“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.