Unit I Discussion Board

DBA 7632, Business Ethics and Corporate Responsibility 1

Course Learning Outcomes for Unit I Upon completion of this unit, students should be able to:

1. Examine dimensions of ethical theory in business administration. 1.1 Analyze ethical theories and perspectives for implementation in a code of conduct.

5. Evaluate ethical issues in the workplace.

5.1 Examine an ethical organizational culture. 5.2 Assess the value of ethics enforcement implementation. 5.3 Develop a code of conduct for an organization.

Course/Unit Learning Outcomes

Learning Activity

1.1 Unit Lesson Chapter 1, pp. 2–31

5.1 Unit Lesson Chapter 1, pp. 2–31

5.2 Unit Lesson Chapter 1, pp. 2–31

5.3 Unit Lesson Chapter 1, pp. 2–31

Reading Assignment Chapter 1: Ethical Competencies and Perspectives, pp. 2–31

Unit Lesson Utilitarianism To have a clear understanding of ethics, a thorough definition as to what it means to use ethics in business is important. At the foundation of most ethics theory is the concept of utilitarianism. According to Johnson (2019), utilitarianism is defined as “the premise that our ethical choices, like other types of decisions, should be based on their outcomes” (p. 8). We consider this how ethics is defined, how it affects who and what we are, and how we decide what correct behavior and thinking is in order to implement an ethical standard. Consider the case of the fictitious organization we will use throughout our assignments (see the Rogers Engineering and Manufacturing [REM] Case Study History document, which is linked in the instructions for the Unit II Case Study). The organization is well established. The firm was started by an individual, and over the next three generations, the business grew to be a global force. In so doing, the organization and its leadership would have to adapt and assimilate to what is considered a comprehensive ethical standard.

UNIT I STUDY GUIDE

Dimensions of Ethics Theory

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Many organizations use a comprehensive ethical standard as a code of conduct or in the form of ethical guidelines for operation within the firm. The more individuals who are a part of the comprehensive organization, the greater the impact, which will lead to an increase in diversity of thought, feelings, and behavior being put into action. The impact of this on business administration can be felt on many levels (individual, team, and organizational). Does the individual claim responsibility for his or her thinking, experience, and behavior when making a decision that represents the organization? Responsibility increases at a higher level team because now there are multiple individuals, presumably working toward the same goal and following the same ethical standards. The individuals each have their own interpretation of the ethical standards, the code of conduct, and the standard's implementation. There will be those who will look for personal or professional gratification at whatever the cost. At the other end of the spectrum, there will be those individuals who will adhere to the organizational ethical standards at whatever the cost. The rest of the team will fall between these two endpoints on the spectrum. At the organizational level, decisions are made in the name of the organization. There is a strong likelihood that the ethical behavior throughout the organization will fall under the umbrella of an organizational decision or action. Using a collective organizational approach, in theory, absolves the individual of culpability for his or her actions. The organization that uses collective thinking develops its own utilitarian perspective, which means that the whole organization is responsible for actions rather than individuals being responsible. Categorical Imperative A different perspective from utilitarianism is the understanding of the categorical imperative described by philosopher Immanuel Kant. Kant argued that moral duties are categorical. The individual must do what is morally right—regardless of consequence, and these acts must be obeyed under all circumstances. Behaviors or actions that are wrong by societal standards are always wrong. An example of violating the categorical imperative is an individual who borrows money with the intent of never paying it back. We read of organizations that will seek venture capital or take out excessive loans with the intent of never paying the loans back or using bankruptcy laws to avoid having to pay creditors. We also see examples of this in firms where individuals borrow extensively, receiving personal loans from the firm, and the loan is excused or forgiven and never paid back. Such behavior affects the organization as to available resources. More to the point, a concern rises regarding the moral and ethical behavior of those who lead the organization in senior positions. Behaviors such as this will trickle down throughout the organization. What is reflected in a leader of a particular portion of the organization will trickle down to all levels in that organization, emulating and exacerbating the behavior to diminished standards. Consider the following scenarios. A salesperson pushes his or her numbers slightly higher than what he or she achieved and receives compensation accordingly. A marketing representative makes claims about a product that are not correct. An accountant adjusts an organization’s accounts to look more profitable, covering negatives and losses or liabilities. Organizations from the recent past, such as Enron, MCI, and Tyco continued this type of behavior over many years until government intervention was needed in the form of oversight and laws. The individual does not claim responsibility in these types of incidents. He or she will use the image of the corporation or organization to be held accountable. This is where personal accountability becomes a greater issue. Have we created a greater moral and ethical challenge than is necessary? When we talk about Sarbanes Oxley, we talk about the chief executive and chief accounting officers having to sign financial responsibility for the firm. No more can there be claimed ignorance or negligence on the part of the most senior leaders in the organization. Should this be regulated at the governmental level as opposed to an organization being able to self-regulate? The greater issue is how ethics and morals have shifted over the past several generations, risking the integrity and reputation of the individual(s) involved as well as the well- established and well-respected organizations that had to account for inappropriate activities.

Ethics definition (Ivelinr, 2011)

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Learning about ethics is similar to learning to be an engineer or a mechanic. Aristotle posited that in order to be ethical, we must practice sound ethics, much like a builder becomes exceptional in his or her field by building. We can talk of trial and error, mentoring, and apprenticeships, which allows one to gain experience through knowledge and learn from others who have gone before. The greater challenge is determining how to incorporate and assimilate a very subjective issue based on interpretations and perspectives of lived experiences. Society, much like a corporation or a family unit, must learn to find a harmonious balance and hierarchical relationship to prove trust and mutual concern. Much like the journeyman, we engage in lifelong learning to continually improve our knowledge, thinking, and experiences. Altruism Refer to the case example of Halden Prison, which is discussed in “Case Study 1.3: Is This Any Way to Run a Prison?” on page 30 of the textbook. There is a very different approach to discipline and correction of convicted criminals and how those individuals are treated at prisons in Norway versus other countries. The Norwegian government does not believe that a strict disciplinarian and punitive corrections system is effective in rehabilitating and thereby reorienting criminals to be able to enter society as contributing members once again. Several countries, such as the United States, may give an individual a life sentence with no possibility of parole. The United States takes an approach that the prisoner is too dangerous to release and put back into society. The Norwegian government does not adhere to this approach. The Norwegian government believes teaching individuals a trade and gradually giving them increased trust and responsibility shows a sign of faith and respect and allows the individuals to be reintroduced to society as contributing members. This form of altruism shows that we should help others, regardless of circumstance and regardless of whether we will personally gain, for the greater good. Incorporation, adaptation, and assimilation through synthesis of these different concepts put into practice is an ever-increasing challenge at all levels within an organization. The value of setting up a clear code of conduct through ethical standards at the organizational level is more than just words on a document because these are implemented and reinforced through continuous education, discussion, implementation, and enforcement. Such thinking and actions will give higher degrees of integrity, respect, and consistency throughout the organization. Summary Throughout the unit, we have addressed core foundational concepts as to what ethics is in business. While this is not an exhaustive study, it does lay a basis for us to build from throughout the remainder of the course. You are strongly encouraged to take this foundation and build your own ethical code of conduct or practices, not only as a learner but also as a practitioner. As individuals, we should continue to advance our learning in these areas through academics as well as through practice and experience. Ethics can often get a bad rap as to what it entails in an organization. This unit has laid a general foundation as to different schools of thought regarding ethics. Organizations will choose their paths, and the individual must decide whether he or she can adhere to these practices. Can he or she take a more altruistic approach to thinking and behaviors? Will he or she perform better in a utilitarian environment where there is a collective understanding of what constitutes acceptable behaviors? A study of what the organization's practices are will speak volumes as to its ethical code of conduct, whether written or unwritten. There will be organizations that have a very clear, strict ethical standard in writing, but the unwritten code that is actually practiced is demonstrated throughout the organization. Do we then take a categorical imperative approach (i.e., what is right is always right, and what is wrong is always wrong)? This would demonstrate that decisions are right or wrong, black or white, and good or bad. Society functions in shades of grey. We do not like absolutes. Society likes to evaluate the conditions or circumstances to then determine what acceptable behavior is. The same is true in business. In one situation, the company making a $10,000 loan to an executive may be warranted under a unique circumstance. The individual may be encountering a family emergency that requires a cash infusion that is not otherwise available. In a completely different situation, the $10,000 loan may look very suspicious as to why it is being offered, such as for purchasing a boat. The decision can then be made as to whether there is an ethics violation occurring.

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The lesson is that there are many different approaches to addressing the same problem. The individual and the organization have a responsibility to determine the path they will follow and what that will look like as well as the results it will produce. Ethical business practice is an ongoing process. Code of conduct is not just a document that is written and then forgotten. It is a living document that must continue to be reviewed, revised, and implemented on a consistent basis throughout the organization. As individuals, we are encouraged to take this information and build upon it for our own knowledge and application.

References Ivelinr. (2011). ID 91281855 [Image]. Retrieved from www.dreamstime.com Johnson, C. E. (2019). Organizational ethics: A practical approach (4th ed.). Thousand Oaks, CA: Sage.

Suggested Reading In order to access the following resource, click the link below. The Unit II Case Study involves research that must be conducted in the databases of the CSU Online Library. It is highly recommended that you get an early start on your research. The following article is an example of material that might benefit your creation of a code. The following article addresses the effectiveness of ethical codes of conduct and specific criteria for inclusion in the code. Statler, M., & Oliver, D. (2016). The moral of the story: Re-framing ethical codes of conduct as narrative

processes. Journal of Business Ethics, 136(1), 89–100. Retrieved from https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/1796433148?accountid=33337