Ethics in the Workplace: The Role of Organizational Communication

SPCH 3309Chapter 4

Ethicsrelates to a value system of cultural beliefs; standards of conduct; what a society deems as being
right or wrong. Something may be unethical but legal. Ethics author Mary Guy defines ethics as that
behavior which is the right thing to do, given the circumstances. Ethical behavior involved four key
principles: honesty, integrity, fairness, and concern for others. Its not good to shoot for two out of four or
three out of four. For example, its not enough to be a person who is honest, shows integrity, and is fair in
their treatment of others if they lack concern for their employees.
Being ethical when business times are good is easy. When times get hard, high ethical principles
become more challenging. We are often faced with ethical dilemmas. Ethical Codes of Conduct are
the norm now, estimated to be in 90% or more of all organizations.

A critical question is this: Can we teach ethical behavior to adults? If someone has been operating in the
murky areas of what is right and wrong for years, can we instill a sense of ethical behavior in them?
Especially if such questionable behavior has been rewarded financially and/or materially in the past.

Philosophical Ethical Theories

1. Kant's Categorical Imperative--

Things commonly thought to be good, like money, knowledge, love and power, can be
misused.
Actions that one takes must be made because they are good in themselves and not as
means to an end.
One must never use another person as a means to one's own selfish end.

2. Utilitarianism--
The rightness or wrongness of actions depends upon the good or bad consequences
produced by the actions.
Acts are right in so far as they tend to promote happiness for all concerned; not just the
individual.
The greatest good for the greatest number comes from competitive decision-making; market
forces can be relied upon to minimize social harm.
Essentially, this says that ethical and self-interested behavior are the same, and that
competition brings out the best in everyone.

3. Ross's Prima Facie Duties--

People have moral duties because of their morally significant relationships to others.
One has a duty to keep promises...has a duty of gratitude...duty of justice...duty of self-
improvement.
This comes close to a religious view of ethics, with standards being received from a higher
authority and are trained or ingrained into the healthy human personality.

4. Rawls: Justice, Fairness & Rightness--

Biases are eliminated, all are treated equally. A "veil of ignorance" blocks out bias.
This view suggests, among other things, that a generally successful system that seriously
violates the rights of a minority will eventually collapse (slavery in the United States is one
such example).
Decisions reached represent the ultimate fairness and rightness.

Ethics Applied to the Workplace

1. A climate of Broken Organizational promises--

Breaking promises occurs too often
Inconsistencies between whats promised and whats carried out
 It's too easy to make a promise with honorable intent but then realizing how difficult it is to
keep in the long term.

2. A Climate in Which No One Takes Responsibility--

People may deny they had knowledge
Complexity of organizations and departments makes it easy to "hide in the maze."
The "I was just following orders" excuse is too easy to hide behind.
External excuses are frequent--the scapegoat can be found (bad economy, new laws, etc.)
The scapegoat serves as the "fall guy" who takes the blame for the company; allows those in
charge to avoid accepting responsibility.

3. A Climate of Denying Participation and Dissent--

Centers on a lack of employee input into decision-making.
Problem revolves around issue of getting workers involved without undercutting managerial
authority.
Employee dissent does not have to be counter-productive to the organization.
See Jack Welchs comments on candor and its importance to success at the end of this
chapter

4. A Climate Requiring Whistle-Blowing--

What we see some corporate employees doing in the past with Congressional testimony.
"Pure" whistle-blowers still employed.
Appropriate behavior if organization activity is illegal and internal efforts have been
exhausted.
Whistle-Blowers are often badly treated by the organizations. Issues of Loyalty and
Breaching confidentiality.
When to "blow the Whistle?" See page 107
Conflict of duty to the organization vs. a perceived evil deed (Malfeasance).

5. A Climate of Cultural Relativism: Multinational Organizations--

Ethical standards in one country may be different from those in another.
Nike has been criticized for such items.
Frequent justification is that there are
"no transcendent values"--known as Ethical Relativism.
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Absolute Honesty

Summary of the book by Larry Johnson and Bob Phillips

Many companies today are affected by a malady called Kumbaya Syndrome; which essentially
says that no matter how stupid or unethical a decision a team or manager makes, we are all
expected to embrace the stupidity, never argue, and start singing Kumbaya.
The say that being nice often translates into being cooperative rather than confrontational, going
along to get along, accepting less than stellar results when accountability is called for; or simply not
telling the truth when doing so would be politically inconvenient or professional suicide.
Their book says that absolute honesty is needed; a communication style that encourages open
discussion; doesnt mince words; and is guided by a moral and ethical sense of right and wrong.
But telling the truth is easier said than done.
(b) They identify six Laws of Absolute Truthfulness:
Tell the truthsimply, basic, but often not done.
Tackle the problemencourage lively debate using constructive confrontation which keeps the
focus on business and avoids damaging personal relationships.
Disagree and commitafter stating their positions, all parties must support whatever decision is
made.
Welcome the truthdont rebuff an unwelcome perspective or information by being defensive,
 sarcastic, verbally abusive, or apathetic.
Thank the person who called attention to the problemask questions to clarify the situation, talking
corrective action and keeping the person informed of whats being done. The idea here is to treat
the messenger like a customer.
Build a platform of integrity consisting of strong leadership based on clear values
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"Put the Moose on the Table"
Summary of a book by Randall Tobias and Todd Tobias

The subject is leadership, and the moose is a metaphor for the tough challenges and
problems that confront leaders, managers, and companies.
Putting the moose "on the table" is a way of saying to everyone involved, "let's address this
issue as openly and honestly as possibleas if the moose were really here."
Communication stands at the top of Tobias' list of the elements of good leadership.
In addition to communication, the authors argue that leaders must display the highest of
ethical standards, consistently achieve superior results, and get others to do the same;
pursue continuous learning, and foster a learning environment. Leaders produce other
leaders; develop cross-functional knowledge and versatility, embrace change and look for
ways to use it to their advantage. Also, they are constantly on the look-out for innovative
ideas, often in unlikely places. They encourage thoughtful risk and are willing to embrace
ambiguity.
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The Ideal Organizational Communication Setting
SPCH 3309
Post Enron

Attitudes of business leader should change from just building the value of their stocks to the
profits of their companies. The 1990s was an era when companies played fast and loose with
the rules and ethical accounting standards. Corporate values became disconnected with
performance. Many leaders like Sunbeams Albert Dunlap were revered because they
generated paper profits but cared little for the people or the company, itself.

Look for a return to the managers tried to find enthusiasm, intelligence, and creativity to build
their organizations. The idea of a more transparent corporation is likely to emerge where
investors, employees, customers, and suppliers will have a more accurate understanding of
just what is occurring with the company. This concept of more transparency may demand a
return to some form like the old quality circles in which management and workers meet
regularly to discuss the company, charting progress with the ongoing emphasis of building a
company, not just a product line. This would require a more educated work force; one that
has a basic understanding of understanding a balance sheet and income statement.

Concepts like ethics and fairness will be taken seriously rather than merely winked at as
window dressing. Trust, integrity, and fairness do matter and they are crucial to the bottom-
line success for any company. The corporate cultures must reflect this concept of fairness
and change so that integrity and trust are rewarded; not just ways to enhance revenues at all
costs. Too often CEOs set the culture of greed by their own actions and behaviors. Not only
did CEO pay skyrocket, but plush surroundings and excessive perks created a culture where
greed was good; that more was always better.

(c) New governmental regulations will likely keep managers more alert to abuses
within their own companies. A new more open-book management culture is
likely to emerge as company leaders share financial information with employees
(stockholders) and give them more of a mutual ownership in the company. This
will lead to mutual trust and respect. Southwest Airlines and Harley-Davidson
are two companies that have long adhered to this new model of corporate
 governance. One company doing it right is SEI Investments Company. The
CEO, Alfred West, has an office like everyone else and no more perks than any
other employee. He says if you separate yourself from everybody else with a
corporate airplane and enormous stock options, your employees are going to get
the wrong message. We tell our employees a lot about where the company is
going. We over-communicate the vision and the strategy and continually
reinforce the culture.

Source: BusinessWeek; August 26, 2002

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Candor: The Biggest Dirtiest Little Secret in BusinessJack Welch from his book, Winning*

Too often in business people will not open up and tell you what they honestly think; they withhold
comment and criticism. They keep their ideas to themselves, often to make people feel better or to avoid
conflict. What this amounts to is that the worst enemy a company can have is their poor internal
communication.

How candor can benefit any company:

1. When you get more people in the conversation you get richer ideas. More ideas get discussed,
analyzed, scrutinized, and improved.
2. Candor generates speed. Ideas can be debated rapidly, expanded and enhanced, and acted
upon.
3. Candor cuts costs. Can eliminate needless meetings in which everyone already knows the
answer to.

Why is it so hard to get people to have candor?

1. We are socialized since childhood to soften bad new or to make nice awkward subjects. This
seems to be true for all cultures and in every social class.
2. Candor can unnerve people. People recognize this and often end up not speaking their mind
because its easier than doing so.
3. If we show candor in our comments we stand a strong chance of alienating people.

As hard as candor can be to achieve, it is necessary to winning for any organization. It is hard and time-
consuming to instill in any group, no matter what the size. In order to get candor you must reward it,
praise it, and talk about it. Most important, you yourself must demonstrate it in an exuberant and even
exaggerated wayeven if you are not the boss. If employees dont think the boss or the organization
wants the unvarnished truth, you will get a sanitized and water-down version of what you need to know.
Communication can be respectful of status and individuals and still be honest and show candor. Easier
said than done, but necessary.
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