Ethics in the Workplace PDF

Chapter 3 – Ethical Behaviour and Social Responsibility ETHICAL DILEMMAS AT WORK: The real test is when a manager or worker encounters a situation that challenges one’s ethical beliefs and standards. Ethical Dilemma: a situation that although offering potential benefit or gain is considered uneth...

Chapter 3 – Ethical Behaviour and Social Responsibility ETHICAL DILEMMAS AT WORK: The real test is when a manager or worker encounters a situation that challenges one’s ethical beliefs and standards. Ethical Dilemma: a situation that although offering potential benefit or gain is considered unethical  It is often a situation in which action must be taken but for which there is no clear consensus on what is “right” or “wrong” Ethical Problems Faced by Managers: Some of the problem areas where managers can get caught in ethical dilemmas include: o Discrimination – where a manager denies promotion or appointment of a job candidate because of the candidate’s race, religion, gender, age, or other non-job-relevant criterion o Sexual Harassment – when a manager makes a co-worker feel uncomfortable because of inappropriate comments or actions regarding sexuality; or where a manager requests sexual favours in return for favourable job treatment o Conflicts of Interest – where a manager takes a bribe or kickback or extraordinary gift in return for making a decision favourable to the gift giver o Customer Confidence – where a manager has privileged information regarding the activities of a customer and shares that information with another party o Organizational Resources – where a manger uses official stationary or a company e-mail account to communicate personal opinions or requests to community organizations  Often times the managers’ bosses were singled our as sometimes pressuring their subordinates to engage in such unethical activities as supporting incorrect viewpoints, signing false documents, overlooking the boss’s wrongdoings, and doing business with the boss’s friends Rationalizations for unethical behaviour: 1. Convincing yourself that the behaviour is not really illegal. This rationalization is particularly common in ambiguous situations. A good rule of thumb is “When in doubt, don’t do it.” 2. Convincing yourself that the behaviour is in everyone’s best interest. This rationalization involves the mistaken belief that because someone may benefit, the behaviour is also in the interest of the individual or the organization. When asking “How far can I push matters to obtain this performance goal?” the best answer is “Don’t try to find out.” 3. Convincing yourself that nobody will ever find out what you’ve done. This argument assumes no crime is committed unless it is discovered. To deter this view, make sure that sanctions for wrongdoing are public. 4. Convincing yourself that the organization will “protect” you. This implies the organization will condone the practice, but organizational norms should not be put above the law or social morality. Factors influencing ethical behaviour:  In practice, people are often challenged to choose ethical courses of action in situations where the pressures may be contradictory and great. The Person –– in developing ethical frameworks as personal strategies for ethical decision making, managers are influenced by the following factors: a. Family influences. b. Religious values. c. Personal standards d. Personal needs, financial and otherwise  Ethical anchors (ex. Virtues – honesty, integrity, self-respect) help people make correct decisions  Those who operate with strong ethical frameworks, personal rules or strategies for ethical decision making, will be more consistent and confident since choices are made against a stable set of ethical standards. The Organization –– the organization also plays a key role in shaping managerial ethics through: a. Behaviour of supervisors. b. Expectations and reinforcement of peers, and peer group norms. c. Policy statements and written rules.  Just exactly what a supervisor requests, and which actions are rewarded or punished, can certainly affect an individual’s decisions and actions  The expectations and reinforcement provided by peers and group norms are likely to have a similar impact  Formal policies and written rules support and reinforce the organizational culture The Environment –– managerial ethics are also shaped by the following components of the external environment: a. Government laws and regulations. b. Norms and values of society. c. Climate of competition in an industry.  Laws interpret social values to define appropriate behaviour for organizations and their members  Regulations help governments monitor their behaviours and keep them within acceptable standards  Sometimes the pressures of competition contribute further to the ethical dilemmas of managers Maintaining High Ethical Standards: Ethics Training:  Structured programs that help participants understand the ethical aspects of decision making  Helps people incorporate high ethical standards into their daily behaviours  Helps people deal with ethical issues while under pressure. Whistleblower Protection: Whistleblower: a person who exposes the misdeeds of others in organizations to preserve ethical standards and protect against wasteful, harmful, or illegal acts  Federal and provincial laws increasingly offer whistleblowers some protection from retaliatory discharge. Still, legal protection can be inadequate Organizational barriers to whistleblowing include: a. A strict chain of command that makes it difficult to report unethical practices to higher-level managers. b. Strong work group identities that encourage loyalty and self-censorship. c. Ambiguous priorities that make it difficult to distinguish right from wrong. Top reasons for not reporting: o The belief that no corrective action would be taken o Fear that reports would not be kept confidential Ethical Role Models:  Because top managers serve as role models, their behaviour can either encourage or discourage unethical behaviour.  Although top managers have a special responsibility for setting the ethical tone of an organization, all managers are in a position to influence the ethical behaviour of the people who work for and with them.  Too much pressure to accomplish goals that are too difficult can also encourage unethical behaviour.  Part of any manager’s ethical responsibility is to be realistic in setting performance goals for others. Codes of Ethics: Code of Ethics is a formal statement of an organization’s values and ethical principles that provide guidelines on how to behave in situations susceptible to ethical dilemmas.  Most codes of ethical conduct identify expected behaviour in terms of general organizational citizenship, the avoidance of illegal or improper acts in one’s work, and good relationships with customers.  Areas often covered in written codes of ethics include the following: a. Bribes and kickbacks. b. Political contributions. c. Honesty of books or records. d. Customer-supplier relationships. e. Confidentiality of corporate information.  Ethical codes cannot cover all situations; nor are they automatic insurance for universal ethical conduct.