Business Ethics Chapter 5 PDF

How to Express YOUR Values Ever feel the need to comment on something when scrolling through social media? Maybe it was just to post a few emojis to express a reaction of joy, or perhaps it was to speak up about something you know to be wrong. Either way, you found it important enough to stop, think...

How to Express YOUR Values Ever feel the need to comment on something when scrolling through social media? Maybe it was just to post a few emojis to express a reaction of joy, or perhaps it was to speak up about something you know to be wrong. Either way, you found it important enough to stop, think, and formulate a response in order to make your voice heard. Just as we feel the need to have our voice heard online, so do we at work. It could be for a social reason, professional integrity, or even a life or death matter. Speaking up can not only be a matter of workplace’s reputation, but the entire future of our career. So what’s the best way to go about it? In this chapter we’ll cover the range of issues managers and employees alike will need to speak up, and the best way to go about doing it.  Identifying & Voicing Your Values Identifying: Voicing: What if voicing your values means disrupting the harmony of the workplace, What’s important to you? forgoing a bonus, promotion, or even What are the things you believe to jeopardizing your job? Would you do it constitute a life well-lived? anyways? How has your life story shaped your The answer to effectively voicing your values, personal values? just like any difficult undertaking, is through practice. Have you endured hardship, injustice, or even near-death experiences that have We’ll cover a set of steps on the next slide for molded your current worldview? voicing your values:  Giving Voice to Values Purpose What are your personal and professional goals? What do you hope to accomplish? Do you lean more towards risk tasking, or being risk Risk averse? In your line of work, what are the greatest risks you face? What’s an acceptable level of risk to you? Communication Do you lean more towards risk tasking, or being risk Style averse? In your line of work, what are the greatest risks you face? What’s an acceptable level of risk to you?you the most loyal to family, work colleagues, your Are Loyalty employer, or other stakeholders, such as customers? Common Ethical Challenges at Work Any real-world ethical issues you face will likely be nuanced and specific to your place of work as well as the people you work with. We can break down the most common ethical issues into: People Issues Conflicts of Interest Use of Corporate Customer Confidence Resources Issues  People Issues ( 1 / 5 ) Friction in interpersonal relationships, whether at home, school, or the workplace are inevitable. As a manager in a workplace setting, the key word to remember is fairness. When hiring, considering promotions, or just in day to day interactions, people are wired to perceive fairness. People care deeply not just about what decisions are made, but how those decisions are made and communicated. In this section, we’ll explore why fairness is crucial across a range of “people issues” including: Discriminati Harassme Diversity on nt People Issues ( 2 / 5 ) Diversity In our increasingly globalized workforce, diversity is a key issue for managers to navigate. For example, a city like Vienna has seen a 12% increase in residents from diverse nationalities in this past decade. Diverse workplaces are more interesting places to work along with being more competitive than homogenous environments, yet they entail a range of challenges for managers. From childhood we are taught conflicting things: to be proud of what makes us unique, but to “fit in” and work well with others. Valuing diversity means treating everyone equally while also respecting and integrating their diverse viewpoints. It’s easy to hold a training program preaching the value of diversity, but it’s another thing entirely to implement it in your office.  People Issues ( 3 / 5 ) Discrimination Discrimination occurs when someone is treated unfairly based on differences unrelated to their qualifications. This unfair treatment can stem from factors like age, race, ethnicity, gender or sexual orientation. Ingrained stereotypes can influence the behavior of even the most well-meaning individuals. Discrimination can manifest in various ways, such as unequal pay for the same work, biased hiring practices, or exclusion from opportunities for promotion. For managers, addressing discrimination isn’t just about avoiding costly lawsuits; it’s about creating a workplace where fairness and respect are the norm. People Issues ( 4 / 5 ) Harassment Harassment at work, especially sexual harassment, creates an environment where employees feel uncomfortable or unsafe. Sexual harassment includes unwelcome behavior ranging from inappropriate comments to physical advances. There are two main types of harassment: quid pro quo is where sexual favors are implied or required for workplace advancement. Hostile work environment is where unwelcome actions or comments create discomfort. What may be seen as harmless by one person could be harassment to another, making it essential to consider the perspective of the person affected. As far as the law is concerned, what counts as harassment is in the eye of the beholder: the offended person’s feelings are considered before the claims of intent by the accused.  People Issues ( 5/ 5 ) How To Think about it The various issues that crop up between employees vary widely as the individuals themselves. It’s impossible to prescribe specific advice for each situation, which is why the prescriptive ethical principles (deontological, virtue- based, etc.) give us a baseline way of approaching unique problems. The qualities that differentiate a great leader from a good one are: Knowing your own strengths and limits and strengthening your Self-Awareness inner ethical radar. Self-Management Managing your emotions in ways that allow you to effectively lead yourself Understanding the emotional reactions of others in order to lead Empathy them effectively  Conflicts of Interest ( 1 / 3 ) Business is a series of relationships. When those relationships get too friendly or familiar, and begin to interfere with others from receiving fair treatment, it becomes a Conflict of Interest: when a person’s business judgment or objectivity is compromised because of a personal relationship. When hiring a vendor to provide a service for your company, ask yourself this: are they Picturevalue to your company, or value to providing you This: personally? Your uncle runs a web design and marketing firm. Should you hire him to handle all your company’s web-based needs? Even if his work is solid and a boon for your company, how would your colleagues perceive you choosing a family member over other candidates?  Conflicts of Interest ( 2 / 2 ) There are various types of Conflicts of Interest, including: Bribes and Bribes come in overt or subtle forms. They may be a Discounts “gift,” tickets to an event, or fancy dinner, or a discount on a vendor’s inventory. The same as our uncle’s web-design example, if you Influence have a personal relationship with anyone who is doing business with your company in a substantial way, you should recuse yourself from the decision-making process. Having insider knowledge from a friend or relative at Privileged Company A while working for their competitors, Information Company B, creates a serious conflict of interest that could easily be seen as acting in bad faith.  Customer Confidence Issues ( 1 / 3 ) You’ve heard the phrase “The customer is always right.” Companies such as L.L. Bean and Costco have built their reputations around this idea. But excellent customer service goes beyond easy returns and friendly staff. It means offering quality products at fair prices, being honest about what products or services you’re offering, and safeguarding customer data and privacy. Customer Confidence covers a range of issues, including: Confidentiality Personal Responsibility Fiduciary Truth in Advertising Responsibilities  Customer Confidence Issues ( 2 / 3 ) Confidentiality More than ever data privacy and protection are a primary concern of modern consumers. Confidentiality extends beyond financial data to include sensitive information like mergers, layoffs, and personal issues. Never share specific customer details with third parties. If needed, provide only aggregated data that protects individual identities. Always prioritize safeguarding customer trust. Personal Responsibility Even if you are part of a large team, you need to take personal responsibility for the products or services you offer. Small problems can quickly balloon into major ethical disasters if not addressed. For example, a simple misprint of a drug’s side effects could have potential fatal effects if no action is taken. While rectifying the issue may be costly, doing nothing would be much worse.  Customer Confidence Issues ( 3 / 3 ) Truth in Advertising Hype is a normal part of most sales pitches, and consumers have come to expect it. However, there’s a fine line between hype and dishonesty. Customers have a right to truthful information about what they purchase. Misleading them can lead to word breaking out that your company is dishonest, damaging your reputation beyond repair. Fiduciary Responsibilities Fiduciary responsibility refers to the special obligations certain professions, such as psychology and law, owe their clients, holding them to a high standard of professionalism. For example, if you’re a financial advisor to an elderly client who shows signs of cognitive decline and wants to make a risky investment, your fiduciary responsibility may require you to intervene, potentially contacting a family member, to protect his financial well-being. Reputation Up In Flames: Fyre Festival In 2017, rapper Ja Rule and entrepreneur Billy McFarland promoted the Fyre Festival as an exclusive luxury music event in the Caribbean. They sold over 5,000 tickets, with promises of A-list musical acts like Blink-182, beachside glamping, and gourmet food, all endorsed by prominent social media influencers. The festival turned into a complete fiasco. Blink-182 canceled, the 'glamping' accommodations were actually disaster-relief tents, and the 'gourmet' food was basic, school-cafeteria fare. Many attendees were left stranded on the island without adequate food, water, or shelter. The influencers who promoted the festival never attended, and the locals who set up stages and catered the event were never paid. The Fyre Festival has since become a cautionary tale for breaching customer confidence. Despite initial celebrity endorsements and funding, the organizers ended up facing prison time for fraud and public endangerment. The fiasco serves as a reminder to customers to be wary of hype and as a warning to event promoters about the critical importance of delivering on promises Using Corporate Resources Throughout much of this course, and in the previous sections concerning People Issues, we have focused on the responsibilities of the company to its employees. Here, we’ll briefly cover the opposite the notion: employees responsibilities to the company, namely as its agents, or representatives. Using Corporate Resources responsibly is about fulfilling your side of the employer-employee ‘contract.’ This includes honesty with your employer and careful use of the company’s finances and reputation.”  Using Corporate Resources Use of Corporate Reputation When you identify yourself as an employee, either through your ID badge or corresponding via company letterhead, your words and actions reflect on the company. Be cautious on social media and in professional settings—what you say can have legal implications down the line. Before making public statements, writing articles, or joining external boards, always seek approval from your manager, legal department, or HR first to avoid misrepresenting the company’s stance. If the press ever contacts you to comment on a company-related issue, before you say anything, always alert your public relations department. Untrained responses can unintentionally disclose confidential information or harm the company’s reputation.  Using Corporate Resources Corporate Financial Resources It’s common knowledge that corporate equipment and services are meant for company business only. Using them for personal tasks—like making calls, padding expense reports, or using office supplies for non-work activities—is both unethical and against company policy. Where we need to think in an ethically principled ways are in more grey- area scenarios. Picture this: you and your team are burning the midnight oil to get a project wrapped up in time for a deadline. Your company offers a complimentary dinner for working 2 hours past the regular end of day, and a free ride home if your day lasts 12 hours. What if you and your team work 11 hours, and spend the last hour chatting and enjoying your free dinner so you qualify for that ride home? You and your team are clearly working hard, and by all means you probably deserve the perks, but it could be perceived you are stretching out your work day for the perks, which is never a good look. The bottom line here is: treat your company’s resources as if they were your own.  Whistleblowing This is when Voicing your Values gets real: whistleblowing. How do you speak out when you suspect your organization is doing something wrong? If something your company is doing feels so wrong that you’re losing sleep, it’s time to act, but you will need to be careful about how you go about it. We’ll cover the increasing steps of escalation regarding whistleblowing in the following slide…  How Do You Blow the Whistle? Approach your immediate superior Try to spell out your concerns in writing, where it first will be harder for someone “looking the other way” to disregard it. If this issue blows up into something big, it will Discuss the issue with your family affect your family as well as you, and they deserve to at least know about it. If your manager isn’t acting, request a Take it to the Next Level meeting with them and their superior. Contact Your Company’s Ethics Find out if your region or province has any special Officer or Ombudsman legislation regarding whistle-blowing. Consider Going Outside Your Chain Depending on the type of issue, you should contact of Command the relevant department, be it HR, legal, or auditing departments.  Key Takeaways Giving voice to your values is one of the most difficult things you can do at the workplace, but there may come a time when it will be one of the most important things you’ll do. The only way it gets easier is through practice. Many workplaces offer trainings and seminars on valuing diversity in the workplace. While these trainings are nice in theory, they have proven to have little effect overall. Real change comes from managers rapport with employees, and truly valuing different backgrounds, opinions and viewpoints. If it ever comes to you need to blow the whistle on unethical practices by your company, take the time to make sure your motivation for doing so is coming from upholding the betterment of the greater good, and not satisfying a grudge or personal slight against you.  References Trevino, Nelson, “Managing Business Ethics: Straight Talk about How to Do It Right, 8th ed.” John Wiley & Sons, 2021 Diversity Abroad, “Diversity & Inclusion Climate” https://www.diversityabroad.com/articles/travel-guide/austria#:~:te xt=The%20following%20minority%20languages%20have,migration %20comes%20from%20EU%20citizens. Huddleston, “Fyre Festival: How a 25-year-old scammed investors out of $26 million” https://www.cnbc.com/2019/08/18/how-fyre-festivals-organizer-scam med-investors-out-of-26-million.html , CNBC , 2019