do Moral Principles Vary by Gender?

Men:Men: Justice Justice

Perspective Perspective based on the ideal of reciprocal rights and driven by rules and regulations

Women:Women: Care Perspective Care Perspective

involves compassion and an ideal of attention and response to need

Men and Women tend to view moral problems and situations differently

Do We All View Ethics the Same Way?

4 CONTRASTING ETHICAL ORIENTATIONS:

1. Consequentialists2. Intentionalists3. Absolutists4. Relativists

[Consequential Theory]

an ethical theory that emphasizes the consequences or results of behavior

Ethical Theories

[Rule-Based Theory] an ethical theory that emphasizes the character of the actitself rather than its effects

[Character Theory] an ethical theory that emphasizes the character, personal virtues, and integrity of the individual

THE MAGNIFICENT SEVEN

1. Dignity of human life2. Autonomy3. Honesty4. Loyalty5. Fairness6. Humaneness7. Common good

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

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

How to create/improve the ethical climate of an organization:

1. Model ethical behavior2. Screen pre-hire3. Code of ethics that is enforced4. Ethics training5. Reinforce ethical behavior6. Have people and/or systems that deal

with ethics

How to make ethical decisions:

1. Transparency: Are you comfortable with making the decision public?

2. Effect: Have you considered all potential harmful/wrong effects?

3. Fairness: Would EVERYONE consider the decision fair?

www.businessballs.com

The Four Way Test

1.Is it the TRUTH?

2.Is it FAIR to all concerned?

3.Will it build GOODWILL and

better friendships?

4.Will it be BENEFICIAL to all

concerned?

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

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

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!