MGMT 202 1st Edition Lecture 3 Outline of Last Lecture I. History of Business EthicsA. Before 1960 (Ethics in Business)B. The 1960’s (The Rise of Social Issues)C. The 1970’s (Ethics as an Emerging Field)D. The 1980’s (Consolidation)E. The 1990’s (Institutionalization of Ethics)F. The Twenty-First Century (A New Focus)i. Passage of the 2002 Sarbanes-Oxley Actii. Fallen CEO’sOutline of Current Lecture I. Goals, Norms, Beliefs, and ValuesII. Six Liberal Traits of American CultureIII. Robert JackallIV. Joseph Badaracco and Allen WebV. AttributesCurrent LectureAmerican Business Culture and Ethical DisastersGoals, Norms, Beliefs, and Values – cascading effect, important foundational stones that make up a cultureGoals: expectations of outcomesNorms: …of behaviorsBeliefs: …of thoughtsValues: Prioritization of goals, norms, and beliefsPeople come from different religions, economic backgrounds, etc – impact their goals, norms, beliefs, and values – you resort to what you think and feelAmerican Culture: Six Liberal Traits – wherever you are in America, people will generally agree with these1. Individualism – advancement by individual efforts, not so much the mindset “what’s good for society is best”; we often tend to localize problems and blame an individual2. Capitalism – economic extension of individualism; freedom to own property; we’re a mixed economy3. Individual Rights – freedom of speech, religion, etc4. Rule of Law – laws can change; laws are fair and non-discriminating 5. Majority Rule and Minority Rights – not the case in every country6. Pro- and Anti-Government Sentiments – because of individual rights, we can feel how we want about government and express it; NGO=non-government organization – tons in America, illegal in ChinaRobert Jackall: The Bureaucratic EthicObservations:1. Image shaping – associating with the right people, who can help them advance their careers, instead of focusing on knowledge and experience; too much focus on who you know instead of what you know2. Team play – good employee is a team player3. Group think – being swayed by opinions of team members that are different from your own; safety in numbers/anonymity Findings:1. High conformity in bureaucratic org. 2. Employees unlikely to speak up – easily overruled3. Bad news not brought forward Joseph Badaracco and Allen Web: Managers in the “Trenches” – built on Jackall’s workObservations:1. Pressure from mid-level managers2. Futility of corporate codes of ethics3. Aloofness of executives with ethics – didn’t know or care what was going on in the backgroundFindings:1. Org. importance on “making the numbers”2. Expectation of team play3. No rewards for being ethicalAttributes of those most promotable in bureaucratic organizations according to Jackall, Badaracco, and Web (ends-based approach):1. Opportunistic of others’ misfortunes2. “Teflon” psyche – Teflon=non-stick coating on pans; people with “Teflon psyche” don’t take personal responsibility3. Willingness to do anything for the organization – put hours in, do dirty work; useful idiots4. “Survival of the Fittest” mentality – do anything and everything to get on top, including