Business 185 Business Ethics - PowerPoint PPT Presentation

1 / 190
About This Presentation
Title:

Business 185 Business Ethics

Description:

Unexcused absence costs 30 points. Excused absence cost 10 points ... who works for you is moving with her husband to another city, where she'll be ... – PowerPoint PPT presentation

Number of Views:155
Avg rating:3.0/5.0
Slides: 191
Provided by: WarrenS9
Category:

less

Transcript and Presenter's Notes

Title: Business 185 Business Ethics


1
Business 185Business Ethics
  • Warren Sargent
  • 625-4598

2
Course Information on Internet
  • http//www.cos.edu
  • Click on
  • Academic Divisions
  • Divisions
  • Business
  • Faculty/Staff
  • Warren Sargent

3
In this class we will learn about ethical
decision making
  • Business
  • Family
  • Community Service

4
Introduce a new friend
  • Name
  • Residence city
  • Vocation (occupation)/employer
  • Avocation (hobbies/interests)
  • Why are you taking this class?

5
Topics
  • A. Managing business ethics
  • B. Why be ethical?
  • C. Common ethical problems
  • D. Deciding what's right
  • E. Ethical problems of managers
  • F. Managing for ethical conflict
  • G. Ethical problems of organizations
  • H. Ethics as organizational culture
  • I. Creating an ethical organizational culture
  • J. Managing for ethical conduct in a global
    business environment
  • K. Advice for executives

6
Text
  • Managing Business Ethics
  • 2nd Edition
  • Linda Trevino
  • Katherine Nelson

7
Evaluation and Grading
  • Attendance 200
  • Class participation 300
  • Homework 300
  • Final 200
  • Total 1000

8
Attendance
  • Unexcused absence costs 30 points
  • Excused absence cost 10 points
  • Arriving late or leaving early cost 5 points
  • Accumulated total of 90 points F

9
Participation
  • Individual, in class discussions
  • Group presentations to class

10
Evaluation and Grading
  • 900- A
  • 800-899 B
  • 700-799 C
  • 600-699 D
  • 599- F

11
Chapter 1
12
Introduction to Business Ethics
  • Definition
  • Can it be taught?
  • Process
  • Law

13
Definition 1 of Business Ethics
  • The principles, norms and standards of conduct
    governing an individual or group

14
Definition 2 of Business Ethics
  • The study and evaluation of decision making by
    businesses according to moral concepts and
    judgments.

15
Can Business Ethics Be Taught?
16
Can Business Ethics Be Taught?
  • Each individual has their own principles, norms
    and standards of conduct
  • Pressure may be exerted by the group to use the
    principles, norms and standards of conduct of the
    group (which may be different from an
    individuals)
  • Cultural differences need to be evaluated

17
Can Business Ethics Be Taught?
  • Framework of decision making needs to be
    developed where all of the effected parties are
    identified and their interests evaluated
  • Individual
  • Company
  • Customer
  • Supplier
  • Owner
  • Environment
  • Culture/Society
  • Competitors/Market

18
Ethical Principles are Simple
  • Most of us have a sense of right and wrong
  • We need to learn how to apply that sense in
    business settings where there are many parties
    and perspectives
  • Case studies will help us learn from example

19
Standards of Business Practice
  • Where is there agreement?
  • Where is there disagreement?

20
Example page 10
21
  • Youre the VP of a medium-sized organization that
    uses chemicals in its production processes. In
    good faith, youve hired a highly competent
    person to ensure that your company complies with
    all environmental laws and safety regulations.
    This individual informs you that a chemical the
    company now uses in some quantity is not yet on
    the approved EPA list, although its undergoing
    review and is scheduled to be placed on the
    approved list in about three months because its
    been found to be safe. You cant produce your
    product without this chemical, yet youre not
    supposed to use the chemical until its approved.
    Waiting for approval would require shutting down
    the plant for three months, putting hundreds of
    people out of work, and threatening the companys
    very survival. What should you do?

22
Example
  • What are the major issues?
  • Where are the major conflicts?
  • Who are the affected parties?
  • How do you evaluate the different perspectives?
  • How do you reconcile the differences?

23
Process
  • Characteristics of Individuals
  • Individual Ethical Decision Making Behavior
  • Characteristics of Organizations

24
Characteristics of Individuals
  • Individual differences
  • Cognitive (thinking) differences

25
Characteristics of Organizations
  • Group and organizational pressures
  • Organizational culture

26
Individual Ethical Decision Making and Behavior
  • Moral Moral Ethical
  • Awareness Judgment Behavior

27
Ethics and the Law Some Overlap
Ethics
Law
28
Chapter 2
29
Why be Ethical?
  • Organizational perspective
  • Members need to know boundaries
  • Lapses can shatter customer confidence
  • Members may abandon unethical group
  • Potential governmental regulation
  • Media may expose unethical behavior
  • Management must justify unethical behavior to
    employees
  • Fines from unethical behavior

30
Why be Ethical?
  • Individual perspective
  • Desire to do right
  • Possible loss of income or reputation if
    unethical behavior becomes publicized
  • Peer pressure
  • Long term view (short term view may suggest that
    unethical behavior will be rewarded)

31
Why be Ethical?
  • Management should be held accountable for lapses
  • Organizations want to retain the best employees,
    who generally want to work in an ethical
    environment
  • A good reputation is important
  • Integrity is an essential ingredient for success
    and personal satisfaction

32
Why be Ethical?
  • Customer perspective
  • Supplier perspective
  • Owner perspective
  • Environmental perspective
  • Cultural/Societal perspective
  • Competitive/Market perspective
  • There are many perspectives to consider!

33
Corporate Responsibilities
  • Economic (to make a profit)
  • Legal (to obey all laws)
  • Ethical (to consider all stakeholders, to do
    right and avoid harm)
  • Philanthropic (to promote human welfare and
    goodwill)

34
Corporate Responsibilities
  • Economic
  • Legal Ethical
  • Philanthropic

35
Corporate Responsibilities
  • Federal Government issued sentencing guidelines
    for federal offenses (1984, 1987, 1991)
  • Apply to organizations and individuals
  • Penalties stiffer than before as well as more
    consistent
  • Tools include fines and other sanctions (e.g.
    divestiture)
  • Provides a deterrent against unethical behavior

36
Corporate Responsibilities
  • Social irresponsibility and illegal corporate
    behavior are associated with lower stock market
    returns
  • These behaviors cost money as well as tarnish a
    reputation

37
Corporate Responsibilities
  • Managers and workers value good reputations
  • Workers are guided by an ethical compass to
    consider both costs and benefits of a decision
  • Growing use of teamwork requires more trust and
    cooperation (ethical behavior)

38
Case 2.1, Page 43
39
Chapter 3
40
Overview of United States Law
  • Criminal law
  • Civil law
  • Administrative
  • Torts
  • Contract

41
Civil Law
  • Administrative
  • Congress (Federal and State) passes laws and
    affected governmental agencies make rules to
    enforce laws

42
Civil Law
  • Torts
  • Assault and battery
  • Bad faith
  • Conversion (taking possession illegally)
  • Defamation
  • Trespass
  • False imprisonment
  • Negligence
  • Liability

43
Civil Law
  • Contract
  • Competent parties
  • Mutual agreement
  • Genuine assent
  • Reciprocal consideration
  • Legality (cant be criminal, tortious or against
    public policy)

44
Ethical Issue Identification
  • We need to learn how to identify ethical issues
  • Lapses often occur because of a lack of
    understanding of the ethical issues involved

45
Ethical Issues to Consider
  • Human relations
  • Conflict of interest
  • Customer confidence
  • Use of corporate resources
  • Whistle blowing

46
Human Resource Issues
  • Potential problems
  • Sexual or other types of harassment
  • Performance evaluation
  • Interviewing
  • Hiring
  • Discipline
  • Firing

47
Human Resource Issues
  • Goal interview, hire, appraise, promote, layoff,
    fire strictly on the basis of qualifications
  • Assumption people are able to be fair without
    considering extraneous factors such as sex, race,
    age, or religion

48
Human Resource Issues
  • Discrimination
  • Sexual and other types of harassment

49
Discrimination
  • Occurs whenever something other than
    qualifications affects how an employee is treated
  • Is an ethical issue because of the unfairness
    that is at its core
  • Victims can file lawsuits under the Civil Rights
    Act of 1964 or under tort or contract law

50
Sexual or other types of Harassment
  • Quid Pro Quo
  • You give me this and I will gave you that.
  • I will only give you this, if you give me that.
  • Hostile work environment
  • Worker is made to feel uncomfortable
  • Focus is from the perspective of the person that
    feels harassed

51
Sexual or other types of Harassment
  • Requirement to prove harassment would a
    reasonable person feel harassed in this
    situation?
  • Harassers intentions are not considerd
  • Employers can be liable for monetary damages if
    they do not investigate or stop the harassment

52
Conflict of Interest
  • When judgment or objectivity is compromised

53
Conflict of Interest
  • Bribes and kickbacks (overt and subtle)
  • Money
  • Gifts
  • Influence (using relationships)
  • Privileged information

54
Conflict of Interest
  • Erode trust

55
Short Discussion Case page 60
56
  • Your daughter is applying to a prestigious Ivy
    League university. Since admission to the school
    is difficult, your daughter has planned the
    process carefully. She has consistently achieved
    high marks, taken preparatory courses for
    entrance exams, and has participated in various
    extracurricular activities. When you tell one of
    your best customers about her activities, he
    offers to write her a letter of recommendation.
    He's an alumnus of the school and is one of its
    most active fund raisers. Although he's a
    customer, you also regularly play golf together
    and your families have socialized together on
    occasion.

57
Customer Confidence Issues
  • Confidentiality
  • Product safety
  • Truth in advertising
  • Special fiduciary responsibilities

58
Confidentiality
  • Privacy is a basic customer right
  • Information about customers must not be disclosed

59
Product Safety
  • Customers have a right to a safe product or
    service

60
Short Discussion Case page 64
61
  • You're the head of marketing for a small
    pharmaceutical company that has just discovered a
    very promising drug for the treatment of
    Alzheimer's disease. You have spent months
    designing a marketing campaign which contains
    printed materials and medication sample kits for
    distribution to almost every family physician and
    gerontologist in the country. As the materials
    are being loaded into cartons for delivery to
    your company's representatives, your assistant
    tells you that she has noticed a typographical
    error in the literature that could mislead
    physicians and their patients. I n the section
    that discusses side effects, diarrhea and
    gastrointestinal problems are listed as having a
    probability of 2 percent. It should have read 20
    percent. This error appears on virtually every
    piece of the literature and kits, and ads
    containing the mistake are already on press in
    several consumer magazines.

62
Truth in Advertising
  • Customers and prospective customers have the
    right to truthful product/service information

63
Special Fiduciary Responsibilities
  • Professionals in medicine, law, religion, and
    banking/finance/accounting, have a special
    relationship with their customers (clients,
    parishioners, etc.)
  • These professionals have an obligation to protect
    their customers
  • Obligations spelled out in industry codes of
    ethics

64
Short Discussion Case page 67
65
  • A young woman who works for you is moving with
    her husband to another city, where she'll be
    looking for a new job. She's an excellent worker
    and when she asks you for a reference, you're
    glad to do it for her. She specifically asks for
    a written recommendation on your corporate
    letterhead.

66
Use of Corporate Resources
  • Use of corporate reputation
  • Corporate financial resources
  • Providing honest information

67
Use of Corporate Reputation
  • Make sure that you have permission to use the
    company name

68
Corporate Financial Resources
  • Company resources are for company business only

69
Providing Honest Information
  • You must report the facts honestly

70
Whistle Blowing
  • Telling the truth to top management when middle
    management will not listen

71
How to Blow the Whistle
  • 1. Approach your manager first (two times, if
    necessary)
  • 2. Discuss the situation with your family
  • 3. Contact the person in your company that has
    the authority to act
  • 4. If nothing happens, go outside the company
  • 5. Consider leaving your company

72
Conflict of Interest Issue page 76
73
Customer Confidence Issue page 77
74
Chapter 4
75
Deciding What is Right
76
Example page 79-80
77
  • Youre the plant manager in one of ABC
    Companys five plants. Youve worked for the
    company for 15 years, working your way up from
    the factory floor after the company sent you to
    college. Your boss just told you in complete
    confidence that the company will have to lay off
    200 workers. Luckily, your job wont be affected.
    But a rumor is now circulating in the plant, and
    one of your workers (an old friend who now works
    for you) asks the question, Well, Pat, whats
    the word? Is the plant closing? Am I going to
    lose my job? The closing on our new house is
    scheduled for next week. I need to know. What
    will you say?

78
Ethical Decision Making Approaches
  • Focus on consequences
  • Focus on duties, obligations and principles
  • Focus on integrity

79
Focus on Consequences
  • What will be the results or consequences of a
    decision or action?
  • Utilitarianism an ethical decision should
    maximize benefits to society and minimize harms
  • How can you evaluate all of the consequences for
    all of the individuals involved?

80
Focus on Consequences
  • Can you see how minority rights may be sacrificed
    with this approach?

81
Focus on Duties, Obligations and Principles
  • What is your duty?
  • Based on honesty, fairness, promise keeping,
    rights (to safety, privacy, etc.), justice, and
    respect for persons and property

82
Focus on Duties, Obligations and Principles
  • Can you see a conflict between doing what is
    right versus doing what will maximize societal
    welfare?

83
Focus on Duties, Obligations and Principles
  • Whose definition of right principles should be
    used?
  • Can you see some potential for conflict?

84
Virtue Ethics
  • Focus is on the decision maker(s)s character,
    motivation and intentions
  • The assumption is that the community has already
    decided what is right in each situation (via
    community standards) and appointed decision
    makers to represent the community

85
Virtue Ethics
  • What if the community is not in agreement on
    standards?
  • What if the community is wrong?

86
Sound Ethical Decision Making
  • 1. Gather facts
  • 2. Define the ethical issues
  • 3. Identify the affected parties
  • 4. Identify the consequences
  • 5. Identify the obligations
  • 6. Consider your character and integrity
  • 7. Think creatively about potential actions
  • 8. Check your gut

87
Implementing Ethical Decision Making at Work
  • Ask your manager how to raise ethical issues
    within your organization
  • With them
  • Without them

88
Implementing Ethical Decision Making at Work
  • 1. Do not underestimate the value of a hunch to
    alert you about an ethical dilemma
  • 2. Ask for time to think it over
  • 3. Find out quickly if your organization has a
    policy covering this situation
  • 4. Ask your manager or peers for advice
  • 5. Ask yourself whether your decision will be
    embarrassing when others evaluate it

89
Pinto Fires Case page 95
90
Chapter 5
91
Deciding What is Right
  • Issues in psychology
  • Awareness of ethical dilemma
  • Cognitive moral development
  • Males versus female perspectives
  • Locus of control
  • Cognitive barriers to good ethical judgment

92
Awareness of Ethical Dilemma
  • Language affects our view of ethical situations
  • Our attitude to our coworkers can affect our
    assessment of an ethical situation
  • We cannot assume that everyone will see every
    ethical dilemma

93
Cognitive Moral Development
  • We go through stages of moral development
  • The development process is influenced by peers
    and life situations
  • Strongly influenced by what the supervisor says,
    does and rewards
  • Moral reasoning can increased through training

94
Moral Development Stages
  • 1. Obedience and punishment orientation
  • 2. Instrumental purpose and exchange
  • 3. Interpersonal accord, conformity, mutual
    expectations
  • 4. Social accord and system maintenance
  • 5. Social contract and individual rights
  • 6. Universal ethical principles

95
Differences Between Men and Women
  • Men focus mostly on justice considerations
  • Women focus on morality of care
  • Relationships
  • Caring for others
  • Responsibility to others
  • Interdependent relationships

96
Locus of Control
  • How much control do you believe that you have or
    can exert over the events of life?

97
Locus of Control
  • High internal locus of control
  • Outcomes are primarily the result of your own
    efforts
  • High external locus of control
  • Life events are determined primarily by fate,
    luck or powerful others

98
Locus of Control
  • High internal locus of control viewpoint
  • Take responsibility for their actions
  • Less willing to be pressured by others
  • High external locus of control viewpoint
  • Not able to take responsibility for their actions
    unless they are coached to accept the
    responsibility
  • Need to be taught accountability

99
Cognitive Barriers to Good Ethical Judgment
  • Routine or problem solving method
  • Cost/benefit analysis
  • Overconfidence of the facts
  • Ignoring consequences thought to affect few
    people
  • Potential risks underestimated
  • People have an illusion of superiority

100
Good Ethical Judgment
  • Consider the barriers to good ethical judgment
    carefully make sure that you are not falling
    into any of the traps
  • Use your gut, conscience and informed brain

101
Another Short Case for Discussion page 122
102
Discussion Questions page 122
103
Chapter 6
104
Ethical Problems of Managers
  • The basics
  • Diverse workforce
  • Managing up and across

105
Managing the Basics
  • Hiring and work assignments
  • Performance evaluation
  • Discipline
  • Terminations

106
Hiring and Work Assignments
  • Discrimination is illegal, but prejudice is
    difficult to overcome
  • Only relevant consideration is ability
  • Some companies hire to meet a profile (e.g.
    healthy, young people with regular features,
    moderate height, medium build, and no discernable
    accent)

107
Performance Evaluation
  • Sometimes viewed as an annual event, but should
    be considered as a continuous requirement
  • Workers want to know where they stand
  • Measurable standards, established in advance, are
    generally viewed positively

108
Performance Evaluation Case page 129
109
  • You were recently promoted to manager of a
    department with five professionals and two
    clerical staff. One of the professionals, Joe, is
    a nice guy, but he simply hasn't been able to
    match the performance of the others in the
    department. When he tells you he's been
    interviewing for another job in a different part
    of your company, you pull his personnel file and
    see that the person who previously managed the
    department had rated Joe's performance as "good
    to excellent." You frankly disagree. Joe has
    asked you for a recommendation. Based on the
    written appraisals, you could give him a good
    one--but your personal observation is at odds
    with the written evaluations. Joe's prospective
    manager--your peer in another department--asks
    for your opinion. What do you say?

110
Discipline
  • Most managers postpone it
  • Needs to be done in a constructive way
  • Identify problem behavior and consequences of
    continuing with that behavior
  • Should be done in private
  • Employees should have their say
  • Must be consistent and fair across the
    organization

111
Terminations
  • For cause something done that results in instant
    firing (assault, theft, forgery, gross
    insubordination, fraud, etc.)
  • For poor performance generally done in a
    sequential way (verbal warning, written
    reprimand, termination)
  • Substantiated with written documentation

112
Terminations
  • 1. Brief explanation of the reason
  • 2. Severance package of pay and benefits
  • 3. Outplacement counselor
  • 4. Conduct on neutral ground
  • 5. Conduct in person and individually
  • 6. Keep all information private

113
Managing a Diverse Workforce
  • Future management success based on how well teams
    function
  • Team members will come from diverse groups
    (different sexes, ages, races, religions,
    ethnicities)

114
Managing a Diverse Workforce
  • Manager must create an environment where people
    from diverse backgrounds can function well
    together
  • Manager must coach and teach that individual
    differences can be viewed as a major strength and
    asset of a group

115
Managing a Diverse Workforce
  • No room for harassment
  • By team members
  • By manager (and manager must balance needs of
    individuals with that of the group)
  • Family and personal issues need to be considered
    flexibility is key (by team members and
    management)

116
Managing Up and Across
  • 360 degree feedback
  • Managers appraise workers
  • Workers appraise co-workers and managers
  • Honesty is number one
  • Must be a role model to employees in following
    standards

117
Managing Up and Across
  • Good reputation is a prerequisite for success
  • Be cooperative
  • Do a good job
  • Treat people with respect
  • Keep your promises
  • Meet deadlines
  • Be accurate and fair in your appraisal of events
    and activities

118
Managing a Diverse Workforce page 145
119
Managing Up and Across page 146
120
Chapter 7
121
Managing for Ethical Conduct
  • Behavior
  • Our multiple ethical selves
  • Reward systems
  • Everyones doing it
  • People fulfill assigned roles
  • People do what they are told
  • Responsibility is diffused in organizations

122
Managing for Ethical Behavior
  • Ethical concepts must be concrete
  • E.g. sales representatives must be honest with
    our customers about product characteristics and
    delivery dates
  • Unethical behavior must be discouraged and
    punished
  • Ethical conduct must be modeled

123
Our Multiple Ethical Selves
  • People socialized to accept different behavior
    depending on the context
  • People can have multiple ethical systems
  • Managers must be clear about the ethical behavior
    expected of new employees

124
Reward Systems
  • People do what is rewarded
  • People avoid doing what is punished
  • People learn from observing rewards and
    punishments of others

125
Rewards
  • Exclusive focus on goals obscures the means to
    achieve the goal
  • If means of achievement are important, then they
    must be rewarded too
  • If individuals rewarded for meeting goals, no
    matter what methods are used, then only those
    methods that result in meeting goals will be used
    (regardless of ethics)

126
Punishment
  • A deterrent to misconduct is punishment
  • Punishment must be fair and consistent
  • Employee should present their side of the story
    before punishment is determined
  • Punish in private
  • Unethical behavior must be punished it has a
    positive effect on other employees

127
Everyones Doing It
  • People follow group norms
  • Rationalization for unethical behavior
  • Peer pressure
  • Group norms must be conformed with written rules

128
People Fulfill Assigned Roles
  • Roles are strong forces for guiding behavior
  • Workers are assigned roles
  • Conflicting roles can lead to unethical behavior

129
People Do What They Are Told
  • Organizations are authority structures
  • Members must give up some of their independence
    and autonomy
  • Members expect to be told what to do
  • Members owe loyalty to the organization and
    manager
  • Leads to pressure to comply

130
Responsibility is Diffused in Organizations
  • Individuals often encouraged to turn
    responsibility over to those at higher levels
  • Important decisions are often made in groups
  • Responsibility is often so divided that
    individuals see themselves as a cog in a large
    machine
  • Great psychological distance between the decision
    maker and potential victims

131
Sears, Roebuck and Company Case page 170
132
Another Short Case for Discussion page 173
133
Chapter 8
134
Ethical Problems in Organizations
  • Stakeholders
  • Consumers
  • Employees
  • Shareholders
  • Community

135
Stakeholder
  • Any individual or group having a stake
  • Employee
  • Organization
  • Customer
  • Supplier
  • Owner
  • Environment
  • Culture/society
  • Competitors/market

136
Stakeholder
  • Individual or group that can affect or be
    affected by business decisions or undertakings

137
Consumers
  • Consumers have a right to a product or service
    that will not hurt them
  • Due Care Theory

138
Due Care Theory
  • Products and services should meet all
    governmental regulations, and be safe under all
    foreseeable conditions
  • Materials should meet governmental regulations
    and durable enough to withstand reasonable use
  • Products should be made without defects

139
Due Care Theory
  • Products should be inspected regularly for
    quality
  • Products should be safely packaged, with clear
    directions for use, and a clear description of
    any hazards
  • Manufacturers should have a system to recall
    products that prove to be dangerous

140
Johnson Johnson pages 184-5
141
A.H. Robins pages 185-6
142
Product Safety Case page 186
143
G. Heileman Brewing page 188
144
Discussion Case page 189
145
Employees
  • Employees have a right to work without being
    maimed or killed
  • Organizations have an obligation to hire and fire
    responsibility

146
Johns Manville pages 190-2
147
Scott Paper pages 193-4
148
Lincoln Electric pages 194-5
149
Shareholders
  • Organizations have a clear ethical obligation to
    shareholders (owners)
  • To serve interests of owners
  • Trying to perform well (short and long term)
  • Not to engage in activities that could put the
    organization out of business
  • Not to make short-term decisions that might
    jeopardize the companys future health

150
Salomon Brothers pages 196-7
151
Ethics and Shareholders Case page 197
152
Community
  • Organization has an obligation to protect the
    environment of the community
  • Organization should be a good neighbor, doing
    what is right for the community

153
Union Carbide pages 198-9
154
Exxon pages 199-200
155
Discussion Case page 200
156
Chapter 9
157
Ethics as Organizational Culture
  • Cookie cutter approach wont work
  • Organizational ethics
  • Formal cultural systems
  • Informal cultural systems
  • Developing and changing the ethical culture
  • Cultural approach to change
  • Ethics of managing organizational ethics

158
Cookie Cutter Approach Wont Work
  • All organizations have ethical dilemmas, but each
    organization is unique, which requires unique
    approaches and solutions to the dilemmas

159
Cookie Cutter Approach Wont Work
  • Cookie Cutter efforts are likely to be short
    lived or superficial
  • Ethics for a day breeds cynicism
  • Must proactively develop an ethical
    organizational culture

160
Organizational Ethics
  • Every organization has a unique view of the role
    of ethics
  • Organizational ethics is a part of organizational
    culture

161
Organizational Culture
  • Expresses shared assumptions, values and beliefs
  • Manifested in
  • Norms
  • Physical settings
  • Modes of dress
  • Special language
  • Myths
  • Rituals
  • Heroes
  • Stories

162
Organizational Culture Created and Maintained by
Formal Informal Systems
  • Formal systems
  • Leadership
  • Structure
  • Selection systems
  • Orientation
  • Training programs
  • Rules
  • Policies
  • Reward systems
  • Decision making processes

163
Organizational Culture Created and Maintained by
Formal Informal Systems
  • Informal systems
  • Norms
  • Heroes
  • Rituals
  • Stories
  • Language

164
Formal Cultural Systems
  • Leaders can create, maintain or change culture
    (ethics flow from the top down)
  • Most managers are neutral ethical leaders
  • They dont set ethical goals
  • They dont talk about the importance of ethical
    business practices
  • Employees hear that ethics are not important and
    will do whatever is needed to meet goals

165
Formal Cultural Systems
  • Selection systems
  • Select the right people
  • Organizational structure
  • Removing bureaucratic layers and pushing
    responsibility down in the organization can have
    a positive effect of business ethics
  • Written code of ethics reduces likelihood of
    trouble

166
Formal Cultural Systems
  • Reward systems
  • Is there an alignment between rewards and ethical
    behavior?
  • Are whistle blowers vilified?
  • Orientation and training programs
  • Ethics training must be consistent with ethical
    culture
  • Decision making processes
  • Is there an over reliance on quantitative
    analysis?

167
Informal Cultural Systems
  • Are informal norms consistent with formal norms?
  • Other issues heroes role models, rituals,
    myths stories, language

168
Developing and Changing the Ethical Culture
  • Change is tough!
  • Status quo is easy to maintain
  • Cultural change must come from the top and from
    the environment
  • Human tendency is abhor change
  • Culture is addictive
  • Unethical behavior feeds on itself (if I am
    successful, why should I change?)
  • Organization must insist on change

169
Cultural Approach to Change
  • Code of ethics must be followed to the letter
  • Reward systems and decision making processes must
    reflect ethical behavior
  • A new code of ethics or a new focus on ethical
    behavior is difficult to implement
  • Rules must be followed consistently and closely
  • Failure to follow through will be interpreted as
    hypocrisy

170
Cultural Approach to Change
  • Audit can be conducted to ascertain the
    effectiveness of the ethical system (formal as
    well as informal)

171
Ethics of Managing Organizational Ethics
  • Whose values or ethics shall we follow?
  • Employees should have input

172
VideoTek Case page 235
173
Another Case page 240
174
Chapter 10
175
Model Ethics Programs
  • Ethics infrastructure
  • Communicating ethics
  • Evaluating ethics programs
  • Values or compliance approaches

176
Ethics Infrastructure
  • Who manages the formal ethics programs?
  • Do ethics programs have the highest priority?

177
Communicating Ethics
  • Formal and informal systems must be consistent
  • Recognize that multiple channels of communication
    are available
  • Written statements and policies are important

178
Evaluating Ethics Programs
  • Assessment of ethical training and compliance
    must be conducted

179
Values or Compliance Approaches
  • Values approach stresses expected behavior and
    organizational behavior
  • Compliance approach focuses on letter of the law
    (rather than he intent of the law)

180
Whats Wrong with this Picture Case page 284
181
Chapter 11
182
Ethical Conduct in a Global Environment
  • Expatriate manager
  • Organization in a global business environment

183
Expatriate Manager
  • Difficulties of foreign business assignments
  • Importance of training and guidance
  • Foreign language proficiency
  • Learning about the culture

184
Learning About the Culture
  • Individualism versus collectivism
  • Training can help us be on the lookout
  • Women may experience difficulties
  • Be open to the cultural differences
  • Recognize ethical issue differences
  • Differentiate between bribes, gifts and tips

185
Organization in a Global Business Environment
  • Things are different!
  • Sexual and racial harassment
  • Human rights
  • Price discrimination/differences
  • Pollution, including waste disposal
  • Gifts

186
Gifts Japan
  • Consult store staff
  • Always wrap gifts, but never in white
  • Give and receive gifts with both hands along with
    a slight bow

187
Gifts China
  • Reasonably priced gift when negotiations complete
  • Give gifts to everyone, based on rank
  • No gifts in amounts of four
  • Colors be careful
  • If your gift declined, decline theirs, if offered

188
Gifts Singapore
  • Gift giving not common
  • Corruption not tolerated
  • If gifts given, only token items used

189
Gifts India
  • Graft is widespread
  • Bribes often solicited, although illegal
  • Rely on advice of local experts

190
The Gift Case page 311
Write a Comment
User Comments (0)
About PowerShow.com