Learning Module Learning Module

A Model of Ethical Behavior in the Workplace A-1 Figure A-1 Internal Organizational Influences Neutralizing Enhancing Factors Role Expectations Individual - Personality - Values - Moral principles - History of reinforcement - Gender Ethical behavior External Organizational Influences McGraw-Hill McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Neutralizing/Enhancing Factors Top Management Team (TMT): consists of the CEO and his or her direct reports. An older, more experienced group of leaders is less likely to allow unethical behavior to occur. Prior military experience favorably influences the ethical behavior of executives. Increasing the diversity of the TMT will reduce the chances of unethical decision making. McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

An Ethical Decision Tree A-3 Figure A-2 Is the proposed action legal? Does it maximize shareholder value? Don’t do it. Is it ethical? Would it be ethical not to take action? Do it. Yes No McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Do Moral Principles Vary by Gender? Males perceived moral problems in terms of a justice perspective. Women relied on a care perspective Justice Perspective Based on the ideal of reciprocal rights and driven by rules and regulations Care Perspective Involves compassion and an ideal of attention and response to need McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

How to Improve the Organization’s Ethical Climate Behave ethically yourself Screen potential employees Develop a meaningful code of ethics Provide ethics training Reinforce ethical behavior Create positions, units, and other structural mechanisms to deal with ethics McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Developing a Meaningful Code of Ethics Codes of ethics can have a positive impact if they satisfy four criteria: Distributed to every employee Firmly supported by top management Refer to specific practices and ethical dilemmas likely to be encountered by target employees Evenly enforced with rewards for compliance and strict penalties for noncompliance McGraw-Hill/Irwin McGraw-Hill © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

The Magnificent Seven: General Moral Principles for Managers A-7 Table A-1 Dignity of Human Life: The lives of people are to be respected. Autonomy: All persons are intrinsically valuable and have the right to self-determination. Honesty: The truth should be told to those who have a right to know it. Loyalty: Promises, contracts, and commitments should be honored. Fairness: People should be treated justly Humaneness: 1. Our actions ought to accomplish good, and 2. we should avoid doing evil. The common good: Actions should accomplish the ‘greatest good for the greatest number” of people. McGraw-Hill McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. © 2005 The McGraw-Hill Companies, Inc. All rights reserved.