Leader as an Ethical Decision Maker

Question 1

Ethikos

Answer 1

A disposition to behave a certain way, to lead a particular kind of life

Question 2

Business Ethics

Answer 2

comprises principles and standards that guide behavior in the world of business
is right or wrong, acceptable or unacceptable
is determined by key stakeholders

Question 3

What stakeholders should the company serve?

Answer 3

Customers
Employees
Supplies
Shareholders
Suppliers of Capital
Government
Community

Question 4

4 Myths of Business Ethics

Answer 4

Business is inherently value neutral
To be successful in business, you have to go along
Being ethical in business means paying by the rules
If I a “good” person, I will be a “good’ professional

Question 5

Common Unethical Acts

Answer 5

Lying to supervisors
Falsifying Records
Alcohol and Drugs
Conflict of Interest
Stealing of interest
Stealing
Gift/entertainment receipt in violation of company policy

Question 6

Uncommon Unethical Acts

Answer 6

Sexual harrasment
deceptive ads
breaking confidentiality
bribes
worker and public safety 
environmental pollution
improper accounting practices

Question 7

Key Causes to Unethical Behavior

Answer 7

Overly aggressive financial or business objectives
Unrealistic schedule pressures
Helping the organization survive
Rationalizing that others do it
Resisting competitive threats
Saving Jobs

Question 8

Key Influences on Ethical Behavior

Answer 8

Internal vs External

Question 9

Internal

Answer 9

Personal value
Personality
excessive drive to succeed
high mach

Question 10

External

Answer 10

Senior Management Influence
Supervisor Influence
Performance Pressures
Lack of Punishment 
Friends / Co worker Influence

Question 11

Enron Culture

Answer 11

• Hired and promoted aggressive, achievement oriented execs
• Pressured executives to make their numbers
• Weak control of how numbers created
• ”Yes Man” culture among executives
• Bonuses and money highly valued
• Little value for teamwork
• Strong push to reach optimistic expectations
• Profits at all costs

Question 12

What is an ethical issue?

Answer 12

Moral Confusion
Moral Disagreement
Conflicting “goods”

Question 13

How do you know when you are facing an ethical issue?

Answer 13

The “gut” test
Legal guidelines
Normative guidelines

Question 14

What are these normative guidlines?

Answer 14

utilitarianism
rights
justice

Question 15

Utilitarianism

Answer 15

Definition: Greatest good for greatest number of people

Emphasizes: Efficiency, productivity, high profitability

Problem: Can ignore the rights of some people, minority

Question 16

Rights

Answer 16

Definition: Fundamental liberties and privileges
Emphasizes: respect and protection for the basic rights to an individual
rights: privacy, free speech, due process

Problem: can create and overly legalistic work environment that hinders productivity and efficiency

Question 17

Justice

Answer 17

Definition: Fairness and equitable distribution of benefits and cost

Emphasizes: enforcement of rules fairly and impartially; promotes protection of less powerful and underrepresented

Problem: Can encourage entitlement; reduce risk taking, innovation, or productivity

Question 18

Questions to Consider

Answer 18

Are actions/decisions motivated by narrow or wide intersts? (util)

Question 19

Q

Answer 19

Do actions/decisions respect the rights of individuals affected? (rights)

Question 20

Q

Answer 20

Are actions/decisions fair and equitable? (justice)

Question 21

Leader’s Responsibility

Answer 21

• Have a strong moral compass
• Be a visible role model
• Cultivate an ethical culture
• Communicate ethical expectations
• Provide ethical training
• Visibly reward ethical acts / punish unethical acts
• Provide protective mechanisms