Business Ethics
Values & Ethics in
Business
X420 Discussion Session #80
Kelley School of Business
Values
Abstract ideals that shape an individual’s thinking and behavior – a moral compass
Instrumental values – certain way of behaving is appropriate in all situations –
“means”.
Terminal values – enduring belief in the attainment of a certain end state –
“ends”.
A moral compass
These abstract ideals can result from
Religion
Philosophy
Family teachings
Instrumental values
As the means to an end they become the ingrained ways of behavior:
Rituals
Politesse
Good habits
Terminal values
With the end always in sight:
Heaven
Respect
Financial Success
Personal Independence
Power
Ethics
The study of moral obligation involving the distinction between right and wrong.
Business Ethics: right or wrong in the workplace – value management. Two Areas of Business
Ethics
Obvious mischief
Moral mazes
RIGHT vs. RIGHT
Common Misconduct in Organizations
Misrepresenting hours worked
Employees lying to supervisors
Management lying to employees, customers, vendors or the public
Misuse of organizational assets
Lying on reports/falsifying records
Sexual harassment
Stealing/theft
Accepting or giving bribes or kickbacks
Withholding needed information from employees, customers, vendors or public
Common Causes of
Unethical Behavior
Pressure
Fear
Greed
Convenience
Causes of Unethical
Behavior (cont’d)
Following boss’s directives
Meeting overly aggressive business/financial objectives
Helping the organization survive
Meeting schedule pressures
Be a team player (group think)
Rationalizing that others do it
Resisting competitive threats
Advancing own career
Ethical Dilemmas
Making decisions under stress or dealing with complex issues that have no clear indication of what is right or wrong.
There are NO simple ethical dilemmas… all have layers of meaning and effect.
Business Ethics Myths
Business
X420 Discussion Session #80
Kelley School of Business
Values
Abstract ideals that shape an individual’s thinking and behavior – a moral compass
Instrumental values – certain way of behaving is appropriate in all situations –
“means”.
Terminal values – enduring belief in the attainment of a certain end state –
“ends”.
A moral compass
These abstract ideals can result from
Religion
Philosophy
Family teachings
Instrumental values
As the means to an end they become the ingrained ways of behavior:
Rituals
Politesse
Good habits
Terminal values
With the end always in sight:
Heaven
Respect
Financial Success
Personal Independence
Power
Ethics
The study of moral obligation involving the distinction between right and wrong.
Business Ethics: right or wrong in the workplace – value management. Two Areas of Business
Ethics
Obvious mischief
Moral mazes
RIGHT vs. RIGHT
Common Misconduct in Organizations
Misrepresenting hours worked
Employees lying to supervisors
Management lying to employees, customers, vendors or the public
Misuse of organizational assets
Lying on reports/falsifying records
Sexual harassment
Stealing/theft
Accepting or giving bribes or kickbacks
Withholding needed information from employees, customers, vendors or public
Common Causes of
Unethical Behavior
Pressure
Fear
Greed
Convenience
Causes of Unethical
Behavior (cont’d)
Following boss’s directives
Meeting overly aggressive business/financial objectives
Helping the organization survive
Meeting schedule pressures
Be a team player (group think)
Rationalizing that others do it
Resisting competitive threats
Advancing own career
Ethical Dilemmas
Making decisions under stress or dealing with complex issues that have no clear indication of what is right or wrong.
There are NO simple ethical dilemmas… all have layers of meaning and effect.
Business Ethics Myths