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Chapter 12

Chapter 12 Part II BU288.docx

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Wilfrid Laurier University
Ping Zhang

BU288 Chapter 12 – Power, Politics, and Ethics Week 12 Ethics in Organizations -Ethics – systematic thinking about the moral consequences of decisions -Stakeholders – people inside or outside of an organization who have the potential to be affected by organizational decisions -Managers invariably tend to see themselves as having higher ethical standards than their peers and sometimes their superiors -Women act more ethically The Nature of Ethical Dilemmas -Ex. Bribery, conflict of interest, proprietary information -Among purchasing members, where to draw the line in accepting favours from vendors poses ethical problems -Among product managers, issues of planned obsolescence, unnecessary packaging, and differential pricing raise ethical concerns -When it comes to salespeople , how far to go in enticing customers and how to be fair in expense account use have been prominent ethical themes -Seven themes that define moral standards for decision makers: -Honest communication -Fair treatment -Special consideration -Fair competition -Responsibility to organization -Corporate social responsibility -Respect for law Causes of Unethical Behaviour Gain -The anticipation of healthy reinforcement for following an unethical course of action should promote unethical decisions Role Conflict -A very common form of role conflict that provokes unethical behaviour occurs when our “bureaucratic” role as an organizational employee is at odds with our role as the member of profession Competition -Stiff competition for scarce resources can stimulate unethical behaviour -In cases in which essentially no competition exists, there is also a strong temptation to make unethical decisions – this is because the opportunity to make large gains is not offset by market checks and balances Personality -There are certain types of personalities that are more prone to unethical decisions BU288 Chapter 12 – Power, Politics, and Ethics Week 12 Organizational and Industry Culture -Aspects of an organizations culture can influence ethics -The presence of role models helps to share the culture -Research shows that upper-level managers generally tend to be naïve about the extent of ethical lapses in those below them Whistle-blowing -Whistle-blowing – disclosure of illegitimate practices by a current or former organizational member to some person or organization that may be able to take action to correct these practices -The whistle may be blown either inside or outside of the offending organization, depending on the circum
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