BusinessEthics-IndianaUniversity.pptVIP

Values Ethics in Business X420 Discussion Session #80 Kelley School of Business Values Abstract ideals that shape an individual’s 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 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 (cont’d) Following boss’s 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. 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. “Whistleblower’s” Reluctance