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Denial of responsibility. Denial of injury. Denial of the victim.
TABLE 7.7 HEATH’S SEVEN RATIONALIZATIONS OF UNETHICAL ACTIONS Denial of responsibility. Denial of injury. Denial of the victim. Condemnation of the condemners. Appeal to higher loyalties. Everyone else is doing it. Entitlement. Source: “7 Neutralization/Rationalization Techniques”, a speech by Joseph Heath at the Centre for Ethics at the University of Toronto, April 9, 2007, later published as “Business Ethics and Moral Motivation: A Criminological Perspective,” Journal of Business Ethics, 83 (2008):
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STAKEHOLDER’S POTENTIAL
FIGURE 7.2 DIAGNOSTIC TYPOLOGY OF ORGANIZATIONAL STAKEHOLDERS STAKEHOLDER’S POTENTIAL FOR THREAT High Low Type 4 Mixed Blessing Type 1 Supportive High Strategy Collaborate Strategy Involve STAKEHOLDER’S POTENTIAL FOR COOPERATION Type3 Nonsupportive Type 2 Marginal Low Strategy Defend Strategy Monitor SOURCE: G. Savage et al, “Strategies for assessing and managing organizational shareholders”, The Executive, Vol. 5, no. 2, May 1991, 65.
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Employee Rights Themes In North America
TABLE 7.6 Employee Rights Themes In North America Privacy and dignity of person, personal information and property: Boundaries of personal rights, employers rights and right of the public Proper procedures: notification and consent Testing for substance abuse Harassment, sexual and otherwise Civil work environment Fair treatment: Discrimination: age, race, sex, employment, pay Fair policies Is equal treatment fair? Healthy and safe work environment Expectations: reasonability, right to know, stress, family life, productivity Quality-of-life concerns: smoking, health Family-friendly workplaces Ability to exercise conscience Blind loyalty Whistle-blowing Trust – the key to leadership, innovation, loyalty, and performance – depends on ethics Operations: downsizing, contingent workforce
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Motive Opportunity Rationalization FIGURE 7.3 THE FRAUD TRIANGLE
Source: D.L. Crumbley et al, 2005, p
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FIGURE 7.4 Ego Social Physical MASLOW’S HIERARCHY OF NEEDS
Self-actualization, Fulfillment Ego Esteem, Respect Love, Affinity Social Safety Physical Physiological
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HOW TO INCORPORATE ETHICS INTO CRISIS MANAGEMENT
TABLE 7.8 HOW TO INCORPORATE ETHICS INTO CRISIS MANAGEMENT Prevention and warning: Code of conduct: identify values, adopt, emphasize and make effective Identify potential ethics problems and warning indicators, and pre-plan responses, as part of an ongoing enterprise risk management and contingency planning program Ethical “red flags” or warning indicators: Training to emphasize how to identify and what to do about them Check as part of an ongoing enterprise risk management system Encourage by publicizing good examples, and awarding paper medals Analytical approach: Apply a stakeholder-analysis framework as discussed in Chapter 5: External ethics consultant Checklist or specific time to consider: ethics issues, alternatives & opportunities Decision itself: Ethics/company’s values: integrate into the decision making: Consider how the crisis or its impact can be influenced ethically–timing, cost, mitigation? Specific consideration of how to improve the organization’s reputation drivers including–trustworthiness, responsibility, reliability, and credibility Specific ethical communications objectives Assign ethics watch-dog responsibility Use a checklist or template with specific ethics objectives Apply moral imagination as discussed in Chapter 5 Communications on ethical intent to: Media, employees, customers, government, public & other stakeholders
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Continuing Reputational Impact
FIGURE 7.5 PHASES OF A CRISIS Cost To Organization Unanticipated Crisis Anticipated Crisis Continuing Reputational Impact Post- Crisis State Reached Control Begins Time Controlled Phases Pre-crisis Reputation Restoration Uncontrolled
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