Today
• Quiz
• Strengthen your awareness of ethical issues
What Is Ethics?
• Rules or principles that define right
and wrong
– More often is an issue of shades of
grey
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
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.
Factors Affecting
Managerial Ethics
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•
•
•
•
The Individual’s Characteristics
The Organization’s Culture
The Organization’s Structure
The Intensity of the Issue
The National Culture
How Can Organizations
Encourage Ethical Behavior?
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•
•
•
Develop a Code of Ethics
Lead by Example
Set Realistic Job Goals
Provide Ethics Training
How Can Organizations
Encourage Ethical Behavior?
(continued)
• Use Comprehensive Performance
Appraisals
• Do Independent Social Audits
• Create Ethics Officers
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.
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?
Exhibit 5-3: Why Do Individuals Make
Poor Choices on Ethical Issues?
1.
2.
3.
4.
5.
Individual and/or organization is immature.
Economic self-interest is overwhelming.
Special circumstances outweigh ethical concerns.
People are uneducated in ethical decision-making.
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.