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Personal and Organizational Ethics

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Personal and Organizational Ethics Search the Web Nortel has posted its ethics policies on the Internet. To read it, navigate your web browser to: http://www ... – PowerPoint PPT presentation

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Title: Personal and Organizational Ethics


1
Personal and Organizational Ethics
7
1
2
Chapter Seven Objectives
  • To understand the different levels at which
    business ethics may be addressed
  • To appreciate principles of personal ethical
    decision-making
  • To identify factors affecting an organizations
    moral climate
  • Describe actions or strategies to improve ethical
    climate

2
3
Chapter Seven Outline
  • Levels at which Ethical Issues May Be Addressed
  • Personal and Managerial Ethics
  • Managing Organizational Ethics
  • From Moral Decisions to Moral Organizations
  • Summary

4
Introduction to Chapter Seven
  • This chapter focuses on the day-to-day ethical
    issues that managers face

5
Levels at Which Ethical Issues May Be Addressed
  • Personal levelsituations faced in personal life
    (income tax, doing kids homework, etc.)
  • Organizational levelworkplace situations faced
    as managers and employees (cutting corners, etc.)

6
Levels at Which Ethical Issues May Be Addressed
  • Industrial levelsituations confronted as
    professionals (the practices of stockbrokers,
    accountants, etc.)
  • Societal and international levelslocal-to-global
    situations confronted indirectly as a management
    team

7
Personal and Managerial Ethics
  • Resolving Ethical Conflicts
  • Three Approaches
  • Conventional (covered in Chapter 6)
  • Principles
  • Ethical tests

8
Personal and Managerial Ethics
Principles Approach
Anchors decision making on an ethical principle
such as
  • Utilitarianism
  • Rights
  • Justice
  • Caring
  • Virtue ethics
  • Servant leadership
  • Golden Rule

9
Personal and Managerial Ethics
  • Principle of Utilitarianism focuses on an act
    that produces the greatest ratio of good to evil
    for everyone
  • Consequentialist theory

10
Personal and Managerial Ethics
  • Principle of Rights focuses on examining and
    possibly protecting individual moral or legal
    rights

11
Personal and Managerial Ethics
12
Personal and Managerial Ethics
  • Principle of justice involves considering what
    alternative promotes fair treatment of people
  • Types of justice
  • Distributive
  • Compensatory
  • Procedural
  • Rawlsian

13
Personal and Managerial Ethics
  • Rawls Justice
  • Each person has an equal right to the most basic
    liberties comparable with similar liberties for
    others
  • Social and economic inequalities are arranged so
    that they are both
  • reasonably expected to be to everyones advantage
    and
  • attached to positions and offices open to all
    people

14
Personal and Managerial Ethics
  • Principle of caring focuses on a person as a
    relational (cooperative) and not as an individual
  • Feminist theory
  • Virtue ethics focuses on individuals becoming
    imbued with virtues
  • Aristotle and Plato

15
Personal and Managerial Ethics
  • Servant leadership focuses on serving others
    first such as employees, customers, community and
    so on

16
Personal and Managerial Ethics
Characteristics of Servant Leaders
  • Foresight
  • Conceptualization
  • Commitment to the growth of people
  • Stewardship
  • Building community
  • Listening
  • Empathy
  • Healing
  • Persuasion
  • Awareness

17
Personal and Managerial Ethics
  • Golden rule focuses on the premise that you
    should of unto others as you would have them do
    unto you

18
Personal and Managerial Ethics
  • Concerns to be Addressed in Ethical Conflicts
  • Obligations
  • Ideals
  • Effects

19
Personal and Managerial Ethics
  • When Our Obligations, Ideals and Effects
    Conflicts
  • When two or more moral obligations conflict, use
    the stronger one
  • When two or more ideals conflict, or when ideals
    conflict with obligations, honor the more
    important one
  • When effects are mixed, choose the action that
    produces the greatest good and the least harm

20
Personal and Managerial Ethics
  • Ethics Test Approach
  • Test of common sense
  • Test of ones best self
  • Test of making something public
  • Test of ventilation
  • Gag test

21
Managing Organizational Ethics

Factors Affecting the Morality of Managers
22
Managing Organizational Ethics
  • Factors Influencing Unethical Behavior
  • Behavior of superiors
  • Ethical practices of ones industry or profession
  • Behavior of ones peers in the organization
  • Formal organizational policy (or lack of one)
  • Personal financial need

23
Managing Organizational Ethics
6-23
24
Managing Organizational Ethics
Questionable Behaviors of Superiors or Peers
  • Amoral decision making
  • Unethical acts, behaviors or practices
  • Acceptance or legality as the standard behavior
  • Absence of ethical leadership

25
Managing Organizational Ethics
Questionable Behaviors of Superiors or Peers
  • Objects and evaluation systems overemphasizing
    profits
  • Insensitivity toward how subordinates perceive
    pressure to meet goals
  • Inadequate formal ethics policies

26
Improving Ethical Climate

Ethics Programs Officers
Ethics Audit
Effective Communication
Realistic Objectives
Top Management Leadership
Ethics Training
Ethical Decision-making Processes
Codes of Conduct
Whistle-blowing Mechanisms (Hotlines)
Discipline of Violators
Codes of Conduct
27
Ethical Decision-Making

28
Ethics Audits and Self-Assessment
29
From Moral Decisions to Moral Organizations
Moral Decision(s) Moral Manager(s) Moral
Organization
30
Selected Key Terms
  • Codes of conduct
  • Codes of ethics
  • Compensatory justice
  • Distributive justice
  • Ethical tests
  • Ethical audits
  • Golden rule
  • Legal rights
  • Moral rights
  • Principle of caring
  • Principle of justice
  • Principle of rights
  • Principle of utilitarianism
  • Procedural justice
  • Rights
  • Servant leadership
  • Utilitarianism
  • Virtue ethics
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