Chapter 6
Values
and
Workplace Ethics
Objectives
Describe how organizations foster
unethical business
Explain how organizations can promote
ethical behavior
Define ethics and values
Better articulate your own values
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…Objectives
Distinguish between ethical and nonethical values
Explain and recognize the stages of moral
reasoning
Describe five ethical models
Explain corporate social responsibility and
its benefits
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What Was Your Score on the
Corporate Integrity Checkup?
Compare your score with your neighbor’s
and describe your organization’s
perspective on ethics
Who had the highest score in the room?
The lowest?
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Overemphasis on individual
and firm performance
Sole objective is profit
Intense internal and external
competition
“Letter of the law” rather than
the “spirit of the law”
Unethical
Business
Practices
Ambiguous “window-dressing”
policies
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Inadequate controls
Expediency reigns
Indifference to customers’ best
interests
Failure to understand public’s
ethical concerns
Unethical
Business
Practices
“Let the buyer beware”
Groupthink mentality
Organizational Behavior: An Experiential Approach 8/E
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How to Foster Ethical
Behavior
Communicate expectations and define
what ethical behavior means
Hire top executives who set a good
example
Reward ethical behavior and punish
unethical behavior
Teach the tools of ethical decision making
Encourage discussion of ethical issues
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The Ethics Warning System
Golden Rule – Are you treating others as
you would want to be treated?
Publicity – Would you be comfortable if
your reasoning and decision were on the
front page of tomorrow’s newspaper?
Kid on your shoulder – Would you
be comfortable if your children
were observing you?
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Ethics - Defined
Standards of conduct that indicate how
one should behave based on moral
duties and virtues arising from
principles about right and wrong
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Values - Defined
Core beliefs or desires that guide or
motivate attitudes and actions
The Toyota Way
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Terminal Values - Defined
Desirable end states of existence or the
goals that a person would like to
achieve
Two types: personal and social values
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Instrumental Values - Defined
Instrumental values are preferable modes of
behavior or the means to achieving one’s
terminal values
Two types: moral and competence values
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Schwartz and Bilsky’s
Seven Universal Values
Prosocial – Active protection or
enhancement of the welfare of others
Restrictive conformity – Restraint of
actions and impulses likely to harm others
and to violate sanctioned norms
Enjoyment – Pleasure, sensuous and
emotional gratification
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…Schwartz and Bilsky’s
Seven Universal Values
Achievement – Personal success through
demonstrated competence
Maturity – Appreciation, understanding,
and acceptance of oneself, others, and the
surrounding world
Self-direction – Independent thought and
action—choosing, creating, exploring
Security – Safety, harmony and stability in
society, identity groups, relationships and
self
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Ethical Vs. Non-ethical Values
Ethical—Related to what is
right and proper
Trustworthiness, respect,
responsibility, justice and fairness,
caring, civic virtue, and citizenship
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…Ethical Vs. Non-ethical
Values
Non-ethical—Related to things we like,
desire, or find personally important
Money, fame, status,
happiness, being liked
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Kohlberg’s Three Levels of
Moral Development
Level One—Self-Centered (Preconventional)
 Stage One: Obedience and Punishment Orientation
 Stage Two: Instrumental Purpose and Exchange
Level Two—Conformity (Conventional)
 Stage Three: Interpersonal Accord, Conformity, Mutual
Expectations
 Stage Four: Social Accord and System Maintenance
Level Three—Principled (Postconventional)
 Stage Five: Social Contract, Individual Rights
 Stage Six: Universal Ethical Principles
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Five Ethical Approaches
Utilitarianism – greatest good for greatest number
Individual Rights – personal entitlements
Justice – fairness, equity, impartiality
Caring – well-being of other people
Environmentalism – stewardship of the earth
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International Ethics
Making ethical decisions is even more
difficult in international business due to
different value systems and practices
Example: Different attitudes toward bribery
But ethical behavior is a competitive
advantage because it builds trust
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Corruption - Defined
“The abuse of public power for private gain”
Out of 159 countries evaluated for the 2005
Corruption Perceptions Index, 70 countries
have high levels of corruption
Corruption correlates with high power
distance and achievement cultures, sociopolitical instability, and the absence of a
tradition of well-established law and order
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Corporate Social
Responsibility - Defined
“ CSR is broadly defined as a company’s
commitment and contribution to the quality
of life of employees, their families and the
local community and society overall to
support sustainable economic
development”
Provides a competitive advantage in
business and in attracting and retaining
employees
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When Is Whistle Blowing
Legitimate?
It would benefit the public interest
The revelation is of major importance and
very specific
The facts have been checked and
rechecked for accuracy
All other avenues within the organization
have been exhausted
The whistleblower is above reproach and
has nothing to gain personally by revealing
the info
Organizational Behavior: An Experiential Approach 8/E
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Ways of Handling Unethical
Behavior
Sabotaging or refusing (quietly or vocally)
to implement unethical behavior
Indicating your unwillingness to support a
cover-up in case the wrong-doers are
caught
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...Ways of Handling Unethical
Behavior
Secretly or publicly blowing the whistle
within the organization
Secretly or publicly threatening the
offender or a responsible higher-level
manager with blowing the whistle inside
or outside the organization
Secretly or publicly blowing the whistle
outside the corporation
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