Conflict and Ethical Behavior
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8 Ethical Management Communication
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Learning Objectives
After reading this chapter and studying the materials, you should be able to:
1. Describe what constitutes ethical management communication. 2. Identify the major ethical dilemmas in management communication. 3. Communicate clear, transparent, accurate messages and respond effectively to unethical tactics. 4. Improve your ethical reasoning processes when communicating.
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8.1 Understanding Ethics Learning Objective # 1: What constitutes ethical management communication?
Ethics, also known as moral philosophy, is a branch of thought that addresses questions about morality and deals with concepts such as right and wrong, virtue and vice, and justice and crime (Rae, 2009, p. 15). Ethical challenges have been part of the world of business for as long as there has been a business world.
Recent dramatic stories involving Enron, BP, Arthur Andersen, and other corporate giants, as well as several banking chains involved in the 2008 mortgage crisis, have reignited interest in building a more ethical business climate. Enron engaged in manipulation of energy prices and illegal accounting practices. Arthur Andersen was complicit by failing to identify the illegal accounting practices as part of audits of company books. BP failed to follow safety protocols and record keeping, which led to the 2010 Gulf oil spill disaster.
Communication systems inevitably play into a fraud or unethical action taken by a corporation, manager, or employee. Ethical decisions are made not only by corporate leaders, but also by every member of an organization. As recent headlines have been packed with ethical issues, colleges and universities teaching the business leaders of tomorrow have enhanced training and awareness of ethical decision-making. One perspective, ethical management, favors training for individuals preparing to enter the world of business (Waite, 2011). We will focus on this approach in this chapter by examining the nature of ethical and unethical communication and by offering analytical models and reasoning processes associated with moral dilemmas and ethical choices.
Values form the building blocks of an ethical system (Rae, 2009). Individual and collective values vary, of course, because they are in�luenced by numerous forces, including religion, national origin, upbringing, and social associations. This means that the distinction between right and wrong can be debatable or controversial. For example, charging interest is considered wrong in some cultures, while most of you reading this have come to expect to pay interest on certain purchases, such as your tuition or the purchase of a house.
An ethical system that determines what is good or bad, right or wrong, and appropriate or inappropriate leads to a code of behavior based on those principles. The belief that stealing, theft, or obtaining money through a less-than-transparent business practice is wrong leads to a code of behavior in which it would be objectionable to take money from innocent people through "legal," if not ethical, business practices. Such a choice might cause a person not to conduct business with a company dealing in payday or car-title loans, or with similar lending institutions. Business ethics are standards and guidelines regarding the conduct of commerce and the development of relationships in business (Ferrell, Fraedrich, & Ferrell, 2011).
Ethical communication consists of passing information along in a manner that is truthful, does not violate the rights of others, and does not aim to deceive (Kolin, 2001). This chapter explores the value of ethical communication in the context of business management. Unethical communication, on the other hand, violates the principles of truthful communication and can hurt others. Examples of unethical communication appear in Table 8.1.
Table 8.1: Selected examples of unethical communication
Theft of intellectual property, including patents, copyrights, trade secrets, Internet domain names
Misleading by omitting essential information
Selective misquotation
Distorting statistics and facts
Violating privacy of others
Sources: Cheeseman, H. R. (2003). Contemporary business and e-commerce (4th ed.). Upper Saddle River, NJ: Prentice Hall. Kolin, P. C. (2001). Successful writing at work (6th ed.). Boston, MA: Houghton Mif�lin.
For Review
De�ine ethics, business ethics, and ethical communication. (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm#)
Ethics, also known as moral philosophy, is a branch of thought that addresses questions about morality and deals with concepts such as right and wrong, virtue and vice, and justice and crime. Business ethics are standards and guidelines regarding the conduct of commerce and the development of relationships in business. Ethical communication con sists of passing information along in a manner that is truthful, does not violate the rights of others, and does not aim to deceive.
The 2008 Mortgage Crisis and the Failure of Management Communication
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Many �inancial lending institutions contributed signi�icantly to the 2008 economic crisis in the United States.
In early 2012, Bank of America, Wells Fargo, JP Morgan Chase, Citigroup, and Ally Financial paid a $25 billion settlement for foreclosure abuses. The payments were designed to assist those consumers who had been injured by unethical practices in the banking and mortgage industries (Associated Press, 2012).
Three entities contributed to the �inancial disaster that resulted from the 2008 mortgage crisis—consumers, �inancial institutions, and governmental agencies. Many consumers applied for and received mortgages that they simply could not afford. Enticed by 100 percent �inancing offers and other high-risk instruments (sub-prime mortgages), many consumers purchased homes at prices that were far beyond their means. In addition, governmental of�icials failed to recognize a trend in which far too many of these high-risk mortgages were being granted (including those made by quasi-governmental lenders Fannie Mae and Freddie Mac) and that those instruments were being packaged and bundled to sell in the securities markets, where they eventually failed. Many �inancial lending institutions contributed mightily to what took place.
These lenders often failed to adequately explain the terms of mortgages to customers, whether by deliberate deception or mere exuberance. A great deal of paperwork was either never �illed out, was partially completed, or was simply ignored, regarding a consumer's ability to make payments on homes with potentially arti�icially high prices. Consequently, a large number of high-risk loans were written (Wilson, 2010).
Internal management communication failed to notify those creating mortgages that a problem existed. It may have been top �inancial of�icers who knew of the problem and failed to report it internally, or that internal communications were intentionally deceptive. In either case, the loans placed many of these institutions at risk, and eventually government bailouts of these banks became the only remedy that would forestall a worsening recession in the U.S. economy.
When the housing market began to collapse, many mortgage-holders were "under water," meaning that the amount remaining on the mortgage was higher (in many instances, much higher) than the value of the house, should it need to be sold. Individuals who lost jobs or faced other �inancial dif�iculties soon faced foreclosure. Oftentimes, however, the original loan had been sold to another institution and bundled into a �inancial package, and the actual paperwork for a foreclosure was either lost or never created in the �irst place.
Still, numerous homeowners were told that foreclosure proceedings had begun, even when legal paperwork was not available. This form of deception caused many homeowners to lose their residences without fair legal representation (Adelman, 2012).
As a result, the government began investigating such abuses. The initial $25 billion payment was made to assist those who were under water but still in their homes and to help others who had fallen behind on payments. Governmental of�icials retained the right to pursue any further legal action, if actual fraud were to be identi�ied.
Questions for Students
1. Which group do you think holds the greatest responsibility for the �inancial crisis, consumers, �inancial institutions, or the government? 2. Was the failure by these banks to inform customers of the potential for default an ethics violation or an illegal act? 3. How could a management communication system be improved to make certain such an event does not occur in the future?
Ethical Approaches to Management Communication
Individuals, cities, and countries develop laws and regulations designed to protect citizens and businesses. The same holds true for companies and collectives of businesses. In each instance, ethical frameworks, to whatever degree they are present, are founded on the basic philosophical principles of morality. While the study of ethics can be broad and complex, we will focus on four approaches that particularly relate to decision-making in business and in management communication: utilitarianism, individualism, the rights approach, and the justice approach.
Utilitarianism
When decisions are made based on what is the greatest good for the greatest number of people, a utilitarian principle may be the guiding force. Utilitarianism has been termed the "calculus of pain," because it tries to minimize pain and maximize pleasure for the greatest number of people, based in part on the concept of hedonism. Many economic models that rely on utilitarian principles explain how consumers and producers seek to maximize personal utility or organizational pro�its.
The utilitarianism perspective, however, often overlooks the rights or needs of the minority. As an example, paying subsistence wages to workers in unsafe conditions in one country may create lower-priced goods for the majority of consumers in other countries, but the system creates great harm to
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Decision-making based on treating all people fairly and consistently demonstrates the justice approach to ethical reasoning.
those in the factory. A company that hides the fact that it engages in such business practices may be viewed as unethical in terms of the practice itself, as well as in terms of the communication system that hides the activity.
Ethicists might conclude that utilitarianism involves a judgment call as to what constitutes "good," as well as considering that "good" in light of its effects on both the majority and the minority. Care should be given in deciding how much "pain" to others is acceptable (Velasquez, Andre, Shanks, & Meyer, 2011).
Individualism
The degree to which society values personal goals, personal autonomy, and privacy over group loyalty constitutes the level of individualism present. In an individualist society, ethical decisions are based on personal self-interests, as long as one's actions do not harm others (Sexton, 2008).
Use of the individualist approach may cause the weakest members of society or of a business to suffer the most. In a business setting, the individualist perspective would suggest that an employee should be able to write personal messages using the company's email system, so long as those messages do not harm the company. In point of fact, the law dictates that organizations own all email information and can inspect it at any time, which violates the individualistic point of view. Managers have to deal with balancing these perspectives on a daily basis in many organizations.
Rights Approach
A social system that makes decisions based on the belief that each person has fundamental rights that should be respected and protected re�lects the rights approach. Such rights include freedom of speech, privacy, and access to due process, plus the right to a safe and healthy environment at work and at home (Ferrell & Gresham, 1985).
The dif�iculty with the rights approach is that, in many instances, the rights of one group, or a certain type of right, may infringe on others. For example, an ongoing con�lict exists between a client's right to privacy or con�identiality and the obligation of a corporate of�icer to protect the public's interests when a questionable or unethical business practice exists. Instances of insider trading of common stock serve as an example; Martha Stewart faced such a charge in 2002–2004. When an investor takes advantage of privileged information that is being kept from the public, in deciding to buy or sell stock, and that investor makes a pro�it, a corporate of�icer faces the dilemma of exposing the inside trader but also divulging potentially damaging corporate secrets. Trying to ascertain whose rights supersede the others (the public's interest versus a company's interest) can create an ethical dilemma that is dif�icult to resolve.
Justice Approach
Decision-making based on treating all people fairly and consistently demonstrates the justice approach. Distributive justice concentrates on the fairness of rewards, punishments, and outcomes, such as promotion decisions, equitable pay in the workplace, termination decisions, and decisions regarding who will be laid off during downsizing. Procedural justice focuses on fair, consistent application of rules and protocols, including grievance procedures when unions represent employees, as well as the use of the discipline system in a manner that does not discriminate against individual employees for any reason.
The justice approach suggests that when someone is hurt by your actions, as an individual or in a collective, consequences should result. These consequences are supposed to punish you for the misdeeds and serve as a deterrent to others. Also, when your actions help others or lead to a greater good, the consequences should return in the form of a reward. In both circumstances (harm or good), the methods by which rewards are granted or negative sanctions are imposed should be based on an impartial, reasonable, and constant program of justice.
One problem with the justice approach is that what one person considers a proper reward or punishment may not seem fair to another. Many people believe capital punishment represents a just outcome. Others believe it is never justi�ied. The same holds true regarding those who make the judgments. What may seem like a fair procedure to one person or group when making a termination, promotion, or hiring decision, including communicating how the process will take place to individual employees and employee groups, could appear to be completely biased to another.
For Review
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Shareholder activism involves large investors, particularly institutional investors, becoming more directly involved in decisions made by corporate executives.
Figure 8.1: Decision-making frameworks
What are the four primary approaches to ethical thought described in this chapter? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm#)
Four approaches that particularly relate to decision-making in business and in manage ment communication are utilitarianism, individualism, the rights approach, and the justice approach.
In�luences on Business Ethics
A complex interaction of components in�luences the study of business ethics. Different levels of ethics combine to create an entire ethical climate in businesses. Moral responsibilities and ethical decisions are in�luenced by and re�lect the activities of individuals, organizations, and entire governmental systems.
Individuals
Every day employees routinely make ethical choices. Many of the issues raised in this chapter involve the decision by a speci�ic person to engage in communications that deceive or injure others. Further, ethical dilemmas exist in a variety of actions beyond communication. As part of your career, from entry level to top management, moral complications will emerge as part of workplace life.
Organizations
Business ethics concern the conscience that every company possesses, even when moral codes are not spelled out in management communications. Groups of leaders in organizations make moral and ethical choices. For example, "greenwashing" is the practice of making an organization appear to be concerned with the environment and the preservation of natural resources when, in fact, the company pollutes or conducts other environmentally damaging activities. Greenwashing cannot be accomplished by a single individual, but rather by groups of leaders in the company. Decisions and actions can be shaped by the ethical climate present in an organization, even when an individual carries out the speci�ic act.
Governmental Systems
National governments engage in moral choices. A country that fails to enact or enforce intellectual property or patent protections has made a moral decision. Any government that allows imports from nations where forced labor is used to produce goods has made a moral choice. Any government that censors all messages except those approved by of�icials has made a moral choice.
Interaction Among Levels
Individuals, organizations, and governmental systems all interact to create a business climate in which companies and their employees operate. At the system level, some stockholders have become involved in what has been termed shareholder activism. Large investors, particularly institutional investors, are becoming more directly involved in decisions made by corporate executives. Such activism may add one more layer of protection to the general public's interests, as well as to the well-being of shareholders (Schulte, Roth, & Zabel, 2011).
At the same time, a case can be made that managers make as many ethical mistakes or misjudgments as governments or the marketplace. The sources of these actions can be lack of information (not knowing an activity will have a negative effect on society) or a deliberate violation of ethical and moral principles by a manager. Thus, although some managers may not have been aware of the effects that certain materials (such as asbestos) would have on workers, the net result was the same. Conversely, when the top management team at Peanut Corporation of America chose to sell salmonella-contaminated products to the public in 2009, the managers apparently placed pro�its ahead of public safety (Hartman, 2009).
Frameworks for Decision-Making
Management communication often serves as an instrument when ethical and unethical activities transpire. Managers seeking to act in the most ethically sensible manner should examine the moral, economic, and legal implications of the choices they make. These can then be communicated to others in the organization and in larger society, through public statements, memos, letters, comments in corporate documents such as shareholder statements, and company policy decisions, and by the examples set by leaders, even in one-on-one conversations.
Three frameworks form the basis of an ethical decision-making approach. The three points of view, when combined and balanced, can help to guide decision-making processes as various ethical dilemmas arise. The perspectives or elements consist of the ethical, economic, and legal components of the matter at hand (see Figure 8.1).
Ethical Components
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Ethical, economic, and legal components are all part of a person's decision-making framework when moral dilemmas arise.
The �irst key element present in a decision is the individual's or group's desire to act in an ethical fashion. This ethical component re�lects the extent to which the individual or group is willing to seek out and act on justi�iable reasons, and to remain impartial when making ethical choices. The decision-maker would compare personal gain or loss resulting from an action or activity with the needs and interests of the larger organization (Boatright, 2006, pp. 7–9).
Whistle-blowing provides an example of a choice with an ethical component. An employee who exposes improper company activities often risks retribution from others in the organization, and the disclosure may damage the economic well-being of the company. In the United States, the employee might rely on the legal component of the decision-making process discussed later—protection for whistle-blowers, to care for his or her own interests.
Economic Components
Economic theories vary in terms of how business systems should operate. Adam Smith and Milton Friedman (1962) argued that the invisible hand of the marketplace guides the conduct of business. According to proponents of the "invisible hand" perspective, companies that ignore the rights and well-being of the large public will eventually fail. This means governmental intervention should be limited—companies should not be encumbered by too many laws and regulations. In such a system, companies should be left free to maximize pro�its for shareholders.
In contrast, the governmental duty perspective suggests companies that only pursue pro�its may not hold the larger interests of society as important. Therefore, government plays the role of protecting citizens from business practices in the economy that create harm, such as polluting the environment or exploiting workers. More recently, the governmental duty perspective has expanded to include protecting employees from losing jobs that are being outsourced to countries in which pay is insuf�icient and deplorable working conditions prevail (Watson, 1991).
Legal Components
The third element, legal issues, cannot and should not be confused with ethical arguments. Many times, a practice in business has been considered legal, but could be considered unethical. The 2008 �inancial crisis in the United States resulted from legal �inancial maneuvers that placed individuals and the entire economy at risk. If more �inancial managers had examined legal loans to individuals at high risk of default, and more �inancial of�icers had not bundled the same loans into legal, high-risk instruments that eventually failed, the nation would have avoided unnecessary risk, debt, and economic instability (C-Span.org, 2011).
In summary, ethics apply at many levels, from what individuals do, to what groups do, to what companies do, to the actions of entire nations. The ethical frameworks described in the last section can be applied to each level. Utilitarianism and individualism point out the con�lict of personal interest and well- being with the consideration of the good of the larger group. The utilitarian position favors the group; individualism favors the individual.
For Review
What three elements are present in an ethical decision-making framework? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm#)
Three perspectives or elements include the ethical, economic, and legal components of the matter at hand.
Concept Check
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The tobacco industry has been accused of suppressing information about the health hazards associated with smoking and using tobacco in other forms.
8.2 Ethical Dilemmas in Management Communication Learning Objective # 2: What are the major ethical dilemmas in management communication?
Management communication may be viewed as essentially a "blank slate." It is neither ethical nor unethical in its inherent state. Managers can use the system to inform, persuade, and call to action in a highly transparent and ethical manner. Others can use the very same system to hide the truth and to cover the presence of unethical activities. Others still may pervert the actual communication system. This section examines communication as a medium for unethical and ethical actions.
Communication As a Medium for Unethical Actions
Over the years, organizations have engaged in the socially irresponsible behaviors listed next. In those instances, communications serve the purposes of covering up the act or distracting others from noticing what has transpired. Unethical communications in these circumstances are:
deliberate mistruths half-truths withholding information silence/stonewalling misdirection obfuscation
Deliberate mistruths occur when an individual or corporation seeks to deceive the public or another person through the use of false information. When a company assures consumers that a product is completely safe, knowing otherwise, a mistruth has been communicated. Half-truths involve offering only elements that can be veri�ied, while attempting to hide more damaging or con�idential information. As noted, many instances of greenwashing result from a company claiming that its actions are environmentally friendly, when, in fact, the company's actions have no impact, or a negative impact, on the ecosystem (Spaulding, 2009).
Withholding information includes concealing what could be damaging facts about a company's misdeeds. The tobacco industry has been accused of suppressing information about the health hazards associated with smoking and using tobacco in other forms. Silence and stonewalling go beyond withholding information, constituting a complete refusal to comment on or discuss an action. In more than one instance, owners of coal mines have been accused of withholding, from both employees and the public, safety and inspection information that may have been connected to mining accidents (United States Mine Rescue Association, 2012; Rostum, 2002).
Misdirection occurs when company spokespeople seek to distract the audience by pointing attention to some other event or cause, rather than its own misdeeds. In the case of the Ford Explorer vehicles that experienced blowouts and rollovers, Ford implied that Firestone tires were the cause of the problem; Firestone suggested that people were overin�lating the tires and even provided pressure gauges to dissuade the public from thinking the company's products were at fault (Reaves & Greenwald, 2001).
Obfuscation means deliberately making something more dif�icult to understand in order to confuse the audience. The �inancial crisis of 2008 also included elements of obfuscation by spokespersons defending various companies that took unnecessary risks and that even counted on instruments failing in order to make pro�its, through processes such as shortselling (Bajaj & Bowley, 2008).
For Review
What are the methods used to make communication a medium for unethical actions? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm#)
Unethical communications include deliberate mistruths, half-truths, withholding infor mation, silence and stonewalling, misdirection, and obfuscation.
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Exclusive language uses terminology or a frame of reference to include people in or exclude them from social interaction.
Unethical Communication
Words matter. In fact, many times words hurt. Unethical messages seeking to injure or damage another in some way are common. Some of the more notable forms of unethical messages include (Redding, 2011):
coercive intimidating destructive intrusive secretive exclusive language hegemonic language manipulative exploitative
Coercive messages seek to force another to do something against his or her will. Coercive messages can be constructed to cause someone to perform an unethical act because the individual believes the consequences of not following an order or directive will be dire. For example, when a clerical employee worries that she will be �ired if she does not falsify a record, a coercive message has been used.
Intimidation creates power for the sender. Someone who fears a supervisor may not point out mistakes or problems, or stand up for personal rights. Intimidation can be used to create silence in others as a form of workplace bullying (Long, 2011).
Destructive messages take many forms, including those used to harass others. Sexual- harassment comments, racial remarks, and statements about another person's intellectual level or body type hurt co-workers. Destructive messages belittle the other person.
Intrusive messages pry into another person's affairs. Asking about family matters, �inancial dealings, and other relationships can be designed to discover private information to be used later or to make the person feel uncomfortable. Implying that you know something about a person that could harm him or her, such as that the person has previously been in prison, suggests the use of intrusive information and is a form of blackmail.
Secretive statements intentionally withhold information from co-workers. In a manner similar to withholding information, only a select few have access to a message.
Exclusive language uses terminology or a frame of reference to include people in or exclude them from a social interaction. As Chapter 2 notes, exclusive language accentuates the differences between employees and creates an eventual barrier,
based largely on excluded employees feeling as if they are not part of the "in-crowd" on the job.
Hegemonic processes limit the choices of others by perpetuating the in�luence of a dominant culture and are closely related to exclusive language. In certain male-dominated industries such as engineering, for example, the speci�ic use of exclusive language can be used to deter women from even considering applying for certain positions (Connell, 2005).
Manipulative messages seek to in�luence behavior through the use of emotion, context, or some other closely related method of interpersonal in�luence. If you can make someone afraid of an imagined threat, fear serves to manipulate that person. The same holds true for causing someone to believe that actions are "patriotic" or to follow religious dictates (Papa, 2011).
Exploitative messages take advantage of another person's weaknesses. A typical form of exploitation involves one person exaggerating his or her own needs and preferences, while minimizing the needs and preferences of the message target (Mills & Clark, 1986). When one employee says, "I need this client more than she does; I have to feed my family," to a supervisor, in order to take the client away from another employee, the �irst employee has engaged in the use of an exploitative message.
For Review
What are the forms of unethical messages used to hurt other people? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm#)
Some of the more notable forms of unethical messages include those that are coercive, intimidating, destructive, intrusive or secretive, that use exclusive or hegemonic lan guage, and those that are manipulative or exploitative.
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Social media make it possible to send unethical messages with nearly complete anonymity.
Informal Communication and Social Media
Many times, informal communication channels are used as part of the process of supporting unethical actions, as well as to create unethical communication. At the most extreme, the �inancial activity of short-selling involves essentially betting (by purchasing stock futures) that a stock price will go down, in order to make a pro�it. Informal communication has been used to transmit messages that a certain company was experiencing trouble, such as an expected decline in sales or a shortage of investment capital, in order to suppress stock prices. This, along with other unethical actions, led to a suspension of shortselling practices in 2009.
Social media make it possible to send unethical messages with nearly complete anonymity. Use of social media pages to coerce, intimidate, send destructive messages, reveal secrets, create exclusive language, and manipulate and exploit others has become part of the business landscape. In essence, these media do not create new forms of unethical communication; rather they provide a new and explosive channel through which such messages may be sent.
In summary, management communication systems and actual messages both can carry unethical components and serve unethical intents. The use of language to achieve these ends often establishes a climate that encourages future violations. A cycle of dishonesty can emerge from the continued use of media to obfuscate, confuse, distract, or fool others. A pattern of unacceptable interpersonal relations results from using unfair or inaccurate messages to gain an advantage over others inside and outside the workplace.
Concept Check
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Objectivity requires setting aside personal biases and preferences when engaged in communication.
8.3 Ethical Responses Learning Objective # 3: How can individuals and managers communicate clear, transparent, and accurate messages and effectively respond to unethical tactics?
Individuals, groups, organizations, and governments can make ethical responses to communication issues. Individuals can aspire to act and communicate in a morally responsible fashion. Groups can work to avoid groupthink or any other pattern of behavior that would lead to the development and delivery of unethical messages or use of communication to assist in unethical actions. Organizations can utilize various mechanisms to foster an ethical environment through both rewards and punishments. Governments have responded to unethical actions with improved laws and enforcement of existing laws. This section examines the nature of ethical communication at these levels.
Promoting Ethical Values
Two activities assist in becoming ethical members of a company and the larger society. The �irst is avoiding the unethical use of communication that was described in the previous sections, with regard to both communication messages and the use of communication to cover unethical acts. Second, an individual, group, or organization can seek to be positive and proactive, when creating management communication, by utilizing the following principles:
clarity transparency honesty objectivity
credibility coherence loyalty respect for human beings
No matter the format—whether written or verbal, a short message or a lengthy report—the principle of clarity offers several bene�its. First, the reader or listener will be better able to comprehend the intent and content of the message. Second, clarity lessens the possibility of unnecessary con�lict. And third, with regard to ethical management communication, clear messages do not allow for the tactics noted above, such as half-truths and obfuscation. In essence, clarity represents the opposite of ambiguity and intentional deception.
Transparency refers to an environment of openness in which all participants in a conversation or organization activity, such as a team or group meeting, receive access to the information needed to process messages, noting that it is equally important to treat some information delicately and privately in order to protect individuals and certain organizational secrets. Individuals' medical histories and other personal information should be protected. Organizational secrets include patents and managerial plans, such as when a major product launch will take place, expansion plans, and other actions that would give a company a �irst-mover advantage that in no way unethically or illegally harms others. Transparency on a larger scale means that outside observers have suf�icient access to corporate documents and transcripts of meetings to know that deceptive practices and other unethical actions do not take place "behind closed doors" (MoreBusiness.com, 2007).
Honesty accentuates the direct intent to provide information in the most forthright manner possible. Beaulieu (2009) presents several ideas related to honest business communication. They include insisting on candor in others by including an analysis of it in employee performance appraisals and pay raise decisions. Honesty can be emphasized through role reversal games that encourage employees to see the other side of a debate. Involving all levels of the organization in ethics inspections and leading by example also foster an environment less tainted by half-truths and mistruths.
Objectivity requires setting aside personal biases and preferences when engaged in communication. Thompson (2005) provides guidelines to help maintain objectivity in business communication. First, carefully distinguish between facts and opinions in any message. Also, report all pertinent information, even the data that do not favor your side or preference. Use bias-free language in terms of gender, age, race, and other diversity and organizational differences. Finally, remain impersonal in your communication style, rather than relying on emotional or argumentative approaches.
Credibility must be earned. Accuracy in a report represents one key aspect. When communication is not accurate, the sender loses credibility. Trust in a person's integrity and credibility can easily be damaged with inaccurate or misleading messages; this trust can be very hard to restore. As a result, vigilance and attention to detail help build credibility over time (Richards, 2011).
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Mentoring processes, whereby senior members of an organization tutor and assist newer employees, provide an additional venue for teaching ethical behaviors and the use of ethical management communication messages.
Coherence re�lects the use of logic in business communications. Well-written, understandable messages, including those designed to persuade, result not only from writing, but from rewriting. A coherent letter, memo, or report removes the potential for obfuscation, misdirection, and half-truths, because an outside reader is able to verify information contained in the document and study the reasoning used to create any argument or message.
Loyalty means treating employees and other groups with fairness, objectivity, and a sense of respect that grows from sharing a common bond (Guffey & Loewy, 2011). Loyalty in communication results in careful consideration of the message, medium, and audience. Sensitive messages travel through organizations daily. Notices of layoffs, terminations, and transfers are unsettling messages. Others are performance appraisals with negative information, announcements of promotions that involved consideration of internal candidates, and plans for disciplinary actions. The manner in which an employee receives this information re�lects the presence or absence of loyalty.
Respect for human beings extends far beyond the world of business. Treating people with deference in communications includes the choice of words and tone. Sarcasm and derision communicate a lack of respect. Management experts note that respect must be earned—you receive respect only by granting it �irst.
To help achieve these objectives, individuals can seek ethical training through conferences, seminars and college courses, and ethics counselors and hot lines, which are made available to individuals and industries. The elements described in this section can be used to help combat the tendency to create unethical messages or to hide the unethical activities of an individual, group, or organization. Mentoring processes, whereby senior members of an organization tutor and assist newer employees, provide an additional venue for teaching ethical behaviors and the use of ethical management communication messages.
For Review
What concepts can be used to promote ethical values in organizational communications? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm#)
An individual, group, or organization can seek to be positive and proactive when creating management communication by utilizing the following principles: clarity, transparency, honesty, objectivity, credibility, coherence, loyalty, and respect for human beings.
Codes of Ethics
Many organizations and some professions engage in ethical self-regulation. Organizations such as the Better Business Bureau help businesspeople and overall organizations regulate themselves. Ethical codes, such as those followed by members of the American Medical Association, the Academy of Management, and the National Communication Association, help direct the activities of those engaged in commerce and in educational systems that provide education for those entering the business world.
Codes of ethics can be applied to all members of an organization, whether it is a nonpro�it or for-pro�it, in any given profession. Table 8.2 presents the credo and guiding perspectives of the National Communication Association.
Table 8.2: Credo and guiding principles: The National Communication Association
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Questions of right and wrong arise whenever people communicate. Ethical communication is fundamental to responsible thinking, decision-making and the development of relationships and communities within and across contexts, cultures, channels, and media. Moreover, ethical communication enhances human worth and dignity by fostering truthfulness, fairness, responsibility, personal integrity, and respect for self and others. We believe that unethical communication threatens the quality of all communication and consequently the well-being of the society in which we live. Therefore, we the members of the National Communication Association, endorse and are committed to practicing the following principles of ethical communication.
We advocate truthfulness, accuracy, honesty, and reason as essential to the integrity of communication.
We endorse freedom of expression, diversity of perspective, and tolerance of dissent to achieve the informed and responsible decision- making fundamental to a civil society.
We strive to understand and respect other communicators before evaluating and responding to their messages.
We promote access to communication resources and opportunities as necessary to ful�ill human potential and contribute to the well- being of families, communities, and society.
We promote communication climates of caring and mutual understanding that respect the unique needs and characteristics of individual communicators.
We condemn communication that degrades individuals and humanity through distortion, intimidation, coercion, and violence, and through the expression of intolerance and hatred.
We are committed to the courageous expression of personal convictions in pursuit of fairness and justice.
We advocate sharing information, opinions, and feelings when facing signi�icant choices while also respecting privacy and con�identiality.
We accept responsibility for the short- and long-term consequences of our own communication and expect the same of others.
Source: National Communication Association, Retrieved from: http://www.natcom.org/uploadedFiles/About_NCA/Leadership_and_Governance/Public_Policy_Platform/PDF-PolicyPlatform- NCA_Credo_for_Ethical_Communication.pdf (http://www.natcom.org/uploadedFiles/About_NCA/Leadership_and_Governance/Public_Policy_Platform/PDF-PolicyPlatform- NCA_Credo_for_Ethical_Communication.pdf) . Used with Permission.
In addition to codes of ethics, individual companies create messages signaling the intent to conduct business ethically and in a socially responsible fashion. Corporate ethics statements posit the company's values and intentions with regard to its citizenship in the larger society. Many company websites include pages that speci�ically address these issues.
In summary, responding to ethical dilemmas involves �irst awareness of and rejection of unethical activities, and avoiding the use of management communication to conduct unethical activities. It also involves seeking to communicate in positive ways that re�lect the goals of creating a higher personal moral standard and improving organizational communications. Codes of conduct, while not complete answers to moral questions, can provide guidance, especially when accompanied by ethics training, careful attention to past experiences, and the willingness to consult with others as issues arise. Educational programs, ethics counselors, and mentors can help individuals deal with moral and ethical dilemmas. In those settings, employees are able to ask questions, discuss both real and hypothetical ethical challenges, and ask for advice when they encounter a moral dilemma, through contacts with those who are specially trained or have greater experience to help with such issues.
Concept Check
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Employees can to seek to communicate in positive ways that re�lect the goals of creating a higher personal moral standard and improving organizational communications.
8.4 Ethical Reasoning and Ethical Competence Learning Objective # 4: What types of ethical reasoning processes can improve communication skills?
Personal ethical reasoning processes evolve over a lifetime. As you enter a career, beliefs about what is right or wrong, appropriate or inappropriate, and moral or immoral may be based on one set of premises. As time passes, experiences, teaching, and role modeling by others in�luences those assumptions. Ethical values become the result. Ethical sensibility, ethical reasoning, ethical conduct, and ethical leadership comprise key elements that assist in making ethical or moral judgments in communications and other settings (Paine, 1991).
Ethical sensibility re�lects a person's capacity to impose ethical order on an encounter by identifying the aspects of the situation that contain ethical elements. Ethical reasoning consists of the ability to reach a solution, when an ethical dilemma arises, by using logic, objectivity, and the goal of moral correctness. Ethical conduct results in clearly observable words and deeds designed to seek the goal of integrity in everyday business. Ethical leadership provides examples to those of all ranks about how to seek the greater good and �ind moral responses to ethical dilemmas.
These four ingredients lead to increased levels of ethical competence. Table 8.3 lists signs that an employee has achieved a stronger level of ethical competence.
Table 8.3: Signs of ethical competence
Self-awareness The individual understands his or her own values and morals, and knows how to apply them to ethical dilemmas
Self-con�idence The person acts with less hesitation when dealing with ethical situations
Character Others notice and comment on the person's moral �iber
Moral imagination The ability to consider unusual or unique ethical challenges
Resistance to outside pressures
Withstands demands by others to engage in unethical acts
Follow-through Turns ethical decisions into actions, behaviors, and communications
Source: Adapted from Johnson, C., & Hackman, M. Z. (2002, November). Assessing ethical competence, paper presented to National Communication Association, and Walker, R. (2011). Strategic management communication for leaders (2nd ed.). Mason, OH: South- Western Cengage Learning, p. 52.
In achieving ethical competence, three frameworks that assist when examining personal moral growth and the development of ethical reasoning are the works of Lawrence Kohlberg, Carol Gilligan, and William Perry. You can use these frameworks to re�lect on how you view and respond to ethical issues.
For Review
What four ethical elements are associated with ethical values and ethical competence? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.
Ethical sensibility re�lects a person's capacity to impose ethical order on an encounter by identifying the aspects of the situation that contain ethical elements. Ethical reasoning consists of the ability to reach a solution to an ethical dilemma by using logic, objectiv ity, and the goal of moral correctness. Ethical conduct results in clearly observable words and deeds, designed to seek the goal of integrity in everyday business. Ethical leadership provides examples to those of all ranks about how to seek the greater good and �ind moral responses to ethical dilemmas.
Kohlberg's Theory of Moral Development
Lawrence Kohlberg (1966) believed that moral reasoning results from a process called internalization. Over time, a person's moral framework moves from externally driven behaviors (fear of being scolded by parents and teachers) to internal control ("I think this is wrong, so I'm not going to do it"). As the shift takes place, ethical reasoning evolves (see Table 8.4).
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Table 8.4: Kohlberg's theory of moral development
Preconventional Reasoning Behavior is controlled by external rewards and punishments
Stage One: Punishment and Obedience
Driven by authority �igures Motivated by fear of punishment
Stage Two: Purposeful Individualism
Individual furthers self interests Reciprocal arrangements ("I'll scratch your back if you scratch mine") Insistence on justice and fairness
Conventional Reasoning Behavioral standards moderately internalized although the standards are still imposed by others such as parents, authority �igures, and laws
Stage Three: Interpersonal Norms
Desire to be socially accepted drives behaviors (being a "good boy" or "good girl") Behaviors judged as much for intentions as for consequences
Stage Four: Law and Order Behavior driven by desire to maintain social order, insure justice, perform duty
Postconventional Reasoning Totally internalized reasoning, personal moral code
Stage Five: Contractual– Legal
Rights and standards of society govern behaviors Unfair limits to personal freedom challenged and changed
Stage Six: Enlightened Conscience
Universal human rights are the most profound guides to behavior and actions The highest level of moral reasoning
Kohlberg's view is that over time, a person will move toward the highest stage, an enlightened conscience. Four qualities of stage development complete his theory:
1. Stage development is �ixed. One cannot get to a higher stage without going through the preceding stage. 2. Individuals may have dif�iculty seeing the logic of moral reasoning more than two stages above their own. 3. People tend to be attracted to the reasoning of the next highest level. 4. Movement through the stages is affected when a person's current level of reasoning proves inadequate to a given moral dilemma.
Kohlberg's theory may shed some light on how people react to the communication issues suggested in this chapter. Positive and ethical management communications that result from reasoning processes move beyond strictly legal responses to messages designed from an enlightened conscience. As you navigate through a career, it will be possible to consider whether your view of what is right and wrong is "legalistic" or is technically unethical to the higher state Kohlberg suggests. Doing so would help you avoid using tactics such as obfuscation or mistruths when designing management communication messages. At the least, use of the framework might assist in helping you understand how you view ethical issues.
For Review
What levels of ethical reasoning are part of Kohlberg's theory of moral development? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.
The three levels are preconventional, conventional, and postconventional.
Gilligan's Response
Carol Gilligan (1982) took issue with some of the conclusions regarding ethical reasoning that were reached by Kohlberg. Her primary criticism was that Kohlberg based his theory on studies using only male subjects, and that there may be differences in the ways female subjects look at ethical reasoning. For example, women may be more likely to view moral development in terms of connections with others. In circumstances in which men may be more likely to value justice and individual freedom, women are more likely to believe caring, interpersonal communication, and developing and maintaining
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interpersonal relationships are more important ethical outcomes. A review of Kohlberg's model, as shown in Table 8.4, con�irms that concepts about ethical and social justice appear to be fairly "legalistic" rather than relationship-based.
As an individual, consider the role that your gender and that of others plays in how you view ethical dilemmas. This could lead you to include such concepts as treating others fairly and well, when considering the ethical consequences of actions, including the use of communications. Such an approach applies more than just laws and principles; it moves into the realm of positive human relationships, which are a major part of business activities and management communications.
For Review
What criticism does Carol Gilligan raise about Kohlberg's theory? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.
Her primary criticism was that Kohlberg based his theory on studies using only male subjects, and that there may be differences in the ways women look at ethical reasoning.
Perry's Theory of Moral Development
William Perry (1968) wrote that moral development takes place in nine, rather than six, stages. The stages can be grouped into categories called dualism, relativism, and commitment.
Dualism re�lects the belief that things are absolutely right or wrong, good or bad. Such beliefs often rely greatly on guidelines provided by experts or authorities, and to some seem fairly simplistic.
Relativism expresses the view that many points of view about right and wrong are potentially valid. A particular situation often determines what is morally acceptable. For instance, in dire circumstances one may take actions that help others survive, although those actions would be unacceptable in other situations.
According to Perry, commitment is the search for evidence to support actions and explore the consequences of various acts. One's own set of personal values is integrated with those actions. A person will utilize his or her own set of beliefs to make moral judgments, in a manner similar to Kohlberg's postconventional stage.
As part of your own ethical reasoning, the concept of relativism may be particularly germane when interacting with those from other cultures. What is ethical and/or legal varies, depending on the nation involved. As an example, nations guided by Islamic law tend to outlaw or frown upon charging interest on loans. Therefore, communication documents regarding sales offers, prices, and terms of repayment should be carefully worded to re�lect this ethical value.
In other nations, women may be expected to refrain from speaking or to act in a highly deferent manner in social settings, which may offend the ethical reasoning of a woman from the United States or other Western culture. The concept of relativism may help such a person analyze and respond to such circumstances.
Commitment involves adding your own personal values to the manner in which you view ethical challenges. Doing so might add elements of your religious training, as well as personal experiences, into your views of the world and how to respond in an ethical manner.
Each of these three frameworks (Kohlberg, Gilligan, and Perry) suggests at least two sets of guidelines when making personal ethical and moral decisions. The �irst involves the views and guidance of others; the second concerns one's own personal instincts, values, and reasoning processes. As you consider the ethical communications issues described in this chapter, these frameworks can serve as a guide regarding beliefs about what is ethical and what is not, as well as how you will respond.
For Review
What are the stages of ethical development in William Perry's theory? (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.
The stages can be grouped into categories called dualism, relativism, and commitment.
Concept Check
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8.5 Chapter Review Ethics are principles about what is good or bad, right or wrong, and appropriate or inappropriate that often lead to a code of behavior based on those principles. Business ethics are standards and guidelines regarding the conduct of commerce. Ethical communication consists of all messages and relevant items of information that are passed along in a manner that is truthful, does not violate the rights of others, and does not aim to deceive.
Ethical issues arise for individuals, groups and organizations, and in governmental systems. Ethical management communication challenges among these are simply part of operating in an active business world. Shareholder activism involves shareholders taking a more active role in in�luencing decisions, including ethical components, made by corporate executives.
Four common foundations of ethical thought guide business and communication decision-making: utilitarianism, individualism, the rights approach, and the justice approach. Also, three ethical components in any system are the ethical, economic, and legal elements.
Communication can serve as a medium for unethical actions through deliberate mistruths, half-truths, withholding information, silence and stonewalling, misdirection, and obfuscation. The goal of each of these unethical actions is to deceive or to communicate information that violates ethical standards. Unethical messages designed to harm others include coercive, intimidating, destructive, intrusive, secretive, exclusive, hegemonic, manipulative, and exploitative messages.
Ethical responses include promoting ethical communication through clarity, transparency, honesty, objectivity, credibility, coherence, loyalty, and respect for human beings. Four elements in ethical activities are ethical sensibility, ethical reasoning, ethical conduct, and ethical leadership. Codes of ethics also assist in building ethical business environments.
Three frameworks aid in understanding personal moral development. Kohlberg's theory, Gilligan's response, and Perry's framework all portray ethical reasoning as something that develops and evolves over time.
Key Terms
business ethics (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
Standards and guidelines regarding the conduct of commerce and the development of relationships in business.
corporate ethics statements (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
Statements that posit the company's values and intentions with regard to its citizenship in the larger society.
ethical communication (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
All messages and rele vant information that are passed along in a man ner that is truthful, does not violate the rights of others, and does not deceive in any way.
ethical competence (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
The combination of ethical sensibility, reasoning, conduct, and leadership.
ethical conduct (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
Clearly observable words and deeds designed to seek the goal of integrity in everyday business.
ethical leadership (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
Providing examples to those of all ranks about how to seek the greater good and �ind moral responses to ethi cal dilemmas.
ethical reasoning (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
The ability to reach a solution when an ethical dilemma arises by using logic, objectivity, and the goal of moral correctness.
ethical sensibility (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
A person's capacity to impose ethical order on an encounter by iden tifying the aspects of the situation that contain ethical elements.
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ethics (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
A branch of thought that addresses questions about morality and deals with con cepts such as right and wrong, virtue and vice, and justice and crime.
individualism (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
The degree to which society val ues personal goals, personal autonomy, and pri vacy over group loyalty, commitments to group norms, involvements in collective activities, social cohesiveness, and intense socialization.
mentoring processes (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
Systems in which senior members of an organization tutor and assist newer employees.
the justice approach (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
Ethical decision-making based on treating all people fairly and consistently.
the rights approach (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
A social system that makes decisions based on the belief that each person has fundamental rights that should be respected and protected.
utilitarianism (http://content.thuzelearning.com/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/sections/fm/books/AUBUS600.12.2/section
Making ethical decisions based on the greatest good for the greatest number of people.
Analytical Exercises
1. Compare the four foundations of ethical thought, utilitarianism, individualism, the rights approach, and the justice approach, to these three perspectives: a. The "invisible hand of the marketplace" approach, in which the market pun ishes irresponsible �irms and rewards those that earn pro�its and maximize shareholder value without violating laws
b. The governmental duty perspective, which emphasizes the importance of regulation and intervention when companies violate citizens' rights and engage in unfair competition
c. The enlightened management approach, which suggests ethical managers promote values that include defending the well-being of others
2. Explain the ethical, economic, and legal components in the following instances: a. Ford and Firestone of�icials' explanations of tire blowouts and rollovers b. Financial of�icers creating false rumors about companies, resulting in lower stock values but leading to pro�its for investors through short-selling tactics
c. Companies using the label "lite" on products that contain carbohydrates and other calorie-laden ingredients
3. The driving force behind socially responsible actions, according to Adam Smith, is enlightened self-interest. He further argued that sel�ishness and greed are not virtues. Acting in a sel�ish or greedy manner leads to deceptive advertising, fraud, theft, and taking advantage of others. How would enlightened self-interest become apparent in the �ield of business and management communications? How would sel�ish actions and greed be discovered?
4. The Sarbanes-Oxley Act of 2002 is an example of a governmental response to unethical activities in the accounting profession and in the larger business com munity. More recently, Congress has been pressed into action due to the mort gage and foreclosure crisis. Lenders that used deceptive tactics when granting loans to individuals who could not afford to make the payments led to many of the foreclosures. Should similar legislation be created for management communi cations? If so, what kinds of laws should be enacted?
5. Explain the forms of unethical messages related to the following activities: a. seeking to garner an undeserved promotion over more-quali�ied candidates b. maintaining the glass ceiling in a company c. trying to justify a pay raise after a poor year of performance
6. Apply the principles of proactive, positive ethical communication to the follow ing circumstances: a. Facebook posts b. emails and written memos c. proposals d. presentations e. interactions during meetings with co-workers f. messages to the public
7. You have a co-worker who consistently complains that a supervisor does not "follow the rules." The supervisor is a woman; the co-worker is a man. Explain the moral reasoning your co-worker may be using from the following perspectives:
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a. Kohlberg's theory of moral development b. Gilligan's response c. Perry's theory of moral development
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8.6 Case Studies
Video Case Study: Nonverbal Communication Under Pressure
President Clinton's public denial of his personal relationship with Monica Lewinsky is analyzed by body body language experts to reveal his dishonesty.
1. What non-verbal communication indicated deception from President Clinton?
Video Case Study: Cozy Killer: The History of Cigarettes
In 1994, tobacco company executives testi�ied under oath that they did not believe nicotine to be addictive. Following the hearings, con�idential documents were made public and exposed the tobacco industry's knew more than they admitted publicly.
1. What types of unethical communication did tobacco executives engage in?
2. How could tobacco executives have acted ethically when communicating about the addictive nature of nicotine?
Nonverbal Communication Under Pressure From Title: Secrets of Body Language
(https://fod.infobase.com/PortalPlaylists.aspx?wID=100753&xtid=43109)
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© Inf obase All Rights Reserv ed Length: 01:48
Cozy Killer: The History of Cigarettes
0:00 / 29:23 1x © Inf obase. All Rights Reserv ed. Length: 29:23
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Case Study 1: Caught in the Middle
Sherman Olson was in a frustrating position. He had information that would help his company but would damage his job and career. Deciding what to do next had kept him awake for the past two nights.
Sherman was a purchasing of�icer for Finley Manufacturing. His job was to �inalize purchases of all sorts, including of�ice equipment and supplies, raw materials for production, and even bathroom items. In each situation, he would con�irm the purchase price with the seller when the sale was authorized and then check the inventory and bill of lading before authorizing payment.
One of the key raw materials purchased by Finley Manufacturing was industrial resin. The company had developed a longstanding relationship with Murphy Resins to the point at which re-orders were routine. Sherman's immediate supervisor, Taylor, was a good friend of Martin Murphy, son of the owner of Murphy Resins.
On a day in which Taylor was away from the plant, Sherman received a visit from a competitor to Murphy Resins. The salesperson made a strong presentation in which she provided information that her company's materials were superior for the type of products made by Finley Manufacturing. Then she offered a price that was lower than what had been charged by Murphy Resins for the past two years. Sherman carefully asked if this was a one-time enticement or a more-permanent price. The salesperson assured him that the price would remain the same for at least one year, and as long as her company's costs did not increase. Sherman carefully documented all of the information.
When Taylor returned the next day, Sherman showed him the offer. Taylor's response was, "Yeah, we get stuff like this all the time. Let's just stay with what we know."
Sherman decided to follow up with some research of his own. He contacted other regional manufacturers and discovered that several had changed to the competitor company for the two reasons the salesperson noted: price and quality. Further, the companies he spoke with indicated a high degree of satisfaction with both the product and the company's method of conducting business.
Sherman once again approached Taylor with the additional information. This time Taylor appeared genuinely annoyed and said, "Look, no one asked you to investigate this. You'd better stick with doing your job, or you may have a big problem." Taylor added, "Besides, I just put in a big order that will carry us for at least six months."
In essence, Taylor had taken over Sherman's job for that one purchase. Sherman carefully documented the price being paid to Murphy Resins in comparison with the price the other company would have charged. A purchase from the new company would have saved his company over $100,000. He placed a copy of the comparison in Taylor's of�ice mailbox, but kept a copy for himself. Now it was time to decide what to do next.
Review Questions
1. What unethical management communication practices had Taylor used? 2. How would ethical communication practices have kept this situation from occurring? 3. What should Sherman do? 4. If you were a senior manager and Sherman approached you with this information, how would you react?
Case Study 2: Smart, but Healthy?
Dr. Eileen Kennedy faced a dif�icult moment in her career. As the Dean of the Friedman School of Nutrition, she had made a controversial statement and a questionable endorsement of the American Society of Nutrition, which had been established to evaluate the nutritional merits of various products. Kennedy supported the society's Smart Choice program, which extended across several companies.
Several food industry leaders had created the American Society of Nutrition conglomerate that would approve various products to carry the Smart Choice label, a bright-green check mark inside a red box that could be prominently placed on a product's package, with the words "Guiding Food Choices" included. To outside observers, it was a clear attempt to imply a governmental or health of�icial's recognition of the product's healthy characteristics (Ruiz, 2009).
Ten large food manufacturers enrolled in the program, including Kellogg's and Kraft. Any company seeking to obtain the program's approval would pay up to $100,000 per year to the American Society of Nutrition. Quickly, numerous food producers enrolled in the program, and the endorsement appeared on sugary cereals, snacks, and sandwich spreads. Among the products carrying the Smart Choice endorsement were Kid Cuisine Cheeseburgers, Teddy Grahams, Froot Loops, and Cocoa Krispies (Neuman, 2009).
Dr. Kennedy had been quoted in the New York Times. Evoking a hypothetical parent in the supermarket, she said, "You're rushing around, you're trying to think about healthy eating for your kids, and you have a choice between a doughnut and a cereal. So Froot Loops is a better choice." She displayed a small, 100-calorie package of the cereal as her evidence (Dumke & Zavala, 2009).
12/3/2018 Print
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The Smart Choice program quickly drew scrutiny. Following reports on the CBS Evening News (Pinkston, 2009) and in other outlets, companies began to withdraw support for the program and the logo. The Food and Drug Administration (FDA) issued a "Guidance for Industry" letter, stating that the organization would analyze food labels with the intent of identifying any that were misleading. Quickly, the Smart Choice label disappeared.
Dr. Kennedy's words and endorsement, however, did not. The Friedman Sprout, the school newspaper for the Friedman School Nutrition Science and Policy, published an article suggesting that the school's image had been severely damaged (Dumke & Zavala, 2009). Dr. Kennedy received a great deal of criticism, but did not step down.
Review Questions
1. What ethical issues are involved in the Smart Choices program? 2. If the American Society of Nutrition did not pay Dr. Kennedy, had she violated any ethical codes? If she had been compensated, how would your answer change?
3. Explain how the Smart Choices program might be viewed in terms of its moral, legal, and economic components. 4. What type of formal communication channel should Dr. Kennedy use to justify her stance? What should be her message?
