1. Organizational Relationships and Conflicts in Ethical Decision Making
Chapter 7
Organizational Relationships and Conflicts in Ethical Decision Making

2. Key Influences on Ethical Behavior
society
corporate culture
peers & coworkers
strength of the individual’s personal values
opportunity
exposure to others that behave (un)ethically
informal relationships
formal relationships

3. Responsibility of the Corporation as a Moral Agent
chartered as citizens of a state and nation, therefore, they have all the right s & responsibilities of individuals
responsible to society for its decisions
business ethics & social responsibility are assigned to the organization as an entity
must require compliance with ethical policies representing the interests of all stakeholders

4. Variation in Employee Conduct
10%-will take advantage of situations to further their own personal interests
40%-will go along with the work group on most matters
40%-will try to follow company policies & rules & have a strong grasp of the corporate culture
10%-maintain formal standards that focus on rights, duties & rules

5. Socialization...
the process through which a person learns the values & behavior patterns considered appropriate by an organization or group
has a significant influence on ethical behavior
ethical conflict arises when the values & norms of the individual conflict with those taught through socialization

6. Role-Set...
the total of all role relationships in which an individual is involved because of his or her position in an organization
role sets may help predict ethical behavior
persons in the same department are socialized similarly and share the same specialization & knowledge base
members of an organization have more in common with one another than with members of other organizations

7. Differential Association...
refers to the idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or other intimate personal groups
if interaction is with those who behave unethically, parallel behavior may be expected
superiors have strong influence on the ethics of their subordinates
differential association with peers & opportunity are better predictors of unethical behavior than is the person’s own ethical belief system

8. Whistle Blowing...
when unethical or illegal behavior occurs in the organization and individual interpersonal conflict occurs
exposing an employer’s wrongdoing to outsiders such as the media or government regulatory agencies
provides an in-house mechanism for employees or voice concerns
usually anonymous

9. Organizational Pressure & Ethical Decision Making
success in organizations is determined through the achievement of organizational goals
internal organizational pressure stemming from role-set relationships & differential association is a major predictor of unethical behavior
top management & superiors play crucial roles in developing the environment that influences ethical behavior

10. Opportunity Creates Ethical Dilemmas
opportunity is a set of conditions that limit unfavorable behavior or reward favorable behavior
rewards may be internal (self-worth, enjoyment)
rewards may be external (raises, promotion)
a person who behaves unethically & is rewarded is likely to continue the behavior; punishment is a more suitable deterrent

11. Opportunity also comes from Knowledge
a person with information, expertise or competitive knowledge has the opportunity to exploit this knowledge
long term employment with one company leads to gatekeeping-socializing newer employees regarding culture, tradition, rules, unwritten traditions, etc.
trainers & mentors influence new employees behavior

12. Conflict Resolution...
occurs when it is not clear which goals or values take precedence-those of the organization or a group within the organization
personal-organizational conflict
personal-societal conflict
organizational-societal

13. Improving Ethical Behavior
ethical behavior depends on:
the embedded organizational value system (corporate culture)
significant others
personal value preferences