Chapter 4 Ethics

Objectives Define Ethics Explain the importance of ethical behavior in organizations Demonstrate the supervisor’s role in promoting ethical behavior Explain the organizations role in promoting ethical behavior Demonstrate how to handle ethical dilemmas

Ethics Defined Ethics is the study of morality. Ethical Behavior means doing the right thing within a moral framework.

Morality Morality refers to the values that are widely subscribed to and fostered by society in general and by individuals within society. Ethics attempts to apply reason in determining rules of human conduct that translate morality into everyday behavior.

Guidelines for Determining Ethical Behavior Morning after test: If you make this choice, how will you feel about it and yourself tomorrow morning? Front page test: Make a decision that would not embarrass you if printed as a story on the front page of your local newspaper. Mirror Test: If you make this decision, how will you feel about yourself when you look in the mirror? Role reversal test: Trade places with the people affected by your decision and view the decision through their eyes. Common sense test: Listen to what your instincts and common sense are telling you. If it feels wrong, it probably is.

The Supervisor’s Role in Ethics Supervisors have a 3 part role: First, they are responsible for setting an example of ethical behavior. Second, they are responsible for helping employees make the right decision when facing ethical questions. Finally, supervisors are responsible for helping employees follow through and actually undertake the ethical option once the appropriate choice has been identified.

The Supervisor’s Role in Ethics Best Ratio Approach: When hard decisions have to be made, supervisors should make the choice that will do the most good for the most people. This is sometimes called situational ethics. Black and White Approach: When difficult decisions have to be made, supervisors should make fair and impartial choices and let the chips fall where they may. Full Potential Approach: Make decisions based on how they will help those involved achieve their full potential.

The Organization’s Role in Ethics An organization’s role in ethics can be summarized as: Creating an integral environment that promotes, expects, and rewards ethical behavior Setting an example of ethical behavior in all internal and external dealings.

Handling Ethical Dilemmas Three steps for handling ethical dilemmas: Apply the test for making ethical choices. Select on of the three approaches to handling ethical questions. Proceed with the decision (be consistent over time).

Ethics Philosophy The Jones company will conduct its business in accordance with all applicable laws, rules, regulations; with corporate policies, procedures and guidelines; with honesty and integrity; and with a strong commitment to the highest standards of ethics. We will do business in accordance with both the letter and the spirit of law. Such a statement sets the tone for all employees at the Jones company by letting them know that higher management not only supports ethical behavior, but expects it.

Determining Ethical Choice Is it Legal?: if a potential course of action is not legal, no further consideration is required. Is it balanced?: Will it be fair to all involved. How will it make me feel about myself?: A course of action that leaves you feeling good about it and yourself is one that is in keeping with your own moral structure.

The 5 P’s of Ethical Power Purpose: Individuals want to feel good about themselves. Pride: Individuals have sufficient self esteem to make the right choice. Patience: Individuals believe that right will prevail in the long run. Persistence: Individuals are willing to stay with the ethical course. Perspective: Individuals are guided by their internal instinct while making decisions.

Terms Summary Best Ratio Approach Black and White Approach Common Sense Test Ethical Behavior Front Page Test Full Potential Approach Mirror Test Morning After Test Role Reversal Test

Home Work Answer questions 3,4,5,7,9, and 10 on pages 50 and 51 of the text book. 3. Briefly explain each of the following ethics tests: morning after test, front page test, mirror test, role reversal test, common sense test. 4. What is the supervisor’s role with regard to ethics? 5. Briefly explain the following approaches to handling ethical behavior: best ratio approach, black and white approach, full potential approach. 7. Explain how a supervisor should proceed when facing an ethical dilemma. 9. List the individual and situational factors that might influence an employee’s ethical behavior. 10. List and briefly describe the 5 P’s of Ethical Power as described by Blanchard and Peale.