BCOR 380 1st Edition Exam 2 Study Guide BCOR 380 Exam 2 Study Guide Readings for Exam 2 1 2 3 4 5 p 99 The Fall of Michael Milken p 104 Enron Good Bad ugly p 115 Kozlowski s Tyco p 140 The Ford Pinto p 168 Who Should Pay Immaturity as a Workplace Problem Kohlberg s View of Ethics as Maturity Conformity Expectations In the Workplace Childhood Liberties Vs Adult Responsibilities When such individuals enter the workforce their employers are confronted with the thorny problem of dealing with individuals who have spent their entire lives dodging responsibility I am my only boss No one is going to tell me what I can cannot do An employee s externalization of responsibility takes many forms Some of the more common are 1 Chronic excuse making 2 A failure to be on time for work or meetings 3 Inattentiveness at meetings since no one is going to tell me what to do I don t have to listen to this 4 Poor preparation for everything 5 An indifference or rebellion to accepted standards of dress They will go out of their way to not conform 6 Child like behaviors e g playing practical jokes 7 Frequent call offs for work 8 A tendency to replace assigned duties with play E g video games at work The employer reaction to this problem is to screen out such people in the hiring process The first step in this process is to hire from universities where students exhibit a high level of maturity and avoid those where they do not Socialization That process where parents teachers and other mentors replace childhood liberties with adult responsibilities o As each liberty is taken and replaced with a duty it is in human nature to resist or rebel against what is seen as one s historical right o As each liberty is taken and replaced with a duty it is in human nature to resist or rebel against what is seen as one s historical right Identify Kohlberg s three levels of ethical reasoning Provide the stages of Moral Development that are associated with each Know the rule which attaches to each Ethical Behavior as a maturing process Kohlberg s Three Stages of Moral Development Level 1 Pre Conventional o Stage 1 Punishment Obedience Orientation Rule punishment is to be avoided o Stage 2 Individualism Instrumentalism Exchange Rule my needs are to be satisfied Level 2 Conventional o Stage 3 Good Boy Nice Girl Orientation Rule my family members are to be pleased o Stage 4 Law Order Orientation Rule I am to conduct myself in a way which allows me to be accepted by my society Level 3 Post Conventional o Stage 5 Social Contract Legalistic Orientation Rule I need to look beyond the values of my immediate society for higher concepts of right and wrong o Stage 6 Universal Ethical Principle Orientation Rule There are universally true ethical principles that I can accept as the foundation of my worldview How does Kohlberg s philosophy of ethical reasoning relate to the workplace Answer Part 1 Kohlberg s Pre conventional Reasoning is expressed through those workplace attitudes based on justifying self serving ends on a basis other than the interest of others Answer Part 2 Kohlberg s Conventional Reasoning is expressed through those workplace attitudes that look to do the right thing when an ethical dilemma arises Answer Part 3 Kohlberg s Post conventional Reasoning is expressed through those workplace attitudes that take a proactive approach to maintaining fairness to all involved Douglas McGregor s Theory X and Theory Y Theory X Managers assume people are inherently lazy and will avoid work and responsibility when possible Theory Y Managers assume people are inherently motivated and will feel unfulfilled if they do not have the opportunity to achieve o Theory Y Managers tend to be much more successful at motivating employees than Theory X Managers Value Chain the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service The idea of a Value Added Tax is value chain based A tax on each key functional input that an organization provides in the transformation of raw materials into a delivered product or service Each functional input in the manufacturing value chain holds a potential for abuse Research Development Manufacturing Marketing and advertising Sales Customer service The basic ethical divisions that arise from manufacturing value chain considerations 1 2 3 4 5 6 7 Research and Development ethics Production ethics Marketing ethics Human Resource ethics Finance and Accounting ethics Environmentalism Product accountability What is the key issue in research and development ethics Has the product been fully tested for quality safety and reliability This key issue for Research and Development Ethics arises from 1 Manufacturing and service organizations can lose their customers to competitors who are offering products that are better faster cheaper 2 Better cheaper faster mean compromises have to be made in planned materials or planned manufacturing methods in order to meet a targeted cost figure 3 It also means corners might have to cut in testing the safety and quality of the proposed product What is the key issue in production ethics Is the product being produced in a way that assures quality safety and reliability for all concerned This key issue for Production Ethics arises from o The same need for better cheaper faster output which drove the ethical problems in research and development What is the key issue in marketing ethics Is the product being packaged placed promoted and priced in a way that assures consumers are not misled The key issue for Ethics in Marketing arises from o The presence of sales goals which can lead a marketing staff to implement manipulative practices slick commercials and advertisements whereby unsuspecting customers often children are induced to want products they don t really need and could quite easily live without What is the key issue in human resources ethics Is there a proactive commitment to avoiding discrimination whether intentional or unintentional The key issue for HR ethics arises from o The way in which human prejudices can influence The recruitment and selection process Payroll and benefits Periodic performance reviews What are the key issues in financial ethics today 1 Are there hidden lending fees and an exposure to higher hidden interest rates 2 Are creative bookkeeping techniques being used 3 Are there conflicts of interest The last two links in the chain are too diversified to have one key issue 1 Environmentalism