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Search the Web Nortel has posted its ethics policies on the Internet. To read it, navigate your web browser to: http://www.nortelnetworks.com. Personal and Organizational Ethics. 7. 1. Chapter Seven Objectives. - PowerPoint PPT Presentation
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Personal and Personal and Organizational EthicsOrganizational Ethics
Search the WebNortel has posted its ethics policies on the Internet. To read it, navigate your web browser to: http://www.nortelnetworks.com
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Chapter Seven Objectives
• To understand the different levels at which business ethics may be addressed
• To appreciate principles of personal ethical decision-making
• To identify factors affecting an organization’s moral climate
• Describe actions or strategies to improve ethical climate
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Chapter Seven Outline
• Levels at which Ethical Issues May Be Addressed
• Personal and Managerial Ethics• Managing Organizational
Ethics• From Moral Decisions to Moral
Organizations• Summary
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Introduction to Chapter Seven
• This chapter focuses on the day-to-day ethical issues that managers face
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Levels at Which Ethical Issues May Be Addressed
• Personal level—situations faced in personal life (income tax, doing kid’s homework, etc.)
• Organizational level—workplace situations faced as managers and employees (cutting corners, etc.)
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Levels at Which Ethical Issues May Be Addressed
• Industrial level—situations confronted as professionals (the practices of stockbrokers, accountants, etc.)
• Societal and international levels—local-to-global situations confronted indirectly as a management team
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Personal and Managerial Ethics
Resolving Ethical ConflictsThree Approaches
• Conventional (covered in Chapter 6)
• Principles• Ethical tests
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Personal and Managerial Ethics
• Utilitarianism• Rights• Justice
• Caring• Virtue ethics• Servant leadership• Golden Rule
Principles ApproachAnchors decision making on an ethical principle such as:
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Personal and Managerial Ethics
Principle of Utilitarianism focuses on an act that produces the greatest ratio of good to evil for everyone– Consequentialist theory
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Personal and Managerial Ethics
Principle of Rights focuses on examining and possibly protecting individual moral or legal rights
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Personal and Managerial Ethics
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Personal and Managerial Ethics
• Principle of justice involves considering what alternative promotes fair treatment of people
• Types of justice– Distributive– Compensatory– Procedural– Rawlsian
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Personal and Managerial Ethics
Rawls’ Justice• Each person has an equal right to
the most basic liberties comparable with similar liberties for others
• Social and economic inequalities are arranged so that they are both: a) reasonably expected to be to everyone’s
advantage and b) attached to positions and offices open
to all people
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Personal and Managerial Ethics
• Principle of caring focuses on a person as a relational (cooperative) and not as an individual– Feminist theory
• Virtue ethics focuses on individuals becoming imbued with virtues– Aristotle and Plato
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Personal and Managerial Ethics
Servant leadership focuses on serving others first such as employees, customers, community and so on
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Personal and Managerial Ethics
• Listening• Empathy• Healing• Persuasion• Awareness
• Foresight• Conceptualization• Commitment to the
growth of people• Stewardship• Building
community
Characteristics of Servant Leaders
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Personal and Managerial Ethics
Golden rule focuses on the premise that you should of unto others as you would have them do unto you
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Personal and Managerial Ethics
Concerns to be Addressed in Ethical Conflicts
• Obligations• Ideals• Effects
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Personal and Managerial Ethics
When Our Obligations, Ideals and Effects Conflicts
• When two or more moral obligations conflict, use the stronger one
• When two or more ideals conflict, or when ideals conflict with obligations, honor the more important one
• When effects are mixed, choose the action that produces the greatest good and the least harm
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Personal and Managerial Ethics
Ethics Test Approach• Test of common sense• Test of one’s best self• Test of making something public• Test of ventilation• Gag test
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Managing Organizational Ethics
SuperiorsSuperiors
PoliciesPolicies
PeersPeersIndividual
(One’s personal situation)
Individual(One’s
personal situation)
Society’s Moral Climate
Business’s Moral Climate
Industry’s Moral Climate
Factors Affecting the Morality of Managers
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Managing Organizational Ethics
Factors Influencing Unethical Behavior
• Behavior of superiors• Ethical practices of one’s industry or
profession• Behavior of one’s peers in the organization• Formal organizational policy (or lack of
one)• Personal financial need
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Managing Organizational Ethics
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Managing Organizational Ethics
• Amoral decision making• Unethical acts, behaviors or
practices• Acceptance or legality as the
standard behavior• Absence of ethical leadership
Questionable Behaviors of Superiors or Peers
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Managing Organizational Ethics
• Objects and evaluation systems overemphasizing profits
• Insensitivity toward how subordinates perceive pressure to meet goals
• Inadequate formal ethics policies
Questionable Behaviors of Superiors or Peers
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Improving Ethical Climate
Top Management Leadership
Ethics Programs & Officers
Realistic Objectives
Ethical Decision-making Processes
Codes of Conduct
Ethics Audit
Ethics Training
Whistle-blowing Mechanisms (“Hotlines”)
Discipline of Violators
Effective Communication
Codes of Conduct
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Ethical Decision-MakingIdentify decision you are about to make
Articulate all dimensions of proposed decision
Conventional ApproachStandards/Norms-Personal-Organizational-Societal-International
Principles ApproachEthical Principles-Justice-Rights-Utilitarianism-Golden Rule
Ethical Tests ApproachEthical Tests-Common sense-One’s best self-Public disclosure-Gag test . . .
Course of action passes ethics screen
Engage in course of action
Course of action fails ethics screen
Do not engage in course of action
Identify new course of action
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Ethics Audits and Self-Assessment
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From Moral Decisions to Moral Organizations
Moral Decision(s)
Moral Manager(s)
Moral Organization
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• Codes of conduct• Codes of ethics• Compensatory justice• Distributive justice• Ethical tests• Ethical audits• Golden rule• Legal rights• Moral rights
• Principle of caring• Principle of justice• Principle of rights• Principle of
utilitarianism• Procedural justice• Rights• Servant leadership• Utilitarianism• Virtue ethics
Selected Key Terms
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