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It is the general sense of values and identity shared by virtually everyon in a corporation. It should be an explicit expression of a set of valuses that has in fact coverned a company and its employees for some tiem, as opposed to an attemt to persuade or threaten employees into compliance with a set of principles which do not play a significant rol itn the day to day behavior of its employees.
Corporate Codes of Ethics
Established systems of behavior within the business world, and industry or a given company.
Dont intentionally lose money, but it is ok to take a calcualted risk. can give money to charity, but within the rules. practices establish the size of managments salaries, dividends, benifits. bublic relations etc. contracts must be honord.
obvious business practice rules
a practice creates roles for its participants. Workers managers ETC. Defined by teh skills, responsibilites, duties and interrelations within the practice. teh role usually preceeds the person and usually servives the person
Rolls of a Manager
Dedicated to quality, concerned with product and conscientious
A - the craftsman -Michael Maccoby corporate Characters
views life as a struggle for survival. Sees other as competition or as obstacles to be surmounted.
The jungle fighter Michael Maccoby corporate Characters
The organizaitno person whos identity is tied up the the company rather than with the particular job he or she does. Concern for well being of others in the company and for the integrity and reputation of the company. the chief bulwark against ethical strayong by a company
The company man Michael Maccoby corporate Characters
intereste in teh challenge. New ideas and strategies are likely to come from this person. can be excellent team player. As they mature they take on aspects of the company person.
The gamesman Michael Maccoby corporate Characters
managment may tolerate some who flaunt or break rules to shake up the culture.
the outlaw Michael Maccoby corporate Characters
the cornerstone of ethics. it is accountability, answerability, sometimes liability, but also rewardability. Most of the time responsibility is shared. Those in autority may be even more responsible than those who actually performed the act.
The whole becomes much more than the sum of its parts. the problem aof accumulated pressure once a decision has been made and all employees have worked diligently toward the goal. the momentum becomes so great that there is little to stop it. decisions once implemented cannot be turned around quickly. goals once agreed upon cannot be immediately forgotten. This is when the basic aim of business ethics becomes important.
The System Problem
the theory of policies and planning and makeing rational decisionin the face of uncertaties and risks of the market. Views businesses first as activity of individual participants rather than as a system or mechanism. it is an activity performed well or badly in searc of certain payoffs and taking certain responsibilites like in a game. Not all competition is game like. Business can be darwinian struggle for survival. Gamse are short vacations from life. they ahve beginnings ends and rules. Business life has no shuch well defined limitatinos. Games presume voluntary participation. Not all business is by choice.
ther must be a clear winner or loser. someone will take the market or customer
the amount to be one or lost is not alwasy fixed and it is not just a matter of beating hte opponent. Wealth and markets can be created diuring the competition rather than that existing as a conditino of the game
Adam's smiths theory which sers as the self controlling device of society, preventing the greedy from getting too much and the porr from becoming too poor. Assures teh adequate supply of consumer goods in society as well as an adequate supply of workers to produce them and capital to sponser them.
Law of supply and demand
getting what we want in the best possible way. Rationality depends on some agreed upon framework of values concering acceptable measn to an end.
Separate the people from the problem
regonize and understand your own position
recoginize and understand the other persons position
find shared interests
the result of difference between an individuals valus and those of the company, other people, or society.
Conflict of interest
a - Example - the corporattion asks you to carry out an order you consider contrary to what is good for society
Example conflict of interest
B - where conflicts of interest are basically quantitative and measurable on a singel scale (ie negotiating for a price) they are resolvable through negotiatino and compromise. True conflict of interest arises wehre the variable of emotino or sentiment comes into play for which there is no acceptable measure of price...ie making a profit by increasing pollution
Conflicts of interest
c - we can resolve conflicts between different vlaues by establishing priorities.
live and death over financial
ethical over aestetic
integrity is more important thatn personal interests
at extremes our priorities someties go awry
conflicts of interest
a priority which is accepted at face falue except for cases in which there is an unusually strong conterclaim. ie honor your contracts except in case of war
A specific set of prima facie principles that we all accept without qualification but is this valid in dealing with different cultures or even our own evolving culture.
simply a set of order or laws to obey. the ten commandments. Immanuel Kant's idea of hte "categorical imperative" and order or commandment without qualification. the authority may be external from religion or internal from our conscience.
Moralites of Principles
emphasis is on how people behave and how it fits into the practices of the community. the utiilty priciple. the greatist good for the greatist number of people and the least pain for as many as possible
Liability to punishment and liablity to praise. that set of duties and activites that constitute our jobs, our roles in the orginization and our citizenship in society.
Those duties and oblications that are based on teh rules and expectitions of morality. They are shared by everyone in society.
Moral Responsibility Know difference from Legal
Requrare a rule or statuet that can be broken with a mechanism of the law to enforce or punish. Responsibilites sometiems exist independently of the law
Legal Responsibility - know difference from Moral
the people within the corporation have responsibilites, but corporations can be fined or punished, Diffused blame sometiems can come together in the office of the person who is in charge of the corporatino. Though he or she may not be aware of the malfeasance yet he or she has regulative responsibility.
Corporation by its very nature is a liability shield of stockholders executives and managers. Indibiduals usually pay by loss of job, demotion, or career derailment bad enough the corporate veil can be pierced
to shareholders to make a profit. often conflicts with obligations to society
they vote with their dollars aboutu the products that should be available and the social costs incurred. ie dolphin safe tuna
stockholders are respnonsible for evaluating their investments not only in terms of financial security and expected return but also in terms of the quality of product, how it treats its employees and the surrounding community and the environment. An ethical and political decision. The stockholder is still ultimately in charge
while it is the responsibility of a corporation to sell decent products at affordable prices it is also the responsibility of the corporation not to destory the society it serves...clean up your mess
a corporations economic responsibility is by no means incompatabiel with its other responsibilities
corporate social responsibility
the actual causal influence of an industry or a business on its surrounding community , the environment, the polittical situation or its own consumers.
Social responsiblity which does not suppose any proor wrong doing on teh corporations part. Responsibilites taht every member of society has equally by virtue of being a member of society. Contributions, philanthropy. . companies can go beyond proper bounds and interfere in social concerns under the guise of social responsibility. Who decides what to support????
impact social responsibility
The responsibility of those who have more to contribute more for the good of society. those that have much, much is expected. burdon take care of the poor
when a business steps in to donate and by encouraging a certain public policy or tastes in the arts of a charity thus takes away citizen's own sens of responsibility and autonomy force employees to support a particular cause. boy scouts!
the environemnt. We have responsibiliteis to future generation as well as to the earth itself
The Silent Stakeholder
an ideal of a fair and harmonius society. In an affluent society, everyone has the right to expet a decent life.
The fair distribution of the goods of society. everything that money can buy and some things it can't buy. iinculdes fair distribution of the hardships and responsibilites of society.
Is this the responsibility of buisiness or Government?
the ethics of capitalism. People have tha right to what they legally earn, win, or inherit. Equality of the rules and procedures of the market make us equal but there is no guarantee to equality of results.
When two or more cutlture interact and experice conflice because of their differences
- Difference in language
- Difference in body language
- differences in urgency and punctuality
- differences in etiqutte
- Ethnocentrism - believes their culture is superior
The belief that there is no single standard of ethical behavior that applies to all peopel and cultures all the time. Contrasts with ethnocentrism
Ethical Levels (Towle and Hilgert)
- 1 - Illegal or Illicit - Self interest will allow us to do whateve it takes iven if it is illegal to acocomplish our goals
- 2 - Legal Ethic - Do whatever is not against the law and utilize every loophoel to accomplish your goals
- 3 - Pecuniary Ethic - hte primary goal is achievement and emphasis on the outcome. Showing little concern for the rights of others.
- 4 - Power Ethic - assume and adverssarial stance in and effort to dominate the other side regardless of the concequences to the other side
- 5- Situational ethic - right and wrong is in the eye of the beholder. the facts nad circumstances are used to ratonalize behavior whithout outright rejectionof concepts of right and wrong.
- 6 - Professional Ethic,- Writen codes standards and principles adopted and practiced by individuals professions and groups. Recognizes human interdependaency and responsibilities
- 7 - Jedeo-Christion (Consscious) Ethic - recognizing that all of th eworlds great religions have similar basic moral teachings this is concerned with ones ultimate relationsip to god and to fellow human beings. concept of moral right and wrong.
Is what ia m about to do in violation of any statues, laws, or goverment regulations?
the legal complance test - Test for ethical decision making
Would i be willignn to have this decisionexposed to the public or to my significant others?
the public knowledge test Test for ethical decision making
how till this decision look at some point in the future? dont just look for short term benifits.
the long term consequences test Test for ethical decision making
are your motives purely personal and selfish in nature or are you acting also for the good of others the organization or society?
the examine your motives test Test for ethical decision making
if someththing inside you says that what you are abou to do is wrong then it probably is
the inner voice or conscience test Test for ethical decision making
5 tests for ethical decision making
- the legal complience test
- public knowledge test
- long term consequences
- examine your motives
- inner voice or conscience.
the idea that the business owrld should be relatively free from unnecessary government interference, but also our belief that the free market will somehow contribute to the freedom in all other aspects of our life. But socialists might define freedom as being fee from the threats and insecurities of the free enterprise life.
Freedom is key to our Free enteriprise system
if seen not as superiority over other poeple but as the abilty to get things done then it is essential to freedom. Power is a means to freedom not an end in itself. Power over people is Authoritarianism
Five Basis for Managerial Power
- Reward power - controlling resorurces that can reward
- Coercive Power - controlling resources that can punish
- Expert Power - controlling necessary knowledge or information
- Reference Poer - being personally attractive to other people
- Legitmate Power - Authority invested in a position or role
freedom from other people. every joby has its limits. private and personal, beyond which neither emplyer nor customer can go. Personal life, private habits, or political opinions is not relative to the job. conduct and behavior on the job is.
by statute we have determined to allow drug testing
the ability to thinnk and act for aouselves rather than that simpley following orders or rules from others. But this exists within a framework of the job assigment. We have autonomy insofar only as we have something to do and a position of responsibility
A sense of not being able to do what we want and expet to be able to do. When it exists within a business it leads to resentment wheich leads to a sesns of separation between the individual and the company. Can lead to quietly submissive superficially satisfied employee who is just putting in time. When people begen to feel their work does not matter much then they just keep up appearance which may lead to further feelings of impotence. May lead to assertions of power or extreme conformity. May lead to eccentric behavior to draw attention to one's self. the manager's key responsibilbity is to provide a sens of power, accomplishment and effectivenees to everone else so they remain engaged
lack of choice in undertating responsibilites or accepting nan unfair bargin. businesses can exploit unskileed or low level workers or can pressur emanagers to undertake an unpleasant job or one which is against their principles or they will be fired or demoted. ean an EEO can be forced by a board to persue a strategy or policy which he hoposes or lose his job. but do we really ahve a choice? it the questino really do we have an acceptable choice?
the loss of personal intergrity do to the pressure of the orginization. Under the wtrong kinds of pressures the wrong kinds of demands for loyalty and unquesioning obedience, or personal virtues and ideals may turn out to be obstacles to success. personal judgemtn becomes cloudy and integrity is sacrificed to corporate necessity
Moral Mazes (socialist Robert jackall)
People become embedded in thier jobs and position and they have trouble seeing beyond the immediate pressure they face. business ethics calls on us to see beyond our position. in the midst of a company crisis this can be difficult
Blowing - brining unethical situations to light.
Nader's Guidelines -
- What are the objectionable Practices and what public interests do they
How far would I and can go inside the corporation with my concern or objection?
- Will I be violating any of the rules by contacting outside parties, and
- if so is whistle blowing nevertheless justified.
- Will I be violating any laws or ethical duties by not contacting
- external parties?
- Once I have decided to act, what is the best way to blow the whistle -
- anonymously, overtly, by resignation prior to speaking out, or in some other
- What will be likely responses from various sources - inside and outside
- the organization - to the whistle-blowing action?
- What is expected to be achieved by whistle-blowing in the particular
Excess concern about
the quantity of work done can be addressed by setting priorities and examining
Excess concern about the
quality of work done can be addressed by setting priorities and examining
Total job exhaustion and despair. Largely a matter of wanting or expecting too much of oneself. Since the demands are unattainable, the result is hopelessness. Solution lies in a change of perspective and reevaluation of goals and expectations.
Ethical/Moral Situations -
- · Involves interests/values of others
- · Involves my interests/values
- · Requires my judgment
- · Requires my action/inaction
- · Decisions affect my lives and the lives of others
judged by the motives and intentions of the actor. Judged by why and what they
actions are judged in relation to time, place, and circumstances. There are no
objective standards of right and wrong.
of a righteous character is the standard. A virtuous person will act in a
morally righteous way.
rule from a superior to an inferior that the inferior habitually obeys with
sanctions imposed if the rule is broken.
Examinesthe values of ethics associated with positive laws. Study of how law forms andwhy it should or should not be law.
There should be rules and equity. Due Process
Ethic of Justice
Government must be empowered
to enforce the laws and bring order.
Ethic of Power
reflects what is known and observed by most people over time. No Law, but
someone breaks custom
Ethic of Custom
How most people act? It can be above or below positive law. Everyone speeds -
We restrain or base impulses and move to a higher level of civilization. Be civil
Ethic of Civilization
Promoting the greatest good for the greatest number - utilitarianism
Ethic of utility
doing good deeds. It may conflict with Utilitarianism
A social Value. Defined within a particular society, involving comparisons with others as well as doing well according to a person’s own goals. It summarizes the whole of the good life.
- Life in pursuit of
Assumes that people are basically lazy and dislike work and so must be tempted with rewards and punishments.
Theory X -
Assumes people want to work and want to assume responsibilities.
Motivation comes from being part of a group in supportive institution. Theory of participation.
The need for
community values binds us as a multicultural society.
Emphasizes hard work, abstaining from excessive pleasures and balancing success with humanity, hard work, wealth and success are proof of a person’s good character.
The wholesale rejection of the values of wealth and success. Most powerfully preached by those who have succeeded and renounced the vanity of ambition and success rather than cynically by those who have failed or chosen not to compete.
began change in Christian philosophy that secular wealth is not opposed to, but rather a sign of a person’s eventual salvation.
Published the wealth of nations in 1776 said that individuals left to themselves to peruse their own economic interests will ultimately benefit not only themselves but society as a whole. An invisible hand would guide apparently chaotic individualism to collective good. This is the idea of the Market.
Adam Smith -
Is not possible unless other freedoms exist. Freedom of speech assembly association and the freedom to pursue our own material happiness.
Freedom of the Market
Exists to protect the market and to guarantee the conditions within which an industry can thrive and survive and to protect the public good and to provide safeguards for consumers. There must be rules to protect the integrity of the game.
the conceptual foundation on which a company builds a. the distinctive ethos of an organization that influences the level of formality, loyalty, and general behaviour of its employees