Defining EthicsEthics are the set of moral principles that guide a person's behavior. Show
Learning Objectives Define ethics and how it applies to organizations Key TakeawaysKey Points
Key Terms
Ethics are the set of moral principles that guide a person's behavior. These morals are shaped by social norms, cultural practices, and religious influences. Ethics reflect beliefs about what is right, what is wrong, what is just, what is unjust, what is good, and what is bad in terms of human behavior. They serve as a compass to direct how people should behave toward each other, understand and fulfill their obligations to
society, and live their lives. Example The concept of corporate social responsibility emphasizes ethical behavior in that it requires organizations to understand, identify, and eliminate unethical economic, environmental, and social behaviors. Ethics TrainingMoral reasoning is the process in which an individual tries to determine what is right and what is wrong. Learning Objectives Explain the role of ethical moral reasoning in the business environment Key TakeawaysKey Points
Key Terms
Moral reasoning is the process in which an individual tries to determine the difference between what is right and what is wrong in a personal situation by using logic. To make such an assessment, one must first know what an action is intended to accomplish and what its possible consequences will be on others. People use moral reasoning in an attempt to do the right
thing. People are frequently faced with moral choices, such as whether to lie to avoid hurting someone's feelings, or whether to take an action that will benefit some while harming others. Such judgements are made by considering the objective and the likely consequences of an action. Moral reasoning is the consideration of the factors relevant to making these types of assessments.
The ability to think through moral issues and dilemmas, then, requires an awareness of a set of moral and ethical values; the capacity to think objectively and rationally about what may be an emotional issue; the willingness to take a stand for what is right, even in the face of opposition; and the fortitude and resilience to maintain one's ethical and moral standards.
Example William LeMesseur designed the Citicorp Building in New York. When a student identified a critical design flaw in the building during a routine class exercise, LeMesseur responded not by shooting the messenger but by developing an intricate and effective plan for correcting the problem before it resulted in drastic
real-world consequences. Culture and EthicsCulture reflects the moral values and ethical norms governing how people should behave and interact with others. Learning Objectives Explain the role of culture in shaping moral and ethical behavior Key TakeawaysKey Points
Key Terms
Culture describes a collective way of life, or way of doing things. It is the sum of attitudes, values, goals, and practices shared by individuals in a group, organization, or society. Cultures vary over time periods, between countries and geographic regions, and among groups and organizations. Culture reflects the moral and ethical beliefs and standards that speak to how people should behave and interact with others. Cultural map of the world: This diagram attempts to plot different countries by the importance of different types of values. One axis represents traditional values to secular-rational values, while the other axis accounts for survival values and self-expression values. Different groups of countries can be grouped into certain categories, such as Catholic Europe, English speaking, and Ex-Communist. Cultural norms are the shared, sanctioned, and integrated systems of beliefs and
practices that are passed down through generations and characterize a cultural group. Norms cultivate reliable guidelines for daily living and contribute to the health and well-being of a culture. They act as prescriptions for correct and moral behavior, lend meaning and coherence to life, and provide a means of achieving a sense of integrity, safety, and belonging. These normative beliefs, together with related cultural values and rituals, impose a sense of order and control on aspects of life
that might otherwise appear chaotic or unpredictable. Example The French and Americans have different views on whistle-blowing. Compared to the French, American companies consider it to be a natural part of business. So natural, in fact, that they set up anonymous hotlines. The French, on the other hand, tend to view whistle-blowing as undermining solidarity among coworkers. The Manager's Role in Ethical ConductEmployees can more easily make ethical decisions that promote a company's values when their personal values match the company's norms. Learning Objectives Explain the role of personal values in influencing behavior in organizations Key TakeawaysKey Points
Key Terms
Personal values provide an internal
reference for what is good, beneficial, important, useful, beautiful, desirable, and constructive. Over time, the public expression of personal values has laid the foundations of law, custom, and tradition. Personal values in this way exist in relation to cultural values, either in agreement with or divergent from prevailing norms.
Personal values take on greater meaning in adulthood as they are meant to influence how we carry out our responsibilities to others.
This is true in the workplace, especially for managers and leaders, who are charged with overseeing resources for the benefit of others. Because of their authority structures, social norms, and cultures, organizations can have a powerful influence on their employees. Employers do their best to hire individuals who match match well with the organization's norms and values. In this way they seek to promote their standards of ethical behavior. Example If you value equal rights for all and you go to work for an organization that treats its managers much better than it does its workers, you may form the attitude that the company is an unfair place to work; consequently, you may not produce well or may even leave the company. It is likely that if the company had a more egalitarian policy, your attitude and behaviors would have been more
positive. Blurring Ethical LinesEthical decisions involve judgments of facts and situations that are subject to interpretation and other influences. Learning Objectives Analyze the gray areas of ethical expectations within the context of corporate decision making and ethical business practice Key TakeawaysKey Points
Key Terms
Law and ethics are not the same thing. Both exist to influence behavior, but complying with the law is mandatory, while adhering to an ethical code is voluntary. Laws define what is permissible, while ethics speak to what is right, good, and just. Lawyers and judges are responsible for clarifying the meaning of a law when there is
ambiguity or when a matter is subject to interpretation. Where ethics are concerned, that responsibility lies with each individual. In organizations, employees can look to the code of ethics or the statement of values for guidance about how to handle ethical gray areas. Business Ethics Around the GlobeSocial norms aren't identical in different countries, and ethical standards can vary as well. A business may operate in a country that permits actions that would be considered unethical under that business's ethical code. How will employees working in that country handle that situation, especially if something that could be considered unethical in one place is actually thought to be important to business success in the other? For instance, in some cultures it is customary for business partners and customers to be invited to weddings, with the expectation that guests will give a cash gift to the bride and groom. A company might consider the gift an unethical bribe in exchange for a customer's business, yet it may be essential to enter a new market. Adhering to ethical standards in such instances can be difficult. This way to ethics: Ethical decisions are not always clear-cut. Example American companies are often criticized for the treatment of workers who produce their products in China. However, rules concerning the rights of workers are much more relaxed in China than in the United States. Does an American company have the right to order factory owners in China to change their way of doing business? That is one example of an ethical gray area in today's globalized economy. Licenses and AttributionsCC licensed content, Shared previously
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Which of the following refers to an understanding of how cultural differences across and within nations can affect the way business is practiced?Cross-cultural literacy: an understanding of how cultural differences across and within nations can affect the way business is practiced.
Which of the following are social rules and guidelines that prescribe appropriate Behaviour in particular situations?norms. By norms, we mean the social rules and guidelines that prescribe appropriate behavior in particular situations.
Which of the following refers to the extent to which individuals can move out of the strata into which they are born?Social Mobility The term social mobility refers to the extent to which individuals can move out of the strata into which they are born. Social mobility varies significantly from society to society. The most rigid system of stratification is a caste system.
Which of the following is the best definition of ethics?Which of the following best defines ethics? Moral principles that govern a person or groups behavior.
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