1. 1 Values and Ethics Dr. Fred Mugambi Mwirigi JKUAT

2. 2 Preamble “All human beings are born free and equal in dignity and rights. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood.” Article 1 of the 1948 UN “Universal Declaration of Human Rights”

3. 3 Definitions  Ethos: Greek word for “character” and “customs” (traditions)  Ethic: “a set of moral principles; a guiding philosophy; a consciousness of moral importance (a work ethic, a conservation ethic)”  Ethics: “the discipline of what is good or bad, with moral duty / obligation; principles of conduct governing an individual or group”

4. 4 Definition of Ethics  Principles that guide an individual’s conduct in his/her day-to-day operations and his/her relationship with the environment within which he/she exists and operates.  The rules of conduct that guide the moral personality of an individual or enterprise and their interface with their operating environment.  A group of moral principles, standards of behaviour or set of values regarding proper conduct

5. 5 Definition of Values  Fundamental belief systems that form the basis for the development or adoption of ethical patterns of behavior.  The bedrock upon which an ethical personality is built.  Moral justifications of all the actions that a person decides to take (or not to take) in the course of his/her operations.  Human values emphasize the responsibilities that enable the aspiration of the organization to be protected, safeguarded, and fulfilled.

6. 6 Ethics and Performance  Ethics influences the way people: Perform duties at and away from work Enact attitudes Enact behavior Make decisions Relate to others Carry out your responsibilities Plan for the future

7. 7 How widespread is the problem of Ethics?

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19. 19 Approaches to Ethics 1. Teleological theories 2. Deontological theories

20. 20 Teleological Approach  Teleological approach emphasizes the amount of good or bad embodied in the consequence of behaviors.  Teleology focuses on the consequences of the actions or behaviors of the individual  In order to make correct moral choices, we have to have some understanding of what will result from our choices.

21. 21 Contd.  When we make choices which result in the correct consequences, then we are acting morally; when we make choices which result in the incorrect consequences, then we are acting immorally.  Conforms to the maxim ‘the ends justify the means’  Explored by Plato, Aristotle and later Emmanuel Kant  Also called consequentialism

22. 22 Deontological Approach  Deontological approach deals mainly with the inherent righteousness of a behavior.  Deontologists look for conformity to moral principles to determine whether an action is ethical or not.  Deontological moral systems are characterized primarily by a focus upon adherence to independent moral rules or duties.  Conforms to the maxim ‘the means justify the ends’  Also called moral absolutism

23. 23 Sources of Ethical Norms Fellow Workers Family Friends The Law Regions of Country Profession Employer Society at Large Seniors at work Religious Beliefs The Individual Conscience

24. 24 Ethics and the Law  Law often represents an ethical minimum  Ethics often represents a standard that exceeds the legal minimum EthicsLaw Frequent Overlap

25. 25 Source of Behavior ValuesAttitu des Behavi or

26. 26 3 Models of Management Ethics 1. Immoral Management—A style devoid of ethical principles and active opposition to what is ethical. 2. Moral Management—Conforms to high standards of ethical behavior. 3. Amoral Management Intentional - does not consider ethical factors Unintentional - casual or careless about ethical considerations in business

27. 27 3 Models of Management Ethics Three Types Of Management Ethics

28. 28 Management Morality

29. 29 Elements of Moral Judgment Amoral ManagersMoral Managers Moral Imagination Moral Identification Moral Evaluation Tolerance of Moral Disagreement and Ambiguity Integration of Managerial and Moral Competence A Senses of Moral Obligation

30. 30 Ethical Issues in organizations 1. Character compromise 2. Conflict between personal values and organizational goals 3. Conflict between organizational goals and social values 4. Lying 5. Withholding needed information 6. Abusive or intimidating behavior toward employees 7. Misreporting actual time or hours worked 8. Discrimination

31. 31 Ethical Relations  Employee-Employer Relations  Employer-Employee Relations  Company-Customer Relations  Company-Shareholder Relations  Company-Community/Public Interest

32. 32 Personal Ethics  Personal ethics is a branch that determines the code of conduct one adheres to.  Its a course of action an individual decides to take up in order to reach the ultimate truth.  Following a personal code of ethics brings accountability and responsibility to life.  It gives a purpose and direction, bringing out a meaning to life.  Personal ethics are huge determining factors of ethics at the workplace.

33. 33 Important Acts of Ethics 1. Honesty 2. Commitment 3. Loyalty 4. Management of rights 5. Confidentiality 6. Respect 7. Positive self regulation

34. 34 Honesty  Honesty among employees is key to the growth of an organization since it makes customers develop a strong trust in the organization and its people  Many employees sometimes find truth inconveniencing.  Dishonesty may have some benefits in the short term but it has far-reaching negative implications on the long term for both the employee and the organization.  Dishonest people cannot be trusted. Trust is a state of mind created and reinforced by particular behaviors  Always: …say what you mean … do what you say

35. 35 Dishonest employees:  Exaggerate information  Over-promise on what they and the organization can deliver  Cover-up important information  Circumvent important organizational processes Ø “Remember, the best liars tell the truth most of the time.”

36. 36 Commitment  Whereas some employees are very committed others have a lot of commitment phobia  commitment phobia traps you within yourself, stealing the truth from you that you can commit.  Commitment towards your workplace is the biggest motivating ingredient.  Commitment has to come from within

37. 37 Loyalty  Loyalty is faithfulness towards your work.  Loyalty builds a sense of trust among the employees. It is a quality that one always wishes to find in a friend or life partner.  Disloyalty can quickly destroy an otherwise beneficial relationship between an employee and the boss or between employees themselves

38. 38 Management of Rights  In national laws, each and every citizen of the land has the right to liberty, life and property.  Each one of us has a right to do what we want.  However, these rights are governed by a set of rules formed due to conditioning of the mind.  These rules are called ethics.  Rights must be enacted within a set of ethics  Sometimes your rights and my rights might conflict

39. 39 Respect  Respect has been defined in the corporate world as the recognition and esteem given by all employees to their seniors, superiors and colleagues.  It is professional courtesy  It is the sum total of the way we think about others and the way we treat others  Respect helps to create a friendly professional connection between hierarchies  Respect in the workplace helps the organization to function as one single body

40. 40 Confidentiality  It is the employee's responsibility to treat all information that he comes across in the organization with respect  An employee should know what files or materials he is permitted to access in the office and should adhere to that.  Under no circumstances should the materials in the office be given to outside people.  Data pertaining to hiring, managing and paying employees, should be kept secret at all times  Maintaining confidentiality in the workplace is very important as not doing the same can sometimes cause huge financial losses to the business.

41. 41 Costs of compromised ethics  Reduced Morale  Reduced Productivity (Sloughing off, Illness)  Employee turnover  Direct financial loss  Loss of creativity and innovation

42. 42 Five Broad Ethical Traps  The false-necessity trap (convincing yourself that no other choice exists)  The doctrine-of-relative-filth trap (comparing your unethical behavior with someone else’s even more unethical behavior)  The rationalization trap (justifying unethical actions with excuses)

43. 43  The self-deception trap (persuading yourself, for example, that a lie is not really a lie)  The ends-justify-the-means trap (using unethical methods to accomplish a desirable goal) Five Broad Ethical Traps

44. 44 Specific ethical pitfalls  Abusive or intimidating behavior toward other employees  Misreporting of hours worked  Withholding needed information from other employees  Discrimination  Stealing, theft, or related fraud

45. 45 Specific ethical pitfalls (cont.)  Sexual harassment  Falsifying financial records or reports  Giving or accepting bribes, kickbacks, or inappropriate gifts  Others

46. 46 External Sources of Good Ethics  Religious values  Philosophical values  Cultural values  Legal values  Professional values

47. 47 Internal Sources of Ethics  Respect for the authority structure  Loyalty  Conformity  Performance  Results

48. 48 Are there ethical employees?

49. 49 In summary “True ethical behavior means holding yourself to the highest level of behavior because you want to - not because you’re afraid of getting caught and punished”

50. 50 Thank you