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Managing to be Ethical: Debunking Five Business Ethics Myths

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Title: Managing to be Ethical: Debunking Five Business Ethics Myths Author: Office 2004 Test Drive User Last modified by: libprint Created Date: 2/28/2012 7:34:50 PM – PowerPoint PPT presentation

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Title: Managing to be Ethical: Debunking Five Business Ethics Myths


1
Managing to be Ethical Debunking Five Business
Ethics Myths
  • Linda Klebe Trevino
  • Michael E. Brown
  • Presented By
  • Robert Wood

2
AUTHORS
  • Linda Klebe Triviño
  • Professor of Organizational Behavior
  • The Smeal College of Business Administration ,
    Penn State
  • Email ltrevino_at_psu.edu 411
  • Ph.D. in Management, 1987, Texas A M University
  • M.L.S., 1972, Rutgers University
  • B.A., French language and literature, Douglass
    College, Rutgers University, 1971
  • 55 articles written, 4 books and numerous other
    publications.
  • Michael E. Brown
  • Associate Professor of Management
  • Penn State
  • E-mail meb239_at_psu.edu

3
Myth 1 Its Easy to be Ethical
  • Ethical Decisions are Not Easy!
  • Consequentialist
  • How actions impact society? Good and Bad
  • Deontological
  • Looks at such principles as Justice and Rights
  • Virtue Ethics
  • The Moral actors own integrity is analyzed

4
Child Labor in Developing Nations Globalization-
Development in countries that have natural
resources we want When employees get back at a
the company they feel has wronged them
  • The Right Answer?
  • In many real life situations the right or
    ethical answer may not always be the easiest or
    best.

5
Moral Awareness
  • Many times, People do not think what they are
    facing is a moral dilemma.
  • This recognition of a moral issue starts when we
    realize the ethical nature of the problem
  • Moral Awareness
  • Ethical Recognition
  • Ethical Sensitivity
  • T.M. Jones- 2 dimensions of moral awareness
  • 1. Magnitude of Consequence
  • Does it really hurt anyone else?
  • 2. Social Consensus
  • People generally agree its Ethically Problematic
  • At this point in the game it is all about
    wording.

6
Lawrence Kohlbergs Theory of Cognitive
Development
  • 2. Moral Judgment
  • Is it Justifiable?
  • 3. Moral Motivation
  • Intention behind the act.
  • 4. Moral Character
  • Getting the Job Done. No matter what the
    obstacles

7
Pressures of the Workplace
  • A boss that wants results
  • Going above the bosses head
  • Telling colleagues the way they do business is
    unethical
  • snitches get stitches or at least no one talks
    to them.
  • The reasons for their ostracism are not fully
    known, but they may have to do with humans
    social nature and the importance of social group
    maintenance.

8
Myth 2 Unethical Behavior in Business is Simply
the Result of Bad Apples
  • Most people are a product of their surroundings.
  • The unethical behavior is condoned and supported
    in the context it occurs
  • Direct Reinforcement
  • Benign Neglect

9
Myth 3 Ethics Can be Managed Through Formal
Ethics Codes and Programs
  • 1991- U.S. Sentencing Commission created
    guidelines for organizations convicted of Federal
    Crimes
  • Written standards of conduct
  • Ethics Trainings
  • Ethics advice
  • Systems for anonymous reporting

The most important factor is the perceived view
of management as ethical.
10
Myth 4 Ethical Leadership is Mostly about Leader
Integrity
  • Leaders have to be perceived as Ethical.
  • 1.Moral Person
  • 2.Moral Manager

11
Executive Ethical Leadership Reputation Matrix
Moral Person
Weak
Strong
Moral Manager
Strong
Hypocritical Leader
Ethical Leader
?
Unethical Leader
Weak
Ethically neutral (silent) leader
12
Myth 5 People are Less Ethical Than They Used to
be
  • The Talmud has sections on how to do business.
  • New technology makes cheating sometimes easier
    and look different than traditional methods.
  • Alan Greenspan
  • It is not that humans have become any more
    greedy than in generations past. It is the
    avenues to express greed have grown enormously.

13
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14
What Executives Can Do Guidelines for Effective
Ethics Management
  • 1. Understand the Existing Ethical Culture
  • 2. Communicate the Importance of Ethical
    Standards
  • 3. Focus on Reward System
  • 4. Promote Ethical Leadership Throughout the Firm

15
References
  • Treviño, L., Hartman, L., Brown, M. (2000).
    Moral person and moral manager how executives
    develop a reputation for ethical leadership.
    California Management Review, 42(4), 128-142.
  • Brown, M. E., Treviño, L. K., Harrison, D. A.
    (2005). Ethical leadership A social learning
    perspective for construct development and
    testing. Organizational Behavior And Human
    Decision Processes, 97(2), 117-134.
    doi10.1016/j.obhdp.2005.03.002
  • Levine, C., Kohlberg, L., Hewer, A. (1985). The
    current formulation of Kohlberg's theory and a
    response to critics. Human Development
    (0018716X), 2894-100.
  • Rubin, R. S., Dierdorff, E. C., Brown, M. E.
    (2010). Do Ethical Leaders Get Ahead? Exploring
    Ethical Leadership and Promotability. Business
    Ethics Quarterly, 20(2), 215-236.
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