the ethical decision making process includes:
-ethical issue intensity
-individual factors
-organizational factors
ethical-issue intensity
-the perceived relevance or important of an ethical issue to the individual, work group, and/or organization
--reflects the ethical sensitivity of the individual and/or work group
--triggers the ethical decision making process
ethical-issue intensity
-individuals are subject to 6 spheres of influences...workplace, family, religion, legal system, community, profession
moral intensity
relates to a person's perception of social pressure and the harm his/her decision will have on others
individual factors
-people base their ethical decisions on their own values and principles of right and wrong
--values are learned through socialization
--good personal values decrease unethical behavior & increase positive work behavior
--values are subjective; vary across
individual factors [cont.]
-an organization may intend to do right, but organizational or social forces can alter this intent
-research shows that various factors influence ethical behavior
--gender, women are more ethical than men
--education, work experience, nationality, age aff
locus of control
relates to individual differences in relation to a general belief about how one is affected by internal versus external events or reinforcements
Managers with external locus of control
-go with the flow because that's all they can do; "always them", "can't catch a break
Mangers with internal locus of control
-believe they can control events; are masters of their destinies & trust in their capacity to influence their environment; "in charge of destiny
organizational factors
organizational culture has a stronger influence on employees than individual values
corporate culture [org. factors]
a set of values, norms and artifacts that members of an organization share [think ben& jerry's]
ethical culture [org. factors]
reflects whether the firm has an ethical conscience; is a function of many factors [top leadership; work group, managers]
significant others [org. factors]
those who have influence in a work group
obedience to authority [org. factors]
helps to explain why many employees unquestioningly follow superior's orders
opportunity
the conditions in an organization that limit/permit ethical/ unethical behavior
--immediate job context: where employee work, with whom they work, and the nature of the work
opportunity [cont.]
opportunities for misconduct can be reduced by est. formal codes, policies & rules [aggressive enforcement is required]
--knowledge can sometimes lead to unethical behavior [a person who has an informal base, expertise or information about competition has
ethical dilemmas involve situations where rules are vague or in conflict ***
-critical thinking skills and ability to take responsibility are important
-the final step is deciding what action to take based on a person's intentions
-guilt or uneasiness is the first sign that an unethical decision has occurred
-most business people
Using the ethical decision-making model to improve ethical decisions [impossible to objectively determine if a business decision is right or wrong]
-understanding how ethical decisions are made will not solve ethical problems
--business ethics involves value judgements & collective agreements about acceptable patterns of behavior
-ethical decision making in business does not rely on personal values &
normative considerations in ethical decision making
normative approaches: how organizational decision makers should approach an issue
--diff. from a descriptive approach that examines how organizational decision makers approach ethical decision making
-concepts like fairness & justice are highly important
normative considerations in ethical decision making [cont.]
-most organizations develop a set of core values to provide enduring beliefs about appropriate conduct
--core values are central to an organization & provide direction for action
-by incorporating stakeholder objective into corporate core values, companie
Institutions as the Foundation for Normative Values
-institutions are important in est. a foundation for normative values
-organizations face certain normative pressures from different institutions to act a certain way
--internally &/or externally
--sort institutions into 3 categories: political, economic,
Institutions as the Foundation for Normative Values [cont.]
-political influences can take place within the organization
-an ethical organization has policies & rules in place to determine appropriate behavior
-often the compliance component of the firm's organizational culture
--failure to abide by these rules re
Institutions as the Foundation for Normative Values [cont.] 3
-normative business ethics take into account the political realities outside the legal realm in the form of industry standards
-legal issues such as price fixing, antitrust issues, & consumer protection are important in maintaining a fair & equitable mark
Institutions as the Foundation for Normative Values [cont.] 4
-competition affects how a company operates as well as the risks employees take for the good of the firm
-amount of competition in an industry can be determines/described according to...
--barriers to entry into the industry
--available substitutes for th
Institutions as the Foundation for Normative Values [cont.] 5
-social institutions include religion, education, & individuals such as the family unit
-there are laws meant to ensure an organization acts fairly, but there are no laws saying people should do to others as they would prefer to have done to them
--many c
Institutions as the Foundation for Normative Values [cont.] 6
-industry shares values promote organizational effectiveness when linked to goals
-can also hinder effectiveness if more efficient means of organization & structure are avoided in exchange for stability
--risk that organizations might sacrifice new ideas
Institutions as the Foundation for Normative Values [cont.] 7
-when values from political, economic, & social institutions are embedded into the organizational culture to provide incentives for appropriate behavior,, firms tend to act more socially responsible
-if incentives do not align with institutional normative
Implementing Principles & Core Values in Ethical Decision Making
-John Rawls was one of the most influential philosophers in his research on how principles support the concept of justice
-Veil of Ignorance: a though experience that examines how individuals would formulate principles if they did not know what their futu
Implementing Principles & Core Values in Ethical Decision Making [cont.] ...Two Main Principles of Justice
-Liberty Principles (equality principle): states that each person has basic rights that are compatible to the basic liberties of others
-Difference Principles: states that economic & social equalities (or inequalitites) should be arranged to provide the m
Implementing Principles & Core Values in Ethical Decision Making [cont.]3
-companies take basic principles & translate them into core values
-core values provide the abstract ideals that are distinct from individual values & daily operational procedures
-value practices evolve & are translated into normative definitions of ethi
Implementing Principles & Core Values in Ethical Decision Making [cont.]4
-leaders, stakeholders, and the organizational culture impact the development of core values
-a firm's core values provide a blueprint into the firm's purpose as well as how it views ethical decision making & prioritizes
-organizations that have ethics pr
Understanding Ethical Decision Making
-ethical issue intensity, individual factors, & opportunity result in business ethics evaluations & decisions
-an organizational ethical culture is shaped by effective leadership
--top level support is required for ethical behavior
-an ethical corporate c