Ethical decisions have extended consequences

“Ethical Decision-making isn’t an option today. It’s an obligation – in business, in education, in government, in our daily lives.”

William C. Butcher – Retired Chairman of Chase Manhattan Corporation

Balancing work & family
Poor internal communications
Poor leadership
Work hours, work load
Technology and constant access
Need to meet sales, profit, or budget goals
Little or no recognition of achievements
Company politics
Personal financial worries
Insufficient resources
Sources of pressure in today's workplace increasing the potential to make unethical decisions:

Top five types of unethical or illegal behaviors in response to pressure:

Cutting corners on quality
Covering up incidents
Abusing or lying about sick days
Lying or deceiving customers
Putting inappropriate pressure on others
“I am sometimes subject to pressure to compromise personal standards to achieve organizational goals”:

All Management Levels: 64% agree

Top Management: 50% agree

Middle Management: 65% agree

Lower Management: 85% agree

Top management levels underestimate the perceptions of their subordinates in regard to the pressures that lower management feels to go along with their bosses – results or reprisal

Management Pressures

They do not feel loyal to the organization.
They feel pressure to ‘succeed’, as defined by the organization.
They feel entitled.
They believe that the rules do not apply to them.
They do not view the act as illegal.
They feel pressured by their peers.
They lack resources.
Striving for Ethical Behavior – What Makes People Make Bad Decisions?

Moral/Ethical decisions have:

Extended consequences
Multiple alternatives
Mixed and complex outcomes
Uncertain consequences
Personal implications
When we make a decision or take an action we can be:

Moral - in compliance with moral standards, company cares about

succeeding in the confines of ethical principles.

key operating questions of management is "is this action or

decision fair to us and all stakeholders involved?"

Immoral - in opposition to moral standards, company cares only

about company's gains.

key operating question of management is "can we make money

with this action or decision regardless of what it takes?"

Amoral - without consideration of moral standards, company impact

on others not considered.

key operating question of management is "can we make money

with this action or decision?"

Nonmoral - outside the sphere of moral concern.

whether your car will top out at 130 or 140 is nonmoral issue

whether you should top it out at noon on Broad St. is moral

Ethical decisions in business occur at different levels:

1. personal level

should I call in sick and go to the beach?

2. organizational level

should I ignore the fact that my colleague is

embezzling money from the company?

3. industry level

should executives receive huge bonuses?

4. societal/international level

should U.S. companies hold U.S. standards when

doing business overseas?

When making a decision, some important questions to ask:

Is the behavior or action consistent with the overall basic duties of the individual in question?

Does the behavior or action acknowledge and respect the underlying rights of all the individuals who will be impacted by the action?

Would the behavior or action be considered the best practice in that specific set of circumstances?

Does the behavior or action match the overall entrenched beliefs of the individual?

Is the action legal?

Is the action right and fair?

Does it promote win-win relationships?

Is it appropriate for both short and long term?

Does it comply with the firm’s values?

Would I want everyone to know about this?

How will I feel about myself?

IF YOU DO NOT KNOW THE ANSWERS TO THESE QUESTIONS, ASK!

KEEP ASKING UNTIL YOU GET AN ANSWER!!

IF YOU KNOW IT IS WRONG, DO NOT DO IT!!!

Ethics Check Questions

Attention to business ethics has substantially improved society.

Ethics programs help maintain a moral course in turbulent times.

Ethics programs cultivate strong teamwork and productivity.

Ethics programs support employee growth and meaning.

Ethics programs are an insurance program; they help ensure that policies are legal.

Ethics programs help manage values associated with quality management, strategic planning, and diversity management.

Benefits for Paying Attention to Ethical Issues in the Workplace

Ethics programs promote a strong public image

legitimizes managerial actions

Strengthens the coherence and balance of the company’s culture

improves trust in relationships

supports consistency

cultivates sensitivity to the impact of the company’s messages

Formal attention to ethics in the workplace is the right thing to do!

Benefits for Paying Attention to Ethical Issues in the Workplace

Summary

Ethical decisions have to consider and balance the interests of all vested stakeholders in the company.
Business organizations must contemplate how their actions impact overall society.
A realistic evaluation of the ethical conduct of a firm is not what is said in the code of ethics, but what is done in everyday actions.