Personal and Organizational Ethics

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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 organizations 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 levelsituations faced in personal life (income tax, doing kids homework, etc.) Organizational levelworkplace situations faced as managers and employees (cutting corners, etc.)

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Levels at Which Ethical Issues May Be Addressed

Industrial levelsituations confronted as professionals (the practices of stockbrokers, accountants, etc.) Societal and international levelslocal-toglobal situations confronted indirectly as a management team
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Personal and Managerial Ethics

Resolving Ethical Conflicts Three Approaches
Conventional (covered in Chapter 6) Principles Ethical tests

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Personal and Managerial Ethics

Principles Approach
Anchors decision making on an ethical principle such as:

Utilitarianism Rights Justice

Caring Virtue ethics Servant leadership Golden Rule

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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 everyones 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

Characteristics of Servant Leaders
Listening Empathy Healing Persuasion Awareness Foresight Conceptualization Commitment to the growth of people Stewardship Building community
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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 ones best self Test of making something public Test of ventilation Gag test
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Managing Organizational Ethics

Factors Affecting the Morality of Managers
Societys Moral Climate Businesss Moral Climate Industrys Moral Climate

Superiors Policies

Individual (Ones personal situation)

Peers

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Managing Organizational Ethics

Factors Influencing Unethical Behavior
Behavior of superiors Ethical practices of ones industry or profession Behavior of ones 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

Questionable Behaviors of Superiors or Peers
Amoral decision making Unethical acts, behaviors or practices Acceptance or legality as the standard behavior Absence of ethical leadership
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Managing Organizational Ethics

Questionable Behaviors of Superiors or Peers
Objects and evaluation systems overemphasizing profits Insensitivity toward how subordinates perceive pressure to meet goals Inadequate formal ethics policies
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Improving Ethical Climate

Ethics Programs & Officers Effective Communication Ethics Audit

Realistic Objectives

Top Management Leadership

Ethics Training

Ethical Decisionmaking Processes

Codes of Conduct

Discipline of Violators

Whistle-blowing Mechanisms (Hotlines)

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Ethical Decision-Making
Identify decision you are about to make Articulate all dimensions of proposed decision Conventional Approach Standards/Norms -Personal -Organizational -Societal -International Principles Approach Ethical Principles -Justice -Rights -Utilitarianism -Golden Rule Ethical Tests Approach Ethical Tests -Common sense -Ones best self -Public disclosure -Gag test . . .

Course of action passes ethics screen

Course of action fails ethics screen

Engage in course of action

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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Selected Key Terms

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

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