Managing Ethics
Ethics is the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong.
Ethics sets standards as to what is good or bad in conduct and decision making.
Example of Unethical and Illegal Organizational Behavior
Toward Customers
False or deceptive sales practice
Submitting misleading invoices
Fabricating product quality data
Toward Employees
Discriminating against employees
Creating a hostile work environment
Violating health and safety rules
Toward Financers
Falsifying financial reports
Breaching database controls
Using confidential information
Toward Suppliers
Accepting favors and kickbacks
Violating contract terms
Paying without accurate records or invoice
Toward Society
Violating environmental standards
Exposing public to safety risks
Violating international human rights
Ethical Dilemmas arises in a situation concerning right or wrong when values are in conflict. It is a situation in which all alternative choices or behaviors have potentially negative consequences. Right and wrong cannot be clearly distinguished.
The individual who must make an ethical decision in an organization is the moral agent.
Utilitarian Approach
This approach holds that moral behavior produces the greatest good for the greatest number.
A decision maker is expected to consider the effect of each decision alternative on all parties and select the one that optimizes the benefits for the greatest number of people.
Individualism Approach
This approach contends that acts are moral when they promote the individual’s best long-term interests.
It is believed to lead to honesty and integrity because that works best in long run. Cheating and lying for immediate self-interest causes business associates to lie and cheat in return.
Moral Rights Approach
It holds that moral decision must be based on standards of equity, fairness and impartiality.
3 types of
Ethics sets standards as to what is good or bad in conduct and decision making.
Example of Unethical and Illegal Organizational Behavior
Toward Customers
False or deceptive sales practice
Submitting misleading invoices
Fabricating product quality data
Toward Employees
Discriminating against employees
Creating a hostile work environment
Violating health and safety rules
Toward Financers
Falsifying financial reports
Breaching database controls
Using confidential information
Toward Suppliers
Accepting favors and kickbacks
Violating contract terms
Paying without accurate records or invoice
Toward Society
Violating environmental standards
Exposing public to safety risks
Violating international human rights
Ethical Dilemmas arises in a situation concerning right or wrong when values are in conflict. It is a situation in which all alternative choices or behaviors have potentially negative consequences. Right and wrong cannot be clearly distinguished.
The individual who must make an ethical decision in an organization is the moral agent.
Utilitarian Approach
This approach holds that moral behavior produces the greatest good for the greatest number.
A decision maker is expected to consider the effect of each decision alternative on all parties and select the one that optimizes the benefits for the greatest number of people.
Individualism Approach
This approach contends that acts are moral when they promote the individual’s best long-term interests.
It is believed to lead to honesty and integrity because that works best in long run. Cheating and lying for immediate self-interest causes business associates to lie and cheat in return.
Moral Rights Approach
It holds that moral decision must be based on standards of equity, fairness and impartiality.
3 types of