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Business Ethics > Ethics in Organizations - Lecture 2.2 > Flashcards

Ethics in Organizations - Lecture 2.2 Flashcards

1
Q

T or F: Situation matters, NOT the individual

A

True

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2
Q

What are the sources of ethics?

A
  1. Cultural
  2. Legal
  3. Individual
  4. Organizational
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3
Q

Which two sources of ethics are situational and which two are individual?

A

Situational: “removed from you” - maybe back of your mind

  1. Cultural
  2. Legal

Individual:

  1. Individual
  2. Organizational
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4
Q

What are the Cultural influences?

A
  1. Culture: subcultures in society (family, education etc.)
  2. Religion (upbrining & current contact)
  3. Media/entertainment
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5
Q

What are the Legal influences?

A
  1. Laws (prohibiting discrimination, price fixing, disclosure requirements in real estate, stock market etc)
  2. There is OVERLAP between law (legal/illegal) and ethics (right/wrong) they are NOT the same
  3. is it legal? - useful starting point
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6
Q

Individual influences?

A
  1. personality (internal/external locus of control)
  2. history of reinforcement (your past experiences)
  3. values
  4. other internal factors (operating at the individual level ex. family, upbringing, education etc.)
  5. moral principles (stages of moral development)
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7
Q

Why do individuals behave ethically?

A
  1. to avoid punishment
  2. to receive rewards
  3. to be responsive to family, friends or superiors
  4. to be a good citizen
  5. to do what is right, pursue some ideal justice
    * lower ones people are more likely to behave unethically
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8
Q

What are Kohlberg’s stages of Moral Development?

A

Focus on Self:

  1. avoid punishment by following rules
  2. follow rules only when in your immediate interest (rewards)

Focus on Others:

  1. be a good person (consider care for others - loyalty)
  2. act “right” to comply with law/rules/norms of society

Focus on Humankind:
5. follow self-chosen ethic principles (justice) even if they conflict with law & norms of others - reasoning has to be practical

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9
Q

More on Kohlberg’s Stages…

A
  • places ethic of justice or fairness (4/5) higher than ethic of care (3)
  • some say overly “male-oriented” - or individualistic view of ethics
  • is it sometimes better to make more ethical exceptions to rules aka more emphasis on care then justice?
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10
Q

MARS MODEL - influence our ethical/unethical behaviours, not just our intrinsic factors

A
  • difficult to change individuals but can change organizations and cultures (situations)
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11
Q

What does Zimbardo say?

A

Behaviour is infectious. We are social models for both ethical and unethical behaviour

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12
Q

What is the Asch experiment?

A

conformity to the behaviours of peers

-model

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13
Q

What is the milgram experiment?

A

Obedience to authority

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14
Q

What kind of attitude is there toward the legitimate authority?

A

fear-based? not good, people will be less likely to dissent and higher probability people will be unethical
respect-based? will follow, more likely to behave ethically

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15
Q

Milgram showed how legitimate power of leaders can influence behaviours (followers) T or F?

A

True - obedience to authority

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16
Q

What did the Asch experiment demonstrate?

A

how peers can influence people - fellow employees for ex.

17
Q

What are the different approaches to ethics climate?

A
  1. self-centered approach
  2. concern for others approach (ethics of care - stakeholders)
  3. integrity approach (ethic of justice)
18
Q

What are the Organizational influences?

A
  1. culture
  2. behaviours of leaders and peers
  3. role models
  4. perceived pressure for results
  5. what is actually rewarded/punished?
  6. corporate codes of conduct/codes of ethics
  7. business/industry groups *outside but brought in
  8. behaviour of competing firms *outside but brought in
19
Q

What are the 3 approaches to business ethics?

A
  1. immoral approach: purposely unethical - self interest
  2. moral approach: conforms to high standards of ethical behaviours (goes against self-interest)
  3. amoral approach:
    - intentional: doesn’t consider ethics
    - unintentional: casual or careless
20
Q

Which approach do people use?

A

individual hypothesis: individuals shift from one approach to another (depending on situation)

population hypothesis: individuals adopt 1 of the 3 approaches on a regular basis

implications: employees can influence people based on their ethical behaviour - “done by the broader system”

21
Q

Applying the 3 approaches:

A
  1. perpetrator of unethical behaviour (immoral)
  2. thinker & doer: realize if and when you are in a “milgram moment” or “asch moment” listen to your intuition and consider ethics (moral)
  3. passive follower: go along with other people, some people don’t have the luxury of time (amoral)
22
Q

why do people act unethically?

A
  1. individual: “bad apple”
  2. situation: expectations of managers, coworkers etc. “the bad barrel” - bad culture
  3. the system: orgs. shape the industry “bad barrel maker”
23
Q

Bad systems lead to bad situations lead to bad behaviours was said by who?

A

Milgram and Zimbardo

24
Q

leaders can “pull” amorals to one side T or F

A

True

25
Q

How do we move people to moral?

A
  1. by focusing on the org. (work situation, and the broader system of the firm - ex. leadership, nature of authority, is discussion valued or not, reward structure etc.)
  2. by focusing on the individual…including yourself ;) (ethics training, ethic awareness, being able to deal with a “milgram or Asch moment”
26
Q

How do we reinforce ethical behaviour?

A
  1. behavioural aspects
  2. educational aspects
  3. setting ethic standards
  4. taking action if problems exist
27
Q
  1. Behavioural aspects…
A

-seniors set own ex. by their behaviour
-seniors expectations of employees
-culture established by leaders
-behaviours of fellow employees
reward structures and pressure are reasonable

28
Q
  1. Educational aspects…
A
  • ethics education taught in uni’s to increase awareness
  • training delivered in-house (awareness of typical issues and how to handle them
  • awareness of code of conduct/ethics
  • ethical self-awareness and reflection
29
Q
  1. Setting ethic standards…
A
  • statement of corporate values and philosophy (mission/vision statement)
  • executive speech-making
  • written code of conduct/ethics
30
Q
  1. Taking action is problems exist…
A
  • ethics audits
  • procedures to handle ethics concerns
  • ethics officer/ombudsman
  • whistleblowing procedure - available to report concerns?
31
Q

What are the 2 approaches to ethic programs in orgs

A
  1. compliance-based

2. integrity based

32
Q

Comparison of ethics programs…

A
  1. compliance:
    - focuses on rules
    - to prevent
    - lawyer-driven
    - employee discretion is limited
    - code of conduct: ususally don’t do this…
  2. integrity: encourages you to work towards goals
    - values/ethics
    - to enable responsible conduct
    - management-driven
    - employee discretion is increased
    - code of ethics: not legal
33
Q

Difference between code of conduct and ethics?

A

conduct: states what is acceptable and what is not and is extremely detailed
ethics: statements on values, guiding behavior, general, less detailed

34
Q

what are the criticisms of codes?

A
  • unenforable
  • if enforced, penalities are minor
  • very idealistic
  • written in generalities
  • not accompanied by ethic education or training
  • to prevent more gov. regulation
  • response to media

*part of a larger effort to reinforce ethical behaviour

Business Ethics (2 decks)

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