Ethics in management

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ETHICS IN MANAGEMENT:

ETHICS IN MANAGEMENT JERRY JOHN

ETHICS AND ETHICAL BEHAVORIAL:

ETHICS AND ETHICAL BEHAVORIAL “Character doesn’t stay at home when we go to work” What is ethical behavior? How can organizations maintain high standards of ethical conduct?

Ethics and Culture:

Ethics and Culture Excerpt From Universal Declaration of Human Rights United Nations Article 1—All human beings are born free and equal in dignity and right Article 18—Everyone has the right to freedom of thought, conscience, and religion Article 19—Everyone has the right to freedom of opinion and expression Article 23—Everyone has the right to work, to free choice of employment, to just and favorable conditions of work Article 26—Everyone has the right to education

Ethics Behavior:

Ethics Behavior Ethics A code of moral standards of conduct for what is “good” and “right” as opposed to what is “bad” or “wrong”. Ethical Behavior That which is “right” or “good” in the context of governing moral code. Ethical behavior is value driven

Values :

Values Values Broad beliefs about what is appropriate behavior Terminal Values Preferences about desired end states Instrumental Values Preferences regarding the means to desired ends

Moral Reasoning:

Moral Reasoning Moral Reasoning Reasons for various ethical practices

Ethics and Culture:

Ethics and Culture Cultural Relativism Suggest that there is no one right way to behave; cultural context determines ethical behavior

Ethical Dilemma:

Ethical Dilemma Ethical Dilemma A situation that, although offering potential benefits, is unethical. One of the most common ethical dilemmas occurs when a company’s culture conflicts with an employee’s personal ethics.

ORGANIZATIONAL ETHICS MANAGEMENT TIPS :

ORGANIZATIONAL ETHICS MANAGEMENT TIPS Checklist for dealing with ethical dilemmas Step 1. Recognize the ethical dilemma. Step 2. Get the facts. Step 3. Identify your options. Step 4. Test each option: Is it legal? Is it right? Is it beneficial? Step 5. Decide which option to follow. Step 6. Take action.

Ethics and Work:

Ethics and Work The Wall Street Journal reports: • 36% of workers calling in sick are lying. • 35% keep quiet about co-worker misconduct. • 12% of job resumes contain falsehoods. • Managers are more likely than other workers to report wrongdoing. • Managers with 0–3 years experience feel most pressure to violate personal ethics.

Rationalizing Unethical Behavior:

Rationalizing Unethical Behavior Four reasons 1. “What I’m doing is not really illegal.” 2. “My behavior is in everyone’s best interests.” 3. “Nobody will ever find out what I’ve done.” 4. “The organization will protect me.”

ETHICS AND ETHICAL BEHAVORIAL Organizational Ethics :

ETHICS AND ETHICAL BEHAVORIAL Organizational Ethics Personal and contextual factors influence ethical conduct Training in ethical decision making may improve ethical conduct Protection of whistleblowers may encourage ethical conduct Managers acting as positive role models may motivate others toward ethical conduct Formal codes of ethics set standards for ethical conduct

ORGANIZATIONAL ETHICS Ethics Training :

ORGANIZATIONAL ETHICS Ethics Training Ethics Training Seeks to help people understand the ethical aspects of decision making and to incorporate high ethical standards into their daily behavior. Code of Ethics A formal statement of values and ethical standards

What Are Unethical Business Practices?:

What Are Unethical Business Practices? Surveys have identified the following recurring themes to prominent everyday ethical issues facing businesses and their stakeholders: Managers lying to employees Office nepotism and favoritism Taking credit for other’s work Receiving/offering kickbacks Stealing from the company Firing an employee for whistle-blowing Padding expense accounts Divulging confidential information or trade secrets Terminating employment without sufficient notice Using company property/materials for personal use

What Are Unethical Business Practices?:

What Are Unethical Business Practices? The most unethical behavior, per one survey, happens in the following areas: Government Sales Law Media Finance Medicine Banking Manufacturing

Why Does Ethics Matter In Business?:

Why Does Ethics Matter In Business? “Doing the right thing” matters to employers, employees, stakeholders, and the public. For companies, it means saving billions of dollars each year in lawsuits, settlements, and theft Tobacco industry Dow Corning Costs to businesses include: Deterioration of relationships Damage to reputation Declining employee productivity,creativity , and loyalty Ineffective information flow throughout the organization Absenteeism

Five Myths About Business Ethics:

Five Myths About Business Ethics A myth is “a belief given uncritical acceptance by the members of a group, especially in support of existing or traditional practices and institutions.” Myth 1: Ethics is a personal, individual affair, not a public or debatable matter Myth 2: Business and ethics do not mix Myth 3: Ethics in business is relative Myth 4: Good business means good ethics Myth 5: Information and computing are amoral

ORGANIZATIONAL ETHICS Whistleblowers:

ORGANIZATIONAL ETHICS Whistleblowers Whistleblowers Persons who expose organizational misdeeds in order to preserve ethical standards and protect against wasteful, harmful, or illegal acts. Many whistleblowers were / are fired for their actions. State and federal laws now offer some protection

ORGANIZATIONAL ETHICS Managers:

ORGANIZATIONAL ETHICS Managers Management Behavior In order to have a positive impact on ethical conduct throughout an organization, those at the top must walk the talk.

Decision Criteria for Ethical Reasoning:

Decision Criteria for Ethical Reasoning The following three criteria can be used in ethical reasoning: Moral reasoning must be logical Factual evidence cited to support a person’s judgment should be accurate, relevant, and complete Ethical standards used should be consistent A simple but powerful question can be used throughout your decision-making process in solving ethical dilemmas: What is my motivation for choosing a course of action?

Decision Criteria for Ethical Reasoning:

Decision Criteria for Ethical Reasoning A major aim of ethical reasoning is to gain a clearer and sharper logical focus on problems to facilitate acting in morally responsible ways. Two conditions that eliminate a person’s moral responsibility for causing harm are: Ignorance Inability Mitigating circumstances that excuse or lessen a person’s moral responsibility include: A low level of or lack of seriousness to cause harm Uncertainty about knowledge of wrongdoing The degree to which a harmful injury was caused or averted

Ethical Relativism: A Self-Interest Approach:

Ethical Relativism: A Self-Interest Approach Ethical relativism holds that no universal standards or rules can be used to guide or evaluate the morality of an act. This view argues that people set their own moral standards for judging their actions. This is also referred to as naïve relativism. The logic of ethical relativism extends to culture.

Ethical Relativism: A Self-Interest Approach:

Ethical Relativism: A Self-Interest Approach Benefits include: Ability to recognize the distinction between individual and social values, customs, and moral standards Problems include: Imply an underlying laziness Contradicts everyday experience Relativists can become absolutists Relativism and stakeholder analysis.

Utilitarianism: A Consequentialist (Results-Based) Approach:

Utilitarianism: A Consequentialist (Results-Based) Approach The basic view holds that an action is judged as right, good, or wrong on the basis of its consequences. The moral authority that drives utilitarianism is the calculated consequences or results of an action, regardless of other principles that determine the means or motivations for taking the action. Utilitarianism includes other tenets.

Utilitarianism: A Consequentialist (Results-Based) Approach:

Utilitarianism: A Consequentialist (Results-Based) Approach Problems with utilitarianism include: No agreement exists about the definition of the “good” to be maximized No agreement exists about who decides How are the costs and benefits of nonmonetary stakes measured? Does not consider the individual Principles of rights and justice are ignored Utilitarianism and stakeholder analysis.

Universalism: A Deontological (Duty-Based) Approach:

Universalism: A Deontological (Duty-Based) Approach The major weaknesses of universalism and Kant’s categorical imperative include: Principles are imprecise and lack practical utility Hard to resolve conflicts of interest Does not allow for prioritizing one’s duties Universalism and stakeholder analysis.

Rights: An Entitlement-Based Approach:

Rights: An Entitlement-Based Approach Moral rights are based on legal rights and the principle of duty. Rights can override utilitarian principles. The limitations of rights include: Can be used to disguise and manipulate selfish, unjust political interests and claims Protection of rights can be at the expense of others Limits of rights come into question Rights and stakeholder analysis.

Justice: Procedures, Compensation, Retribution:

Justice: Procedures, Compensation, Retribution The principle of justice deals with fairness and equality. Two recognized principles of fairness that represent the principle of justice include: Equal rights compatible with similar liberties for others Social and economic inequality arrangement Four types of justice include: Compensatory Retributive Distributive Procedural

Justice: Procedures, Compensation, Retribution:

Justice: Procedures, Compensation, Retribution Problems using the principle of justice include: Who decides who is right and who is wrong? Who has moral authority to punish? Can opportunities and burdens be fairly distributed? Justice, rights, and power are really intertwined. Two steps in transforming justice: Be aware of your rights and power Establish legitimate power for obtaining rights Justice and stakeholder analysis.

Immoral, Amoral, Or Moral Management:

Immoral, Amoral, Or Moral Management Immoral management means intentionally going against ethical principles of justice and of fair and equitable treatment of other stakeholders. Amoral management happens when others are treated negligently without concern for the consequences of actions or policies. Moral management places value on equitable, fair, and just concern of others involved.

Four Social Responsibility Roles:

Four Social Responsibility Roles Figure illustrates four ethical interpretations of the social roles and modes of decision-making. The four social responsibility modes reflect business roles toward stockholders and stakeholders.

Approaches to Social Responsibility:

Approaches to Social Responsibility

Reference:

Reference www.Ethics.com WWW.Business Ethics.com www.Ethical BehaviourinIndia.com WWW.Managementethics.com Google Search

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THANK YOU Keep Ethics in yourself….

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