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Ferrell7e Student Ch07
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    Ferrell7e Student Ch07 Ferrell7e Student Ch07 Presentation Transcript

      • O.C. Ferrell
        • University of New Mexico
      • John Fraedrich
        • University of Wyoming
      • Linda Ferrell
        • University of New Mexico
      Business Ethics Ethical Decision Making and Cases, Seventh Edition For in-class note taking, choose Handouts or Notes Pages from the print options, with three slides per page.
    • Chapter 7 Organizational Factors: The Role of Ethical Culture and Relationships
    • Corporate Culture
      • Values
      • Beliefs
      • Goals
      • Norms
      • Groups
      • Corporate history
      • Founder
    • Corporate Culture
      • A set of values, beliefs, goals, norms, and rituals that members or employees of an organization share.
      • A company’s history and unwritten rules are a part of its culture.
      • An organization’s failure to monitor or manage its culture may result in unethical behavior.
    • Two Basic Dimensions Determine an Organization’s Culture
      • Concern for people—the organization’s efforts to care for its employees’ well-being
      • Concern for performance—the organization’s efforts to focus on output and employee productivity
    • Ethical Framework and Audit
      • Caring
      • Apathetic
      • Exacting
      • Integrative
    • Organizational Culture Ethics Audit
      • Does the culture reward unethical behavior?
      • Does the organization hire people with values perceived as unethical?
      • Is the company’s objective to make as much profit as possible?
    • Role of Leadership
      • To guide and direct others toward the achievement of a goal
      • To motivate others and enforce organizational rules and policies
      • To influence the corporate culture and ethical posture of the organization (rewards and punishment)
    • Interpersonal Relationships
      • One of the biggest challenges in business is getting diverse people to work together efficiently and ethically while coordinating their skills.
      • Relationships among individuals and within groups are an important part of the proper functioning of a business organization.
    • Interpersonal Relationships in Organizations
      • Corporation as a moral agent
      • Variation in employee conduct
      • Role relationships
      • Significant others
      • Differential association
      • Whistle-blowing
    • Interpersonal Relationships in Organizations
      • Organizational pressures
        • Opportunity and conflict
        • Conflict resolution
      • How to improve ethical decision making
    • Corporation as a Moral Agent
      • Organizations can be held accountable for the conduct of their employees and for all business decisions and outcomes.
      • The organization is responsible to society for its collective decisions and actions.
      • Organizations must be responsible for the correctness of all policies.
    • Variation of Employee Conduct
      • 10% of employees follow their own values and beliefs
      • 40% try to follow company rules and policies
      • 40% go along with the work group
      • 10% take advantage of the situation if the penalty is low and risk of being caught is low
    • Role Relationships
      • Total of all relationships in which a person is involved because of his or her position in the organization (role)
      • Peers and top managers are the most influential factors in organizational ethical decision making
    • Differential Association
      • The idea that people learn ethical or unethical behavior while interacting with others who are part of their role-set or other intimate personal groups
      • Association with those who are unethical, combined with the opportunity to act unethically, is a major influence on ethical decision making
    • Whistle-Blowing
      • Exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies
      • Whistle-blowers often receive negative performance appraisals, become organizational ‘outcasts,’ and lose their jobs
      • Companies often establish internal whistle-blower reporting mechanisms
    • Organizational Pressures
      • Time
      • Middle managers
      • Pressure to perform
      • Pressure to increase profits
      • Top managers
      • Low level managers
    • Opportunity and Conflict Create Ethical Dilemmas
      • Opportunity is the set of conditions that limits unfavorable behavior or rewards favorable behavior
      • A person who behaves unethically and is rewarded (or not punished) is likely to continue to act unethically
    • Conflict Resolution
      • Personal-organizational
      • Personal-societal
      • Organizational-societal
    • Role of Motivation
      • To focus employees’ behavior toward goal achievement within the organization
      • To understand an individual’s hierarchy of needs and how they influence motivation and ethical behavior
    • Centralized Organizations
      • Decision making is concentrated at the upper management levels
      • Works well in high-risk industries with fewer skilled lower-level employees
      • Ethical issues: very little upward communication, less understanding of the interrelatedness of functions, and transferring blame to those who are not responsible
    • Decentralized Organizations
      • Decision making is delegated as far down the chain of command as possible.
      • Control and coordination are relatively informal and personal, and the organization is adaptable and sensitive to external changes.
      • Employees are empowered to make decisions; therefore decentralized organizations tend to have fewer formalized ethics programs and policies.
    • Group Influence on Organizational Culture
      • Formal groups
        • Committees
        • Work groups, teams, quality circles
      • Informal groups