Module One: Ethics and Business

Slides prepared by: Eugene M. Bije, MBA Holy Cross of Davao College

Introduction
The

study of ethics

Process of determining what is and is not a reasonable standard of moral conduct. Process of problem-solving to resolve situations in which there is actual or potential harm to an individual or group (physical, mental or economical).

Systematic

framework = generates moral reasoning skills

Introduction
Morality:

relating to principles of right and wrong in behavior.

Ethics:

the discipline of dealing with what is good and bad and with moral duty and obligation.

Introduction
Business Ethics Publics interest in business ethics increased during the last four decades Publics interest in business ethics spurred by the media

Business Ethics: What Does It Really Mean? Definitions

Ethics

involves a discipline that examines good or bad practices within the context of a moral duty Moral conduct is behavior that is right or wrong Business ethics include practices and behaviors that are good or bad

Business Ethics: What Does It Really Mean? Two Key Branches of Ethics
Descriptive

ethics involves describing, characterizing and studying morality

What is

Normative

ethics involves supplying and justifying moral systems

What should be

Conventional Approach to Business Ethics

Conventional

approach to business ethics involves a comparison of a decision or practice to prevailing societal norms

Pitfall: ethical relativism

Decision or Practice Prevailing Norms

Sources of Ethical Norms

Fellow Workers Fellow Workers

Regions of Country

Family

Profession

The Individual
Conscience Friends Employer

The Law

Religious Beliefs

Society at Large

Business Ethics: What Does It Really Mean?

Business Ethics:Today vs. Earlier Period
Societys Expectations of Business Ethics
Ethical Problem Actual Business Ethics

Ethical Problem

1950s

Time

Early 2000s

Systemic

Individual

Organizational

The focus is on the role of the individual in the organization. Individual determines the ethics surrounding any decision in the organization. Individual analyzes congruence between personal moral standards and corporate policies.

The focus is on the ethical dimensions of organizations decisions, policies, and structures.

Consequences of decisions directly or indirectly impact individuals and groups that may have no input in the decision (e.g., plant closings). Businesses adopt new strategic directions that may cause ethical dilemmas for employees. Corporate cultures can be assessed on moral grounds (e.g., codes of ethics and incentives for moral behavior).

Business is part of several social systems including various economic, legal and political institutions. Focuses on ethical rightness or wrongness of these systems (e.g. capitalism), and their parts (laws, public policies, regulations, and common practices).

Perceive a Decision to Be Made

2. 1.

Consider the Following

Scope and Nature of the Dilemma

Impact On Your Future Flexibility

Obligation to Act

Impact on Others Impact on Your Company

Perceive There
Is a Dilemma

3.

Available Guidance

4.

Sanity Check on Decision

Impact on Yourself

Trigger Event

Reasoning Process to Develop an Ethically Sensitive Decision

Determine the Most Appropriate/Best Course of Action

A Moral Person is someone who

Impartially

considers everyones interest. Sifts facts/examines implications. Checks soundness of principles of conduct. Revises earlier convictions. Acts on principles.

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Ethics and the Law

Law

often represents an ethical minimum Ethics often represents a standard that exceeds the legal minimum
Frequent Overlap

Ethics

Law

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Making Ethical Judgments

Behavior or act that has been committed compared with Prevailing norms of acceptability

Value judgments and perceptions of the observer

Ethics, Economics, and Law

6-14

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Four Important Ethical Questions

What

is? What ought to be? How to we get from what is to what ought to be? What is our motivation for acting ethically?

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3 Models of Management Ethics

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3 Models of Management Ethics

1.

2. 3.

Immoral Management A style devoid of ethical principles and active opposition to what is ethical. Moral Management Conforms to high standards of ethical behavior. Amoral Management

Intentional - does not consider ethical factors Unintentional - casual or careless about ethical considerations in business

Three Approaches to Management Ethics

Three Models of Management Morality and Emphasis on CSR

Moral Management Models and Acceptable Stakeholder Thinking

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Making Moral Management Actionable Important Factors

Senior

management Ethics training Self-analysis

Developing Moral Judgment

Developing Moral Judgment

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Developing Moral Judgment External Sources of a Managers Values

Religious

values Philosophical values Cultural values Legal values Professional values

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Developing Moral Judgment

Internal Sources of a Managers Values

Respect Loyalty Conformity Performance Results

for the authority structure

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Elements of Moral Judgment

Moral

imagination Moral identification and ordering Moral evaluation Tolerance of moral disagreement and ambiguity Integration of managerial and moral competence A sense of moral obligation

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Elements of Moral Judgment

Amoral Managers Moral Managers

Moral Imagination Moral Identification Moral Evaluation Tolerance of Moral Disagreement and Ambiguity Integration of Managerial and Moral Competence A Senses of Moral Obligation

Thank you!
Slides prepared by: Eugene M. Bije, MBA Holy Cross of Davao College