1. Ethics

2. What is Ethics?
Def: the code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong?
Standards driving behavior
Codified law: Legal
Free Choice: Personal
Ethics: Social
Ethical dilemma: when alternatives are undesirable because they have potentially harmful consequences.
Moral agent: one who must make an ethical choice
Free choice is obedience to oneself
Ethics is based on social norms
Legal says if it is not illegal it must be ethical.

3. Ethical Question
Should products that fail to meet tough FDA standards be exported to other countries where government standards are lower?
Benefit the company
Can be harmful
Could help the majority
AIDS or Malaria or Bird Flu.

4. How do these impact ethics in the workplace?
Approaches to Ethics
Utilitarian Approach
Moral behaviors produce the greatest good for the greatest number.
Individualism Approach
Acts are moral when they promote the individual’s best long term interests.
Moral-Rights Approach
Human beings have fundamental rights & liberties that can not be taken away by an individual’s decision.
Justice Approach
Moral decisions must be based on standards of equity, fairness and impartiality
Utlitarian: considers only the people who are directly affected by the decision not those who are indirectly affected.
Individualism: by promoting our own long term interests we will consider the interests of others.
Do you believe this?
Moral Rights:
Right of free consent; Right of privacy; Right of freedom of conscience; Right of free speech; Right of due process; Right of life and safety.
Justice: closest to codified law
How do these impact ethics in the workplace?

5. Corporate Culture & Ethics
Ethical or unethical practices usually reflect the values, attitudes, beliefs and behavior patterns of the organizational culture.
Ethics is as much an organizational as a personal issue.
Do you believe these statements?

6. Manager’s Impact on Ethical Choices
Personal traits direct a manager’s ethical choices.
Stage of moral development:
Preconventional
Follows rules to avoid punishment; acts in own self interest; obedience for its sake
Autocratic leadership
Conventional
Lives up to expectations of others; fulfills duties & obligations of social system; upholds laws
Guiding/encouraging, team oriented leadership
Postconventional
Follows self-chosen principles of justice & right; aware there are different values & seeks creative solutions; Balances concern for individual with concern for common good.
Transforming or servant leadership
Personal traits: personal needs, family influence, religious background.
Personality characteristics: ego strength, self-confidence, sense of independence.
Most managers are in Conventional stage

7. Organizational Impact on Ethical choices
Corporate Culture serves to let employees know what beliefs and behaviors the company supports and those it will not tolerate.
Other influences
Explicit rules
Reward system
Extent to which the company cares for its people
Selection system
Emphasis on legal system
Professional standards
Leadership
Decision processes

8. Ethics & Global Market
Globalization has made ethical issues more complicated. How?
Do you think the development of a global standard for ethical business conduct will be effective?
Why or why not?

9. Ethical Responsibility to the Stakeholders
Social Responsibility:
Obligation of management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization.
Can there be conflicts making decisions in satisfying the following stakeholders? How?
Employees
Shareholders
Suppliers
Government
Environmentalists
Local citizens

10. Measures of Corporate Social Performance
Economic Responsibilities: produce the goods & services society wants and maximize profits for owners & shareholders.
Legal Responsibilities: Obey the law
Ethical Responsibilities: Not necessarily codified as a law and may not directly benefit the company.
Discretionary Responsibilities: Voluntary & guided by the organization’s desire to make social contributions not mandated by law, economics or ethics.
Question: Is it ethical to start a business that buys repossessed houses or cars with the intent to refurbish and sell?

11. How to Create an Ethical Organization
Ethical Individuals
Managers, employees
Ethical Leadership
Creation of an ethical corporate culture
Organizations Structures & Systems
Code of ethics
Systems & policies the promote & define ethics
Training
Whistle blowing