Values & Ethics in Business

X420 Discussion Session #80

Kelley School of Business

Values

Abstract ideals that shape an individuals thinking and behavior a moral compass
Instrumental values certain way of behaving is appropriate in all situations means.

Terminal values enduring belief in the attainment of a certain end state ends.

A moral compass

These abstract ideals can result from

Religion Philosophy Family teachings

Instrumental values
As the means to an end they become the ingrained ways of behavior:

Rituals Politesse Good habits

Terminal values
With the end always in sight:

Heaven Respect Financial Success Personal Independence Power

Ethics

The study of moral obligation involving the distinction between right and wrong.

Business Ethics: right or wrong in the workplace value management.

Two Areas of Business Ethics

Obvious mischief
Moral mazes RIGHT vs. RIGHT

Common Misconduct in Organizations

Misrepresenting hours worked Employees lying to supervisors Management lying to employees, customers, vendors or the public Misuse of organizational assets Lying on reports/falsifying records Sexual harassment Stealing/theft Accepting or giving bribes or kickbacks Withholding needed information from employees, customers, vendors or public

Common Causes of Unethical Behavior

Pressure Fear Greed Convenience

Causes of Unethical Behavior (contd)

Following bosss directives Meeting overly aggressive business/financial objectives Helping the organization survive Meeting schedule pressures Be a team player (group think) Rationalizing that others do it Resisting competitive threats Advancing own career

Ethical Dilemmas
Making decisions under stress or dealing with complex issues that have no clear indication of what is right or wrong.

There are NO simple ethical dilemmas all have layers of meaning and effect.

Business Ethics Myths

Business ethics is a new fad. Business ethics religion vs. management. Business ethics is obvious do good! Business ethics is good guys preaching to bad guys.

Whistleblowers Reluctance

Didnt believe action would be taken. Feared retaliation from mgmt. Didnt trust confidentiality. Feared not being a team player. Feared retaliation from co-workers. Didnt know who to contact. Nobody cares, why should I?

Business Ethics Myths (contd)

Ethics cant be managed. Being legal = being ethical. Managing ethics has little practical relevance.

Ethical Tips for Organizations

Develop a code of ethics. Communicate code and bake it into culture top-down. Treat ethics as a process. Create open lines of communication. Set good examples. Educate employees frame issues through storytelling. Value forgiveness.

Benefits of Managing Ethics in the Workplace

Improves society. Maintains a moral course in turbulent times. Cultivates employee teamwork, productivity, morale and development. Acts as an insurance policy.

Benefits of Managing Ethics in the Workplace (contd)

Establishes values for quality management, strategic planning and diversity management. Promotes strong public image. It is the RIGHT thing to do!

Ethical Tips for Individuals

Establish personal values. Be aware of ethical events. Develop critical thinking techniques. Be reflective. Make it a priority every day.

The simple step of a simple courageous man is to not take part in the lie, not to support deceit. Let the lie come into the world, even dominate the world, but not through me. -- Alexander Solzhenitsyn

Puzzling things out.

As we watch the video vignettes, keep these questions in mind:
1) What is the ethical dilemma? 2) What is the apparent cause of the unethical behavior? 3) Is there an ethical resolution to the problem portrayed? 4) If so, who should do what?

EVALUATION QUESTIONS:
Values and Ethics in Business - #80
1. I found the presentation material easy to understand. 2. This Advantage session increased my knowledge of the subject presented. 3. I will be able to use some of the information from this session in the future.

USE:

a. Strongly agree b. Agree c. Disagree d. Strongly disagree e. Dont know

4. The presenter was well prepared for this Advantage session.

5. This presentation should be repeated in future semesters.