Commerce 2BA3 Politics

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Commerce 2BA3Politics EthicsWeek 11 (Part B)

• Dr. Teal McAteer
• DeGroote School of Business
• McMaster University

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Organizational Politics

• The pursuit of self-interest in an organization,
  whether or not this self-interest corresponds to
  organizational goals
• Self-conscious and intentional
• Would be countered if detected by those with
  different agendas

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When are politics more likely to take place?

• Among middle and upper management levels
• Clear goals and routine tasks provoke less
  political activity
• Scarce resources, uncertainty and important
  issues provoke political behaviour

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Politics can also be reactive

• Concerns the defense or protection of
  self-interest
• E.g.
• Stalling
• Overconforming
• Buck passing

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Ethics

• Ethics
• Systematic thinking about the moral consequences
  of decisions
• Ethical issues are often occupationally specific

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Causes of unethical behaviour

• Gain
• Role conflict
• Competition for scarce resources
• Personality
• Org Industry and Culture

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Ethical Test
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Difference between Ethics and Morals

• Ethics
• Something you choose to comply with
• An acceptable set of standards/behaviours
• Established by a body
• Standards of conduct
• Morals
• Taught to you from an early age
• Deals with people
• Embedded and personal

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Difference between Ethics and Morals

• Business Ethics
• Not going to effect people
• Not going to matter to you personally
• Business Morality
• The way you treat people at work
• Decisions dealing with effects on people

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4 Components of Corporate Social Responsibility

• Economic
• Required of business society (be profitable)
• Legal
• Required of business by society (obey all laws,
  adhere to all regulations)
• Ethical
• Expected of business by society (avoid
  questionable practices)
• Philanthropic
• Desired/expected of business by society (be a
  good corporate citizen)

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Ford Example

• Pinto cars (1973) bursting into flames after rear
  collisions could have possibly been avoided by
  adding an 11 part execs ignored the principal
  design engineers spoken and written statements
• Cost to Ford
• 180 burn injuries _at_ 67,000
• 180 burn deaths _at_ 200,000
• Total Cost 48,100,000
• Pinto Repair Cost
• 12,454,545 cars _at_ 11 137,000,000
• (It was thus cheaper to pay the lawsuits)

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Factors Influencing Our Decisions

• Organizational Factors
• Centralized vs decentralized
• Org culture
• Size
• Demographics
• Technology
• Significant Others Influencing Our Decisions
• People who have trained us
• Leader/person of influence
• Coworkers
• Reward systems

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Exercise

• Example of unethical behaviour

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Exercise

• 5 Ethical Dilemmas