The Wall Street Journal Workplace-Ethics Quiz Source: Wall Street Journal, 21 October 1999, pp. 81–84. Ethics Officer Association, Belmont, Mass.; Ethics Leadership Group, Wilmette, Ill.; surveys sampled a cross-section of workers at large companies and nationwide. Copyright © 2004 Prentice Hall. All rights reserved. FIGURE 2–1

The Meaning of Ethics Ethics Normative Judgment Morality The study of: Standards of conduct Moral judgment The standards of right conduct Normative Judgment A comparative evaluation stating or implying that something is: Good or bad Right or wrong Morality A society’s accepted norms of behavior. What is the predominant society… Copyright © 2004 Prentice Hall. All rights reserved.

The Meaning of Ethics Today and Tomorrow What are the trends? Increasing diversity… Decrease in personal contact… Globalization Loss of geo-centric moral codes Morality gets lost in the milieu What are the possible approaches/solutions? Setting strong codes Selection Culture Increased organizational responsibility Copyright © 2004 Prentice Hall. All rights reserved.

Good and Evil Teleologist Deontologist A person who evaluates good or evil and right or wrong based on: The consequences or results of the proposed actions Time-specific Deontologist A person who evaluates whether actions are good or bad, right or wrong: Based on their conformity to certain principles that he or she feels must be adhered to. Regardless of the consequences or results of the proposed actions. Based on some moral backbone Copyright © 2004 Prentice Hall. All rights reserved.

Copyright © 2004 Prentice Hall. All rights reserved.

Ethics and the Law Important Points: Something may be legal but not right (ethical) Abortion (?) Capital Punishment (?) Same sex marriages (?) Something may be right (ethical) but not legal. Racial profiling (?) Other examples… What’s truly at the root of this argument? What is the relationship between: Socially-driven laws Morality Ethics Copyright © 2004 Prentice Hall. All rights reserved.

The Ethical Continuum Low High FIGURE 2–2 Source: Source: Michael Boylan, Business Ethics (Upper Saddle River, NJ: Prentice Hall, 2001), p. 119. Copyright © 2004 Prentice Hall. All rights reserved. FIGURE 2–2

What Influences Ethical Behavior At Work? Individual Factors Organizational Factors Top Management Ethics Policies and Codes Ethical Work Behaviors Copyright © 2004 Prentice Hall. All rights reserved.

Ethical Influences Individual Factors: Top Management influence Internal Guidelines How to act / behave How we judge others SIT Question: Do we always act on these guidelines? Top Management influence Behavior Modeling Given incentive/reward  we learn behavior Chain-of Command Value set All values are not static (can be influenced) Copyright © 2004 Prentice Hall. All rights reserved.

Ethical Influences Organizational Factors: Values Attitudes Beliefs PO Fit Above and beyond the scope of Top Management Culture Attitudes What is the relationship? (direction ) Beliefs Again, do attitudes/behavior shape beliefs or is it the other way around? Language How does this influence ethics? (metaphor) Behavioral Patterns Do we always behave in accordance with our beliefs? Copyright © 2004 Prentice Hall. All rights reserved.

Copyright © 2004 Prentice Hall. All rights reserved.

Copyright © 2004 Prentice Hall. All rights reserved.

Checklist 2.1 How to Foster Ethics at Work Emphasize top management’s commitment. Publish an ethics code. Establish compliance mechanisms. Involve personnel at all levels. Train employees. Measure results. Copyright © 2004 Prentice Hall. All rights reserved.

Raytheon Company’s Quick Ethics Test Is the action legal? Socially accepted Is it right? Internal/external question Who will be affected? The greatest good (Do No Harm) Does it fit company values? Culture How will it “feel” afterwards? What is our own judgment based on? Copyright © 2004 Prentice Hall. All rights reserved.

The Role of Training in Ethics Company ethics officials say they convey ethics codes and programs to employees using these training programs: Company ethics officials use these actual training tools to convey ethics training to employees: FIGURE 2–4 Source: Susan Wells, “Turn Employees into Saints,” HRMagazine, December 1999, p. 52. Copyright © 2004 Prentice Hall. All rights reserved.

What Is Organizational Culture? The characteristic set of values and behavior that employees in an organization share. Written rules, dress codes, structure Patterns of Behavior Ceremonial events Written and spoken comments Actual behaviors of an organization’s members that create the organizational culture. Values and Beliefs Guiding standards of an organization that affirm what should be practiced Distinct from what is practiced. Copyright © 2004 Prentice Hall. All rights reserved.

Ethics and Corporate Culture Management Ethics Corporate Culture Copyright © 2004 Prentice Hall. All rights reserved.

Checklist 2.2 How to Create the Corporate Culture Clarify expectations. Use signs and symbols. Provide physical support. Use stories. Organize rites and ceremonies. Copyright © 2004 Prentice Hall. All rights reserved.

Components of Corporate Culture Signs and Symbols Practices and actions that create and sustain a company’s culture. Stories The repeated tales and anecdotes that contribute to a company’s culture by illustrating and reinforcing important company values. Rites and Ceremonies Traditional culture-building events or activities that symbolize the firm’s values and help convert employees to these values. Copyright © 2004 Prentice Hall. All rights reserved.

Managers And Social Responsibility The extent to which organizations channel resources to the surrounding environment Based on goodwill Managerial Capitalism The classic view is that a corporation’s main purpose is to maximize profits for stockholders. And, that this leads to a healthy environment Stakeholder Theory Business has a social responsibility to serve all the corporate stakeholders affected by its decisions. All those directly and indirectly affected Copyright © 2004 Prentice Hall. All rights reserved.

A Corporation’s Major Stakeholders Copyright © 2004 Prentice Hall. All rights reserved. FIGURE 2–5

Managers And Social Responsibility (cont’d) Moral Minimum The idea that corporations should be free to strive for profits so long as they commit no harm. Stockholders versus Stakeholders? Dialogue… Copyright © 2004 Prentice Hall. All rights reserved.

Top-Rated Companies for Social Responsibility Johnson & Johnson Coca-Cola Wal-Mart Anheuser-Busch Hewlett-Packard Walt Disney Microsoft IBM McDonald’s 3M UPS FedEx Target Home Depot General Electric Source: Ronald Alsop, “Perils of Corporate Philanthropy,” Wall Street Journal, 16 January 2002, pp. B1. 2001 Harris Interactive/ Reputation Institute Survey. Copyright © 2004 Prentice Hall. All rights reserved. FIGURE 2–6

How to Improve the Company’s Social Responsiveness Corporate Social Audit A rating system used to evaluate a corporation’s performance in meeting its social obligations. Whistle-blowing The activities of employees who try to report organizational wrongdoing. Social Responsibility Networks Organizations that promote socially responsible business practices and help managers to establish socially responsible programs. Copyright © 2004 Prentice Hall. All rights reserved.

Managing Diversity Managing Diversity Planning and implementing organizational systems and practices to manage people in a way that Maximizes the potential advantages of diversity Minimizes its potential disadvantages. Cultural diversity contributes to: Improved productivity Return on equity Market performance. Copyright © 2004 Prentice Hall. All rights reserved.

Bases for Diversity Racial and Ethnic Gender Older workers People with disabilities Sexual/affectional orientation Religion Copyright © 2004 Prentice Hall. All rights reserved.

Barriers in Dealing with Diversity Stereotyping Attributing specific behavioral traits to individuals on the basis of their apparent membership in a group. Prejudice A bias that results from prejudging someone on the basis of the latter’s particular trait or traits. Ethnocentrism A tendency to view members of one’s own group as the center of the universe and to view other social groups less favorably than one’s own. Copyright © 2004 Prentice Hall. All rights reserved.

Barriers in Dealing with Diversity (cont’d) Discrimination A behavioral bias toward or against a person based on the group to which the person belongs. Tokenism Appointing a small number of minority-group members to high-profile positions instead of more aggressively achieving full group representation. Gender-Role Stereotyping Usually, the association of women with certain behaviors and possibly (often lower-level) jobs. Copyright © 2004 Prentice Hall. All rights reserved.

Checklist 2.3 How to Manage Diversity Provide strong leadership. Assess your situation regularly. Provide diversity training and education. Change the culture and management systems. Evaluate the diversity program. Copyright © 2004 Prentice Hall. All rights reserved.

Activities Required to Better Manage Diversity Copyright © 2004 Prentice Hall. All rights reserved. FIGURE 2–7