1. Today Quiz Strengthen your awareness of ethical issues

2. What Is Ethics? Rules or principles that define right and wrong –More often is an issue of shades of grey

3. Why Study Ethics? Managers Set Standards for Subordinates and Create a Tone for the Organization Behavior of Managers Is under Increasing Scrutiny Ethical Reputations Are Good for Business

4. Why Ethics Questions Are Often Tougher Than They Seem Often, There Is No Single Correct or Easy Answer. –Opinions Differ When Faced With Ethical Dilemmas.

5. Factors Affecting Managerial Ethics The Individual’s Characteristics The Organization’s Culture The Organization’s Structure The Intensity of the Issue The National Culture

6. How Can Organizations Encourage Ethical Behavior? Develop a Code of Ethics Lead by Example Set Realistic Job Goals Provide Ethics Training

7. How Can Organizations Encourage Ethical Behavior? (continued) Use Comprehensive Performance Appraisals Do Independent Social Audits Create Ethics Officers

8. What You As An Individual Can Do Develop Your Own Ethical Guideposts and Decision-making Processes. –Know and Understand Your Organization’s Policy on Ethics. –Think Before You Act and Ask Yourself What-if Questions. –Seek Opinions from Others. –Do What You Truly Believe Is Right.

9. Exhibit 5-1: How will you feel? In their book, The Power of Ethical Management, clergyman Norman Vincent Peale and business consultant Ken Blanchard suggest the following ethics check: Is it legal? Will I be violating either civil law or company policy? Is it balanced? Is it fair to all concerned in the short as well as long term? Does it promote win-win relationships? How will it make me feel about myself? Will it make me proud? Would I feel good if my decision were published in the newspaper? Would I feel good if my family knew about it?

10. Exhibit 5-3: Why Do Individuals Make Poor Choices on Ethical Issues? 1.Individual and/or organization is immature. 2.Economic self-interest is overwhelming. 3.Special circumstances outweigh ethical concerns. 4.People are uneducated in ethical decision-making. 5.Possible rewards outweigh possible punishments for unethical behavior. 6.The prevailing attitude is “All’s fair in love, war, and business.” 7.There is powerful organizational pressure to commit unethical acts.