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TEORI ETIKATEORI ETIKA
Teleology...Teleology... an act is considered morally right or an act is considered morally right or
acceptable if it produces some desired result, acceptable if it produces some desired result, i.e., pleasure, knowledge, career growth, a i.e., pleasure, knowledge, career growth, a self-interest, or utilityself-interest, or utility
assessing the moral worth of a behavior by assessing the moral worth of a behavior by looking at its consequences (consequentialism)looking at its consequences (consequentialism)
Two Teleological Two Teleological Philosophies...Philosophies...
Egoism: right or acceptable behavior in terms of Egoism: right or acceptable behavior in terms of consequences for the individualconsequences for the individual maximize your self-interest, concerned with the maximize your self-interest, concerned with the
consequences, seeking alternative that contributes the consequences, seeking alternative that contributes the most to self-interestsmost to self-interests
Utilitarianism: concern with consequences in Utilitarianism: concern with consequences in terms of seeking the greatest good for the greatest terms of seeking the greatest good for the greatest number of peoplenumber of people looking for the greatest benefit for all those affected by looking for the greatest benefit for all those affected by
a decisiona decision
Utilitarianism:Utilitarianism:
An action is right if and only if it achieves the An action is right if and only if it achieves the greatest good for the greatest number.greatest good for the greatest number.
Utilitarianism makes moral judgments based Utilitarianism makes moral judgments based on the consequences of actions, or on the consequences of actions, or consequences of rules of actionsconsequences of rules of actions
Deontology:Deontology:(Greek: deon-duty; logos-science)(Greek: deon-duty; logos-science)
An action is right if it is an action of a certain An action is right if it is an action of a certain kind; if it is your duty to perform. An action is kind; if it is your duty to perform. An action is wrong if it is your duty not to perform.wrong if it is your duty not to perform.
For example, always wrong to torture, rape, For example, always wrong to torture, rape, enslave someone, no matter what the enslave someone, no matter what the consequences are.consequences are.
Deontology...Deontology...
focuses on the rights of the individual and on focuses on the rights of the individual and on the intentions associated with behavior the intentions associated with behavior not not on on the consequencesthe consequences
believe there are some things we should believe there are some things we should notnot do regardless of the utilitydo regardless of the utility
An analytical approach to ethical problemsAn analytical approach to ethical problems
Step 1
Ask
NoYesNoYesNoYes
UtilityDo benefits
exceed costs?
RightsAre human
rightsrespected?
JusticeAre benefits
and costsfairly
distributed?
Step 2
Compare results
If yes is the answer to all three questions, it is
probably ethical
If the answers aremixed, it could be either
ethical or unethical
If no is the answer to allthree questions, it is probably unethical
Step 3
Assign priorities to
Utility Rights Justice
ETIKA BISNIS & ETIKA BISNIS & PENERAPANNYA DI PENERAPANNYA DI
PERUSAHAANPERUSAHAAN
Business Ethics: What Does It Business Ethics: What Does It Really Mean?Really Mean?
DefinitionsDefinitions EthicsEthics involves a discipline that examines involves a discipline that examines
good or bad practices within the context of a good or bad practices within the context of a moral dutymoral duty
Moral conductMoral conduct is behavior that is right or is behavior that is right or wrongwrong
Business ethicsBusiness ethics include practices and include practices and behaviors that are good or badbehaviors that are good or bad
Business Ethics: What Does It Really Business Ethics: What Does It Really Mean?Mean?
Ex p
e cte
d a n
d A
c tu a
l Lev
e ls
of B
usin
ess
Eth
ics
Ethical Problem
Ethical Problem
Society’s Expectations of Business Ethics
Actual Business Ethics
1950s Early 2000sTime
Business Ethics:Today vs. Earlier Period
Why ethical problems occur in businessWhy ethical problems occur in business
Reason Nature of
ethical problem
Typical
approach
Attitude
Personal gain and selfish
interest
Selfish interest versus others'
interests
Egoistical mentality
"I want it!"
Competitive pressures on
profits
Firm's interest versus others'
interests
Bottom-line mentality
"We have to beat the
others at all costs!"
Business goals versus personal
values
Boss's interests versus
subordinates’ values
Authoritarian mentality
"Do as I say, or else!"
Cross-cultural contradictions
Company's interests versus diverse cultural traditions and
values
Ethnocentric mentality
"Foreigners have a funny
notion of what's right and wrong."
Ethics and the LawEthics and the Law
Law often represents an ethical minimumLaw often represents an ethical minimum Ethics often represents a standard that exceeds Ethics often represents a standard that exceeds
the legal minimumthe legal minimum
Ethics Law
Frequent Overlap
Why should business be ethical?Why should business be ethical?
• Fulfill public expectation for business.
• Prevent harming others.
• Seek profitability.
• Improve business relations and employee productivity.
• Reduce penalties under U.S. Corporate Sentencing Guidelines.
• Protect business from others.
• Protect employees from their employers.
• Promote personal morality.
Factors Influencing Ethical BehaviorFactors Influencing Ethical Behavior
Leadership
CorporateCulture
Strategy and Performance
IndividualCharacteristics
Have anethical day!
Sources of Ethical NormsSources of Ethical Norms
Fellow Workers
Family
Friends
The Law
Regions of Country
Profession
Employer
Society at Large
Fellow Workers
Religious Beliefs
The Individual
Conscience
Developing Moral JudgmentDeveloping Moral Judgment
6-22
Stages of moral development and ethical reasoning
Age group Development stage and major ethics referent
Basis of ethics reasoning
Mature adulthood Stage 6 Universal principles: Justice, fairness, universal human rights
Principle-centered reasoning
Mature adulthood Stage 5 Moral beliefs above and beyond specific social custom: Human rights, social contract, broad constitutional principles
Principle-centered reasoning
Adulthood Stage 4 Society at large: Customs, traditions, laws
Society-and-law centered reasoning
Early adulthood, adolescence
Stage 3 Social groups: Friends, school, coworkers, family
Group-centered reasoning
Adolescence, youth
Stage 2 Reward seeking: Self-interest, own needs, reciprocity
Ego-centered reasoning
Childhood Stage 1 Punishment avoidance: Punishment avoidance, obedience to power
Ego-centered reasoning
Source: Adapted from Lawrence Kohlberg, The Philosophy of Moral Development (New York: Harper & Row, 1981).
Elements of Moral JudgmentElements of Moral Judgment
Amoral Managers Moral Managers
Moral ImaginationMoral IdentificationMoral EvaluationTolerance of Moral Disagreement and AmbiguityIntegration of Managerial and Moral CompetenceA Senses of Moral Obligation
The components of ethical climatesThe components of ethical climates
Individual person
Company Society
Egoism (self-centered approach)
Self-interest
Company interest
Economic efficiency
Benevolence (concern-for-others approach)
Friendship Team interest
Social responsibility
Principle (integrity approach)
Personal morality
Company rules and procedures
Laws and professional codes
Focus of ethical concernE
thic
al c
rite
ria
Source: Adapted from Bart Victor and John B. Cullen, “The Organizational Bases of Ethical Work Climates,” Administrative Sciences Quarterly 33(1988), p. 104.
How to Build in EthicsHow to Build in Ethics
TOP MANAGEMENT COMMITMENTTOP MANAGEMENT COMMITMENT
MISSION STATEMENTMISSION STATEMENT
ETHICS CODEETHICS CODE
POLICIES/PROCEDURESPOLICIES/PROCEDURES
TRAININGTRAINING
WHISTLE-BLOWER’S HOTLINEWHISTLE-BLOWER’S HOTLINE
ETHICS OFFICERETHICS OFFICER
INDEPENDENT AUDITINDEPENDENT AUDIT
DISCIPLINARY ACTIONDISCIPLINARY ACTION
Codes of ConductCodes of Conduct
Must provide clear direction about ethical Must provide clear direction about ethical behavior when temptation to behave behavior when temptation to behave unethically is strongest.unethically is strongest.
But, also must leave room for a manager to use But, also must leave room for a manager to use his or her judgment in situations requiring his or her judgment in situations requiring cultural sensitivity.cultural sensitivity.
Intl. managers who are not prepared to grapple Intl. managers who are not prepared to grapple with moral ambiguity and tension should pack with moral ambiguity and tension should pack their bags and come hometheir bags and come home
How to support ethical decision How to support ethical decision making in the organization?making in the organization?
culture, values & programsculture, values & programs compliance & leadershipcompliance & leadership recognition of the role of co-workers & recognition of the role of co-workers &
managersmanagers balancing stakeholder interestsbalancing stakeholder interests management of situational pressuresmanagement of situational pressures rewards beyond short-term performancerewards beyond short-term performance
Creating an Ethical Corporate Creating an Ethical Corporate CultureCulture
Core values are not specific enough to guide managers Core values are not specific enough to guide managers through actual ethical dilemnas.through actual ethical dilemnas.
Managers should be guided by precise statements that spell Managers should be guided by precise statements that spell out the behavior and operating practices that the company out the behavior and operating practices that the company demands.demands.
90% of all Fortune 500 companies have codes of conduct.90% of all Fortune 500 companies have codes of conduct. 70% have statements of vision and values.70% have statements of vision and values. In Europe and the Far East, the percentages are lower but are In Europe and the Far East, the percentages are lower but are
rising rapidly.rising rapidly.
Business Ethics: It Begins with Business Ethics: It Begins with LeadershipLeadership
As As LeadersLeaders, we must do a better job at creating , we must do a better job at creating and sustaining organizational cultures that and sustaining organizational cultures that support ethical behaviorsupport ethical behavior….….
Guidelines for Ethical LeadershipGuidelines for Ethical Leadership Treat corporte values and formal standards of Treat corporte values and formal standards of
conduct as absolutes.conduct as absolutes. Design and implement conditions of Design and implement conditions of
engagement for suppliers afnd customers.engagement for suppliers afnd customers. Allow forwign business units to help Allow forwign business units to help
forlmulate ethical standards and interpret forlmulate ethical standards and interpret ethical issues.ethical issues.
In host countries, support efforts to decrease In host countries, support efforts to decrease institutional corruptions.institutional corruptions.
Exercise moral imagination.Exercise moral imagination.
Two approaches to ethics programsTwo approaches to ethics programsand their effectivenessand their effectiveness
Compliance-based programs
• Rooted in avoiding legal sanctions.
• Companies will establish rules and guidelines for employees to follow.
• Emphasizes threat of detection and punishment.
• Assumes employees are driven by self-interest.
• Research evidence shows that employees do care about moral correctness of their actions.
Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117 and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on
Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.
Two approaches to ethics programsand their effectiveness
Sources: Lynn Sharp Paine, “Managing for Organizational Integrity,” Harvard Business Review, March/April 1994, pp. 106-117 and Gary Weaver and Linda Klebe Trevino, “Compliance and Values Oriented Ethics Programs: Influences on
Employees’ Attitudes and Behavior,” Business Ethics Quarterly, 9(1999), pp. 315-335.
Integrity-based ethics programs• Combine a concern for the law with an emphasis on employee responsibility for ethical conduct.
• Establish a climate of self-governance for employees based on general principles as guidelines.
• Employees told to act with integrity and conduct business dealings in an environment of honesty and fairness.
• Employees are thought of as social beings, concerned for the well-being of others.
• Researchers found that these programs fostered lower observed unethical conduct.
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