MGT Exam 3

Of the values that make up an organization's culture, and an individual's motivations, ______ are now considered among the most important.

ethical values

A stakeholder management approach first involves identifying _____.

the stakeholders of a company

Triple Bottom Line 3 P's

profit, people, planet

Ethical dimensions and practices such as _____ are all necessary to motivate organizational behavior.

transparency, privacy, honesty, objectivity, integrity, carefulness, openness, respect for intellectual property, civility, confidentiality, accountability, responsible mentoring, and respect for colleagues

Society 2.0

about profession, moving data between institution and individuals

effective stewardship

breeds a team-oriented environment in which everyone works together

Long-term principle

Making decisions that support the long-term interests of yourself and your organization.

"The essential quality that separates servant leaders from others is that they live by their______"

conscience

expatriate

a foreign employee who moves to and works in another country for an extended period of time - many multinational companies rely on ___ to run their local operations

Stakeholder Map

a representation of the organization's stakeholders and their stakes. - includes: political groups, owners, financial community, activist groups, customers, customer advocate group, unions, employees, trade associations, competitors, suppliers, and government.

At the individual level, then, principles and values offer...

a source of stability and self-control while also affecting job satisfaction and performance.

Stakeholder Theory

argues that corporations should treat all their constituencies fairly and that doing so can strengthen companies' reputations, customer relations, and performance in the marketplace

It is not the event, but rather it is our ____ and ____ about it, that causes our emotional reaction

attitudes and beliefs ("People are disturbed not by things, but by the views which they take of them."- Epictetus 1st century A.D.)

The ethical dimension of stakeholder theory

based on the view that profit maximization is constrained by justice, that regard for individual rights should be extended to all constituencies who have a stake in a business, and that organizations are not only "economic" in nature but can also act in socially responsible ways

At the individual level, a person's values and beliefs are influenced by...

family, community, peers and friends, local and national culture, society, religious—or other types of—communities, and geographic environment.

Studies have shown a positive relationship between ethical and socially responsible behavior and _____

financial results

One of the most important aspects of leadership is:

helping organizations and staff identify their higher purpose. (To achieve this higher purpose of public organizations, you, as a leader, must be passionate about your desire to improve your community and yourself!)

Servant Leadership

involves selflessly working with followers to achieve shared goals that improve collective, rather than individual, welfare.

Timing and Challenging

involves stopping one's behavior and delaying reactions long enough. The delay eliminates reactive verbal or physical actions plus it gives you the few seconds needed to challenge your irrational beliefs. We challenge our irrational beliefs using a series of questions. This allows us to determine the true cause of our emotional response.

both a ______ and ______ approach are necessary elements of maintaining an ethical corporate culture.

values-based and compliance approach

The best test of the servant-leadership philosophy is...

whether or not customers and staff grow as persons

Virtue Ethics

- Character-based Virtues -based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being. - focuses on the type of person we ought to be, not on specific actions that should be taken. - Grounded in good character, motives, and core values

A-B-C-D-E (REBT)

A - What Happened B - What I was Thinking C - What I Felt D - What was Wrong with Those Thoughts E - What Thoughts would be More Accurate and Helpful

Example of Rational Emotive Behavior Therapy (REBT)

A- Activating Experience: Girlfriend says she's going out with someone else and breaks up with you B- Irrational Beliefs about the Experience: "I really must be a worthless person" and/or "That bitch, the world is so unfair" C- Upsetting emotional Consequences: depression and/or hostility D- Disputing of irrational ideas: "how does her rejecting me make me a bad person?" or "why is is awful that I'm not getting what I want?" E- new emotional consequence or effect: sadness or annoyance

Ethical values become "actionable" in corporations by....

Corporations first becoming aware of and then assuming responsibility for the corporation's duties toward its stakeholders and stockholders.

Promoting Ethical Behavior in Small Groups as a First-line Manager:

Educate, promote, reinforce, and reward/punish.

REBT Goals

Goals of a rational philosophy are to establish beliefs and habits that are congruent with: - Survival, - Being satisfied with your life, - Interacting with others in a positive way, - Achieving intimate relations with a few others, and - Developing or maintaining some personally fulfilling endeavor.

Individual Rights View

Respect for the individual rights of human beings: life, liberty, privacy, health, safety - universal and based on norms in everyday society

Society 1.0

Data and info is sent from institutions to individuals

Ethical Values

- are subjective, even personal, and can change with time. - Principles help inform and influence values. - the source of our ethical compass

4 Basic Irrational Processes

- Demandingness - Awfulizing - Human Worth Ratings - Low Frustration Tolerance

Corporate Culture

"a pattern of shared tacit assumptions learned or developed by a group as it solves its problems of external adaptation and internal integration that have worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems."

Culture (according to Hofstede)

"the collective programming of the mind which distinguishes the member of one group or category of people from another."

Utilitarianism Principle

- A Consequentialist, "Ends Justifies Means" Approach - holds that an action is morally right if it produces the greatest good for the greatest number of people. -judgement is still required - *Limitations:* suggest that it does not consider individuals, and there is no agreement on the definition of "good for all concerned." In addition, it is difficult to measure "costs and benefits." - Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyone's needs—that is, a zero-sum decision is imminent

Universalism Principle

- A Duty-based approach - a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. - Needs of individuals involved in a decision are identified as well as the choices they have and the information they need to protect their welfare. *This principle involves taking human beings, their needs, and their values seriously.* - It is not only a method to make a decision; it is a way of incorporating a humane consideration of and for individuals and groups when deciding a course of action. Businesses strive to set a "tone at the top" to exemplify and embody universal principles in their business practices. - Limitations: using this principle may not always prove realistic or practical in all situations. In addition, using this principle can require sacrifice of human life—that is, giving one's life to help or save others—which may seem contrary to the principle.

Role of Culture in Organizational Alignment

- Customer Requirements: leadership, environment, history, resources - Customer Partnership: Culture is all connected to vision and strategy, people, structure, measurement systems, technology, and nature of network - Customer Satisfaction: Organizational level(competition, market share), groups level(synergy, effectiveness), individual level(development and growth)

Common good

- Decision makers must take into consideration the intent as well as the effects of their actions and decisions on the broader society and the common good of the many. - "How will this decision or action affect the broader physical, cultural, and social environment in which I, my family, my friends, and others have to live, breathe, and thrive in now, next week, and beyond?"

Feelings

- Events do not cause feelings - Other people do not cause feelings - The past doesn't cause feelings

Reality Testing

- Exposure - risk-taking - stepping out of character

Demandingness

- Must, Have to, Got to, Should - Must or should statements about oneself usually imply a *demand for personal perfection* - *the belief in imagined universal rules* - People with this belief are remarkably intolerant of their human fallibility - Must and Should are the key words for Musterbation (We don't make mistakes, merely choices)

Justice principle

- Procedures, Compensation, and Retribution This principle has at least *four major components* that are based on the tenets that: 1. all individuals should be treated equally; 2. justice is served when all persons have equal opportunities and advantages (through their positions and offices) to society's opportunities and burdens; 3. fair decision practices, procedures, and agreements among parties should be practiced; and 4. punishment is served to someone who has inflicted harm on another, and compensation is given to those for a past harm or injustice committed against them. - Ask yourself questions in guide to ethical decisions - *Limitations:* the question of who decides who is right and wrong and who has been harmed in complex situations. Also, who has the moral authority to punish to pay compensation to whom?

Ethical Dilemmas

- Situations and predicaments in which there is not an optimal or desired choice to be made between two options, neither of which solves an issue or delivers an opportunity that is ethical - Often originate and occur from an unawareness of how to sort out and think through potential consequences of our actions or inaction.

Other factors that indicate and help create a strong ethical culture include

- The culture sets "enduring and underlying assumptions and norms that determine how things are actually done in the organization." - "Organizations can effectively identify specific locations, business units, job levels and job functions that may lack a full understanding of available resources, feel unwanted pressure, or perhaps hold negative perceptions." - Companies and investors believe a company behaves and acts ethically. - Employees are aware of the conduct, values, and communications of senior leaders. - Employees are engaged and committed, and organizations regularly survey employees to get a sense of their engagement. - Employees feel "less pressure to compromise company standards to achieve company goals. And if they do observe misconduct, they are more likely to feel comfortable reporting it." - "Employees perceive the ethical priorities of their coworkers, the values of their organization and willingness to share opinions."

Disputing (D)

- Using Logical Questions to Challenge your Irrational Thoughts and Beliefs - Using Reality-Testing, "is this true?" - Using Practical Questions, "why must I be liked?" - if one has an irrational belief which has caused unhealthy consequences, they must dispute that belief and turn it into a rational belief

Ethical relativism

- an orientation (rather than principle) that holds that people set their own moral standards for judging their actions. Only the individual's self-interest and values are relevant for judging his or her behavior. Moral standards vary from one culture to another ("when in rome, do as the romans do.")

stakeholder

- any group or individual who can affect or is affected by an organization's strategies, major transactions, and activities. - include: employees, suppliers, customers, shareholders, the government, media, and others

Ethical Principles

- are considered as rules that are more permanent, universal, and unchanging - inform and influence values. (utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches)

Belief System (B)

- can also be called our values - A does NOT always lead to C; something influences our perception - It is the filter that we use as we experience thoughts and actions that result in the construction of our emotions - *The part of our personality that is responsible for our thoughts; can be divided into 2 parts*- Rational Belief (RB) and Irrational Belief (IB)

Stewardship

- concerned with empowering followers to make decisions and gain control over their work - approach instructs leaders to lead without dominating followers - leaders sincerely care about their followers and help them develop and accomplish individual as well as organizational goals - Organizations led by ___ leaders are marked by decentralized decision-making

CSR (Corporate Social Responsibility)

- contributes to another form of self-regulation that goes further and involves *firms taking action to help people and the environment.* - a belief that corporations have a social responsibility beyond pure profit - it contributes to both internal and external stakeholder awareness to "do the right thing." - firms have obligations to society beyond their economic responsibilities to owners or stockholders and also beyond those prescribed by law or contract.

A Framework for Classifying Levels of Ethical Analysis

- ethics of the system - ethics of the organization - ethics of the person - measured from Descriptive --> Normative --> Analytical (Kenneth Goodpaster and Laura Nash characterized at least three dimensions/levels of ethics that help explain how individual and group values, norms, and behaviors of different stakeholders interact and respond with the aim of bringing orderly, fair, and just relationships with one another in transactions)

7 Symptoms of ethical failure in leadership (Dark Side)

1. Ethical blindness 2. Ethical muteness 3. Ethical incoherence 4. Ethical paralysis 5. Ethical hypocrisy 6. Ethical schizophrenia 7. Ethical complacency (Comcast=poster child) (ex: Flint Michigan water supply, VW emission manipulation)

Triple Bottom Line

- incorporates and assists businesses measure accountability in their funding of and support for social, environmental (ecological), and financial benefits to allow for a greater good. - evaluate their overall performance and reflect on how companies are contributing to society. - recognize that it takes the commitment of the company and the employees to make meaningful changes - to integrate sustainability with business success, some companies are adopting the idea of _______

Leaders have the responsibility to...

- show respect towards others - treat all stakeholders fairly - work toward a common good - build community - and be honest

Rational Beliefs (rB)

- tend to direct us towards positive emotional consequences and positive outcomes - Can be proven - Are not rigid - Result in emotions that fit the situation - Helps us attain our goals

Irrational Beliefs (iB)

- that may result in negative emotional responses and not so-positive outcomes - Are not logical - Are inconsistent with with what we know to be true - Are rigid - IB's are often over learned, rehearsed since childhood, and are frequently based on narcissistic or grandiose demands placed on the self, others, or the universe. (Ellis 1979) - Example: "You always..."

Caroucci found that "five ways organizations needlessly provoke good people to make unethical choices" are:

1. People feel psychologically unsafe to speak up. 2. Excessive pressure to reach unrealistic performance targets compromises people's choices. 3. When individuals face conflicting goals, they feel a sense of unfairness and compromise their reasoning. 4. Only talking about ethics when there is a scandal. 5. When there is no positive example available, individuals react instead of choose ethical decisions.

Aspects central to servant leadership

1. Placing service before self-interest 2. Listening to others 3. Inspiring through trust 4. Working toward feasible goals 5. Helping others whenever possible

Culture is transmitted through and by... (4)

1. the values and styles that leaders espouse and practice, 2. the heroes and heroines that the company rewards and holds up as models, 3. the rites and symbols that organizations value, and 4. the way that organizational executives and members communicate among themselves and with their stakeholders.

Strategic Organizational Alignment

4 Questions: - What business are we in? - Who is our customer? - What are our core competencies? - What is our product or service? 3 components: - Vision: who are we? Who will we become? - Mission: What is our strategic purpose for operating? - Values: What do we stand for and believe in? Standards?

Activating Events

Any action, words, or event that results in an emotional reaction, no matter how insignificant

most important element in forming and directing an organization's strategy, culture, and governance system

Leadership (often a shared responsibility)

"a rising tide lifts all of the boats in the harbor"

Like boats floating on the water, if more profit is made (the water rises), everyone's boat will rise. The profit goes to stockholders who use or invest the money, pay goes to workers who buy food, housing, and desires, and the community benefits. - One should focus on broad economic efforts for the benefit of all

Value of Intuition

Making intuitive-based decisions can be effective. It is costly in time and personnel to continually make decisions, especially in small businesses, that are based on research and detailed information. Using past experience and good judgment can work well.

New Effect/Emotional Consequence

Once you have challenged your Irrational Beliefs and thoughts(disputation), you are left with Rational Beliefs (true and helpful) which will lead to a positive outcome or the achievement of your goals.

Hofstede's Model/Framework of National Culture

One of the most powerful tools for understanding cultural differences *4 Dimensions:* - Power Distance - Individualism - Uncertainty Avoidance - Masculinity expanded to *5 dimensions:* - Power Distance - Individualism/Collectivism - Short-term Orientation(vs. Long-term) - Nurturing - Uncertainty Avoidance

Consequence

The feelings or emotions someone has as a result of the Activating Event (A)

Exposure

The most common behavior strategy. Entering feared situations they would normally avoid

Ethical incoherence

They are not able to see inconsistencies among values they say they follow; e.g., they say they value responsibility but reward performance based only on numbers.

Ethical hypocrisy

They are not committed to their espoused values. They delegate things they are unwilling or unable to do themselves.

Ethical paralysis

They are unable to act on their values from lack of knowledge or fear of the consequences of their actions.

Ethical complacency

They believe they can do no wrong because of who they are. They believe they are immune.

Ethical schizophrenia

They do not have a set of coherent values; they act one way at work and another way at home.

Ethical muteness

They do not have or use ethical language or principles. They "talk the talk" but do not "walk the talk" on values.

Ethical blindness

They do not perceive ethical issues due to inattention or inability.

Rights principle

This principle is grounded in both legal and moral rights. - *Legal rights* are entitlements that are limited to a particular legal system and jurisdiction (ex: Constitution and Declaration of Independence) - *Moral (and human) Rights* are universal and based on norms in every society (ex: the right not to be enslaved and the right to work) - Limitations: (1) it can be used to disguise and manipulate selfish and unjust political interests, (2) it is difficult to determine who deserves what when both parties are "right," and (3) individuals can exaggerate certain entitlements at the expense of others.

Recent reviews of research have shown the utility of Hofstede's framework for a wide variety of managerial activities, such as:

change management, conflict management, leadership, negotiation, and work-related attitudes.

If distress is a product of distorted thinking, the best way to conquer distress is to ______

change one's thinking

At the organizational level, principled and values-based leadership influences...

cultures that inspire and motivate ethical behavior and performance.

Terminal Values

desired goals, objectives, or *end states* that individuals wish to pursue - If the end value creates undue pressures and is unrealistic and unobtainable, then the means (instrumental) value would likely create tension and unethical behavior as well. (ex: at a higher level—are freedom, security, pleasure, social recognition, friendship, accomplishment, comfort, adventure, equality, wisdom, and happiness)

At the individual level, a reoccurring issue individuals seem to have with acting ethically is that...

many people do not consciously know or choose their values. We often act first and think or rationalize later. - Also, the methods and ways we act to reach our goals and objectives are also not always deliberately chosen. Many times we let the "ends justify the means" and/or "the means justify the ends" in our decisions and actions.

Social Capital

networks of relationships among people who live and work in a particular society, enabling that society to function affectively

Organizational culture

often has a profound influence on individual choices and can support and encourage ethical actions or promote unethical and socially irresponsible behavior.

Stepping out of character

paradoxical behavior type (ex: a perfectionist would deliberately do some things to a lesser standard)

In organizations, an individual's ethical stance may be affected by...

peers, subordinates, and supervisors, as well as by the organizational culture

Instrumental Values

preferred *means* of behavior used to obtain those goals (ex: being helpful, honest, courageous, independent, polite, responsible, capable, ambitious, loving, self-contained, and forgiving)

Society 3.0

pro consumer, consuming and generating info simultaneously

How does Seats2meet make money?

social capital (value-added through knowledge and experience); uses grand idea of reciprocity

CSR and _________ are complementary approaches.

stakeholder management

_____ are all affected by an organization's culture (4)

strategy, structure, people, and systems

If organizations want to be effective, they will pay attention to all and only those relationships that can affect or be affected by...

the achievement of the organization's purposes

Low Frustration Tolerance

the belief that one cannot stand what one does not like - worrying, avoidance, procrastination, negativity, complaining, getting anxious about being anxious (secondary disturbance), seeking immediate pleasure

Human Worth Ratings

the belief that people can be rated (are some people really worth more than others)

Awfulizing

the belief that the world is full of terrible, awful, and catastrophic things (ex: "The sky is falling", everything sucks)

immigration

the movement of people from their home country to other countries - a process that will contribute to making companies' workforce more diverse

Serendipity

the occurrence and development of events by chance in a happy or beneficial way

An organization's culture is defined by...

the shared values and meanings it members hold in common and that are articulated and practices by an organization's leaders.

risk-taking

to challenge beliefs that certain behaviors are too dangerous to risk (ex: asking a girl out)

Ethics/Ethisphere Quotient (EQ) Score

uses 5 criteria to evaluate a firms ethical behavior and responsibilities (respect for others, treat all stakeholders fairly, work toward a common good, build community, and be honest) - Company's ethics and compliance program - Is ethics embedded into a company's culture, corporate citizenship, responsibility, and environmental impact, corporate governance, leadership, reputation