Transcript Chapter 5

Chapter 7
Organizational Relationships
and Conflicts in Ethical
Decision Making
Key Influences on Ethical Behavior
society
corporate culture
peers & coworkers
strength of the individual’s personal values
opportunity
exposure to others that behave (un)ethically
– informal relationships
– formal relationships
Responsibility of the Corporation
as a Moral Agent
chartered as citizens of a state and nation,
therefore, they have all the right s &
responsibilities of individuals
responsible to society for its decisions
business ethics & social responsibility are
assigned to the organization as an entity
must require compliance with ethical policies
representing the interests of all stakeholders
Variation in Employee Conduct
10%-will take advantage of situations to
further their own personal interests
40%-will go along with the work group on
most matters
40%-will try to follow company policies &
rules & have a strong grasp of the
corporate culture
10%-maintain formal standards that focus on
rights, duties & rules
Socialization...
the process through which a person learns the
values & behavior patterns considered
appropriate by an organization or group
has a significant influence on ethical
behavior
ethical conflict arises when the values
& norms of the individual conflict with
those taught through socialization
Role-Set...
the total of all role relationships in which an
individual is involved because of his or her
position in an organization
– role sets may help predict ethical behavior
– persons in the same department are
socialized similarly and share the
same specialization & knowledge base
– members of an organization have more
in common with one another than with
members of other organizations
Differential Association...
refers to the idea that people learn ethical or
unethical behavior while interacting with
others who are part of their role-sets or other
intimate personal groups
– if interaction is with those who behave
unethically, parallel behavior may be expected
– superiors have strong influence on the ethics of
their subordinates
– differential association with peers & opportunity
are better predictors of unethical behavior than
is the person’s own ethical belief system
Whistle Blowing...
when unethical or illegal behavior occurs in
the organization and individual interpersonal
conflict occurs
exposing an employer’s wrongdoing to
outsiders such as the media or government
regulatory agencies
provides an in-house mechanism for
employees or voice concerns
– usually anonymous
Organizational Pressure &
Ethical Decision Making
success in organizations is determined
through the achievement of organizational
goals
internal organizational pressure stemming
from role-set relationships & differential
association is a major predictor of unethical
behavior
top management & superiors play crucial
roles in developing the environment that
influences ethical behavior
Opportunity Creates Ethical
Dilemmas
opportunity is a set of conditions that limit
unfavorable behavior or reward favorable
behavior
– rewards may be internal (self-worth, enjoyment)
– rewards may be external (raises, promotion)
a person who behaves unethically & is
rewarded is likely to continue the behavior;
punishment is a more suitable deterrent
Opportunity also comes from
Knowledge
a person with information, expertise or
competitive knowledge has the opportunity
to exploit this knowledge
long term employment with one company
leads to gatekeeping-socializing newer
employees regarding culture, tradition, rules,
unwritten traditions, etc.
trainers & mentors influence new employees
behavior
Conflict Resolution...
occurs when it is not clear which goals or
values take precedence-those of the
organization or a group within the organization
– personal-organizational conflict
– personal-societal conflict
– organizational-societal
Improving Ethical Behavior
ethical behavior depends on:
– the embedded organizational value system
(corporate culture)
– significant others
– personal value preferences