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ETHICS IN BUSINESS
   COMMUNICATION


       Presented To:
   Prof. Hasnain Rashid
       Presented By:
    Aima Masood (0030)
          MCOM
Punjab College Of Commerce
IMPORTANCE OF ETHICAL
                        COMMUNICATION


                      Learning Ethical models
Helps you discover and make explicit your ethical positions and standards
   Enables you to diagnose the ethical position of your interlocutors.
 Provides you with a conceptual framework that will guide you towards
         becoming a consistent ethical business communicator.
KOHLBERG'S STAGES



              Pre-conventional level
Stage 1: The punishment and obedience orientation
   Stage 2: The instrumental purpose orientation

               Conventional level
  Stage 3: The "good boy-good girl" orientation
Stage 4: The social-order-maintaining orientation
            Post-conventional level
     Stage 5: The social-contract orientation
Stage 6: The universal ethical principle orientation
PRECONVENTIONAL LEVEL



Punishments and rewards dominate the sense of
                right & wrong
       Morality is externally controlled
 Rules of authority figures must be respected.
 Behaviour that results in punishment are bad
  Behaviour that results in rewards are good
STAGE 1: THE PUNISHMENT AND
            OBEDIENCE ORIENTATION




Ignore people's intentions; focus on fear of
authority and avoidance of punishments as
       reasons for behaving morally
STAGE 2: THE INSTRUMENTAL
               PURPOSE ORIENTATION




   Can understand that two people may have
       different perspectives in a situation
Believe that satisfying personal needs determines
                   moral choice
           Very concrete understanding
THE CONVENTIONAL LEVEL



 Needs of Laws and society are the defining features.
       “Don't steal” because it is against the law
Good behaviour is motivated to maintain the affection
         and approval of friends and relatives
Understand that standards are set for the current social
 system, not getting that there is self-interest involved
           (e.g., no such thing as a bad law)
STAGE 3: THE "GOOD BOY-GOOD
                GIRL" ORIENTATION


     Morality of interpersonal cooperation
 People obey rules to promote social harmony
You will be judged for breaking the rules it isn't
 just the druggist who will think that you are a
criminal, everyone else will and you will feel bad
                     afterwards
            Justifies moral conformity
STAGE 4: THE SOCIAL-ORDER-
              MAINTAINING ORIENTATION




Each member of society is duty-bound to uphold
rules as rules are vital for ensuring societal order
THE POSTCONVENTIONAL
               LEVEL




Personal moral beliefs and values
STAGE 5: THE SOCIAL-CONTRACT
                    ORIENTATION




       Laws and rules can be flexible
Can understand the alternatives to social order
       and emphasize fair procedures
STAGE 6: THE UNIVERSAL ETHICAL
                 PRINCIPLE ORIENTATION




  The correct action is defined by self-chosen
ethical principles of conscience that are valid for
    all humanity, regardless of law and social
                    agreement
      Values are more abstract and internal
STAGES IN ETHICAL DEVELOPMENT: LAWRENCE KOHLBERG (1973)




     Level                    Stages               Orientation         Justification
Pre-conventional   • Fear of punishment            Self           • Obedience to Authority;
                   • Desire for rewards, as well                    Punishment avoidance
                     as fear of punishment                        • Greed (Reward seeking)


Conventional       • Desire for approval           Others/Group   • Societal norms of a
                   • Sense of duty to obey the                      good person
                     law                                          • Law & order
Post-              • Regard for standard of        Universal &    • Truth, Fairness,
conventional         society: utilitarianism       humankind        Justice (Social
                   • Respect for universal                          Contract)
                     principles of justice &                      • Conscience & moral
                     welfare                                        rules guiding actions
INDIVIDUAL ETHICAL
                 FRAMEWORKS


         A. Utilitarian Approach
 Focuses on whether the decision made will
    deliver the greatest good to the greatest
          number of people affected.
Recognizes that decisions made by people can
        have both positives and negative
                 consequences.
INDIVIDUAL ETHICAL
                  FRAMEWORKS


         B. Moral Rights Approach
 Recognizes that human beings are born with
      fundamental rights and privileges.
  Stresses the importance of respecting and
protecting the fundamental rights of all human
                    beings.
INDIVIDUAL ETHICAL
                 FRAMEWORKS


            C. Justice Approach
Focuses on how the costs and benefits of
 an action are distributed and whether the
      distribution is fair and equitable.
    Three types of justice approach are:
distributive, procedural, and compensatory
                    justice.
INDIVIDUAL ETHICAL
                   FRAMEWORKS



      1. Distributive Justice Approach
  Rewards and punishments should be fairly
    distributed based on how much individuals
      contribute towards, or deviate from the
             given organizational goals.
Discrimination (e.g., race, gender) is an example
          of the lack of distributive justice.
INDIVIDUAL ETHICAL
                  FRAMEWORKS


      2. Procedural Justice Approach
 The policies, rules, and procedures relating to
    decisions and behaviors should be applied
               fairly and consistently.
The criterion is whether the rules and processes
  governing the distribution of the rewards and
                punishments are fair.
INDIVIDUAL ETHICAL
                   FRAMEWORKS


     3. Compensatory Justice Approach
Involves compensating someone for a past wrong
                 decision or action.
  Requires that hurt parties be compensated for
                    past injustice.
CORPORATE SOCIAL
                  RESPONSIBILITY (CRS)


     Corporate social responsibility refers to:
           Obligations of a corporation.
    How it acts in terms of its own corporate
interests and profits in relation to the interests of
             its external stakeholders.
CORPORATE SOCIAL
            RESPONSIBILITY (CRS)


 Corporate social responsibility includes
            concerns about:
Green and environmental protection issues
           Community service
         Employment practices
     General corporate philanthropy
CORPORATE SOCIAL
                 RESPONSIBILITY (CRS)


     Effects of corporate social responsibility on
                     organization
                      Examples:
   Johnson and Johnson —Tylenol case in the 1980s
    Vita Soy—Soybean Contamination case in 1997
The Coca-cola—The recall of drinks after poisoning of
                 a consumer in 2006
  Nike—Inappropriate labor practices in the 1990s
ETHICALLY BASED
               COMMUNICATION STYLE


     A. Utilitarian Communication Style
 Believes that the decision should benefit the
                      majority.
Utilitarian's compare alternative options and are
      open and receptive to exploring different
                    viewpoints.
ETHICALLY BASED
             COMMUNICATION STRATEGIES


  B. Moral Rights Communicating Style
The advocates believe that decisions and actions
              are either right or wrong.
People holding a moral rights perspective focus
   on analyzing or explaining why a decision or
  action is either right or wrong, rather than the
     consequences of the decision or action.
ETHICALLY BASED
          COMMUNICATION STRATEGIES




    C. Justice Communication Style
Justice advocates are interested in how and
  whether the costs and benefits of decisions
      and actions are distributed equitably.
ETHICALLY BASED
             COMMUNICATION STRATEGIES


    D. Universalist Communication Style

    Ethical universalism believes that ethical
principles are universal and should be applied to
                     all cultures.
Universalists stress on conveying universal values.
ETHICALLY BASED
             COMMUNICATION STRATEGIES


      E. Relativist Communication Style
Believes that ethical behavior is influenced by the
                 cultural context.
        When in Rome, do as Romans do.
Relativists focus on the different values between
                      cultures.
POSSIBLE ETHICAL
             COMMUNICATION CONFLICT


     Utilitarian versus Moral Rights
        Communication Conflicts
The utilitarians may not be interested in the
rights or wrongs of a decision, whereas the
moral rights adherent is not interested in the
  pros and cons of the proposed actions.
POSSIBLE ETHICAL
               COMMUNICATION CONFLICT


       Universalistic versus Relativistic
           Communication Conflicts
 While universalists do not recognize that certain
   rights and traditions of a culture need to be
respected, relativists fail to recognize that certain
 fundamental rights are applicable to all cultures.
POSSIBLE ETHICAL
            COMMUNICATION CONFLICT


       Justice Communication Conflicts
Communicators taking the justice approach have a
  shared perspective and a basis for successful
                 communication.
 Communication conflicts can still arise among
 individuals holding differing views about what
              constitutes justice (e.g.
 distributive, procedural, compensatory justice)
ETHICS AND DECISION MODELS



       A. Rational or Classical Model
  The decision maker selects the best option
    among alternatives to reach an optimal goal.
    It encourages ethical communication by
     promoting extensive information flow and
           promotes an open process of
                 communication.
This method is most costly and time consuming.
ETHICS AND DECISION MODELS



                 B. Behavioral Model
 The decision maker identifies one alternative at a time
          and selects the first satisfactory alternative
                           identified.
It is often adopted by managers who are constrained by
                 information, costs and time.
  This model may carry with it a greater possibility of
            unethical decision making and unequal
                        communication.
ETHICS AND DECISION MODELS



              C. Retroactive Model
The decision maker chooses a favorable alternative
   early in the decision making process but carries
    it through the sequential steps of the rational
   decision making process with other alternatives.
A favorable option is considered along with other
  alternatives, but a change of intention is lacking.
DEALING WITH ETHICAL DILEMMAS




When encountering ethical dilemmas in dealing
        with “borderline” or “gray” area
situations, individuals tend to rationalize their
 inappropriate behavior. The individual may
                    believe that:
    their misconduct is not really illegal; or
    the result is in everyone’s best interests.
SUMMING UP



     In this whole chapter you have learned
          Kohlberg’s six stages of moral
development, individual based ethical approaches.
 This knowledge will help you to align personal
 ethical views with written or unwritten rules of
    organization regarding its corporate social
                  responsibility.

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Ethics IN BUSINESS COMMUNICATION

  • 1. ETHICS IN BUSINESS COMMUNICATION Presented To: Prof. Hasnain Rashid Presented By: Aima Masood (0030) MCOM Punjab College Of Commerce
  • 2. IMPORTANCE OF ETHICAL COMMUNICATION Learning Ethical models Helps you discover and make explicit your ethical positions and standards Enables you to diagnose the ethical position of your interlocutors. Provides you with a conceptual framework that will guide you towards becoming a consistent ethical business communicator.
  • 3. KOHLBERG'S STAGES Pre-conventional level Stage 1: The punishment and obedience orientation Stage 2: The instrumental purpose orientation Conventional level Stage 3: The "good boy-good girl" orientation Stage 4: The social-order-maintaining orientation Post-conventional level Stage 5: The social-contract orientation Stage 6: The universal ethical principle orientation
  • 4. PRECONVENTIONAL LEVEL Punishments and rewards dominate the sense of right & wrong Morality is externally controlled Rules of authority figures must be respected. Behaviour that results in punishment are bad Behaviour that results in rewards are good
  • 5. STAGE 1: THE PUNISHMENT AND OBEDIENCE ORIENTATION Ignore people's intentions; focus on fear of authority and avoidance of punishments as reasons for behaving morally
  • 6. STAGE 2: THE INSTRUMENTAL PURPOSE ORIENTATION Can understand that two people may have different perspectives in a situation Believe that satisfying personal needs determines moral choice Very concrete understanding
  • 7. THE CONVENTIONAL LEVEL Needs of Laws and society are the defining features. “Don't steal” because it is against the law Good behaviour is motivated to maintain the affection and approval of friends and relatives Understand that standards are set for the current social system, not getting that there is self-interest involved (e.g., no such thing as a bad law)
  • 8. STAGE 3: THE "GOOD BOY-GOOD GIRL" ORIENTATION Morality of interpersonal cooperation People obey rules to promote social harmony You will be judged for breaking the rules it isn't just the druggist who will think that you are a criminal, everyone else will and you will feel bad afterwards Justifies moral conformity
  • 9. STAGE 4: THE SOCIAL-ORDER- MAINTAINING ORIENTATION Each member of society is duty-bound to uphold rules as rules are vital for ensuring societal order
  • 10. THE POSTCONVENTIONAL LEVEL Personal moral beliefs and values
  • 11. STAGE 5: THE SOCIAL-CONTRACT ORIENTATION Laws and rules can be flexible Can understand the alternatives to social order and emphasize fair procedures
  • 12. STAGE 6: THE UNIVERSAL ETHICAL PRINCIPLE ORIENTATION The correct action is defined by self-chosen ethical principles of conscience that are valid for all humanity, regardless of law and social agreement Values are more abstract and internal
  • 13. STAGES IN ETHICAL DEVELOPMENT: LAWRENCE KOHLBERG (1973) Level Stages Orientation Justification Pre-conventional • Fear of punishment Self • Obedience to Authority; • Desire for rewards, as well Punishment avoidance as fear of punishment • Greed (Reward seeking) Conventional • Desire for approval Others/Group • Societal norms of a • Sense of duty to obey the good person law • Law & order Post- • Regard for standard of Universal & • Truth, Fairness, conventional society: utilitarianism humankind Justice (Social • Respect for universal Contract) principles of justice & • Conscience & moral welfare rules guiding actions
  • 14. INDIVIDUAL ETHICAL FRAMEWORKS A. Utilitarian Approach Focuses on whether the decision made will deliver the greatest good to the greatest number of people affected. Recognizes that decisions made by people can have both positives and negative consequences.
  • 15. INDIVIDUAL ETHICAL FRAMEWORKS B. Moral Rights Approach Recognizes that human beings are born with fundamental rights and privileges. Stresses the importance of respecting and protecting the fundamental rights of all human beings.
  • 16. INDIVIDUAL ETHICAL FRAMEWORKS C. Justice Approach Focuses on how the costs and benefits of an action are distributed and whether the distribution is fair and equitable. Three types of justice approach are: distributive, procedural, and compensatory justice.
  • 17. INDIVIDUAL ETHICAL FRAMEWORKS 1. Distributive Justice Approach Rewards and punishments should be fairly distributed based on how much individuals contribute towards, or deviate from the given organizational goals. Discrimination (e.g., race, gender) is an example of the lack of distributive justice.
  • 18. INDIVIDUAL ETHICAL FRAMEWORKS 2. Procedural Justice Approach The policies, rules, and procedures relating to decisions and behaviors should be applied fairly and consistently. The criterion is whether the rules and processes governing the distribution of the rewards and punishments are fair.
  • 19. INDIVIDUAL ETHICAL FRAMEWORKS 3. Compensatory Justice Approach Involves compensating someone for a past wrong decision or action. Requires that hurt parties be compensated for past injustice.
  • 20. CORPORATE SOCIAL RESPONSIBILITY (CRS) Corporate social responsibility refers to: Obligations of a corporation. How it acts in terms of its own corporate interests and profits in relation to the interests of its external stakeholders.
  • 21. CORPORATE SOCIAL RESPONSIBILITY (CRS) Corporate social responsibility includes concerns about: Green and environmental protection issues Community service Employment practices General corporate philanthropy
  • 22. CORPORATE SOCIAL RESPONSIBILITY (CRS) Effects of corporate social responsibility on organization Examples: Johnson and Johnson —Tylenol case in the 1980s Vita Soy—Soybean Contamination case in 1997 The Coca-cola—The recall of drinks after poisoning of a consumer in 2006 Nike—Inappropriate labor practices in the 1990s
  • 23. ETHICALLY BASED COMMUNICATION STYLE A. Utilitarian Communication Style Believes that the decision should benefit the majority. Utilitarian's compare alternative options and are open and receptive to exploring different viewpoints.
  • 24. ETHICALLY BASED COMMUNICATION STRATEGIES B. Moral Rights Communicating Style The advocates believe that decisions and actions are either right or wrong. People holding a moral rights perspective focus on analyzing or explaining why a decision or action is either right or wrong, rather than the consequences of the decision or action.
  • 25. ETHICALLY BASED COMMUNICATION STRATEGIES C. Justice Communication Style Justice advocates are interested in how and whether the costs and benefits of decisions and actions are distributed equitably.
  • 26. ETHICALLY BASED COMMUNICATION STRATEGIES D. Universalist Communication Style Ethical universalism believes that ethical principles are universal and should be applied to all cultures. Universalists stress on conveying universal values.
  • 27. ETHICALLY BASED COMMUNICATION STRATEGIES E. Relativist Communication Style Believes that ethical behavior is influenced by the cultural context. When in Rome, do as Romans do. Relativists focus on the different values between cultures.
  • 28. POSSIBLE ETHICAL COMMUNICATION CONFLICT Utilitarian versus Moral Rights Communication Conflicts The utilitarians may not be interested in the rights or wrongs of a decision, whereas the moral rights adherent is not interested in the pros and cons of the proposed actions.
  • 29. POSSIBLE ETHICAL COMMUNICATION CONFLICT Universalistic versus Relativistic Communication Conflicts While universalists do not recognize that certain rights and traditions of a culture need to be respected, relativists fail to recognize that certain fundamental rights are applicable to all cultures.
  • 30. POSSIBLE ETHICAL COMMUNICATION CONFLICT Justice Communication Conflicts Communicators taking the justice approach have a shared perspective and a basis for successful communication. Communication conflicts can still arise among individuals holding differing views about what constitutes justice (e.g. distributive, procedural, compensatory justice)
  • 31. ETHICS AND DECISION MODELS A. Rational or Classical Model The decision maker selects the best option among alternatives to reach an optimal goal. It encourages ethical communication by promoting extensive information flow and promotes an open process of communication. This method is most costly and time consuming.
  • 32. ETHICS AND DECISION MODELS B. Behavioral Model The decision maker identifies one alternative at a time and selects the first satisfactory alternative identified. It is often adopted by managers who are constrained by information, costs and time. This model may carry with it a greater possibility of unethical decision making and unequal communication.
  • 33. ETHICS AND DECISION MODELS C. Retroactive Model The decision maker chooses a favorable alternative early in the decision making process but carries it through the sequential steps of the rational decision making process with other alternatives. A favorable option is considered along with other alternatives, but a change of intention is lacking.
  • 34. DEALING WITH ETHICAL DILEMMAS When encountering ethical dilemmas in dealing with “borderline” or “gray” area situations, individuals tend to rationalize their inappropriate behavior. The individual may believe that: their misconduct is not really illegal; or the result is in everyone’s best interests.
  • 35. SUMMING UP In this whole chapter you have learned Kohlberg’s six stages of moral development, individual based ethical approaches. This knowledge will help you to align personal ethical views with written or unwritten rules of organization regarding its corporate social responsibility.