Lecture 9: Ethics

Question 1

Ethics

Answer 1

Ethics can be defined as the code of moral principles that sets standards as to what is good or bad, or right or wrong in one’s conduct and thereby guides the behaviour of a person or group

Question 2

Why do managers needs to be aware of business ethics?

Answer 2

• Negative consequences of deviance
• Employee commitment
• Increased profits
• Customer satisfaction
• Investor loyalty

Question 3

Rest (1986) Rational and Deliberate Model of individual ethical decision-making

Answer 3

• Moral recognition
• Moral judgement
• Moral intention
• Moral action

Question 4

Moral intensity

Answer 4

Jones (1991) proposed that individuals assess the actions of others on the basis of six characteristics of moral intensity:

• Magnitude of consequences
• Social consensus
• Probability of effect
• Temporal immediacy
• Proximity
• Concentration of effect

Question 5

Three categories of factors that predict unethical employee behaviour at work

Answer 5

1. Organisational factors
2. Contextual factors
3. Individual factors

Question 6

5 ways of reducing unethical behaviour organisations

Answer 6

1. Background screening prior to employment
2. Formal ethics program
3. Explain the personal and organisational costs of engaging in deviance
4. Provide mechanisms for employees to voice concerns and address these swiftly and appropiately
5. Treat employees with dignity and respect

Question 7

Whistle-blowing

Answer 7

The disclosure by organisation members of illegal, immoral or illegitimate practices under the control of their employers, to persons or organisations that may be able to effect actions

Question 8

Predictors of whistle-blowing

Answer 8

• National culture
• Organisational culture and values
• Severity of wrongdoing
• Perpetrator characteristics
• Individual differences