2. Internal and external factors that stimulate
desire and energy in people to be continually
interested and committed to a job, role or
subject, or to make an effort to attain a goal.

3. 1.Intensity of desire or need .
2. Incentive or reward value of the goal and;
3. Expectations of the individual and
of his or her peers.

5.  Step
1: Analyze your current work
environment
 Step
2: Solicit the input of each employee
 Step
3: Gain the support of top management
to reword any unclear goals and to add or
develop an ethics program in your company
 Step
4: Provide ethics training

6.  Step
5: Clearly define the repercussions for
wrongdoing.
 Step
6: Provide a hotline or other anonymous
reporting system
 Step
7: Provide encouragement and
protection to any employee
 Step
8: Set up ongoing workshops and
mandatory meetings that discuss emerging
ethics issues.

7. An organization’s structure is important to the
study of business ethics because the various roles
and job descriptions that comprise the structure
may create opportunities for unethical behavior.

8. Two Categories of Organizational
Structure
1. Centralized Organization
2. Decentralized Organization

11. Types of Groups
 FORMAL GROUPS
a. Committees
~ a committee is a formal group of individual assigned to a
specific task.
b. Work Group and Teams
~ are used to subdivide duties within specific functional areas of a
company.
 INFORMAL GROUPS
GRAPEVINE = important source of information for individual to assess
ethical behavior within their organization.
GROUP NORMS
~ are standard of behavior that group expected of their members.

12. Variation in Employee
Conduct
10%
40%
40%
Follow their own Always try to Go along with
values
and follow company the work group.
beliefs; believe policies.
that their values
are superior to
those of others
in the company.
10%
Take advantage
of situations if
the penalty is
less than the
benefit and the
risk of being
caught is low.
Table 7-7 Variation in Employee Conduct
The table 7-7 shows the variation of employee conduct in a company.

13. Table 7-8 Penalties for Convictions of Organizational Wrongdoing
Executive/Company
Franklin Brown, former general counsel, Rite Aid
Bernard Ebbers, former chairman and CEO,
WorldCom
Dennis Kozlowski, former CEO, Tyco
Trial Outcome
Convicted and sentenced to 10 years in prison.
Convicted and sentenced to 25 years to life in
prison.
Mistrial in first trial; in second convicted and
sentenced to 8⅓ years to 25 years in prison.
Jamie Olis, former vice president of finance, Convicted and sentenced to 25 years in prison
Dynegy
without the chance of parole; the sentenced
was tossed out on appeal.
Frank Quattrone, former investment banker, CSFB
Convicted in second trial, but conviction over
turned due to error in jury instructions.
John Rigas, founder, Adelphia
Convicted and sentenced to 15 years in prison.
Richard Scrushy, founder, HealthSouth
Acquitted by the Justice Department but found
guilty by an Alabama jury; awaits sentencing.
Theodore Sihpol, broker, Bank of America
Acquitted on twenty-nine of thirty-three
criminal counts; no retrial on remaining
counts.
Martha Stewart, founder, Martha Stewart Living Convicted and sentenced to 5 months in prison
Omnimedia
and 5 months of home confinement.
While, Table 7-8 summarizes the penalties that corporate executives have experienced over the past several years.

14. CORPORATE
CULTURE
Describes and governs the ways a company’s
owners and employees think, feel, and act. You
own business culture maybe based on belief’s
spelled out in your mission statement.

15. ETHICAL DECISION W/IN CORPORATION
RRE OFTEN MADE BY:
Committees
Formal Groups
Informal Groups

16. Decisions related to the ff. are often
beyond the influence of individual alone
Financial Reporting
Advertising
Sales Practices
Pollution Control Issue

17. Bureaucratic Information
Is one rigid and tight procedures,
policies and constraints. This is a
type of business structure popular
among government and public
administrations.

18. Corvette
Is a sort car by the Chevrolet of
General Motors (GM) that had been
produced by 7 generation.

20. Honesty
Refers to a facet of moral character
and connotes positive and virtuous
attributes such as integrity,
truthfulness, and straightforwardness,
including straightforwardness of
conduct.

21. *Open
Discussion of Ethical Issues
-They should have a group
discussion about the
problem or situation of their
company.

24. Is a structure of organization where decision-making
authority is concentrated in the hands of top-level managers,
and little authority is delegated to lower levels. Responsibility,
both internal and external, rests with top-level managers. This
structure is especially suited for organizations that make highrisk decisions and whose lower-level managers are not highly
skilled in decision making.
Is a structure of organization where decision-making
authority is delegated as far down the chain of command as
possible. Such organizations have relatively few formal rules,
and coordination and control are usually informal and personal.
They focus instead on increasing the flow of information. As a
result, one of the main strength of decentralized organizations
is their adaptability and early recognition of external change