Module 3 : Business Ethics Running Head: Business Ethics -Module#3

Module 3: Business Ethics Kishore Kandalai Aspen University

Module 3 : Business Ethics Abstract The purpose of the abstract is to provide the reader with a brief overview of the overall paper which in this case is “5” essay questions. 1. In your view, what is leadership? Why is it important and why is studying it filled with pitfall? 2. What is “leading from the middle,” and how does that influence your view of leadership? 3. Describe in detail ethical leadership theory. How do you practice it? How do you know if you are an ethical leader? 4. Who are values-based leaders? Describe a value-based leader in terms of behaviors you have worked with or for. 5. How does amoral leadership theory help? Where does it fall short?

they will not be effectively influenced. and decides to quit after one tiny setback. The dictionary defines Leadership is the capacity or ability to lead" or "Guidance." Maybe having followers is a sign of good leadership. . The real meaning of leadership is having an impression on others. and does not clearly state his ideas. Failure is a part of life. the impression he gives his followers will be negative. teachers. is "One who subscribes to the teachings or methods of another. etc It is not a skill that can simply be picked up from reading a book. If his followers decide to go by his example. so must ideas. as defined by the dictionary. what is leadership? Why is it important and why is studying it filled with pitfall? There are several different definitions. A leader must have good communication skills. A good leader must absolutely accept failure. he cannot sufficiently lead others. Those who are not leaders are followers. He cannot always stick to the same teachings. possibly inspiring their decisions. things such as public speaking or organizing an event. but it comes down to more than that. If he cannot accept it. leadership skills are gained through experience. As times change. A follower. An effective leader must also have the ability to make changes. If that person is not open-minded. Many people think it is simply about being successful.Module 3 : Business Ethics Module 3 Deliverables Assignments: Essay Questions Essay Question 1 In your view. unwillingly to accept the ideas of others. Direction". Leaders are those people that use their skills in leadership to make a difference: presidents.

If you cannot lead someone or something you will never be able to do anything the way you want.Module 3 : Business Ethics A good leader must follow the example of other great leaders. like presidents or even famous public speakers. Without leadership how would this country survive I think that leadership is a great thing and everyone should try to be a leader . Keep in mind that the impressions made on followers is what matters most. Most people think leadership is just the ability to lead but as we can see it more than just leading people. Leadership is one of the best qualities a person can have.

as well. The problem is . Basically. They reason their way through ethical problems and acceptable solutions. Business ethics is very similar to normal every day ethics. Many managers say that they run into ethical dilemmas because they are involved in relationships with people being employees. the principles of morality and the policies of the organization and such general concerns as the needs of others and fairness. Second. and bosses with whom they have to work with and on whom they are dependent. Being aware of ethics in business requires us to be aware of two things. Its human nature to not only is concerned with our own personal well-being. treat others how you would like to be treated. It is related in a way that it involves being fully aware of what we're doing including the complications and consequences of our actions. Ethics is the term we give to our concern for good behavior. First. the actions of its members. such as laws. Although there is always the reverse. where businesses give the appearance of success for long periods of time in spite of unethical practices. we should know how the products and services of the business. customs and expectations of the community.Module 3 : Business Ethics Essay Question 3 Based on the contents of chapter 3. we have to have a need with complying with rules. peers. The news today is overloaded with stories of the fallen heroes and devastated businesses that ultimately result from deception and unethical solutions to the business's problems. but also that of others and of human society as a whole. Businesses and their managers take ethics seriously. Good ethics means good business is the viewpoint of many businesses. either positively or negatively. what does it mean for managers to put business and ethics together? You may want to refer to your readings in module 1. the community and the society as a whole. could affect its employees.

Module 3 : Business Ethics complicated because these people have needs that are contrary to a business's goals and competing needs. When unethical decisions are made. Also. or maybe they just don't take the time to think through the consequences of their decision. they have the priority of making jobs. and other factors. Perhaps they are busy. The manager is forced to either choose between the business or the person. Businesses themselves have several responsibilities many of them being ethical. Managers. The same is also true when several managers with a common goal agree in an unethical situation. Once they create a job. being a peer or employee. if a senior manager were to make a decision that seemed unethical. the managers would act on the decision without weighing the ethical "overtones" . their history with the company. their skills. If they feel they are being treated badly. which employee to promote. they get back at the business either ethically or unethically. they return the favor back to their management by following orders and doing any task assigned to them. cannot help being having a problem by his/her own conflicting personal interest and biases. both the company and the person making the unethical decision. it's their responsibility to see that hard work and talent are fairly rewarded. First. When employees feel they are being treated fairly and with respect. and an unethical choice will affect the relationship of the other for years to come. or which employee to lay off or terminate. Managers of a business sometimes lose their ethical perspective when making decisions that affect people. When choosing . knowing all the employees. everyone loses in the long run. Managers continually chose between people when making decisions such as whom to hire.

negative feedback will demoralize and demean the employee and they give them a higher appraisal then they deserve . Managers should determine the appropriate candidates based on honest consideration. Some managers have a problem by trying to choose the person with the least personal pain possible. It's a manager's responsibility to know about who is doing their fair share of work and who is not. Some managers do not feel comfortable doing them because they do not want to be the "judge and jury" with respect to their employee's career . and appreciate and use the ideas of others. Successful Performance Appraisers • Managers who engage in mutual goal setting and open communication. On the other hand. • Managers who ask questions. • Managers who establish clear. . • Managers who publicly recognize positive performance and privately correct improper performance when it occurs. Some managers believe also by giving their employee's good feedback will cause the employee's future job tasks to do down. Managers that follow appropriate performance evaluation guidelines and feedback procedures create an environment where employees have an opportunity to correct their mistakes and grow within the business . Not doing so will cause low morality in the work place because an employee not doing his/her fair share and another employee doing his/her job . or who to lay off. objectivity is the best way to make decisions such as who to hire. Failure to be honest with employees about their performance is a form of deceit that is damaging not only to the employee. measurable expectations and provide a climate conductive to success. but the business.Module 3 : Business Ethics between people. Another issue of that strongly is merged with ethics is performance appraisals. who to promote. listen careafully. and the manager .

• Those who never seek ideas of others or listen. . They may or may not communicate them to employees. In businesses. Many managers don't discipline their employees if the action isn't severe. thereby creating a threatening atmosphere to work. • Those who spend too much time looking for things that are wrong and too little looking for things that are right. • Those who have not thought through what they expect or don't know how to measure success. • Those who accept substandard performance or misrepresent it in providing feedback. The word discipline means. "to teach so as to mold" . yet have a solution for everyone else's problems. Some managers who don't understand their roles relative to discipline. It's a mistake because if the employee had previously done something that violates the business's code of conduct and wasn't disciplined. Unfortunately most managers don't learn the "teaching and molding" aspects. it is fundamental that managers are responsible for maintaining discipline among the employees they supervise .or under-react . they will probably either over. • Those who do not take their commitments seriously. that employee and others that know about this will think that they wont get into trouble and continue doing these wrongs.Module 3 : Business Ethics • Managers who follow through on their commitments Unsuccessful Performance Appraisers • Those who establish arbitrary unilateral performance goals or standards. which is a mistake.

• Managers should be alert for both superior and inferior performance as related to goals and standards. even if the employee didn't deserve the award . This not only hurts the business. This is not only unethical but it disrupts the business in general. in the long run other employees start to notice this and become demoralized and either their job is affected or they quit. Many incentive systems have been distinguished for employees that do their jobs correctly and go above and beyond the tasks to get their jobs accomplished. • Encourage them as they progress in the direction desired. .Module 3 : Business Ethics Tips to Accentuate Positive Discipline • Make sure your players know the standard of performance desired. Also. • Compliment them when they attain standards and continue to reinforce positive performance periodically. Managers may feel morally responsible to give an employee who previously won an award to give it to them again to not discourage them. managers may give the awards to people they like personally more than others on a bias level. Ethics comes into affect for several reasons when dealing with incentive programs. • Teach them how to attain standards. • Managers should consistently monitor performance against expectations and give all employees appropriate feedback. Guidelines for Ethical Administration of Reward Systems • Managers should lay groundwork by insuring there is mutual understanding with each employee about what is expected in terms of performance • Managers should update job descriptions as changes occur and insist that the salary grades of my employees remain appropriate to their positions.

When considering whether or not .Module 3 : Business Ethics • Managers should note and communicate to others. or age influence their decisions. customers. but the are responsible for taking orders from their bosses. and general public negatively. • Managers who observer other managers who are unethical in distributing awards. When challenging an order. race. the manager challenging the order must be aware of what could happen to him and the repercussions of doing so which may end up being his/her job. A manger that passes an unethical order on to their employees may not have considered the ethics on his/her own. • Managers should test their decisions to be sure they are based on facts and just not assumptions or impressions. employee efforts to develop and increase their potential. Some orders may not only affect employees. • Managers should not let nonperformance factors like friendship. Not only are managers responsible for giving orders to their employees. sex. Some managers who value ethics may have a hard time giving out the order but there are some managers that will either ignore the order or challenge it because they know its wrong. family background. • Managers should strive to maintain equity between employees and be prepared to justify with facts their decisions to anyone. religion. should resist the same impulse and do something about it explaining that in the long run it actually hurts the business. • Managers should make their decisions on objective data and push aside any unwillingness to help their employees face reality. but might also be unethical.

or failing to report. Because of them. . • Divulging personal or confidential information to peers. • Condoning or failing to report the theft or misuse of company property. people have good working environments to work in being that they are ethical. it usually catches up with them in the end not only hurting themselves and the business. competitors. senior managers. Ten Ethical Mistakes to Avoid • Lying or in any way misrepresenting the facts about the activities that a manager directs. • Passing on employee ideas as the manager's own. or the general public. state or municipal laws or regulations. good employees and usually a great atmosphere to work in. customers. • Ignoring or violating the boss's commitments to employees. • Covering up on-the-job accidents and failing to report health and safety hazards. violation of any federal.Module 3 : Business Ethics to challenge an order the manager may consider unethical. • Suppressing grievances and complaints. • Protecting substandard performers from corrective discipline or termination. • Blaming the manager's boss for the manager's personal mistakes or those of his employees. • Permitting. When a business or anyone associated with the business makes an unethical decision. but those around them such as clientele or investors that are also involved in the business. employees. Being ethical in management means that a business will have satisfied clientele. Ethical decisions of management are what make and break a business. the manager should try to suggest a better alternative to help him become successful and not say that the order is pointless.

social constructionism. Moreover. In fact. ethnocentrism. The term is often used to refer to the context of moral principle. in contrast to an absolutism which argues there is but one true and correct view.e. relativism asserts that a particular instance Y exists only in combination with or as a byproduct of a particular framework or viewpoint X. all languages) do not share certain basic universal commonalities (say.. a non-universal trait Y (e. a particular practice or convention for example). where in a relativistic mode of thought. grammatical structure and vocabulary) that essentially define that kind of framework and distinguish it from other frameworks (for example.g. There are many forms of relativism which vary in their degree of controversy. principles and ethics are regarded as applicable in only limited context. aesthetic relativism. cultural relativism).Module 3 : Business Ethics Essay Question 5 What is relativism (all four types). having only relative. and cognitive relativism). The term often refers to truth relativism. subjective value according to differences in perception and consideration. that truth is always relative to some particular frame of reference. That is. such as a language or a culture (cf. and that no framework or standpoint is uniquely privileged over all others. which is the doctrine that there are no absolute truths. this is not an argument that all instances of a certain kind of framework (say. (See also moral relativism. Notably. relativism also presupposes philosophical realism in that there are actual objective things in the world that are . Another widespread and contentious form is moral relativism. and principlism? Use an example to illustrate how each is different? Relativism is the concept that points of view have no absolute truth or validity. i. linguists have criteria that define language and distinguish it from the mere communication of other animals).. Relativism is sometimes (though not always) interpreted as saying that all points of view are equally valid.

In addition. an emic account is therefore culture- . This is also the basis of the so-called "emic" and "etic" distinction. in which: • An emic or insider account of behavior is a description of a society in terms that are meaningful to the participant or actor's own culture. and concerns itself specifically with avoiding ethnocentrism or the application of one's own cultural standards to the assessment of other cultures. This has become known as methodological relativism. we have a culture bias—shared with other trusted observers—which we cannot eliminate. objectivity and a final truth. Additionally. A counterargument to this states that subjective certainty and concrete objects and causes form part of our everyday life. and that there is no great value in discarding such useful ideas as isomorphism. One argument for relativism suggests that our own cognitive bias prevents us from observing something objectively with our own senses. Forms of relativism Anthropological versus philosophical relativism Anthropological relativism refers to a methodological stance. as well as a problematic web of relationships between various independent variables and the particular dependent variables that they influence. Some relativists claim that humans can understand and evaluate beliefs and behaviors only in terms of their historical or cultural context. relativism assumes causality. in which the researcher suspends (or brackets) his or her own cultural biases while attempting to understand beliefs and behaviors in their local contexts. and notational bias will apply to whatever we can allegedly measure without using our senses.Module 3 : Business Ethics relative to other real things.

It is possible for an . anthropologists engage in descriptive relativism. Methodological relativism and philosophical relativism can exist independently from one another. although there is some overlap (for example.Module 3 : Business Ethics specific. an etic account is culturally neutral. standards of reasoning. In general. in terms that can be applied to other cultures. or when there is theoretical or terminological disagreement within the social sciences. in contrast. but not to evaluate the validity of these principles and practices of a cultural group. Descriptive relativism assumes that certain cultural groups have different modes of thought.) Philosophical relativism. Descriptive versus normative relativism The concept of relativism also has importance both for philosophers and for anthropologists in another way. is the skeptical position that asserts that the truth of a proposition depends on who interprets it because no moral or cultural consensus can or will be reached. • An etic or outsider account is a description of a society by an observer. and typically refers to the conceptual framework of the social scientist. that is. and typically refers to what is considered "common sense" within the culture under observation. but most anthropologists base their methodological relativism on that of the philosophical variety. descriptive relativism can pertain to concepts. and so forth. whereas philosophers engage in normative relativism. and it is the anthropologist's task to describe. (This is complicated when it is scientific research itself that is under study. normative relativism to truth).

in the case of beliefs. Finally.. but there are several reasons why this isn't so. standards of reasoning. notably Kant. However. The fact that there are various species of descriptive relativism are empirical claims may tempt the philosopher to conclude that they are of little philosophical interest. and so a descriptive claim that some important aspect of experience or thought does (or does not) vary across groups of human beings tells us something important about human nature and the human condition. and evidence for. normative .g. for example. claims about actual differences between groups play a central role in some arguments for normative relativism (for example.g. or the like are only right or wrong relative to a framework. so such differences could never be found to obtain in fact. ‘Normative’ is meant in a general sense. cultural or moral or linguistic or human universals (see Brown. Normative relativism concerns normative or evaluative claims that modes of thought. 1991 for a good discussion).. applying to a wide range of views. First. the descriptive relativist's empirical claims about epistemic principles. ethical principles) but not about others (e. Second. an argument that places a priori limits on what empirical inquiry could discover and on what versions of descriptive relativism could be true. arguments for normative ethical relativism often begin with claims that different groups in fact have different moral codes or ideals). and much of the recent literature on these matters is explicitly concerned with the extent of. some philosophers. logical principles). argue that certain sorts of cognitive differences between human beings (or even all rational beings) are impossible. moral ideals and the like are often countered by anthropological arguments that such things are universal. the anthropologist's descriptive account of relativism helps to separate the fixed aspects of human nature from those that can vary.Module 3 : Business Ethics anthropologist in his or her fieldwork to be a descriptive relativist about some things that typically concern the philosopher (e.

(Many normative ethical relativist arguments run from premises about ethics to conclusions that assert the relativity of truth values. bypassing general claims about the nature of truth. Normative relativism (say. truth. The ethnocentric individual will judge other groups relative to his or her own particular ethnic group or culture. but only have truth values relative to broader frameworks (say. This does not mean. Nonmaleficence--not to harm. moral codes). ethical claims) are not simply true in themselves. Principlism is a system of ethics based on the four moral principles of: 1. 3.. epistemic norms). especially with concern to language. the first challenge being to explain what it amounts to in any given case (e.Module 3 : Business Ethics correctness equals truth. Justice--social distribution of benefits and burdens . behavior. and 4.g. and that all other groups are measured in relation to one's own. in regard to normative ethical relativism) therefore implies that things (say. customs. with respect to concepts. These ethnic distinctions and sub-divisions serve to define each ethnicity's unique cultural identity. but it is often more illuminating to consider the type of relativism under question directly. 2. that framework-relative correctness or truth is always clear. and religion. Beneficence--to do good.) Ethnocentrism is the tendency to believe that one's ethnic or cultural group is centrally important. Autonomy--free-will or agency. of course.

we understood the concept of common good and its relation with ethics in the context of International Trade.Module 3 : Business Ethics Essay Question 6 What are universal values and how are they helpful for sorting out how to act in a global economy? Refer to Donaldson’s ethical algorithm in your response. Findings: The study identifies strategies to apply universal values in international trading. we analyzed various conflicting cross-cultural values which include bribery. industry. This paper provides a . and environmental pollution which affect the common good through various case studies. there are only few formal researches done on the aspect of ethics of international trade and its impact on common good. An attempt is made to identify the applicability of Universal Values in these cases and its impact on global economy. Then. Practical implications: The universal values and standards identified help multinational organizations to manage the ethical challenges effectively and contribute to the common good. The extent to which the cross-cultural value conflicts are resolved depends on the implementation of universal values by MNCs. country or region but seldom discusses the issue of values and ethics. This has prompted us to search for Universal values that may serve as tools for the common good. Approach: Firstly. Originality/ value: The discussions concerning international trade generally revolve around a particular a policy or how a particular policy affects a particular sector of the economy. the issues of common good between the host country and the parent country are becoming a vexing issue. child labor. Research limitations: In view of the paucity of time. In the increasingly globalizing business environment. the various aspects of ethics as applied to international trade could not be considered. This paper identifies scope for further study. We have suggested strategies that business person can adopt to compete ethically in corrupt environments based on certain guidelines such as Caux Principles that can be applied across various cultures. So.

1997). companies are operating with global groups of stakeholders to explore the business opportunities throughout the world. 2001). (Sundaram & Black. 1999). Ethics is the moral principle that individuals inject into their decision making process and that helps temper the last outcome to conform to the norms of their society (Duffy. Common Good Globalization has been defined as the process by which an activity or undertaking becomes global in scope. Moreover. In addition. ethical principles have the very profound function of making behavior predictable. Schumacher. and corporations are increasingly engaging in overseas markets they suddenly finding themselves confronted with new and diverse. Michael. Keywords: Ethics. Universal Values. The truly global companies must come to grips with the legal and moral atmosphere in which they operate. As local companies increasingly engage in cross-border trade and investment. the . managers need to recognize that the task of managing an international business differs from that of managing a purely domestic business in many ways.Module 3 : Business Ethics frame-work for discussion of ethical issues and identifies universal values applicable in international trading. (Mahdavi. International Trade. & Scott. First of all. ethical demands. sometimes even contradicting. This search has prompted the study on Universal values. The recent expansion of global business and fall of trade barriers worldwide have underlined the interest in the topics of ethical behavior and social responsibility. human rights and environmental conservation are gaining increasing more recognition in both academic and commercial settings (Jones. Moral values which were taken for granted in the home market may get questioned and pose many ethical challenges as soon as corporations enter foreign markets. 1991). as many scholars believe. As business becomes less fixed territorially. The conflict occurs essentially because of difference in moral values. With the globalization scenario. Vitell. This leads to search for universal values that may be applicable across the globe.

whether consciously and explicitly or as expressed in their behavior. Second.Module 3 : Business Ethics differences come from the simple fact that countries are different. we have shown that the basic values which underlie all other values are: 1. Despite widespread globalization. For a global company. at almost all times. something could have universal value when all people have reason to believe it has value. 1991) On the basis of global ethics. when many institutions have been drawn into identity crisis. We live in an age in which many traditional mores have lost their credibility. are part of a highly complex socio-dynamic process in the course of evolution. in our contemporary and globalizing world. themselves.1 What are Universal Values? Universal values are values that a great many human beings in the vast majority of places and situations. do not do to others. socio-economic and political systems. 2. (Jahanbegloo. do in fact hold in common. what are the human values and standards which. So. The elementary human values and standards of major ethical-religious traditions were formed by individuals who. and when ethical standards and norms are frequently either marginalized or unstable. . legal systems and levels of economic development. the values followed by different countries result in many conflicts and pose ethical challenges. HUMANITY: Every human being must be treated humanely 2. can be regarded as universally valid and acceptable? This makes us to search for some universal values which are valued and respected in all cultures. The points discussed above point to the need for a new moral consensus within the global society with a return to an acceptance and practice of minimum human values and standards. doing international trade. Even though the forces of globalization tend to integrate the word economically. Countries differ in their cultures. still there are many big and enduring differences between the countries. problems are experienced due to lack of moral inspiration or orientation. RECIPROCITY: What you do not wish done to yourself.

UNIVERSAL ETHICAL THEORIES: In order to solve the conflicts which contain global ethical issues. child labor. Pricing. . These approaches can be classified “descriptive-prescriptive and communicative approach” (Alexander.Module 3 : Business Ethics 3. 4. socio-economic and political systems. decision. Advertising issues etc. and descriptive (positive)” theory of marketing ethics approach. When these value systems conflict. environmental issues. business must choose whether to obey the values of their home country or conform to local values and practices. outsourcing. 2003) and “normative (prescriptive).making process can be influenced by many ethical approaches. legal systems and levels of economic development include: Bribery. The Conflicts that arise in international trading due to different cultures. These approaches helps us to solve ethical dilemmas by adopting universal values common to all the cultures and seek for the common good of all the nations. CROSS-CULTURAL CONFLICTS: The most common issues faced by managers doing business in foreign lands stems from the realization that different culture often have quite different value systems.

66. mahdavi. New York: Carroll & Graf. (2001). 146 . M. Forbes. Jones. Ethical Decision Making by individuals is in organization. (2002). ILO. Retrieved october 10. (1997). (1991). Hartman. Halban Publishers. Anatomy of greed. (2003). Between right and right [Electronic version]. New Delhi: Tata McGraw-Hill Publishing Company Limited. (1991). New Delhi: PHI Learning Private Limited. Perspectives In Business Ethics (3rd ed. Sundaram. New York: Oxford University Inc.). Business Ethics . 2010. J..Module 3 : Business Ethics References : Making Globalization Good.ilo. A. The International Business Environment . Colvin.pdf Jahanbegloo. Cruver. (2010). Velasquez. (2002).Text and Cases. P. S. K. Academy of Management review.org/public/english/standards/ipec/publ/download/factsheets/fs_ipecstrategy_0303 . Conversations with Isaiah Berlin.. New Delhi: Prentice Hall of India Private Limited. A. L. (2007). & Chatterjee. G. .Concepts and Cases. from ILO: http://www. i. B. & Black.

18 (10) 75-77. 2002.htm Lynch. Corporate compassion: Succeeding with care. 2002. J. from http://www. (2001). & Piper. from http://www. London: Cassell. (2002). 164. (1997).com/tech/news/2001-05-30-cutting-from-the-bottom. 2002. (1999). K. S. Parks. Nelson. Seglin. T. October 12. Oxymoron 101 [Electronic version]. (1998). the magazine for senior financial executives.com/chris/essays/growth/selfinterest.Module 3 : Business Ethics Gentile.McKay. (1993). Sheridan. New York: John Wiley & Sons. The Economist (US). (2002). Good for goodness' sake: what we mean when we talk about ethics [Electronic version]. UT: Executive Excellence.. CFO. Enlightened self-interest. D. (2002). Forbes. C. (1996). Seligman. & Trevino. Can ethics be taught? Boston: Harvard Business School. Retrieved December 21. Wall Street governance [Electronic version]. J.youknow.. Managing business ethics: Straight talk about how to do it right. 170 . Q. Regulate thyself. M. Is lying sometimes the right thing for an honest person to do? Provo. D. Retrieved December 21.html . Job-cutting firms target bottom 10%. Jones. L.usatoday.

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