Ethics: Class 10

Trevino and Brown 5 Myths about Ethics

1. Its easy to be ethical -ethical dicisions are ambiguous -ethical decision making is a complex, multi-stage process -context matters 2. Unethical business behavior is b/c of bad apples 3. Ethics can be managed through formal ethics codes and programs -Needs complete support of leadership -Must be consistent with broader culture 4. Ethical leadership is mostly about leader integrity -moral person and moral manager 5. People are less ethical than they used to be

Trevino and Brown: Guidelines for Managers

1. Understand the existing ethical culture 2. Communicate the importance of ethical standards 3. Focus on the reward system 4. Promote ethical leadership throughout the firm

Moral Behavior

Actually doing what is morally "right" Personal Ethical Threshold (PET) -Susceptibility to situational pressures that make moral behavior difficult. >lower PET: the more likely the person is to give into situational factors and step over ethical line -Helps explain why "good" people don't always do what they believe is right. >"Good" people= are morally sensitive, have moral judgement, and want to behave morally.

Moral Intent

Degree of commitment to a moral action Individual and situational factors -moral identity: degree to which a person sees herself as moral -situational pressures: incentives

Ethics: The basics

Ethics is the study of moral values and moral behavior Ethical behavior is acting in ways consistent with one's long time values and the commonly held values

Ethical Decision-Making Four Component Model

Explains why people act unethically Suggests that ethical behavior results from a multi-stage sequence Moral Awareness, Moral Judgement, Moral Intent, Ethical Behavior

Moral Judgement

Identifying the morally "right" action Depends on... -stage of cognitive moral development -type of ethical or moral reasoning Consequentialism: Based on the greatest good; "ends justify all means" Deontology: Based on rules and obligations; "golden rule"

Moral Awareness

Recognizing that an ethical issue exists or that ethical standards or principles are relevant to the situation Depends on the characteristics of the person and the issue itself: -moral attentiveness: degree to which people perceive and consider issues or morality -moral intensity: degree to which the issue has ethical urgency: potential harm, social consensus -moral language: stealing vs. downloading