Chapter 7 Trust Justice & Ethics

Moral Intensity

captures the degree to which an issue has ethical urgency. Driven by two general concerns: Potential for harm and Social pressure

Unethical behavior

clearly violates accepted norms of morality and is generally directed toward employees,customers, financiers, or society as a whole

Benevolence

the belief that the authority wants to do good for the trustor, apart from any selfish or profit centered motives

Moral Identity

the degree to which a person self-identifies as a moral person. This moderates the effects of moral judgement on ethical behavior

The Dimensions of Trustworthiness

Ability, benevolence and integrity

Example of Social pressure

An act that violates a clear social norm is more morally intense than an act that seems similar to what everyone else is doing.

Example of Consistency

Asking the same interview questions to all job candidates

Moral Attentiveness

Captures the degree to which people chronically perceive and consider issues of morality during their experiences

Examples of Moral principles

Consequentialist & Non-Consequentialist

Rules that create equal opportunity employment

Consistency, Bias Suppression, representativeness and accuracy

Determinants of Individual Ethics

Family, Peers, Individual Events and Values & Morals

Prescriptive

How people ought to act

Non-Consequentialist principles

Judge the morality of an action solely on its intrinsic desirability

Rules of Informational Justice

Justification and Truthfulness

Example of benevolence at work

Mentor- Protege relationship in which the mentor goes out of their way to be helpful

Threads related dto Business Ethics

Prescriptive and Descriptive

Rules of Interpersonal Justice

Respect and Property

Trusts effect on organizational Commitment

Strong Relationship

Procedural Justice rules of fair process

Voice, Correctability, Consistency, Bias Suppression, representativeness and accuracy

Trust Propensity

a general expectation that the words, promises and statements of individuals and groups can be relied upon

Corporate Social Responsibility

a perspective that acknowledges that the responsibilities of a business encompass the economic, legal, ethical, and citizenship expectations of society

Merely Ethical behavior

adheres to some minimally accepted standard of morality

Example of Potential to Harm

an act that could result in 1000 injuries is much higher in moral intensity than one that could result in 10 injuries

Cognitive Moral Developement

argues that as people age and mature, they move through various phases / stages of moral development, each more mature and sophisticated than the prior one.

Four-Component Model

argues that ethical behaviors result from a multistage sequence beginning with moral awareness, continuing on to moral judgement, then to moral intent and ultimately ethical behavior.

What are some business schools doing to boost moral awareness?

bring in white-collar criminals to speak to students about their unethical actions as well as consequences of those actions.

Obstructional Stance of Social Responsibility

do as little as possible to solve a social or environmental problem

Defensive Stance of Social Responsibility

do only what is legally required and nothing more - most cigaret companies

Voice

giving the employees a chance to express their opinions and views during the course of decision making

Descriptive

how people tend act

Affect-Based trust

it depends on feelings toward the authority that go beyond any rational assessment

Where does trust propensity come from?

it is a product of both our nature and nurturing

Cognition-Based Trust

its rooted in a rational assessment of the authorities trustworthiness

Consequentialist Principles

judge the morality of an action according to its goals, aims or outcomes

Justification rule

mandates that authorities explain decision-making procedures and outcomes in a comprehensive and reasonable manner

Accommodative Stance of Social Responsibility

meets legal and ethical obligations and go beyond that in selected cases -matching gifts( Giving back to your university along with your company helping)`

Trusts Effect on Job Performance

moderate relationship

Moral Awareness

occurs when an authority recognizes that a moral issue exists in a situation or that an ethical code or principle is relevant to the circumstances. Depends in part on the characteristics of the issue itself

Interpersonal Injustice

occurs when authorities are rude or disrespectful to employees or when they refer to them with inappropriate labels.

Whistle-Blowing

occurs when former or current employees expose illegal or immoral actions by their organization

Proactive Stance of Social Responsibility

organization views itself as a citizen and actively seeks opportunities to contribute to society

Correctability

provides employees with a chance to request an appeal when a procedure seems to have worked ineffectively

Moral Intent

reflects an authority's degree of commitment to the moral course of action

Ability to Focus

reflects the degree to which employees can devote their attention to work, as opposed to " covering their back side". it is clearly vital to task performance

Ethics

reflects the degree to which the behaviors of an authority are in accordance with generally accepted moral norms

Justice

reflects the perceived fairness of an authority's decision making

Distributive Justice

reflects the perceived fairness of decision making outcomes

Procedural Justice

reflects the perceived fairness of decision making processes A stronger driver of reactions to authorities

Informational Justice

reflects the perceived fairness of the communications provided to employees from authorities

Interpersonal Justice

reflects the perceived fairness of the treatment received by employees from authorities.

Moral Judgement

reflects the process people use to determine whether a particular course of action is ethical or unethical.

Reputation

reflects the prominence of its brand in the mind of the public and the perceived quality of its goods and services. It is an Intangible asset that takes a long time to build up

Social Exchange

relationships develop that are based on vaguely defined obligations that are open-ended and long term in their repayment schedule. Characterized by mutual investment and higher levels of trust in authorities

Economic Exchanges

relationships that are based on narrowly defined, quid quo pro obligations that are specified in advance and have an explicit repayment schedule. Essentially employees agree to complete their job description in exchange for financial compensation, very low trust in authorities

Truthfulness Rule

requires for communications to be honest and candid

Post-conventional Stage of moral developnment

right vs. Wrong is referenced to as a set of defined, established moral principles. Fewer than 20% of americans ever reach this stage. Also Known As the principled stage

Conventional Stage of moral developnment

right vs. wrong is referenced to the expectations of ones family and society

Pre-conventional Stage of moral developnment

right vs. wrong is viewed in terms of consequences of various actions for the individual

Moral principles

serve as perspective guides for making moral judgements

Abusive Supervision

sustained display of hostile verbal and nonverbal behaviors, excluding physical contact

Integrity

the perception that the authority adheres to a set of values and principles that the trustor finds acceptable.

Ability

the skills, competencies and areas of expertise that enable an authority to be successful in some specific area.

Trust

the willingness to be vulnerable to a trustee based on positive expectations about the trustees actions and intentions

Equity Norm

this form of distributive justice is judged to be the fairest choice in situations in which the goal is to maximize the productivity of individual employees

When is procedural Justice most important?

when the outcomes of the process are negative, such as when Consumer Report gives a car a bad rating.

Propriety Rule

whether authorities refrain from making improper or offensive remarks

Respect Rule

whether authorities treat employees in a dignified and sincere manner

What does research on ethics explain?

why people behave in a manner consistent with generally accepted norms of morality and why they sometimes violate these norms

Disposition-Based Trust

your personality traits include a general propensity to trust others