Chapter 10 Management Ethics
Ethics and morality in the Workplace
The Organization and the People in It
Chapter 10: Moral Choices Facing Employees
Ethics, Morals and the Law
Morals
Principals of right and wrong
Ethics
A set of moral principles guiding behavior and action
Laws
Binding codes of conduct; formally recognized and enforced
Company Policies
Classification of Actions
Redraw the delineation of Morals and Ethics
Now what should happen?
Chapter Ten: Moral Choices Facing Employees
Who Is Edward Snowden?
Edward Snowden is a 32 year old US citizen, former Intelligence Community officer and whistleblower. The documents he revealed provided a vital public window into the NSA and its international intelligence partners’ secret mass surveillance programs and capabilities. These revelations generated unprecedented attention around the world on privacy intrusions and digital security, leading to a global debate on the issue.
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Where Free Speech Goes to Die: The Workplace
Simply put, there is no First Amendment right to “free speech” in the workplace
Where Free Speech Goes to Die: The Workplace
Work Ethics
A group of moral principles, standards of behavior, or set of values regarding proper conduct in the workplace.
Ethical Dilemma Defined
A situation in which a person must decide whether or not to do something that, although beneficial to oneself or the organization, may be considered unethical and perhaps illegal.
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Should I conduct
personal business
on company time?
Ethical Dilemmas Faced by Employees
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Should we spend more
on pollution control or on the employees?
Ethical Dilemmas Faced by Employees
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Is it O.K. to give a
friend a special rate?
Ethical Dilemmas Faced by Employees
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If I find out that my
boss took a bribe,
should I tell someone?
Ethical Dilemmas Faced by Employees
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Ethical Dilemmas or Landmines
Like unexploded bombs, issues must be defused before they blow up
Company expectations for employee commitment
Pressure from managers and co-workers
Opportunities for unethical behavior
Internal pressure in the form of personal ambitious
External forces such as family needs
Ethical Dilemmas or Landmines
Personal reputations, legal standing, company’s public name at risk
Much is at the stake for companies and individuals in facing ethical dilemmas
Whistle-Blowing
Cause unnecessary harm
Are in violation of human rights
Are illegal
Run counter to the defined purpose of the institution
Are otherwise immoral
One expert’s definition: A practice in which employees inform the public or a governmental agency about certain organization activities that:
Duty Based Ethical Decision Making
One has the duty or obligation to do the right thing, regardless of outcome
An act is moral if it could become a universal rule for society
To consider the morality of an act, one must consider the perspective of both doer and recipient
Management Ethics
1. What does the concept of company loyalty mean to you? Does it still make sense today?
Week 13 Chap 10 –Moral Choices Facing Employees (pg 520)
Management Ethics
2. Have you ever experienced a conflict of interest, or been tempted to do something that you thought went against your job responsibilities? Describe a situation where your self-interest diverged from what you believed to be morally right.
Week 13 Chap 10 –Moral Choices Facing Employees (pg 520)
Management Ethics
3. When, if ever, is an employee justified in blowing the whistle? What do you see as the most important factors that he or she needs to consider in deciding whether to blow the whistle?
Week 13 Chap 10 –Moral Choices Facing Employees (pg 520)
More ethics in the workplace
Obligations to the Firm
Loyalty to the firm: The employment contract governs employer-employee relationships and provides a framework for respective obligations of employer and employee.
The notion of company loyalty is commonplace, considered a coherent and legitimate concept.
Loyalty requires reciprocity, and workers commonly believe that it is up to the company to earn and retain their loyalty.
Case Study - Cyberloafing
Internet access has created a new way to procrastinate at work called cyberloafing or cyberslacking. In cyberloafing, employees use organizational computers, tablets, and smart phones for nonproductive activities like surfing the Web for personal information, playing games, posting Facebook messages, or shopping and chatting online. In one survey, respondents reported spending an average of 51 minutes every workday cyberloafing. Men are more likely to cyberloaf than women.
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Case Study - Cyberloafing
Many observers consider cyberloafing unethical because it diverts time and attention from organizational tasks and lowers productivity. However, some researchers suggest that cyberslacking can have positive effects. Non—job-related Internet use reduces stress, can stimulate creativity, enhances employees' sense of well-being, and helps workers manage their lives so that they can spend more time at work. For example, instead of leaving the office to meet with their children or to run errands, employees can e-mail their kids and conduct banking and other tasks online. Then, too, many employees work online when they are at home, more than making up for any time they spend cyberloafing at the office.
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Case Study - Cyberloafing
Rather than trying to outlaw cyberloafing, organizations can regulate and monitor it instead. Some companies create technology use (TU) codes of conduct that spell out organizational policies and guidelines for Internet use. Some TU codes urge employees to use the Internet and e-mail responsibly, stating that personal use should not interfere with work productivity. Others contain specific provisions that limit the amount of time spent on non—work-related business or specify times when such activity is forbidden.
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Case Study Discussion Probes
1. Do you cyberloaf? Under what circumstances?
2. Is cyberloafing unethical? Why or why not?
3. What limits, if any, should be put on using organizational computers and other electronic devices for personal use?
4. If you were to create a technology use code for Internet use, what guidelines would you include?
5. How would you discipline those who violate your technology use (TU) code?
“Raj Rajaratnam, hedge fund manager and co-founder of Galleon Group, was convicted on May 11, 2011, of insider trading and securities fraud. Some consider insider trading a victimless crime. Do you agree?”
Bribes and Kickbacks
Bribe: a remuneration for the performance of an act that is inconsistent with the work contract or the nature of assigned task – can be money, entertainment, gifts, or preferential treatment.
Kickback: a form of bribery that involves a percentage payment to a person who is able to influence or control a source of income.
Gifts and Entertainment
Seven factors that a conscientious business person should consider:
The value of the gift (or entertainment)
Its purpose
The circumstances under which it is given
The position and sensitivity to influence of the person receiving the gift
Accepted business practices in the industry
Company policy
What the law says
Self-Interest and Moral Obligation
Concern with self-interest when loyalty and duty conflicts is understandable and even warranted.
What weight should self-interest be given in resolving cases of conflicting obligations?
Some theorists believe that prudential considerations outweigh moral ones.
Others say that nothing can outweigh morality but morality itself does not require us to make large sacrifices to right small wrongs.
Self-Interest and Moral Obligation
The Sarbanes-Oxley Act (2002) legally protects those who report possible securities fraud.
The act makes it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them.
Companies need to develop explicit, proactive whistle-blower policies.
In the long run, companies benefit from openness and a receptive attitude to moral questioning.
Work Place Ethics
Business Abuse:
Any, Illegal, unethical irresponsible act done against an employer resulting in:
Higher prices
Business Failure
Fewer Jobs
Unpleasant Working Conditions
Work Place Ethics
Examples of Work Place Abuse
Sexual Harassment
Harassment of Co-worker or member of the congregation
Unwelcome sexual advances
Compliance as condition of employment
Interferes with work performance through intimidation
Gossip
Cause poor work environment and lowers productivity
Work Place Ethics
Work Place Abuse
Increase Security
loss prevention management.
surveillance
Networks
Helplines
Threats of prosecution
Increase Employee Loyalty
fair wages & benefits
fair/consistent treatment
recognition for good work
foster family climate
How Employers Respond to:
Work Place Ethics
Ignore the abuse
Rationalize it away
Speak Up
Discuss to Clarify Issue
Blow the Whistle!
As Employees, What Are your Choices?
Conclusion:
Knowing the Code of Ethics, anticipating ethical predicaments, and being able to document and provide a rationale for our actions are keys to successful, ethical practice.
Group Questions
What moral obligations, if any, do employees have to the people with whom they work?
What obligations, if any, do employees have to people with whom they have no direct relationship, and for whom they have no professional or organizational relationship? For example, what moral obligations do you have to workers in third world countries who produce many of the items that are purchased in the United States?
Would you be willing to spend as much as twice (or ten times) as much for your clothing if that was required for these workers to be treated fairly?