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201228429 slideshare

  1. 1. Ethics and Behavior in Organizations .
  2. 2. INTRODUCTION  What is ethical behavior?  How do ethical dilemmas complicate the workplace?  How can high ethical standards be maintained?  What is corporate social responsibility?  How do organizations and governments work together in society?
  3. 3. What is ethical behavior?  Ethics  Code of moral principles.  Set standards of “good” and “bad” as opposed to “right” and “wrong.”  Ethical behavior  What is accepted as good and right in the context of the governing moral code.
  4. 4. What is ethical behavior?  Law, values, and ethical behavior:  Legal behavior is not necessarily ethical behavior.  Personal values help determine individual ethical behavior.  Terminal values  Instrumental values .
  5. 5. Four views of ethical behavior.
  6. 6. What is ethical behavior?  Cultural issues in ethical behavior:  Cultural relativism  Ethical behavior is always determined by cultural context.  Cultural universalism  Behavior that is unacceptable in one’s home environment should not be acceptable anywhere else.
  7. 7. The extremes of cultural relativism and ethical imperialism in international business ethics.
  8. 8. Respect for human dignity • Create culture that values employees, customers, and suppliers. • Keep a safe workplace. • Produce safe products and services. Respect for basic rights • Protect rights of employees, customers, and communities. • Avoid anything that threatening safety, health, education, and living standards. Be good citizens • Support social institutions, including economic and educational systems. • Work with local government and institutions to protect environment.
  9. 9. How do ethical dilemmas complicate the workplace?  An ethical dilemma occurs when choices, although having potential for personal and/or organizational benefit, may be considered unethical.  Ethical dilemmas include:  Discrimination  Sexual harassment  Conflicts of interest  Customer confidence  Organizational resources
  10. 10. How do ethical dilemmas complicate the workplace?  Ethical behavior can be rationalized by convincing yourself that:  Behavior is not really illegal.  Behavior is really in everyone’s best interests.  Nobody  The will ever find out. organization will “protect” you. 10
  11. 11.  Factors influencing ethical behavior include:  The person  Family influences, religious values, personal standards, and personal needs.  The organization  Supervisory behavior, peer group norms and behavior, and policy statements and written rules.  The environment  Government laws and regulations, societal norms and values, and competitive climate in an industry.
  12. 12. Factors influencing ethical managerial behavior— the person, organization, and environment.
  13. 13. How can high ethical standards be maintained?  Ethics training: Structured programs that help participants to understand ethical aspects of decision making. Helps people incorporate high ethical standards into daily life. Helps people deal with ethical issues under pressure.
  14. 14. How can high ethical standards be maintained?  Ethical role models:  Top managers serve as ethical role models.  All managers can influence the ethical behavior of people who work for and with them.  Excessive pressure can foster unethical behavior.  Managers should be realistic in setting performance goals for others.
  15. 15. How can high ethical standards be maintained?  Codes of ethics:  Formal statement of an organization’s values and ethical principles regarding how to behave in situations susceptible to the creation of ethical dilemmas.  Areas often covered by codes of ethics:  Bribes and kickbacks  Political contributions  Honesty of books or records  Customer/supplier relationships  Confidentiality of corporate information
  16. 16. What is corporate social responsibility?  Corporate social responsibility:  Looks at ethical issues on the organization level.  Obligates organizations to act in ways that serve both its own interests and the interests of society at large.
  17. 17. What is corporate social responsibility?  Beliefs that guide socially responsible business practices:  People do their best with a balance of work and family life.  Organizations perform best in healthy communities.  Organizations gain by respecting the natural environment.  Organizations must be managed and led for longterm success.  Organizations must protect their reputations.
  18. 18. What is corporate social responsibility?  Arguments against social responsibility:      Reduced business profits Higher business costs Dilution of business purpose Too much social power for business Lack of public accountability  Arguments in favor of social responsibility:     Adds long-run profits Improved public image Avoids more government regulation Businesses have resources and ethical obligation
  19. 19. Four strategies of corporate social responsibility 19
  20. 20. How do organizations and governments work together in society?  How government influences organizations:  Common areas of government regulation of business affairs:  Occupational safety and health  Fair labor practices  Consumer protection  Environmental protection 20
  21. 21. Centrality of ethics and social responsibility in leadership and the managerial role. 21
  22. 22. REFERENCES: Source: Developed from Thomas Donaldson, “Values in Tension: Ethics Away from Home,” Harvard Business Review, vol. 74 (September-October 1996), pp. 48-62. 2004 © John Wiley & Sons, Inc Ethical behavior code Theories of ethics 22

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