Daft Excerpt
Ethical Values in Organizations
Forces That Shape Managerial
Ethics
Personal Ethics
Beliefs and Values
Moral Development
Ethical Framework
Organizational Culture
Is
Decision
or Behavior
Ethical and
Socially
Responsible?
Rituals, Ceremonies
Stories, Heroes
Language, Slogans
Symbols
Founder, History
Organizational Systems
External Stakeholders
Structure
Policies, Rules
Code of Ethics
Reward System
Selection, Training
Government Regulations
Customers
Special Interest Groups
Global Market Forces
Ethical Issues in Business
• Ethics: the study of
morals and principles of
conduct
• Right vs. Wrong
• Human consequences
associated with
decisions and actions
• Higher standards than
prescribed by the law
Ethical Frameworks
• The Ethical / Legal
Framework:
• When are actions legal
but unethical, or illegal
but still ethical?
• The Moral Philosophy
Framework:
• What are underlying
assumptions?
The Ethical / Legal Framework
• Legal+Ethical? Do it!
• Illegal+Unethical?
Don’t do it!
• But… legal, but
unethical?
• Or… illegal, but
ethical?
• Ethical dilemmas
The Moral Philosophy
Framework
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•
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1) Utilitarian:
Consequential theories
cost/benefit analysis
maximize ‘good’ and
minimize ‘harm’
• Limitations:
• Measurement issues
• Whose utility curve?
The Moral Philosophy
Framework
• 2) Categorical
Imperative:
• Rule-based theories
• Absolute or universal
law… Bible, Koran
• Limitations:
• Whose interpretation?
• Just following orders...
The Moral Philosophy
Framework
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•
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3) Cultural Relativism:
Cultural theories
Situational ethics
“When in Rome…do as
the Romans do.”
• Limitation:
• Which Romans?
Formal Structure and Systems of the
Organization
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Ethics committee
Chief Ethics Officer
Whistle-blowing
Code of ethics
Training programs