Chapter 3: Ethics

Question 1

Ethics

Answer 1

Doing the right thing within a moral framework
- human nature is the most common impediment to ethical conduct

Question 2

Human factors contribution to unethical behavior

Answer 2

• perceived personal interest (greed, impatience, fear, ambition, need,…)
• extenuating circumstances

Question 3

Organizational factors contributing to unethical behavior

Answer 3

• ethics not part of core values
• Failing to adopt, deploy and enforce a corporate code of ethics
• no positive example
• putting employees in ‘ethical’ corners
• unrealistic pressure
• no rewards for ethical behavior

Question 4

Guidelines for determining ethical behavoir

Answer 4

• morning-after test
• mirror test
• role reversal test
• common sense test
• front-page test

Question 5

Total quality and ethics

Answer 5

• trust
• responsibility
• values
• integrity

Question 6

Trust and total quality

Answer 6

• Ethical behavior builds trust and trust is an essential ingredient of total quality
• trust can be built by being loyal to those not present, keeping promises, and sincerely apologizing when necessary

Question 7

Elements of total quality that depend on trust

Answer 7

1. interpersonal relation
2. employee involvement and empowerment
3. customer focus
4. communication
5. conflict management
6. problem solving
7. teamwork

Question 8

Values and total quality

Answer 8

• Values are those core beliefs that guide our behavior
• Ethical behavior begins with values

Question 9

Integrity and total quality

Answer 9

• Integrity is a combo of honesty and dependability
• people with integrity can be counted on to do the right thing, do it correctly, and do it on time
• when an organization has integrity, ethical behavior automatically follows

Question 10

Responsibility and total quality

Answer 10

accepting responsibility

Question 11

Manager’s role in ethics

Answer 11

• setting an example of ethical behavior
• helping employees make ethical choices
• helping employees follow through and behave ethically after making an ethical choice

Question 12

Manager’s approaches to ethics

Answer 12

1. Black-and-white approach:
   - right is right and wrong is wrong, conditions are irrelevant.
   - Difficult decisions are taken fair and impartial
2. Best-ratio approach:
   - under the right circumstances, people will behave ethically. So managers should provide conditions for the ratio of good to bad choices to increase
   - hard decision is such a way that they are good for most people
3. Full potential approach:
   - people are responsible for achieving their full potential within the confines of morality. Choices that do not infringe on the rights of others are considered to be ethical –> decisions are made based on how they will affect the ability of those involved to achieve their full potential
   - values of managers and organization determine this approach

Question 13

Organization’s role in ethics

Answer 13

• Setting a positive example
• Creating an ethical environment: have a comprehensive ethics policy

Question 14

Ethics training

Answer 14

• Encourage two-way communication
• make it practical
• avoid dogmatic statements

Question 15

Models for making ethical decisions

Answer 15

1. Categorical imperative
   - black-and-white model
   - either right or wrong, no gray areas
2. Golden rule
   - do unto others as you would have do unto you
   - stakeholder’s viewpoint
3. Equal freedom
   - freedom to behave as they wish, unless actions infringe on the rights of the stakeholders
   - more confining than it looks at first
4. Doctrine of the mean
   - moderation is ethical
   - extremes are likely not ethical
5. Proportionality ethics
   - good should outweigh the bad when making decisions
   - assume world is too complex for actions to be only good or bad
6. Professional ethics
   - decisions can be explained to the approval of a broad cross-section of professional peers
   - professional code of ethics
7. Market ethics
   - any legal action that promotes profitability is ethical
   - framework of profit and loss
8. Organizational ethics
   - Most ethical decision is the one that best serves the organization’s interest
   - loyalty - difficult to defend (unless guiding principles)
9. Full disclosure
   - could the organization explain its actions to the satisfaction of a broad cross-section of stakeholders?
   - stakeholders’ viewpoint

Question 16

Beliefs VS behavior: why?

Answer 16

1. Self-interest and self-protection
2. Conflicting values
3. Intangible vs tangible
4. Deferred vs immediate

Question 17

CSR

Answer 17

Corporate social responsibility

• Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public