Managing Ethics (Based on Managing Business Ethics, Trevino & Nelson, chapter 1)

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Managing Ethics(Based on Managing Business
Ethics, Trevino Nelson, chapter 1)

• Geoffrey G. Bell, PhD, CA
• University of Minnesota Duluth
• September 2004

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Is business ethics just a fad?

• Business ethics as a hot topic in the popular
  media appears to be a fad, or at least a cyclic
  phenomenon.
• Forbes corporate scandal sheet hasnt been
  updated since Sept 2002.
• However, academic interest and research in the
  topic continues.
• If a fad, its a pervasive one see Forbes
  corporate scandal sheet.

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Bad apples vs. bad barrels

• This gets down to a question of whether ethical
  lapses as seen recently are systemic or
  one-of-a-kind.
• People are complex actors who often lead
  compartmentalized lives (e.g., Ken Lay).
• Systemic sources
• Organizations may knowingly or unknowingly reward
  and thereby foster unethical behavior.
• Organizational systems may force ethical people
  to act unethically.
• Organizational checks and balances (e.g., the
  audit committee of the board) may not be
  functioning well.

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Ethics as principle vs. ethics as action

• If ethics is defined in terms of a set of
  principles then how can one differentiate
  between sets of principles?
• Text (and class) will focus on conduct actions
  as basis of ethics.
• Ethical behavior is focus.
• Therefore, text (and class) is about managing
  behavior rather than developing principles,
  although course will challenge your principles
  (why you believe what you do).

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A model of the ethical decision-making process

• Individual characteristics
• Individual differences
• Cognitive biases

Individual ethical decision-making behavior
Moral judgment
Ethical Behavior
Moral awareness

• Organizational characteristics
• Group organizational pressures
• Organizational culture

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Ethics and the law
Ethics
Ethics
Law
Law
America
China