Determinants of Ethical Behavior / The Roots of Unethical Behavior

Personal Ethics Generally accepted principles of right and wrong governing the conduct of individuals  Our personal ethical code exerts a profound influence on the way we behave as businesspeople  The first step to establishing a strong sense of business ethics is for a society to emphasize strong personal ethics  Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics Decision-Making Processes  Several studies of unethical behavior in business have concluded that businesspeople sometimes do not realize they are behaving unethically primarily because they simple fail to ask…. …. “Is this decision or action ethical?”  Often the result of applying straight-forward business calculus to a decision without considering important ethical issues Organization Culture  The climate in some businesses does not encourage people to think through the ethical consequences of business decisions

 Result of an organizational culture that deemphasizes business ethics, reducing all decisions to be purely economic Unrealistic Performance Expectations  Pressure from the parent company to meet unrealistic goals that can only be attained by cutting corners or acting in an unethical manner  This often results in managers will violating their own personal ethics and engage in unethical behavior  An organizational culture with values that reinforce ethical behavior is an essential ethical component Leadership Leaders help to establish the culture and values of an organization, and they set the example that others follow

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