MINGLI JIANG (ID# 12088048) Management Principles and Dynamics

March 15, 2021 Prof. Alexander C. Trajano

Applications Paper of “Changing Unethical Organizational Behavior” by Nielsen

Applications

Changing unethical organizational behavior and its mismanagement is the focus of this
article. This includes the transgression of moral norms by employees such as greed, corruption,
antisocial behavior and the abuse of company assets for personal enrichment. Being as an
individual can mean intervening against unethical organizational behaviors, working against
others and the organization that are using the unethical behaviors; being as a part can mean leading
an ethical organizational change, working with others and the organization. Both approaches have
their pros and cons, but generally, as a part and leading ethical change is more constructive
approach, we should choose based on the circumstances and our own abilities.

Citing an example of a management situation about whistleblowing (O’Neill, L, 2020).

Patrick worked as an adviser in the financial services industry. He was concerned that his employer
had been breaching Financial Conduct Authority (FCA) regulations for a number of years. In
particular, Patrick’s firm was charging clients for advice that it had not given and it assessed the
performance of its employees by using targets that were logged on a league table. Patrick was also
concerned that a senior director of the firm had told employees how they could extract higher fees
from clients by misrepresenting financial information.

Patrick raised these concerns to his manager but he did not accept there was any
wrongdoing. Patrick was later dismissed. He then decided to raise his concerns to the FCA. Patrick
was worried that his employer might give him a negative reference so he called Protect for advice.

Protect explained that a negative reference could be an example of post-employment

detriment for whistleblowing. As such, Patrick could bring an employment tribunal claim against
his former employer if it gave a poor reference so long as he could link this to his whistleblowing.
They also explained that Patrick may be able to make a claim for his dismissal and explained how
the whistleblowing laws work and the arguments Patrick could make.

In this example of an unethical behavior observed within the management, they should
consider the Social and Ecological thought (SET) management approach. The SET approach
emphasizes virtuous process and character, not financial outcomes. Indeed, virtue ethics deems it
unethical to maximize economic goals for their own sake. When it comes to financial well-being,
virtue ethics emphasizes that “enough is enough.” This applies both to having enough consumer
goods, as well as to creating enough financial value capture. Thus, a SET approach stands in
contrast to the insatiable “more money is better” assumptions that are evident in the FBL and TBL
approaches. From a virtue theory perspective, the purpose of business is not to make as much
money as possible, but rather to optimize the socio-ecological value of the goods and services it
provides. In other words, to make sure that the goods and service organizations provide are truly
good truly serve others.
References

Nielsen, R. P. (1989). Changing Unethical Organizational Behavior. Academy of Management

Perspectives, 3(2), 123–130.

Arlow, P. and Ulrich, T. A.: 1980, ‘Auditing Your Organization's Ethics’, Internal Auditor 39(4),
26–31.

Baumhart, R.: 1961, ‘How Ethical are Businessmen?’ Harvard Business Review 39(4), 26–31.

O’Neill, L. (2020, December 22). Finance worker speaks up over fake charges to clients - Protect
- Speak up stop harm. Protect - Speak up Stop Harm - The Whistleblowing Charity.
https://protect-advice.org.uk/finance-worker-speaks-up-over-fake-charges-to-clients/

Book References

Bruno Dyck, Arran Caza, Frederick A. Starke. (2018). Management: Financial, Social, and
Ecological Well-being. Manitoba, Canada: Sapajo Publishing.