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BA 385: From Moral Decisions to Moral Organizations

BA 385: From Moral Decisions to Moral Organizations . Chapter Seven: Personal and Organizational Ethics. Introduction to Chapter 7. This chapter focuses on the day-to-day ethical issues that managers face Many managers have no training in business ethics or ethical decision making

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BA 385: From Moral Decisions to Moral Organizations

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  1. BA 385: From Moral Decisions to Moral Organizations Chapter Seven: Personal and Organizational Ethics

  2. Introduction to Chapter 7 • This chapter focuses on the day-to-day ethical issues that managers face • Many managers have no training in business ethics or ethical decision making • Ethics is vital to business success

  3. Situations faced in personal lives • Workplace situations faced as managers and employees PersonalLevel Organizational Level Levels at Which Ethical Issues May Be Addressed

  4. Local-to-global situationsconfronted indirectly as a management team • Situations where a manager or organizationmight influence business ethics at the industry level Societal andGlobal Levels IndustryLevel Levels at Which Ethical Issues May Be Addressed

  5. Conventional approach Chapter Six ResolvingEthicalConflicts Principles approach Ethical tests approach Personal and Managerial Ethics

  6. Major Principles of Ethics Utilitarianism Rights Justice Caring Virtue ethics Servant Leadership Golden Rule Principles Approach to Ethics

  7. Principle of Utilitarianism • Utilitarianism focuses on acts that produce the greatest ratio of good to evil for everyone Strengths Weaknesses • Ignores actions that may be inherently wrong • May come into conflict withthe idea of justice • Difficult to formulate satisfactoryrules for decision making • Forces thinking about the general welfare and stakeholders • Allows personal decisions to fit into the situation complexities

  8. Example of Utilitarianism • Daniel Dennett uses the example of Three Mile Island to explore the limits of utilitarianism for guiding decisions. • Is nuclear power that occurred at this nuclear power plant a good or a bad thing (according to utilitarianism)? • He points out that its long-term effects on nuclear policy would be considered beneficial by many and might outweigh the negative consequences. His conclusion is that it is still too early (20 years after the event) for utilitarianism to weigh all the evidence and reach a definite conclusion.

  9. Principle of Rights • Principle of Rights focuses on examining and possibly protecting individual moral or legal rights

  10. Principle of Rights

  11. Principle of Justice Principle of justice involves considering what alternative promotes fair treatment of people Types of justice • Distributive • Compensatory • Procedural • Rawlsian

  12. Rawls’s Principles of Justice Each person has an equal right to the most basic liberties comparable with similar liberties for others Social and economic inequalities are arranged so that they are both: reasonably expected to be to everyone’sadvantage and attached to positions and offices open to all

  13. Principle of Caring • Principle of caring focuses on a person as a relational (cooperative) and not as an individual • Based upon Feminist Theory– uses terms such as empathy and trust Discussions around The Principle of Caring often have to do with dialogue and the importance of conversations between people in ethical gridlock. Can you think of examples where a focus on caring, empathy, trust and conversation might avoid poor ethical decisions in business?

  14. Principle of Virtue Ethics • Virtue ethics focuses on individuals becoming imbued with virtues • Virtue lies as a mean between extremes of excess and deficiency. • These extremes are vices. • Baes upon the philosophy of Aristotle and Plato Emphasizes CHARACTER over duty or obligation (deontology) or outcomes (consequentialism). Can you think of an example from business ethics where a focus on “being of virtuous character” might lead to better, more ethical decision-making?

  15. Servant Leadership Servant leadership focuses on serving others first, such as employees, customers, and community

  16. Listening Empathy Healing Persuasion Awareness Foresight Conceptualization Commitment to the growth of people Stewardship Building community Servant Leadership Characteristics of Servant Leaders Business Ethics and Leadership Bridges

  17. The Golden Rule The Golden Rule focuses on the premise that you should do unto others as you would have them do unto you The Golden Rule is… accepted by most people easy to understand a win-win philosophy a compass

  18. Test of Common Sense Test of One’s Best Self Test of Making Something Public Test of Ventilation Test of the Purified Idea Gag Test Ethical Tests Approach

  19. Society’s Moral Climate Business’s Moral Climate Industry’s Moral Climate Organization’s Moral Climate Superiors IndividualOne’s PersonalSituation Policies Peers Factors Affecting the Morality of Managers

  20. Factors Affecting the Organization’s Moral Climate Behavior of superiors Ethical practices of one’s industry or profession Behavior of one’s peers in the organization Formal organizational policy (or lack of one) Personal financial need

  21. Questionable Behaviors of Superiors or Peers Amoral decision making Unethical acts, behaviors or practices Acceptance or legality as a standard of behavior Bottom-line mentality, expectations of loyalty and conformity Absence of ethical leadership Objectives that overemphasize profits Insensitivity toward how subordinates perceive pressure to meet goals Inadequate formal ethics policies

  22. EffectiveCommunication Ethics Audits Ethics Programsand Officers Board of Director’sOversight RealisticObjectives Top Management LeadershipMoralManagement Ethics Training Ethical Decision-Making Processes CorporateTransparency Codes ofConduct Discipline of Violators Whistle-BlowingMechanisms Chapter 7-27 Improving the Ethical Climate

  23. Ethical Leadership Traits Role Modeling Moral Person Behaviors EthicsCommunication Moral Manager DecisionMaking Effective Rewards and Discipline Strong Ethical Leadership

  24. Ethical Decision-Making Process The Ethics Screen

  25. Codes of Conduct Frequently Addressed Topics • Sexual harassment • Kickbacks • General conduct • Employee theft • Proper use of assets • Conflicts of interest • Protecting proprietary information • Receiving gifts • Giving gifts • Discrimination

  26. The 2002 Sarbanes-Oxley Act Companies are required to protect whistle-blowers without fear of retaliation It is a crime to alter, destroy, conceal, cover up or falsify documents to prevent its use in a federal government lawsuit Board of Director Leadership and Oversight

  27. Moral Decisions Moral Managers Moral Organizations From Moral Decisions to Moral Organizations

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