CODE TO WORD: ETHICS IN THE WORKPLACE

1
CODE TO WORD ETHICS IN THE WORKPLACE

• Florida Gulf Coast University
• Hudson Rogers
• Fall 2003

2
THINGS THAT MAKE YOU GO Umm!

• The only social responsibility of business is to
  increase profits (Freidman 1976).

3
GENERAL PERCEPTION OF BUSINESS ETHICS?

• BUSINESS - Nasty! Chaotic! Self-Interested!
  Cut-Throat! Bad!
• ETHICS Nice! Controlled! Altruistic! Moral!
  Good!
• Business ethics - an oxymoron?

4
THE NOTION OF ETHICS

• How can ethical decisions be distinguished from
  other decisions in business?
• Ethics has to do with right and wrong.
• Ethics concerned with situations that may result
  in actual or potential harm to individuals or
  groups - Focus on human good welfare.

5
BUSINESS ETHICS

• BUSINESS ETHICS Application of moral reasoning
  to business decision-making.
• Business ethics - right and wrong in a business
  setting. Three levels of ethical problems
  identifiable
• Individual, Systemic (society/world), Corporate
  (organizational).

6
Ethics and the Workplace

• Ethics in the workplace entails any and all acts
  that have moral/ethical consequences or
  implications.
• Business decisions influenced by ethics.
• Without ethics there is only the law. But law is
  not a sufficient criteria for judging behavior.
  There are behaviors that may be legal but are
  unethical.

7
A SCENARIO WORTH CONSIDERING

• Assume that your firm is going under and you know
  about it. Now assume that someone offers to
  purchase a 1m worth of products that also
  require servicing into the future.
• Question Would you take the order?

8
Workplace Ethics

• Workplace ethics involve such gray areas as
  dealings with peers, superiors, subordinates,
  quality of work, worker product safety, lying
  (social, peace keeping, protective, trust
  keeping) truth in advertising, use of company
  property, padding expense accounts, whistle
  blowing, selling harmful or questionable
  products, handling toxic materials,
  environmentalism.

9
Workplace Ethics

• A large number of firms seek to address workplace
  ethics by means of
• Codes of Conduct
• Policies and Procedures
• However, these are related more towards what is
  in place on paper (easy - punishment related)
  rather than towards the development of mature
  moral reasoning and stressing ethical judgement
  (culture).

10
THE CHALLENGE

• Achieving moral maturity by developing the
  ability to make sound ethical judgements and a
  developed habit of doing so.

11
DEVELOPING MORAL REASONING

• We are each defined by our preferences hence
  individual value system makes it difficult if not
  impossible to discuss issues that face us as a
  society.
• Moral ideals cannot be achieved based on
  individualistic norms. To develop moral ideals
  we must first have shared values. Firms must
  create cultures that facilitate shared values and
  moral reasoning.

12
Moral Reasoning - Ways of Viewing Ethical
Decisions

• Absolutist - right and wrong clearly
  unambiguously defined universally in all
  situations (Thou shall not kill! Things seen as
  Black and White)
• Relativist - group, individual, culture decides.
  Everything is a shade of gray.
• Situational - ethics depends upon the situation
  (different from relative ethics). What is
  ethical determined by a moving line.

13
Moral Judgment

• Kohlberg asserts that moral judgment is the
  single most important factor in moral behavior.
• Moral maturity cannot be attained without moral
  reasoning - making intelligent judgments on the
  rightness and wrongness of moral issues.
• How do we develop moral reasoning?

14
KOHLBERGS THREE STAGE MODEL
15
ETHICAL NORMS FOR BUSINESS DECISIONS

• UTILITARIANISM - Maximizing satisfaction/greatest
  good for the greatest number or least harm to the
  fewest.
• Utilitarianism provides a standard by which we
  judge which actions are right or wrong, good or
  bad.

16
UTILITARIANISM

• An act is Good if it results in the greatest
  happiness for the greatest number or if it
  results in the least unhappiness for the least
  number.

17
UTILITARIANISM

• Identify the Alternative courses of action
• Determine the costs and benefits for each
  stakeholder
• Select the Best alternative - greatest benefit or
  least cost
• Make the best alternative a universal rule or
  policy.

18
UTILITARIANISM

• How should we define benefits and harm so that
  they can be measured?
• Who decides?
• What happens when benefits collide with the
  rights of others or leads to unfair outcomes?

19
RIGHTS DUTIES

• Rights - whats needed to live a life that
  expresses value.
• Rights - justifiable claim, entitlement or
  protection against collective goals (Liberty
  Rights Welfare Rights)
• No action should violate fundamental human rights
• Duty/Obligation - that which you must do.

20
JUSTICE

• Justice - Fair distribution of Benefits Burdens
• Which is the fair distribution standard? In
  giving raise which measure should we use -
  equality, effort, need, accomplishment, position,
  contribution?

21
JUSTICE STANDARD

• Fair Distribution follows three principles
• Equal Liberty - maximum liberty compatible with
  liberty of others
• Difference Principle - inequities ethical if
  benefit least advantaged
• Equal Opportunity Principle - benefits equally
  open to all.

22
CARING PRINCIPLE

• As members of a society we are responsible for
  well-being of others.
• Caring increases with the level of dependency
  involved.
• In making business decisions, trust, teamwork,
  relationships and communication seen as important
  norms.

23
ROTARYS FOUR-WAY TEST

• Is it the truth
• (Rights)
• IS it FAIR to all concerned?
• (JUSTICE)

24
ROTARYS FOUR-WAY TEST

• Will it build GOODWILL and Better FRIENDSHIPS
• (Caring)
• Will it be BENEFICIAL to all concerned?
• (Utilitarianism)

25
RECONCILING THE DIFFERENCES?

• How do you reconcile the conflict created from a
  pluralistic approach involving the various
  ethical theories?
• Ethics in the workplace is the search for a more
  harmonious existence.
• Only attainable through decision making process
  that focuses on morally mature reasoning aimed at
  improving ethical judgement.

26
Seven-Step Process of Making Ethical Decisions

• 1. What are the Facts
• 2. What are the Ethical Issues
• 3. What are the Alternatives?
• 4. Who are the Stakeholders?
• 5. What are the Ethics of the Alternatives?
• 6. What are the Practical Constraints?
• 7. What Actions Should we Take?

27
RULES OF ETHICAL THINKING

• 1. Consider the well-being of others.
• 2. Think as a member of a community.
• 3. Obey but do not depend only on the law.
• 4. View self and firm as part of society.
• 5. Obey moral rules in all situations.
• 6. Think objectively
• 7. Ask, What kind of person would do such a
  thing.
• 8. Respect other customs but keep your ethics.

28
Impediments to Applying Ethical Logic

• 1. Denial of Responsibility - I HAD NO CHOICE!
• 2. Denial of Injury - NO ONE GOT HURT!
• 3. Denial of Victim - HE HAD IT COMING!
• 4. Condemning the Condemners - THEY DO NOT HAVE
  THE RIGHT TO TALK!
• 5. Appeal to Higher Loyalties - WE DID IT FOR GOD
  AND COUNTRY!

29
CLIMBING THE MOUNTAIN

• Ethics in the workplace provides better quality
  of life, greater long-term profitability and less
  stress.
• ETHICAL BUSINESS IS GOOD BUSINESS.