This document discusses 10 common myths about business ethics. It seeks to debunk each myth by providing counterarguments and examples. Some of the key myths addressed include: that business ethics is more about religion than management; that employees are already ethical so formal ethics programs are not needed; and that ethics cannot be managed in an organization. The document argues that managing ethics and values in the workplace is indeed practical and important.
Professional ethics are principles that govern the behavior of a person or group in a business environment. Like values, professional ethics provide rules on how a person should act towards other people and institutions in such an environment.Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and wrong behavior". The field of ethics, along with aesthetics, concerns matters of value, and thus comprises the branch of philosophy called axiology.
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2. Myth 1: Business ethics is more a matter
of religion than management.
Altering people's values or souls isn't
the aim of an organizational ethics
program -- managing values and
conflict among them is ...
3. Myth 2: Our employees are ethical so we
don't need attention to business ethics.
Most of the ethical dilemmas faced by managers in the workplace
are highly complex.
People have a significant ethical conflict when there is presence of
•significant value conflicts among differing interests,
•real alternatives that are equality justifiable, and
•significant consequences on "stakeholders" in the situation.
When the topic of business ethics comes up, people
are quick to speak of the Golden Rule, honesty and
courtesy. But when presented with complex ethical
dilemmas, most people realize there's a wide "gray
area" when trying to apply ethical principles.
4. Myth 3: Business ethics is a discipline best led
by philosophers, academics and theologians.
5. Myth 4: Business ethics is superfluous --
it only asserts the obvious: "do good!"
Many people react that codes of ethics, or lists of ethical values to
which the organization aspires, are rather superfluous because they
represent values to which everyone should naturally aspire.
The value of a codes of ethics to an organization is its priority and
focus regarding certain ethical values in that workplace.
•it’s obvious that all people should be honest.
•if an organization is struggling around continuing occasions of deceit
in the workplace, a priority on honesty is very timely -- and honesty
should be listed in that organization’s code of ethics.
Note that a code of ethics is an organic
instrument that changes with the needs of
society and the organization.
6. Myth 5: Business ethics is a matter of the
good guys preaching to the bad guys.
7. Myth 6: Business ethics in the new
policeperson on the block.
• Many believe business ethics is a recent
phenomenon because of increased attention to the
topic in popular and management literature.
• Business ethics was written about even 2,000 years
ago -- at least since Cicero wrote about the topic in
his On Duties.
• Business ethics has gotten more
attention recently because of the
social responsibility movement that
started in the 1960s.
8. Myth 7: Ethics can't be managed.
Ethics is always "managed" -- but, too often, indirectly.
•For example, the behavior of the organization's founder or current leader is a
strong moral influence, or directive if you will, on behavior or employees in the
workplace.
•Strategic priorities (profit maximization, expanding market share, cutting costs,
etc.) can be very strong influences on morality.
•Laws, regulations and rules directly influence behaviors to be more ethical,
usually in a manner that improves the general good and/or minimizes harm to
the community.
Some are still skeptical about business ethics, believing you can't
manage values in an organization. Management, after all, is a value
system. Skeptics might consider the tremendous influence of several
"codes of ethics," such as the "10 Commandments" in Christian
religions or the U.S. Constitution. Codes can be very powerful in
smaller "organizations" as well.
9. Myth 8: Business ethics and social
responsibility are the same thing.
The social responsibility movement is one aspect of the
overall discipline of business ethics.
The definition of business ethics includes:
10. Myth 9: Our organization is not in trouble
with the law, so we're ethical.
One can often be unethical, yet operate within the limits of
the law, e.g., withhold information from superiors, fudge on
budgets, constantly complain about others, etc.
However, breaking the law often starts with unethical
behavior that has gone unnoticed.
The "boil the frog" phenomena is a useful parable
here: If you put a frog in hot water, it immediately
jumps out. If you put a frog in cool water and slowly
heat up the water, you can eventually boil the frog.
The frog doesn't seem to notice the adverse change in
its environment.
11. Myth 10: Managing ethics in the
workplace has little practical relevance.