Exam 2

Define culture and explain how it may be communicated to employees.

Culture is shared among individuals belonging to a group society, formed over a relatively long period of time, and relatively stable. Culture is communicated to employees through the behavioral patterns, concepts, documents such as codes of ethics, and rituals that emerge in an organization.

Explain the framework for ethical decision making in business and the role of ethical issue intensity, individual factors, organizational factors, and opportunity in the decision-making process.

Ethical issue intensity, individual factors, organizational factors, and opportunity combine in the framework for ethical decision making in business to influence the intentions behind the decisions that produce ethical or unethical behavior. Ethical issue intensity is the relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization. Ethical issue intensity is affected by ethical awareness and moral intensity. Individual factors that influence ethical decision making include: personal ethics, gender, education, work experience/age, locus of control, and nationality. Organizational factors include: corporate culture, ethical culture, significant others, and obedience to authority. Finally, opportunity is the conditions in an organization that limit or permit ethical or unethical behavior.

Describe the duties of an ethics officer.

Ethics officers are responsible for managing the ethics and legal compliance programs of their organization. They are recommended to report to the board of directors, but often report to the CEO in actuality.

Discuss the need for organizations to develop an ethics program.

Ethics organization programs are necessary because they increase employee's ethical awareness, participation in ethical decision making, and ethical behavior. Also, without uniform standards and policies of conduct, it is difficult for employees to determine what behaviors are acceptable within a company. In addition, employees generally make decisions based on their own observations of how their coworkers and superiors behave. The more misconduct that occurs at a company the less trust employees feel toward the organization and the greater the turnover will likely be.

Describe the purpose of ethics training programs.

Ethics training programs have many purposes. First, they educate employees about the firm's policies and expectations, relevant laws and regulations, and general social standards. Next, they make employees aware of available resources, support systems, and designated personnel who can assist them with the ethical and legal advice. Finally, they empower employees to ask tough questions and make ethical decisions.

Explain how organizational structure effects ethical decision making.

In a centralized organization, decision making authority is concentrated in the hands of top-level managers, and little authority is delegated to lower levels.In a decentralized organization, decision making authority is delegated as far down the chain of command as possible. Unethical behavior is possible in either structure. However, centralized firms may have a more difficult time uprooting unethical activity than decentralized organizations.

Explain the differences between intentions, behavior, and evaluation.

Intentions are what you plan to do. Behavior is what you actually do. Evaluation is how you feel about what you did.

Explain Kohlberg's model of cognitive moral development.

Kohlberg's model of cognitive moral development is divided into three stages - preconventional, conventional, and postconventional, which are split into 6 stages. In stage 1, behavior includes sticking to rules to avoid punishment. In stage 2, behavior involves following rules only when it is in one's immediate interest. In stage 3, behavior involves living up to what is expected by peers and people close to you. In stage 4, behavior involves fulfilling duties and obligations of social systems. In stage 5, rules are relative to group because of social contract. In stage 6, behavior involves following self-chosen ethical principles of justice and rights.

Explain how leaders influence the behavior and job performance of their subordinates through different types of power and motivation.

Leaders influence the behavior and job performance of their subordinates through five types of power: reward, coercive, legitimate, expert, and referent. Reward power is a person's ability to influence the behavior of others by offering them something desirable. Coercive power penalizes actions or behavior. Legitimate power stems from the belief that a certain person has the right to exert influence and certain others have an obligation to accept it. Expert power is derived from a person's knowledge. Referent power may exist when one person perceives that his or her goals or objectives are similar to another's.

Define Moral Philosophy.

Moral philosophy is the specific principles or values people use to decide what is right and wrong. It is person-specific, meaning each person will have their own personal moral philosophy.

Explain the differences between the descriptive and normative approaches.

The descriptive approach examines how organizational decision makers actually approach ethical decision making. The normative approach is how organizational decision makers should approach ethical decision making.

Explain the philosophical approaches to ethics including the goodness theories, teleology, egoism, utilitarianism, deontology, the relativist perspective, virtue ethics, and the three forms of justice.

The goodness theories focus on the end result of actions and the goodness or happiness created by them. Teleology is consequence driven. Egoism defines the rights or acceptable behavior in terms of its consequences for the individual. Utilitarianism is concerned with consequences, but seeks the greatest good for the greatest number of people. Deontology is behavior driven, and focuses on individual rights. In the relativist perspective, definitions of ethical behavior are derived subjectively from the experiences of individuals and groups. Virtue ethics argue that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a "good" moral character would deem appropriate in a given situation. The three forms of justice are distributive, procedural, and interactional.

Explain how group dimensions effect ethical decision making.

The two main categories are formal and informal. In a formal group, an assembly of individuals with an organized structure that is explicitly accepted by the group. Formal groups can be divided into committees, work groups, and teams, making it hard for individuals to implement their own personal ethical beliefs since groups collectively reach so many decisions. An informal group includes two or more individuals with a common interest but without an explicit organizational structure. Informal groups are usually formed of individuals in the same department with similar interests. They help form the grapevine, an informal channel of communication, which allows individuals to assess ethical behavior within their organization.

Identify the types of formal statements of expectations.

The types of formal statements of expectations include: code of conduct, code of ethics, and statement of values. Code of conduct compromises formal statements that describe what an organization expects of its employees, and mainly specify acceptable and unacceptable behavior. Code of ethics specify methods for reporting violations, disciplinary action for violations, and a structure of due process. Statement of values serve the general public and also address distinct groups such as stakeholders. Formal statements of expectations are only effective if they are distributed to employees, employees are trained to use them, they are supported by top management, and they are continuously reinforced.

Explain the different types of organizational cultures and ethical cultures.

The types of organizational cultures include caring, integrative, apathetic, and exacting. The two types of ethical cultures include compliance and value-based. Compliance cultures are organized around risk, use a legalistic approach to ethics. Values-based culture relies upon an explicit mission statement that defines the core values of the firm and how customers and employees should be treated.

Identify some of the common mistakes make in designing and implementing an ethics program.

There are many common mistakes that occur in designing and implementing an ethics program. For example, few business leaders take the time to answer fundamental questions about the goals of such a program. Also, not setting realistic and measurable program objectives. In addition, transferring an "American" program to a firm's international operations.

Describe the different types of ethics programs.

Two types of ethics programs are compliance orientation and values orientation. Compliance orientation programs create order by requiring employees to identify with and commit to specific required conduct. Values orientation programs strive to develop shared values, with a focus on core ideals such as accountability and commitment. Research has shown values-based programs create ethical reasoning among employees.