Ethical Perspective in Organization


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Ethical Perspective in Organization

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Ethical Perspective in Organization

  2. 2. • A branch of philosophy concerned with the study of moral principles and moral actions.• Purely theoretical treatment of moral virtues in terms of speculative and practical collective cultural value systems. WHAT IS ETHICS?
  3. 3. • Morality is concerned with those practices that are considered right or wrong.• It also concerns of values that reflects those practices and with the rules with which they are carried out. WHAT IS MORALITY?
  4. 4. 1. Justness what is right2. Fairness impartiality3. Righteousness rational judgment of what is supposed to be4. Truthfulness conformity with facts or reality COMPONENTS OF ETHICAL BEHAVIOR
  5. 5. • It is how an organization ethically responds to an internal or external stimulus.• It includes, but is not limited to business ethics which contains corporate governance and corporate ethics. ORGANIZATIONAL ETHICS
  6. 6. There are at least four elements which existin organizations that make ethical behavior conducive within an organization. ORGANIZATIONAL ETHICS
  7. 7. 1. Written code of ethics and standards Companies have written rules that guidesemployees about the basic guidelines that needs tobe followed in order to maintain an ethicalorganization. FOUR ELEMENTS: #1
  8. 8. 2. Ethics Training Ethics training is conducted to the members ofthe organization starting from theemployees, managers, and even to executives. FOUR ELEMENTS: #2
  9. 9. 3. Availability for advice on ethical situations Organizations may have advice lines, officesor certain individuals in the organization that helpemployees in troublesome situations to help themchoose the best alternative. FOUR ELEMENTS: #3
  10. 10. 4. Systems for confidential reporting Having these systems would help avoidunethical activities like leaking top-secret files andinformation that would be harmful to theorganization. FOUR ELEMENTS: #4
  11. 11. Good leaders strive to create a better and more ethical organization. Restoring an ethical climate in organization is critical, as itis a key component in solving the many other organizational development and ethical behavior issues facing the organization. ORGANIZATIONAL ETHICS
  12. 12. Neutralizing /Internal Org’l Enhancing Influences Factors IndividualExternal Org’l Ethical Behavior Influences MODEL OF ETHICAL BEHAVIOR IN THE WORKPLACE
  13. 13. INTERNAL ORG’L INFLUENCES • Ethical Codes • Organizational Culture • Organizational Size • Organizational Structure • Corporate Strategy
  14. 14. Studies revealed that:• Larger firms are more likely to behave illegally• Managers are more likely to behave unethically in decentralized organizations• Mid-managers have the tendency to act unethically in order to “look good” for higher level managers INTERNAL ORG’L INFLUENCES
  15. 15. EXTERNAL ORG’L INFLUENCES • Political-Legal • Industry Culture • National Culture • Environment
  16. 16. • Increase in the monitoring of unethical and potentially illegal actions• World Customs Org. estimates that $512B lost in counterfeiting activities• China is the largest contributor to counterfeiting in the world with 2/3 of all the fake goods worldwide EXTERNAL ORG’L INFLUENCES
  17. 17. INDIVIDUAL• Personality• Values• Moral Principles• Environment
  18. 18. NEUTRALIZING/ ENHANCING FACTORS• Age• Length of Service• Position• Heterogeneity / Homogeneity of Org.
  20. 20. Neutralizing /Internal Org’l Enhancing Influences Factors IndividualExternal Org’l Ethical Behavior Influences MODEL OF ETHICAL BEHAVIOR IN THE WORKPLACE
  21. 21. No one will find out Behavior is not really illegal It is in the best interest of the organizationThe organization will protect them WHY DO PEOPLE BEHAVE UNETHICALLY?
  22. 22. • Using office equipment for personal use• Doing personal business on work time• Calling in as “sick” to take the day off• Divulging confidential information• Claiming credit for someone else’s work• Concealing own errors OBSERVED UNETHICAL BEHAVIOR IN THE WORKPLACE
  23. 23. • Faking financial statements / accounting records• Engaging in illegal activities / business• Bribery• Badmouthing about competition• Fooling customers• Escaping the law MORE UNETHICAL BEHAVIOR
  24. 24. Corporate executives of WorldCom, a giant in the telecommunications field, admitted fraud and misrepresentation in financial statements.WorldComs former CEO went on trial for allegedcrimes related to this accounting ethics scandal. EXAMPLE