Values Ethics in Business X420 Discussion Session 80 Kelley School of Business Values Abstract ideals that shape an individual s thinking and behavior a moral compass Instrumental values certain way of behaving is appropriate in all situations means Terminal values enduring belief in the attainment of a certain end state ends A moral compass These abstract ideals can result from Religion Philosophy Family teachings Instrumental values As the means to an end they become the ingrained ways of behavior Rituals Politesse Good habits Terminal values With the end always in sight Heaven Respect Financial Success Personal Independence Power Ethics The study of moral obligation involving the distinction between right and wrong Business Ethics right or wrong in the workplace value management Two Areas of Business Ethics Obvious mischief Moral mazes RIGHT vs RIGHT Common Misconduct in Organizations Misrepresenting hours worked Employees lying to supervisors Management lying to employees customers vendors or the public Misuse of organizational assets Lying on reports falsifying records Sexual harassment Stealing theft Accepting or giving bribes or kickbacks Withholding needed information from employees customers vendors or public Common Causes of Unethical Behavior Pressure Fear Greed Convenience Causes of Unethical Behavior cont d Following boss s directives Meeting overly aggressive business financial objectives Helping the organization survive Meeting schedule pressures Be a team player group think Rationalizing that others do it Resisting competitive threats Advancing own career Ethical Dilemmas Making decisions under stress or dealing with complex issues that have no clear indication of what is right or wrong There are NO simple ethical dilemmas all have layers of meaning and effect Business Ethics Myths Business ethics is a new fad Business ethics religion vs management Business ethics is obvious do good Business ethics is good guys preaching to bad guys Whistleblower s Reluctance Didn t believe action would be taken Feared retaliation from mgmt Didn t trust confidentiality Feared not being a team player Feared retaliation from co workers Didn t know who to contact Nobody cares why should I Business Ethics Myths cont d Ethics can t be managed Being legal being ethical Managing ethics has little practical relevance Ethical Tips for Organizations Develop a code of ethics Communicate code and bake it into culture top down Treat ethics as a process Create open lines of communication Set good examples Educate employees frame issues through storytelling Value forgiveness Benefits of Managing Ethics in the Workplace Improves society Maintains a moral course in turbulent times Cultivates employee teamwork productivity morale and development Acts as an insurance policy Benefits of Managing Ethics in the Workplace cont d Establishes values for quality management strategic planning and diversity management Promotes strong public image It is the RIGHT thing to do Ethical Tips for Individuals Establish personal values Be aware of ethical events Develop critical thinking techniques Be reflective Make it a priority every day The simple step of a simple courageous man is to not take part in the lie not to support deceit Let the lie come into the world even dominate the world but not through me Alexander Solzhenitsyn Puzzling things out As we watch the video vignettes keep these questions in mind 1 What is the ethical dilemma 2 What is the apparent cause of the unethical behavior 3 Is there an ethical resolution to the problem portrayed 4 If so who should do what EVALUATION QUESTIONS Values and Ethics in Business 80 1 I found the presentation material easy to understand USE 2 This Advantage session increased my knowledge of the subject presented 3 I will be able to use some of the information from this session in the future a Strongly agree b Agree c Disagree d Strongly disagree e Don t know 4 The presenter was well prepared for this Advantage session 5 This presentation should be repeated in future semesters