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?

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

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

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

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

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

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

even if the employee didn't deserve the award . managers may give the awards to people they like personally more than others on a bias level. • Encourage them as they progress in the direction desired. This is not only unethical but it disrupts the business in general. .Module 3 : Business Ethics Tips to Accentuate Positive Discipline • Make sure your players know the standard of performance desired. This not only hurts the business. Managers may feel morally responsible to give an employee who previously won an award to give it to them again to not discourage them. in the long run other employees start to notice this and become demoralized and either their job is affected or they quit. • Compliment them when they attain standards and continue to reinforce positive performance periodically. 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. 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. • Managers should consistently monitor performance against expectations and give all employees appropriate feedback. • Managers should be alert for both superior and inferior performance as related to goals and standards. Ethics comes into affect for several reasons when dealing with incentive programs. Also. • Teach them how to attain standards.

employee efforts to develop and increase their potential. and general public negatively. When challenging an order. • Managers should not let nonperformance factors like friendship. A manger that passes an unethical order on to their employees may not have considered the ethics on his/her own. race. When considering whether or not . should resist the same impulse and do something about it explaining that in the long run it actually hurts the business. 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. 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. • Managers should strive to maintain equity between employees and be prepared to justify with facts their decisions to anyone. family background. Not only are managers responsible for giving orders to their employees. sex. but the are responsible for taking orders from their bosses. religion. • Managers should test their decisions to be sure they are based on facts and just not assumptions or impressions. • Managers should make their decisions on objective data and push aside any unwillingness to help their employees face reality. but might also be unethical. Some orders may not only affect employees.Module 3 : Business Ethics • Managers should note and communicate to others. customers. • Managers who observer other managers who are unethical in distributing awards. or age influence their decisions.

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

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

we have a culture bias—shared with other trusted observers—which we cannot eliminate. This is also the basis of the so-called "emic" and "etic" distinction. and concerns itself specifically with avoiding ethnocentrism or the application of one's own cultural standards to the assessment of other cultures. objectivity and a final truth. 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. 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 notational bias will apply to whatever we can allegedly measure without using our senses. in which the researcher suspends (or brackets) his or her own cultural biases while attempting to understand beliefs and behaviors in their local contexts. an emic account is therefore culture- . Some relativists claim that humans can understand and evaluate beliefs and behaviors only in terms of their historical or cultural context. relativism assumes causality. Additionally. as well as a problematic web of relationships between various independent variables and the particular dependent variables that they influence. In addition.Module 3 : Business Ethics relative to other real things. This has become known as methodological relativism. Forms of relativism Anthropological versus philosophical relativism Anthropological relativism refers to a methodological stance. One argument for relativism suggests that our own cognitive bias prevents us from observing something objectively with our own senses.

) Philosophical relativism. Methodological relativism and philosophical relativism can exist independently from one another.Module 3 : Business Ethics specific. (This is complicated when it is scientific research itself that is under study. It is possible for an . normative relativism to truth). but most anthropologists base their methodological relativism on that of the philosophical variety. in contrast. • An etic or outsider account is a description of a society by an observer. whereas philosophers engage in normative relativism. standards of reasoning. or when there is theoretical or terminological disagreement within the social sciences. but not to evaluate the validity of these principles and practices of a cultural group. and typically refers to what is considered "common sense" within the culture under observation. and it is the anthropologist's task to describe. descriptive relativism can pertain to concepts. 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. Descriptive relativism assumes that certain cultural groups have different modes of thought. In general. in terms that can be applied to other cultures. Descriptive versus normative relativism The concept of relativism also has importance both for philosophers and for anthropologists in another way. and typically refers to the conceptual framework of the social scientist. anthropologists engage in descriptive relativism. and so forth. an etic account is culturally neutral. that is. although there is some overlap (for example.

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

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

country or region but seldom discusses the issue of values and ethics. Findings: The study identifies strategies to apply universal values in international trading. 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. In the increasingly globalizing business environment. we analyzed various conflicting cross-cultural values which include bribery. An attempt is made to identify the applicability of Universal Values in these cases and its impact on global economy. Then. So. Practical implications: The universal values and standards identified help multinational organizations to manage the ethical challenges effectively and contribute to the common good. Research limitations: In view of the paucity of time. there are only few formal researches done on the aspect of ethics of international trade and its impact on common good. The extent to which the cross-cultural value conflicts are resolved depends on the implementation of universal values by MNCs. This has prompted us to search for Universal values that may serve as tools for the common good. This paper provides a . This paper identifies scope for further study. Approach: Firstly. and environmental pollution which affect the common good through various case studies. the issues of common good between the host country and the parent country are becoming a vexing issue. we understood the concept of common good and its relation with ethics in the context of International Trade. the various aspects of ethics as applied to international trade could not be considered. child labor.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. 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. industry.

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

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

Advertising issues etc. outsourcing. and descriptive (positive)” theory of marketing ethics approach. environmental issues. child labor. 2003) and “normative (prescriptive). business must choose whether to obey the values of their home country or conform to local values and practices.Module 3 : Business Ethics 3. These approaches can be classified “descriptive-prescriptive and communicative approach” (Alexander. Pricing. decision. 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. When these value systems conflict. The Conflicts that arise in international trading due to different cultures. . 4. 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. legal systems and levels of economic development include: Bribery. UNIVERSAL ETHICAL THEORIES: In order to solve the conflicts which contain global ethical issues. socio-economic and political systems.making process can be influenced by many ethical approaches.

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