1Business

Ethics

FundamentalsMGT

3800

Chapter

61Business

Ethics

and

Public

OpinionThe

Gallup

PollHas

Business

Ethics

Really

Deteriorated?Are

the

Media

Reporting

Ethical

Problems

More

Vigorously?IsItSociety

ThatIs

ActuallyChanging?What

Does

Business

Ethics

Mean?The

Conventional

Approach

to

Business

EthicsEthics

and

the

LawMaking

Ethical

JudgmentsFour

Important

Ethics

QuestionsWhat

Is?What

Oughtto

Be?HowDo

We

Get

from

What

Isto

What

Ought

to

Be?What

Is

Our

Motivationin

All

This?Three

Models

ofManagement

EthicsImmoral

Management

Moral

Management

Amoral

ManagementTwo

Hypotheses

Making

Moral

Management

ActionableDevelopingMoral

JudgmentLevelsof

Moral

DevelopmentSources

of

a

Manager’s

ValuesElements

of

Moral

JudgmentMoral

Imagination

Moral

Identificationand

OrderingMoral

EvaluationTolerance

of

Moral

Disagreement

Integration

of

Managerial

and

Moral

CompetenceA

Sense

of

Moral

ObligationSummaryChapter

Outline

Business

Ethicsand

PublicOpinion

What

DoesBusiness

EthicsMean?

Ethics,Economics

andLaw:

Venn

Model

Four

ImportantEthics

Questions

Three

Models

ofManagementEthics

Making

MoralManagementActionable

Developing

MoralJudgment

Elements

of

MoralJudgmentSummary2IntroductionBusiness

Ethics

Public’s

interest

in

business

ethicsincreased

during

the

last

four

decades

Public’s

interest

in

business

ethicsspurred

by

the

media3IntroductionInventory

of

Ethical

Issues

inBusinessEmployee-Employer

RelationsEmployer-Employee

RelationsCompany-Customer

RelationsCompany-Shareholder

Relations

Company-Community/PublicInterest4Public’s

Opinion

of

BusinessEthics5

Gallup

Poll

finds

that

only

17

percent

to20

percent

of

the

public

thought

thebusiness

ethics

of

executives

to

be

veryhigh

or

high

To

understand

public

sentiment

towardsbusiness

ethics,

ask

three

questionsHas

business

ethics

really

deteriorated?Are

the

media

reporting

ethical

problemsmore

frequently

and

vigorously?Are

practices

that

once

were

sociallyacceptable

no

longer

socially

acceptable?Expected

and

Actual

Levelsof

Business

EthicsEthical

Problem6EthicalProblemSociety’sExpectationsof

BusinessEthicsActualBusinessEthics1950sEarly

2000sTimeBusiness

Ethics:

What

Does

It

ReallyMean?Business

Ethics:Today

vs.

Earlier

PeriodBusiness

Ethics:

What

Does

ItReally

Mean?7Definitions

Ethics

involves

a

discipline

thatexamines

good

or

bad

practiceswithin

the

context

of

a

moral

duty

Moral

conduct

is

behavior

that

isright

or

wrong

Business

ethics

include

practicesand

behaviors

that

are

good

or

badBusiness

Ethics:

What

Does

ItReally

Mean?8Two

Key

Branches

of

Ethics

Descriptive

ethics

involvesdescribing,

characterizing

andstudying

morality“What

is”

Normative

ethics

involvessupplying

and

justifying

moralsystems“What

should

be”Conventional

Approach

toBusiness

Ethics

Conventional

approach

to

businessethics

involves

a

comparison

of

adecision

or

practice

to

prevailingsocietal

norms–

Pitfall:

ethical

relativismDecision

or

PracticePrevailing

Norms9Sources

of

Ethical

NormsFellow

WorkersFamilyFriendsThe

LawRegions

ofCountryProfessionEmployerSociety

at

LargeFellow

WorkersReligiousBeliefsTheIndividualConscience10Ethics

and

the

LawEthicsLaw

Law

often

represents

an

ethicalminimum

Ethics

often

represents

a

standardthat

exceeds

the

legal

minimumFrequent

Overlap11Making

Ethical

JudgmentsBehavior

or

actthat

has

beencommittedPrevailing

normsof

acceptabilityValue

judgmentsand

perceptions

ofthe

observercompared

with12Ethics,

Economics,

and

Law6-1413Four

Important

EthicalQuestions14What

is?What

ought

to

be?

How

to

we

get

from

what

is

to

whatought

to

be?

What

is

our

motivation

for

actingethically?3

Models

of

Management

Ethics15

Immoral

Management—A

style

devoid

ofethical

principles

and

active

opposition

towhat

is

ethical.

Moral

Management—Conforms

to

highstandards

of

ethical

behavior.Amoral

ManagementIntentional

-

does

not

consider

ethical

factors

Unintentional

-

casual

or

careless

aboutethical

considerations

in

business3

Models

of

Management

EthicsThree

Types

Of

Management

EthicsMoralAmoralImmoral16Three

Approaches

to

ManagementEthics6-1817ThreeModels

of

ManagementMorality

and

Emphasis

on

CSR6-1918Moral

Management

Models

andAcceptable

Stakeholder

Thinking1696-20MakingMoralManagementActionableImportantFactorsSenior

managementEthics

trainingSelf-analysis20Developing

Moral

Judgment6-2221Developing

Moral

Judgment6-2322Developing

Moral

Judgment23External

Sources

of

aManager’s

ValuesReligious

valuesPhilosophical

valuesCultural

valuesLegal

valuesProfessional

valuesDeveloping

Moral

Judgment24Internal

Sources

of

aManager’s

ValuesRespect

for

the

authority

structureLoyaltyConformityPerformanceResultsElements

of

Moral

Judgment25Moral

imaginationMoral

identification

and

orderingMoral

evaluation

Tolerance

of

moral

disagreementand

ambiguity

Integration

of

managerial

and

moralcompetenceA

sense

of

moral

obligationElements

of

Moral

JudgmentAmoral

Managers Moral

ManagersMoral

ImaginationMoral

IdentificationMoral

EvaluationTolerance

of

Moral

Disa