Week 8| Ethics

Question 1

Define ethics

Answer 1

Philosophy which considers questions about morality- what is right and what is wrong and how we should behave
The boundaries of ethics are elastic
Behaviour inconsistent with ethical norms, values and beliefs are considered unethical

Question 2

What are the forms of behaving ethically?

Answer 2

• Behaviour that reaches a minimum of moral standards such as honesty or obeying the law
• Ethical behaviour can be interpersonally difficult (i.e. if one has to challenge a peer or superior) and personally risky (risking marginalization in a group or job loss)
• Behaviours that exceeds moral minimums such as charitable giving, reporting unethical behaviour and whistleblowing

Question 3

What are the forms of unethical behaviour in organisations?

Answer 3

• unlawful behaviour
• Behaviour that damages the organisation ; putting own interest ahead of an organisations
• corruption/ nepotism
• lying/cheating/stealing
• discrimination
• bullying
• sexual harassment and abuse
• failure to accept responsibility for consequences of actions
• tolerating/ encouraging unethical behaviour

Question 4

What are the causes of unethical behaviour? Both the personal and organzational factors

Answer 4

Personal causes:

• greed
• hubris/ego
• personality traits
• moral disengagement
• cognitive biases

organizational cause of unethical behaviour:

• excessive power in the hands of a group or person
• rewards linked to unethical behaviour
• low costs of unethical behaviour
• unethical norms
• shareholder’s orientation
• lack of resources
• Lack of transparency

Question 5

What are the consequences of unethical behaviour?

Answer 5

• In extreme cases, unethical behaviour destroys organisations
• It can end long term successful careers
• Encourages unethical behaviour in others
• Damages the health and wellbeing of other organizational members and stakeholders
• Damages the environment (climate change)
• Associated with negative attitudes and low motivation of others
• Negatively impact retention of employees, the development of effective networks and investment

Question 6

What can organisations do?

Answer 6

• The factors that lead to unethical behaviour suggest that it cannot ever be removed entirely
• Indeed, it appears to be a perennial problem
• But there are some things which can reduce it and mitigate its negative consequences
• Formal elements: ethics, codes and policies, communications, training, monitoring systems, rewards linked to ethical behaviour, penalties for unethical behaviour, corporate social responsibility
• Informal elements: ethical leadership (role modelling ethical behaviour) ethical, culture, perception of fairness

Question 7

Contemporary bottom line: CSR- what is that?

Answer 7

Triple bottom line: a contemporary CSR philosophy that attempts to satisfy the economic, social, and environmental demands made on the company, good example to look at is coffee collective

Question 8

What can individuals do about unethical beahviour?

Answer 8

Scholars have identified a number of personal factors that provide the motivation and capacity for ethical decision-making:

• Moral awareness (sensitivity to ethical issues)
• Moral identity (importance of moral trait to self-concept)
• Moral efficacy (confidence in ethical decision-making)
• Moral courage (Perseverance despite adversity)
• Affect (e.g. empathy)
• Perspective taking “stepping into another person’s shoes)
• Moral reasoning (e.g. principle, justice, consequences)