Leader as an Ethical Decision Maker Flashcards
(21 cards)
Ethikos
A disposition to behave a certain way, to lead a particular kind of life
Business Ethics
comprises principles and standards that guide behavior in the world of business
is right or wrong, acceptable or unacceptable
is determined by key stakeholders
What stakeholders should the company serve?
Customers Employees Supplies Shareholders Suppliers of Capital Government Community
4 Myths of Business Ethics
Business is inherently value neutral
To be successful in business, you have to go along
Being ethical in business means paying by the rules
If I a “good” person, I will be a “good’ professional
Common Unethical Acts
Lying to supervisors Falsifying Records Alcohol and Drugs Conflict of Interest Stealing of interest Stealing Gift/entertainment receipt in violation of company policy
Uncommon Unethical Acts
Sexual harrasment deceptive ads breaking confidentiality bribes worker and public safety environmental pollution improper accounting practices
Key Causes to Unethical Behavior
Overly aggressive financial or business objectives Unrealistic schedule pressures Helping the organization survive Rationalizing that others do it Resisting competitive threats Saving Jobs
Key Influences on Ethical Behavior
Internal vs External
Internal
Personal value
Personality
excessive drive to succeed
high mach
External
Senior Management Influence Supervisor Influence Performance Pressures Lack of Punishment Friends / Co worker Influence
Enron Culture
- Hired and promoted aggressive, achievement oriented execs
- Pressured executives to make their numbers
- Weak control of how numbers created
- ”Yes Man” culture among executives
- Bonuses and money highly valued
- Little value for teamwork
- Strong push to reach optimistic expectations
- Profits at all costs
What is an ethical issue?
Moral Confusion
Moral Disagreement
Conflicting “goods”
How do you know when you are facing an ethical issue?
The “gut” test
Legal guidelines
Normative guidelines
What are these normative guidlines?
utilitarianism
rights
justice
Utilitarianism
Definition: Greatest good for greatest number of people
Emphasizes: Efficiency, productivity, high profitability
Problem: Can ignore the rights of some people, minority
Rights
Definition: Fundamental liberties and privileges
Emphasizes: respect and protection for the basic rights to an individual
rights: privacy, free speech, due process
Problem: can create and overly legalistic work environment that hinders productivity and efficiency
Justice
Definition: Fairness and equitable distribution of benefits and cost
Emphasizes: enforcement of rules fairly and impartially; promotes protection of less powerful and underrepresented
Problem: Can encourage entitlement; reduce risk taking, innovation, or productivity
Questions to Consider
Are actions/decisions motivated by narrow or wide intersts? (util)
Q
Do actions/decisions respect the rights of individuals affected? (rights)
Q
Are actions/decisions fair and equitable? (justice)
Leader’s Responsibility
- Have a strong moral compass
- Be a visible role model
- Cultivate an ethical culture
- Communicate ethical expectations
- Provide ethical training
- Visibly reward ethical acts / punish unethical acts
- Provide protective mechanisms
