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
Moral mazes
RIGHT vs. RIGHT
Obvious mischief

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

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

5. This presentation should be repeated in future semesters.