CHAPTER 12: Ethics Flashcards

1
Q

Ethics

A

Code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

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2
Q

3 Ethical Principles/Decision Criteria

A

Utilitarian
Rights
Justice

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3
Q

Utilitarian Principle

A
  • Behavior is ethical if it delivers the greatest good to the greatest number of people
  • Focuses on outcomes; ends justify the means
  • NOTE: Requires proper assessment of the stakeholders of a decision
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4
Q

Rights Principle

A
  • Behavior is ethical if it respects the fundamental rights shared by all human beings
  • Charter of Rights and Freedoms, free speech, due process, privacy, life and safety, etc.
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5
Q

Justice Principle

A
  • Behavior is ethical if it is fair and impartial in its treatment of people
  • Impose and enforce rules fairly
  • Can be informed by Equity Theory
  • Question to ask: “Is a group being systematically disadvantaged?”
  • Does the group receive fewer outcomes?
  • Does the group have the same opportunity to provide inputs?
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6
Q

Ethical decision steps (using the 3 decision criteria):

A
  • Perform an initial ethical assessment of a decision
  • Is an ethical concern identified?
  • If so, then search for an alternative decision/solution
  • Chosen alternative would ideally pass all three ethical criteria
  • In rare cases this might not be possible, so there may be a need to make an informed judgment between alternatives (e.g., based on comparison of ethical implications)
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7
Q

Advantages and Disadvantages - Utilitarian Principle

A
  • Promotes efficiency, productivity
  • Ignores rights of some individuals
  • Difficult to apply to values that cannot be easily quantified (e.g., health, life, employment)
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8
Q

Advantages and Disadvantages - Rights Principle

A
  • Protects individuals from injury consistent with freedom and privacy
  • Creates overly legalistic environment
  • Hinders productivity and efficiency
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9
Q

Advantages and Disadvantages - Justice Principle

A
  • Protects interests of under-represented and less powerful
  • Encourages sense of entitlement
  • Difficult to agree on the definition of “fairness”
  • Reduces risk-taking, innovation and productivity
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10
Q

Common ethical themes across professions

A

Honest communication
Fair treatment
Special consideration
Fair competition
Responsibility to the organization
Corporate social
Respect for law

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11
Q

Causes of Unethical Behaviour

A

Bounded ethicality – When people unknowingly violate their ethical standards.
People fail to recognize conflicts of interest or favoritism (e.g., hiring biases).
Ethical lapses often start small and escalate (“slippery slope”).

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12
Q

Factors influencing ethical decision-making

A

o People tend to be more ethical in the morning (“morning morality effect”).
o Psychological exhaustion increases unethical choices.
o Workplace reminders (e.g., family photos) can improve ethical behavior.

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13
Q

Personality causes for unethical behaviour

A

Need for power, Machiavellianism (part of the dark triad of personality), Risk taking, Moral identity

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14
Q

Situtational causes for unethical behaviour

A
  • Gain (e.g., anticipation of reward or lack of punishment)
  • Role conflict
  • Competition/Scarce Resources (e.g. price fixing)
  • Pressures to conform
  • Social modeling
  • Anonymity/Lack of accountability
  • Organization/Industry Culture
  • Extreme performance pressure
  • Bottom line mentality (focusing solely on financial indicators) can lead to ethical shortcuts and abusive supervision.
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15
Q

Whistle-blowing

A
  • Whistle-blowing involves reporting unethical practices within an organization.
  • Whistle-blowers often face retaliation, making external watchdogs crucial.
  • Most organizations lack clear channels for whistle-blowers, relying on vague open-door policies
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16
Q

Strategies to Make Better Ethical Decisions

A
  • Identify the impact on people
  • Stakeholders
  • What is the potential for harm?
  • Costs and benefits
  • Organizational systems
  • How does the organization usually do business?
  • What policies/procedures help? Norms, laws, ethical codes, etc.
  • Choices
  • What other alternatives are available?
  • What are the risks of behaving ethically (or unethically)?
17
Q

Signaling Theory

A
  • Applies when there is information asymmetry between sender and receiver
  • High cost (honest) signals communicate fitness (and survivability)
  • Ethical initiatives signal the fitness of the organization
  • Actions signal the ethical nature of the leaders and the business
18
Q

Ethical Leadership

A

demonstrating normatively appropriate behaviors through actions and relationships.
* Positively related to: Subordinate ethical behavior, job satisfaction, organizational commitment, organizational voice (i.e., suggestions for positive change), trust in leader, job performance
* Negatively related to: Subordinate work stress, deviance, turnover

19
Q

Corporate Social Responsibility (CSR)

A

management’s obligation to make choices and take action so that the org contributes to the welfare and interest of all organizational stakeholders

20
Q

Sources of Ethical Values in Organizations

A
  • Personal Ethics
  • Role of leaders (Role model, “Linking-pin”)
  • Organizational Culture
  • Organizational Systems
  • External Stakeholders
21
Q

Formal Structure and Systems

A

Assigning ethics committee or ethics officer

Disclosure Mechanisms: Visibly reward ethical acts and punish unethical ones

Code of Ethics: Used by an increasing number of organizations
Training programs