Ethics - Clarke

Egoism

-right or acceptable behavior defined in terms of consequences to the individual (maximizes personal interests) (teleology

Obedience to Authority

Another aspect of the influence significant others can exercise. It helps explain why many employees resolve business ethics issues by simply following the directives of a superior

Whistle Blowers

Exposing an employer's wrongdoing to company outsiders such as the media or government regulatory agencies

transactional or transformational. 6 Styles1. The coercive leader 2. The authoritative leader 3. The affiliative leader 4. The democratic leader 5. The pacesetting leader 6.The coaching leader

Ways to characterize leadership styles

Procedural Justice

considers the processes and activities that produce desired outcomes

Locus of Control

relates to individual differences in relation to a generalized belief about how you are affected by internal versus external events or reinforcements

Moral Intensity

relates to individuals' perceptions of social pressure and the harm they believe their decisions will have on others

Ethical Communication

- When we apply ethical standards to the messages we produce and consume - Fundamental to responsible thinking, decision making, and the development of relationships and communities within and across contexts, cultures, channels, and media - Enhances human worth and dignity by fostering truthfulness, fairness, responsibility, personal integrity, and respect for self and others

Teleology

-considers acts as morally right or acceptable if they produce a desired result (pleasure, knowledge, career growth, the realization of a self interest, utility)

Deontology

-moral philosophies that focus on the rights of individuals and on the intentions associated with a particular behavior -believe that individuals have absolute rights -regard the nature of moral principles as stable and believe that compliance with these principles defines ethicalness -sometimes referred to as NONCONSEQUENTIALISM based on respect for person

Utilitarianism

-seeks the greatest good for the greatest number of people (teleology)

Moral Philosophy

-the specific principles or rules that people use to decide what is right or wrong -person specific: no single moral philosophy is accepted by everyone

RADAR Model

A model that was created to describe an ethical leader's duty to recognize ethical issues, avoid misconduct whenever possible, discover ethical risk areas, answer stakeholder concerns when an ethical issue comes to light, and recover from a misconduct disaster by improving upon a weakness in the ethics program. Recognize Avoid Discover Answer Recover

Reward Power

A person's ability to influence the behavior of others by offering them something desirable (within the organization) Example: Lance Armstrong uses the ability to be on his winning team

Ethical Leadership

Ability to create an ethical culture + motivate others and enforce the organization's norms, policies, and viewpoints. Requires strong personal character, years of training, experience, and learning of other best practices of leadership, being passionate about the organizations best interests, not waiting for ethical problems to arise + modeling the organization's values. Can lead to higher employee satisfaction and employee commitment + is a foundational requirement for impacting the long-term market valuation of the firm. Understand employee values and perceptions BENEFITS: 1) Provide cultural motivations for ethical behavior, such as reward systems for ethical conduct 2)Can lead to higher employee satisfaction and employee commitment 3)Creates strong relationships with external stakeholders 4)Positive association between ethical commitment of employees and a firm's valuation on the stock market

Employee Empowerment

An essential component of a values-based organizational culture. 1) Encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts 2) Ethical leadership training for both managers and employees is helpful: ethical decision-making, team work, conflict resolution 3) Important to create employee-centered ethical leadership

Integrative Culture

Combines a high concern for people and performance Example: USADA's Culture because they want honest, healthy, competitive athletes

competing, avoiding, accommodating, collaborating, and compromising

Conflict Management Styles

Legitimate Power

Consensus that person has a right to exert influence - subordinates comply to someone in authority with a title. Seen in companies with strong charismatic leaders and centralized structures.

Decentralized Organization

Decision making authority is deluged down the chain of command Has fewer internal controls and uses shared values for their ethical standards Ambiguity in following a rule versus the spirt of rules creates ethical challenges

Centralized Organization

Decision-Making authority is concerned in the top-level management Codes of ethics specify the techniques used for decision making by management Distance between managers and decision-makers may lead to unethical acts

Expert Power

Derives from knowledge and credibility with subordinates; natural for people to respect and follow experts in a given field or occupation.

More complex than just "the older you are the more ethical you are". Older employees with more experience have greater knowledge to deal with complex industry-specific ethical issues while younger managers are far more influenced by organizational culture than other managers.

Describe how age relates to ethical decisions

The more eduction or work experience people have, the better they are at making ethical decisions. The type of education someone receives have little or no effect on ethics. It is important to remember that education does not reflect experience.

Describe how education relates to ethical decision making

Shows in many aspects there are no differences between men and women. But when differences are found, women are generally more ethical than men - meaning women seem to be more sensitive to ethical scenarios and less tolerant of unethical actions

Describe how gender relates to ethical decision making

Appears to have a significant relationship, but it is hard to interpret. Because of cultural differences, it is impossible to state that ethical decision making will differ significantly among those of different nationalities

Describe how nationality relates to ethical decision making

Distributive Justice

Ensures that society allocates benefits and burdens in a way that treats people as moral equals.

Caring Culture

High concern for people but minimal concern for performance issues Example: Ben and Jerry's embraces community causes, treats its employees fairly, and expends numerous resources to enhance the well-being of its costumers

Power

Influence leaders and managers have over the behavior and decisions of their subordinates

Consists of Six Stages: 1. punishment and obedience 2. individual instrumental purpose and exchange 3. mutual interpersonal expectations, relationships and conformity 4. social system and conscience maintenance 5. prior rights, social contract or utility 6. universal ethical principles

Kohlberg's 6 Stages of Cognitive Development

Transactional Leader

Leaders that attempt to create employee satisfaction through negotiating, or "bartering" for desired behaviors or levels of performance. They focus on ensuring required conduct and procedures are implemented. Can positively influence the corporate culture.

Transformational Leader

Leaders that strive to raise employees' level of commitment and foster trust and motivation. These leaders communicate a sense of mission, stimulate new ways of thinking, and enhance as well as generate new learning experiences. They strive to promote activities and behavior through a shared vision and common learning experience. Can positively influence the corporate culture.

Apathetic Organizational Culture

Minimal concern for either people or performance Example: Countrywide Financial seemed to show little concern for employees and customers. The company's culture appeared to encourage unethical conduct town exchange for profits

Immediate Job Context

Relates to individual's opportunity and refers to where they work, whom they work with, and the nature of the work; includes the motivational "carrots and sticks" superiors use to influence employee behavior. Carrots = bonuses, pay raises, and public recognition. Sticks = demotions, firing, reprimands, and pay penalties

Exacting Organizational Culture

Shows little concern for people but a high concern for performance; it focuses on the interests of the organization

Group Norms

Standards of behavior that groups expect of members - define acceptable/unacceptable behavior within the group

White Collar Crime

These "crimes of the suite" do more damage in monetary and emotional loss in one year than the crimes of the street over several years combined -creates victims by establishing trust and respectability. A crime committed by a person of respectability and high social status in the course of his occupation offender-based definition occupational crime

Internal Locus of Control

Those who believe they control the events in their lives by their own effort and skill, viewing themselves smashers of their destinies and trusting in their capacity to influence their environment

Significant Others of Organizational Factors

Those who have influence in a work group (They help workers on a daily basis with unfamiliar tasks and provide advice and information in both formal and informal ways.)

External Locus of Control

Those who see themselves as going with the flow because that is all they can do. They believe the events in their liveware due to uncontrollable forces. Dependent upon luck, chance, and powerful people in their company

Emotional Intelligence

Understanding how emotions work to achieve desired results—from oneself and others The ability to interact differently with different people's personalities to best fit the relationship

Gender, Education, Nationality, Age, Locus of Control (Internal and External)

What are Individual Factors

Corporate Culture, Ethical Culture, Significant Others, and Obedience to Authority

What are Organizational Factors

Authoritative Leadership

a leadership style that Inspires employees to follow a vision, facilitates change, strong positive performance climate. Considered to be one of the most effective styles.

Coaching Leader

a leadership style that develops skills that foster long-term success, delegates responsibility. Can build a positive climate

Affiliative Leadership

a leadership style that values people, their emotions, needs, relies on friendship and trust. Can promote flexibility, innovation and risk-taking

Work Groups

an example of a formal group: assembly of individuals with an organized structure that is explicitly accepted by the group similar to teams

Social Institutions

an organized system that embodies certain sanctioned and unified behaviors for the purpose of meeting the basic needs of a society or community

Values Orientation

associated with values that can be quantified by monetary means; thus, according to this theory, if an act produces more value than its effort, then it should be accepted as ethical.

Core Values

derived from companies basic principles which provide the abstract ideals that are distinct from individual values and daily operational procedures; but provide a blueprint into the firm's purpose as well as

Opportunity

describes the conditions in an organization that limit or permit ethical or unethical behavior; results from conditions that either provide rewards, whether internal or external, or fail to erect barriers against unethical behavior

Coercive Leader

essentially the opposite of reward power; a person's ability to influence the behavior of others by penalizing actions or behaviors Example: Lance Armstrong uses either engage in the unethical behavior of doping or you're off the team

Virtue Ethics

ethical behavior involves adhering to conventional moral standards and considering what a mature person with "good" moral character would deem appropriate (ex: good corporate ethics programs encourage individual virtue and integrity, the virtues associated with appropriate conduct from a good person, the ultimate purpose is to serve the public good)

Descriptive Approach

examines how organizational decision makers approach ethical decision making

Justice

fair treatment and due reward in accordance with ethical or legal standards

Normative Approach

how organizational decision makers should approach an issue; concerned with general ethical values implemented into business (like fairness and justice); tend to deal with moral philopsophies

Relativist

individuals and groups derive definitions of ethical behavior subjectively from experience

Pacesetting Leadership

leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take the initiative.

Authentic Leadership

leaders that are passionate about the company, live out corporate values daily in thier behavior in the workplace and form long-term relationships with employees and other stakeholders.

Leader Follower Congruence

occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company. Shared values and work toward goals for the organization

Differential Association

refers to the idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or who belong to other intimate personal groups.

Ethical Culture

reflects the integrity of decisions made and is a function of many factors including, corporate policies, top management's leadership on ethical issues, the influence of coworkers, and the opportunity of unethical behavior defined within the corporate culture, a way to embed within the corporate culture would be to define a mission statement with core values within the firm

Values

subjective and related to choice; used to develop norms; provides guidance to organization, differs across cultures

Ethical Awareness

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

Ethical Issue Intensity

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

Corporate Culture

the shared beliefs top managers in a company have about how they should manage themselves and other employees, and other employees, and how they should conduct business Example: Lance Armstrong's Team wanted to win at any costs which lead to unethical behavior

Groupthink 1

the tendency of cohesive groups to avoid a realistic appraisal of alternatives in favor of unanimity

Groupthink 2

the tendency of individuals in groups to adopt the majority line rather than sticking to individually arrived conclusions

Significant Others

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

Informal Groups

two or more individuals with a common interest but without an explicit organizational structure

Principles

widely accepted;used to develop values and standards;establishes pervasive boundaries for behavior; valued across cultures