1
Personal and Organizational
Ethics
Levels at Which Ethical Issues May
Be Addressed
 1)Personal level—situations faced in personal life
(income tax, doing kid’s homework, etc.)
 2)Organizational level—workplace situations faced
as managers and employees (cutting corners, etc.)
Levels at Which Ethical Issues May
Be Addressed
 3)Industrial level—situations confronted as
professionals (the practices of stockbrokers,
accountants, etc.)
 4)Societal and international levels—local-to-
global situations confronted indirectly as a
management team
Personal and Managerial Ethics
Resolving Ethical Conflicts
Three Approaches
 Conventional
 Principles
 Ethical tests
Personal and Managerial Ethics
 Utilitarianism
 Rights
 Justice
 Caring
 Virtue ethics
 Servant leadership
 Golden Rule
Principles Approach
Anchors decision making
on an ethical principle such as:
Personal and Managerial Ethics
Principle of Utilitarianism focuses on an act that
produces the greatest ratio of good to evil for
everyone
 Consequentialist theory
Personal and Managerial Ethics
Principle of Rights focuses on examining and
possibly protecting individual moral or legal rights
Personal and Managerial Ethics
Personal and Managerial Ethics
 Principle of justice involves considering what
alternative promotes fair treatment of people
 Types of justice
 Distributive
 Compensatory
 Procedural
 Rawlsian
Personal and Managerial Ethics
Rawls’ Justice
 Each person has an equal right to the most basic
liberties comparable with similar liberties for others
 Social and economic inequalities are arranged so
that they are both:
a) reasonably expected to be to everyone’s advantage
and
b) attached to positions and offices open to all people
Personal and Managerial Ethics
 Principle of caring focuses on a person as a relational
(cooperative) and not as an individual
 Feminist theory
 Virtue ethics focuses on individuals becoming
imbued with virtues
 Aristotle and Plato
Personal and Managerial Ethics
Servant leadership focuses on serving others first
such as employees, customers, community and so
on
Personal and Managerial Ethics
 Listening
 Empathy
 Healing
 Persuasion
 Awareness
 Foresight
 Conceptualization
 Commitment to the
growth of people
 Stewardship
 Building community
Characteristics of Servant Leaders
Personal and Managerial Ethics
Golden rule focuses on the premise that you
should of unto others as you would have them do
unto you
Personal and Managerial Ethics
Concerns to be Addressed in
Ethical Conflicts
 Obligations
 Ideals
 Effects
Personal and Managerial Ethics
When Our Obligations, Ideals and
Effects Conflicts
 When two or more moral obligations conflict, use
the stronger one
 When two or more ideals conflict, or when ideals
conflict with obligations, honor the more
important one
 When effects are mixed, choose the action that
produces the greatest good and the least harm
Personal and Managerial Ethics
Ethics Test Approach
Test of common sense
Test of one’s best self
Test of making something public
Test of ventilation
Gag test
Managing Organizational Ethics
Superiors
Policies
Peers
Individual
(One’s
personal
situation)
Society’s Moral Climate
Business’s Moral Climate
Industry’s Moral Climate
Factors Affecting the Morality of Managers
Managing Organizational Ethics
Factors Influencing Unethical Behavior
 Behavior of superiors
 Ethical practices of one’s industry or profession
 Behavior of one’s peers in the organization
 Formal organizational policy (or lack of one)
 Personal financial need
Managing Organizational Ethics
 Amoral decision making
 Unethical acts, behaviors or practices
 Acceptance or legality as the standard behavior
 Absence of ethical leadership
Questionable Behaviors of Superiors or Peers
Managing Organizational Ethics
 Objects and evaluation systems overemphasizing
profits
 Insensitivity toward how subordinates perceive
pressure to meet goals
 Inadequate formal ethics policies
Questionable Behaviors of Superiors or Peers
Improving Ethical Climate
Top
Management
Leadership
Ethics Programs
& Officers
Realistic
Objectives
Ethical Decision-
making Processes
Codes of
Conduct
Ethics Audit
Ethics Training
Whistle-blowing
Mechanisms
(“Hotlines”)
Discipline of
Violators
Effective
Communication
Codes of
Conduct
Ethical Decision-Making
Identify decision you
are about to make
Articulate all dimensions
of proposed decision
Conventional Approach
Standards/Norms
-Personal
-Organizational
-Societal
-International
Principles Approach
Ethical Principles
-Justice
-Rights
-Utilitarianism
-Golden Rule
Ethical Tests Approach
Ethical Tests
-Common sense
-One’s best self
-Public disclosure
-Gag test . . .
Course of action passes
ethics screen
Engage in course of
action
Course of action fails
ethics screen
Do not engage in course
of action
Identify new course of
action
Ethics Audits and Self-Assessment
From Moral Decisions to Moral
Organizations
Moral Decision(s)
Moral Manager(s)
Moral Organization
Case 4.1
 Imagine that you are an experienced engineer. You
occasionally pause to watch the progress of a construction
site in the middle of a city where you work. A viewing place
has been formed in the security fence specifically for
members of the public. You notice a problem with a tower
crane, which you feel could lead to a failure if not rectified.
The failure is not likely to take place immediately but it
appears to you that the crane could collapse and parts of
the boom fall into the site and adjacent street unless some
action is taken soon. Do you have any responsibility for
action to prevent the possible accident? If so, to whom?
Case 4.2
 You are used to working in the United Kingdom but
this is the first time you have worked overseas in a
developing country. You are disturbed to see the poor
health and safety standards everywhere around you.
Work would certainly not be allowed to be carried out
under these conditions in the United Kingdom.
 What should you do?

Ethics_4 (1).ppt

  • 1.
  • 2.
    Levels at WhichEthical Issues May Be Addressed  1)Personal level—situations faced in personal life (income tax, doing kid’s homework, etc.)  2)Organizational level—workplace situations faced as managers and employees (cutting corners, etc.)
  • 3.
    Levels at WhichEthical Issues May Be Addressed  3)Industrial level—situations confronted as professionals (the practices of stockbrokers, accountants, etc.)  4)Societal and international levels—local-to- global situations confronted indirectly as a management team
  • 4.
    Personal and ManagerialEthics Resolving Ethical Conflicts Three Approaches  Conventional  Principles  Ethical tests
  • 5.
    Personal and ManagerialEthics  Utilitarianism  Rights  Justice  Caring  Virtue ethics  Servant leadership  Golden Rule Principles Approach Anchors decision making on an ethical principle such as:
  • 6.
    Personal and ManagerialEthics Principle of Utilitarianism focuses on an act that produces the greatest ratio of good to evil for everyone  Consequentialist theory
  • 7.
    Personal and ManagerialEthics Principle of Rights focuses on examining and possibly protecting individual moral or legal rights
  • 8.
  • 9.
    Personal and ManagerialEthics  Principle of justice involves considering what alternative promotes fair treatment of people  Types of justice  Distributive  Compensatory  Procedural  Rawlsian
  • 10.
    Personal and ManagerialEthics Rawls’ Justice  Each person has an equal right to the most basic liberties comparable with similar liberties for others  Social and economic inequalities are arranged so that they are both: a) reasonably expected to be to everyone’s advantage and b) attached to positions and offices open to all people
  • 11.
    Personal and ManagerialEthics  Principle of caring focuses on a person as a relational (cooperative) and not as an individual  Feminist theory  Virtue ethics focuses on individuals becoming imbued with virtues  Aristotle and Plato
  • 12.
    Personal and ManagerialEthics Servant leadership focuses on serving others first such as employees, customers, community and so on
  • 13.
    Personal and ManagerialEthics  Listening  Empathy  Healing  Persuasion  Awareness  Foresight  Conceptualization  Commitment to the growth of people  Stewardship  Building community Characteristics of Servant Leaders
  • 14.
    Personal and ManagerialEthics Golden rule focuses on the premise that you should of unto others as you would have them do unto you
  • 15.
    Personal and ManagerialEthics Concerns to be Addressed in Ethical Conflicts  Obligations  Ideals  Effects
  • 16.
    Personal and ManagerialEthics When Our Obligations, Ideals and Effects Conflicts  When two or more moral obligations conflict, use the stronger one  When two or more ideals conflict, or when ideals conflict with obligations, honor the more important one  When effects are mixed, choose the action that produces the greatest good and the least harm
  • 17.
    Personal and ManagerialEthics Ethics Test Approach Test of common sense Test of one’s best self Test of making something public Test of ventilation Gag test
  • 18.
    Managing Organizational Ethics Superiors Policies Peers Individual (One’s personal situation) Society’sMoral Climate Business’s Moral Climate Industry’s Moral Climate Factors Affecting the Morality of Managers
  • 19.
    Managing Organizational Ethics FactorsInfluencing Unethical Behavior  Behavior of superiors  Ethical practices of one’s industry or profession  Behavior of one’s peers in the organization  Formal organizational policy (or lack of one)  Personal financial need
  • 20.
    Managing Organizational Ethics Amoral decision making  Unethical acts, behaviors or practices  Acceptance or legality as the standard behavior  Absence of ethical leadership Questionable Behaviors of Superiors or Peers
  • 21.
    Managing Organizational Ethics Objects and evaluation systems overemphasizing profits  Insensitivity toward how subordinates perceive pressure to meet goals  Inadequate formal ethics policies Questionable Behaviors of Superiors or Peers
  • 22.
    Improving Ethical Climate Top Management Leadership EthicsPrograms & Officers Realistic Objectives Ethical Decision- making Processes Codes of Conduct Ethics Audit Ethics Training Whistle-blowing Mechanisms (“Hotlines”) Discipline of Violators Effective Communication Codes of Conduct
  • 23.
    Ethical Decision-Making Identify decisionyou are about to make Articulate all dimensions of proposed decision Conventional Approach Standards/Norms -Personal -Organizational -Societal -International Principles Approach Ethical Principles -Justice -Rights -Utilitarianism -Golden Rule Ethical Tests Approach Ethical Tests -Common sense -One’s best self -Public disclosure -Gag test . . . Course of action passes ethics screen Engage in course of action Course of action fails ethics screen Do not engage in course of action Identify new course of action
  • 24.
    Ethics Audits andSelf-Assessment
  • 25.
    From Moral Decisionsto Moral Organizations Moral Decision(s) Moral Manager(s) Moral Organization
  • 26.
    Case 4.1  Imaginethat you are an experienced engineer. You occasionally pause to watch the progress of a construction site in the middle of a city where you work. A viewing place has been formed in the security fence specifically for members of the public. You notice a problem with a tower crane, which you feel could lead to a failure if not rectified. The failure is not likely to take place immediately but it appears to you that the crane could collapse and parts of the boom fall into the site and adjacent street unless some action is taken soon. Do you have any responsibility for action to prevent the possible accident? If so, to whom?
  • 27.
    Case 4.2  Youare used to working in the United Kingdom but this is the first time you have worked overseas in a developing country. You are disturbed to see the poor health and safety standards everywhere around you. Work would certainly not be allowed to be carried out under these conditions in the United Kingdom.  What should you do?

Editor's Notes