“Ethical Decision-making isn’t an option today. It’s an obligation – in business, in education, in government, in our daily lives.” William C. Butcher – Retired Chairman of Chase Manhattan Corporation Balancing work & family Poor internal communications Poor leadership Work hours, work load Technology and constant access Need to meet sales, profit, or budget goals Little or no recognition of achievements Company politics Personal financial worries Insufficient resources Sources of pressure in today's workplace increasing the potential to make unethical decisions: Top five types of unethical or illegal behaviors in response to pressure: Cutting corners on quality Covering up incidents Abusing or lying about sick days Lying or deceiving customers Putting inappropriate pressure on others “I am sometimes subject to pressure to compromise personal standards to achieve organizational goals”: All Management Levels: 64% agree Top Management: 50% agree Middle Management: 65% agree Lower Management: 85% agree Top management levels underestimate the perceptions of their subordinates in regard to the pressures that lower management feels to go along with their bosses – results or reprisal Management Pressures They do not feel loyal to the organization. They feel pressure to ‘succeed’, as defined by the organization. They feel entitled. They believe that the rules do not apply to them. They do not view the act as illegal. They feel pressured by their peers. They lack resources. Striving for Ethical Behavior – What Makes People Make Bad Decisions? Moral/Ethical decisions have: Extended consequences Multiple alternatives Mixed and complex outcomes Uncertain consequences Personal implications When we make a decision or take an action we can be: Moral - in compliance with moral standards, company cares about succeeding in the confines of ethical principles. key operating questions of management is "is this action or decision fair to us and all stakeholders involved?" Immoral - in opposition to moral standards, company cares only about company's gains. key operating question of management is "can we make money with this action or decision regardless of what it takes?" Amoral - without consideration of moral standards, company impact on others not considered. key operating question of management is "can we make money with this action or decision?" Nonmoral - outside the sphere of moral concern. whether your car will top out at 130 or 140 is nonmoral issue whether you should top it out at noon on Broad St. is moral Ethical decisions in business occur at different levels: 1. personal level should I call in sick and go to the beach? 2. organizational level should I ignore the fact that my colleague is embezzling money from the company? 3. industry level should executives receive huge bonuses? 4. societal/international level should U.S. companies hold U ...