Compare and contrast the different kinds of ethical dilemmas contained in Chapter 5 of the Trevino text, including the Texaco case study, the Tap Pharmaceutical case study, and the Synthes case study.
Write a paragraph that responds to the following questions:
· Are there patterns you see in the different types of dilemmas?
· What are the similarities and differences you see in the dilemmas?
· Do the differences matter when resolving them? If so, describe the approaches these differences require you to take.
· What does this information tell you?
~L- _
Ethical Decision-
Making Framework
After reading this chapter, you will be able to:
• Apply several sets of ethics questions to business issues
• Use a systematic ethics decision-making framework to
arrive at moral conclusions
• Understand the five most important ethical theories
• Persuade others by speaking in their ethical language
• Facilitate a negotiation between competing ethical
perspectives
• Recognize warning signs that an unethical decision is
approaching
Codes of Conduct cannot cover every business situation that might
arise. Employees need to know how to independently derive a moral
answer to business issues. Several frameworks are available to help
employees understand the ethical basis of their decisions and actions.
77
Ethical Decision-Making Framework
This chapter summarizes two common ethical decision-making
frameworks and then offers a systemic six-question ethics decision-
making framework grounded in moral philosophy. A process for per-
suading people who approach a decision from a different ethical per-
spective and warning signs that an unethical situation is arising are
also provided. The material in this chapter can also be used as the
basis of an ethics workshop.
Rotary International’s Four-Way Test
How do you know if the decision you are about to make is ethical? A
simple framework for analyzing the ethical dimension of a decision is
Rotary International’s Four-Way Test. More than 1.2 million busi-
ness, professional, and community leaders are members ofRotary In-
ternational, and there are more than 32,000 Rotary clubs around the
world. In 1943, the Rotary adopted the following Code of Ethics,
referred to as The Four-Way Test: 1
Of the things we think, say, or do:
1. Is it the TRUTH?
2. Is it FAIR to all concerned?
3. Will it build GOODWILL and BETTER FRIENDSHIPS?
4. Will it be BENEFICIAL to all concerned?
Raytheon’s Ethics Quick Test
Raytheon provides its employees with an Ethics Quick Test, consist-
ing of the following questions to consider when facing an ethical
dilemma: 2
78
The Ethics Decision-Making Framework
• Is the action legal?
• Is it right?
• Who will be affected?
• Does it fit Raytheon’s values?
• How will I feel afterwards?
• How would it look in the newspaper?
• Will it reflect poorly on the company?
The Ethics Decision-Making Framework
The Rotary’s Four-Way Test and Raytheon’s Ethics Quick Test are
very helpful lists of questions, yet not philosophically systematic.
The moral philosophy literature provides a more systematic ap-
proach for deriving moral conclusions. Ethical reasoning is just like
any other managerial problem-solving process. When confronting a
problem, managers typically list the available options and determine
which alternative makes the most sense. The same decision-making
process can be applied to ethical reasoning.
Strong consensus, though not absolute agreement, exists among
philosophers that some ethical rea
+
Managing Business Ethics
Chapter 5
Treviño & Nelson – 8th Edition
*
+
Chapter 5 Overview
Organizational Ethics as Culture
Ethical Culture: A Multisystem Framework
Ethical Leadership
Other Formal Cultural Systems
Informal Cultural Systems
Organizational Climates: Fairness, Benevolence, Self-Interest, Principles
Developing and Changing Ethical Culture
A Cultural Approach to Changing Organizational Ethics
The Ethics of Managing Organizational Ethics
+
Influence of Culture on Individuals
Ethical Awareness
Ethical Judgment
Ethical Action
Ethical Culture
Individual Differences
*
+
Organizational Culture
Expresses shared assumptions, values and beliefs and is the social glue that holds the organization together. It’s “how we do things around here.”
Strong – assumptions, values, beliefs widely shared
Weak – subgroup norms more influential
+
Culture
A body of learned beliefs, traditions, and guides for behavior shared among members of a society or a group
+
Ethical Culture:
A Multisystem Approach
Formal Systems
Informal Systems
Executive Leadership
Selection System
Policies/Codes
Orientation/Training
Performance Management
Authority Structure
Decision Processes
Role Models/Heroes
Norms
Rituals
Myths/Stories
Language
Ethical/ Unethical Behavior
Alignment?
+
Alignment and Misalignment
With alignment, all systems are “pushing” employees in the same direction – either ethical or unethical
With misalignment, employees get mixed messages about expectations
+
Leadership
Executive Leaders Create Culture
Leaders Maintain or Change Organizational Culture
Ethical Leadership and Ethical Culture
Ethical Leadership
Unethical Leadership
Hypocritical Leadership
Ethically Neutral or “Silent” Leadership
+
Executive Ethical Leadership Rests on Two Pillars
Moral Person
Tells followers how leader behaves
Traits
Honesty
Integrity
Trust
Behaviors
Openness
Concern for people
Personal morality
Decision-making
Values based
Fair
Moral Manager
Tells followers how they should behave and holds them accountable
Role modeling
Takes visible ethical action
Rewards/Discipline
Hold people accountable for ethical conduct
Communicating
Sends an “ethics and values” message
+
Executive Ethical Leadership
Reputation Matrix
Ethically silent leader?
Hypocritical leader
Ethical leader
Unethical leader
Strong
Weak
Moral Manager
Weak
Strong
Moral Person
+
Other Formal Cultural Systems
Selection Systems
Values and Mission Statements
Policies and Codes
Orientation and Training Programs
Performance Management Systems
Organizational Authority Structure to Support Responsibility
Decision-Making Processes
+
Informal Cultural Systems
Role Models and Heroes
Norms: “The Way We Do Things Around Here”
Rituals
Myths and Stories
Language
+
Ethical Climates
Fairness
Benevolence
Self-Interest
Principles
+
Ethical Culture Change
From ethical to unethical
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