Buss Ethics Chapter 5

Locus of control ( step 2)

Individual differences in relation to generalized belief about how one is affected by internal versus external events or reinforcements

Institutions are the foundation for normative values

Organizations face certain normative pressures from different institutions to act a certain way

Moral Intensity (Ethical Issue intensity)

a person's perception of social pressure and the harm the decision will have on others

Corporate culture (Organizational factors)

a set of values, norms, and artifacts, including ways of solving problems that members of an organization share

Individual factors: education ( step 2)

education and work experience are both positively correlated with making ethical decisions

Reduce unethical behavior opportunities

formal codes, policies, and rules that are enforced by management

Obedience to authority

helps to explain why many employees resolve business ethics issues by simply following the directives of a superior

Last step in ethical-decision making

individual's intentions and the final decision regarding what he/she does

Organizational factors (Step 3)

no one operates in a vacuum the organization's values have the greatest influence on decisions

Internal control (locus of control)

people believe that they control the events in their lives

External control (locus of control)

people see themselves as going with the flow because that is all they can do

3 Institutional categories

1. Political 2. Economic 3. Social

Social Institutions

1. religion 2. education 3. family unit

Spheres of influence (6)

1.workplace 2. family 3. religion 4. legal system 5. community 6. profession

Normative approach (in ethical decision making)

Concerns about how organizational decision makers should approach an issue Fairness and justice are highly important

Individual factors: nationality ( step 2)

Culture differences may contribute to differing value systems

Ethical Issue Intensity (step 1)

The first step in ethical decision making is to recognize that an ethical issue requires an individual or work group to choose among several actions that various stakeholders will ultimately evaluate as right or wrong.

Ethical Awareness (Ethical Issue Intensity )

the ability to perceive whether a situation or decision has an ethical dimension

Opportunity (Step 4)

the conditions in an organization that limit or permit ethical or unethical behavior

Improving ethical decisions with the Ethical-Decision Making Model

the framework cannot tell you if a business decision is ethical or unethical, but it does provide you with insights and knowledge about typical ethical decision making processes Organizations ethical problems will not be solved through a thorough knowledge about how ethical decisions are made

Ethical Issue Intensity

the relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization

Significant others (Organizational factors)

those who have influence in a work group, including peers, managers, coworkers, and subordinates

Immediate job context (Opportunity)

where people work, with whom they work, and the nature of the work

Ethical culture (Organizational factors)

whether the firm also has an ethical conscience--> the more ethical the company, the less likely employees are to make unethical decisions

Individual factors: gender ( step 2)

women are generally more ethical than males

Individual factors: age ( step 2)

younger managers are far more influenced by organizational culture than are older managers