Chapter 5
Ethics, Politics, and
Diversity
“I hope I shall possess firmness
and virtue enough to maintain
what I consider the most enviable
of all titles, the character of an
honest man.”
George Washington
OBJECTIVES

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Define ethics and its impact both personally
and professionally
Identify the importance of maintaining
confidentiality
Define and identify the appropriate use of
power and power bases
Understand the topics of politics and
reciprocity and their appropriate use in the
workplace
Understand the importance of ethical
decision making
OBJECTIVES (cont.)
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
Define workplace diversity and realize its impact
on performance
State the basic employee rights and legal
protection available for workplace diversity
issues
Recognize the negative impact stereotypes and
prejudice have in the workplace and on
performance
Identify cultural differences and the positive and
negative impact these differences have on
business
ETHICS DEFINED


Ethics: a moral standard of right and
wrong
 Just as your personality is shaped by
outside influences, so is your ethical
make-up
 Ethical behavior is a reflection of
influences
Ethical behavior starts with the individual
TALK IT OUT
Discuss recent corporate ethicsrelated scandals
ETHICS DEFINED


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Morals-a personal standard of right
and wrong
Values-important beliefs of an
individual that guides his or her
behavior
Character-the unique qualities of an
individual
INFLUENCES ON ETHICS AT WORK

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Ethical issues arise daily at work
Confidential: workplace matters that
should be kept private
Implied confidentiality: an
obligation to not share information
with individuals with whom the
business is of no concern
If you are uncertain about sharing
information, check with your boss
INFLUENCES on ETHICS at WORK
Ethical Behavior


Ethical behavior includes dependability
and conduct during company time
It is inappropriate to consistently spend
your time on non-company activities such
as:
 Using the Internet for personal business
 Taking or making personal calls or texts
 Exceeding allotted breaks and lunch
periods
 Playing computer games
 Using company supplies for nonbusiness purposes
TALK IT OUT
When is it appropriate to make
personal calls at work?
TALK IT OUT
What activities done during class
could be considered unethical?
POWER AND ETHICS
Power
 Power:
the
ability to
influence
another’s
behavior
 Everyone at
work has some
form of power

Seven bases
of power:







Legitimate
Coercive
Reward
Connection
Charismatic
Information
Expert
POWER AND ETHICS
Bases of Power


Legitimate power: power given to you
from the company
 Authority that comes with your
position
Coercive power: power given to you
from the company
 Authority that comes with your
position
 Uses threats or punishment
POWER AND ETHICS
Bases of Power (cont.)


Reward power: the ability to
influence someone with something of
value
 Rewards with promotions, pay
increases, and other incentives
Connection power: using someone
else’s legitimate power
 Example: an assistant using the
boss’s power to make arrangements
for meetings
POWER AND ETHICS
Bases of Power (cont.)
Charismatic power: personal
power that makes people attracted
to you
 Shows sincere interest in others
 Information power: the ability to
obtain and share information
 Value to others with whom you
interact

POWER AND ETHICS
Bases of Power (cont.)
 Expert
power: power earned by
knowledge, experience, or expertise
 May be lower on the chain of
command, but still wields power
INCREASING YOUR POWER BASES
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Reward power should be used daily
Networking: meeting and developing
relationships outside your immediate
work area
Increase your charismatic power by
focusing attention on others
Increase your expert power by
practicing continuous learning
POLITICS AND RECIPROCITY
Politics: obtaining and using power,
begins when one obtains and utilizes
power
 Reciprocity: when debts and
obligations are created for doing
something


Do not let the term “you owe me”
influence your ability to behave ethically
CORPORATE VALUES/CULTURE
 Each
company has a corporate
culture—the way a company’s
employees behave


This is based upon the behavior of its
leaders
This behavior reflects an organization’s
ethical behavior
CORPORATE VALUES/CULTURE
 Ethics
statement: a corporate
policy which addresses the issue
of ethical behavior
 Conflict of interest: occurs
when you are in a position to
influence a decision from which
you could benefit directly or
indirectly
MAKING ETHICAL CHOICES
 There
are three levels of ethical
decisions:
The first is the law
The second is fairness
The third is your conscience
MAKING ETHICAL CHOICES
Levels of Ethical Decision Making
1. The Law
Ask yourself if the action is legal

If it is illegal, it is unethical
MAKING ETHICAL CHOICES
Levels of Ethical Decision Making (cont.)
2. Fairness
 Your actions should be fair to all parties
involved
 If someone is going to be harmed, the
decision is probably not ethical
 Even when being fair, not everyone will
be happy with the results
MAKING ETHICAL CHOICES
Levels of Ethical Decision Making (cont.)
3. One’s Conscience
When one knowingly behaves
inappropriately, he or she will ultimately
feel badly about this poor behavior
 Sometimes a behavior may be legal
and fair, but it still may make us feel
badly; if so, it is probably unethical
WHEN OTHERS ARE NOT ETHICAL
 If
someone is breaking the law,
you have an obligation to inform
your employer immediately
WHEN OTHERS ARE NOT ETHICAL
Accusing Others of Wrongdoing


Document facts and evidence
You have three choices:
 Alert outside officials if the offense is
illegal and extreme
 If the offense is not illegal and extreme
and is accepted by management, accept
management’s decision
 If the offense is not illegal and extreme
and is accepted by management, yet you
are bothered, decide whether you want
to continue working for the company
WHEN OTHERS ARE NOT ETHICAL Company
Theft
 Company
theft is not always big
items; more often it is small
items, such as:


Office supplies
 If not used for company purposes
Time
 Surfing the Internet, making personal
calls, and taking extra-long breaks
DIVERSITY BASICS
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On the outside, we may be different,
but on the inside, we are all human
beings
Diversity comes in many forms and
goes far beyond race
DIVERSITY BASICS

Three primary messages regarding workplace
diversity:
 No matter what our differences, treat
everyone with respect and professionalism
 Diversity should be used as an asset that
utilizes our differences as a way to create,
innovate, and compete
 Workplace diversity should only be an issue
when the diversity negatively affects
performance
DIVERSITY BASICS
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Workplace Diversity: differences among
co-workers
We differ in age, gender, economic status,
physical makeup, intelligence, religion, and
sexual orientation, among other things
DIVERSITY BASICS
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Race: people with certain physical traits
Culture: the different behavior patterns of
people
 Understanding race and culture will
assist you in recognizing how these
differences influence values and
behavior
Ethnocentric-when an individual believes
his or her culture is superior to other
cultures
STEREOTYPES AND PREJUDICE

Perception: one’s understanding or
interpretation of reality

Individuals use past experiences to form
perceptions about people and situations
STEREOTYPES AND PREJUDICE

Stereotyping:
making a
generalized image of
a particular group or
situation
 We generally apply
stereotypes to
similar situations
and groups
 Avoid applying
stereotypes in a
negative manner
STEREOTYPES AND PREJUDICE

Prejudice: a favorable or unfavorable
judgment or opinion toward an
individual or group based on one’s
perception (or understanding) of a
group, individual, or situation

Typically, at work, prejudice is a negative
attitude or opinion that results in
discrimination
STEREOTYPES AND PREJUDICE
Workplace Discrimination


Workplace Discrimination: acting
against someone based on race, age,
gender, religion, disability, or any of the
other areas we have discussed in this
chapter
Labeling: when we describe an
individual or group of individuals
 We attach positive or negative labels
to groups or individuals and
frequently have the groups or
individuals live up or down to these
standards
STEREOTYPES AND PREJUDICE
The Company’s Actions
 Diversity
statements:
 Diversity
training: designed to
statements that remind employees
that diversity in the workplace is an
asset and not a form of prejudice or
stereotyping
teach employees how to eliminate
workplace discrimination and
harassment
STEREOTYPES AND PREJUDICE
The Company’s Actions (cont.)

Elimination of glass ceilings and glass
walls
 Glass ceilings: workplace barriers that
prevent women and minorities from
advancing up the corporate ladder
through promotions
 Glass walls: workplace barriers that
prevent women and minorities from
certain situations
CULTURAL DIFFERENCES
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Cultural differences include, among other
things, religious influences, the treatment of
individuals based on age and gender, special
differences,
and family influences
Be respectful of everyone’s individual
religious beliefs
Although we may not agree with other
cultures, we have to respect cultural
differences
Learning about other cultures can provide
insights into new markets and stimulate
creativity