Edition
Don 13th Hellriegel & John W. Slocum, Jr.
Prepared by Argie Butler, Texas A&M
University
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2
Prepared by Argie Butler, Texas A&M
University
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1. Describe the stages of moral and ethical development
2. Explain and apply the core concepts used by
individuals and organizations to make ethical
decisions
3. Describe some ethics-based initiatives for fostering
diversity in organizations
4. Explain the nature of stakeholder responsibility and
its ethical basis
Chapter 2: PowerPoint 2.1
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Insights
Proactively transformed an ethics scandal
Emphasizes importance of transparency
Advanced and ensured outstanding ethics and
governance practices
Chapter 2: PowerPoint 2.2
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Stages through which individuals evolve, ranging
from the lowest stage (obedience and punishment
orientation) to the highest stage (universal ethical
principles)
No assumption that everyone progresses through
all stages
Chapter 2: PowerPoint 2.3
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Universal Principles
Universal Principles
Social Contract
Social Contract
Law & Order
Law & Order
Interpersonal
Interpersonal
Instrumental
Instrumental
Obedience & Punishment
Obedience & Punishment
Childhood
through
Adulthood
Chapter 2: PowerPoint 2.4
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The mental capacity to determine how universal human
principles that cut across the globe should be applied to
personal values, goals, and actions. The moral principles
in moral intelligence include:
Integrity:
acting consistently with principles, values,
and belief, telling the truth; standing up for
what is right; and keeping promises
Responsibility: taking responsibility for personal choices;
admitting mistakes and failures; embracing
responsibility for several others
Compassion: actively caring about others
Forgiveness: letting go of ones own mistakes; and letting
go of others mistakes
Chapter 2: PowerPoint 2.5
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Insights
Results are important, equally important are the
means to achieve results
Ethical issues are serious
Employees have ethical obligations
Chapter 2: PowerPoint 2.6
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Ethics-Based
Principles
Determination
of
Rights
Ethical
Intensity
Concern
for
Affected
Individuals
Benefits
and Costs
Chapter 2: PowerPoint 2.7
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Magnitude
Magnitude
of
of
plus
Consequence
Consequence
Probability
Probability
of
of
Effect
Effect
plus
plus
plus
Concentration
Concentration
of
of
Effect
Effect
Social
Social
Consensus
Consensus
plus
Proximity
Proximity
plus
Temporal
Temporal
Immediacy
Immediacy
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2: PowerPoint 2.8
Magnitude of Consequences: the harm or benefits
accruing to individuals affected by a decision or behavior
Probability of Effect: the likelihood that if a decision
is implemented it will lead to the harm or benefit
predicted
Social Consensus: the amount of public agreement
that a proposed decision is bad or good
Chapter 2: PowerPoint 2.9
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Temporal Immediacy: the length of time that elapses
between making a decision and when the consequences
of that decision are known
Proximity: the sense of closeness (social, cultural,
psychological, or physical) that the decision maker has
for victims or beneficiaries of the decision
Concentration of effect: the inverse function of the
number of people affected by a decision
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part.
Hedonist principle: Do whatever is in your own selfinterest
Might-equals-right principle: Do whatever you
are powerful enough to impose on others without
respect to socially acceptable behaviors
Organization interests principle: Act on the basis
of what is good for the organization
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part.
Means-end principle: Act on the basis of whether
some overall good justifies any moral transgression
Utilitarian principle: Act on the basis of whether the
harm from a decision is outweighed by the good in it
that is, the greatest good for the greatest number
Professional standards principle: Act on the basis
of whether the decision can be explained before a
group of your peers
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part.
Disclosure principle: Act on the basis of how the
general public would likely respond to the disclosure of
the rationale and facts related to the decision
Distributive justice principle: Act on the basis of
treating an individual or group equitably rather than on
arbitrarily defined characteristics (e.g., gender, race,
age)
Golden rule principle: Act on the basis of placing
yourself in the position of someone affected by the
decision and try to determine how that person would
feel
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part.
Our system of capitalism is built on investor trust
trust that corporate leaders and boards of directors
will be good stewards of their investments and
provide investors with a fair return. There is no doubt
that some leaders of corporations have violated that
trust.
William George, Former Chairman and CEO,
Medtronic, and Author, True North: Discover Your
Authentic Leadership
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part.
Leaders must commit to and model ethical behaviors
and decisions
Develop a code of ethics and follow it
Have procedures for organization members to report
unethical behavior, such as whistle-blowing policy
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part.
Involve leaders and employees in identifying and
solving ethical problems
Include ethics in performance appraisal
Publicize the organizations ethical orientation
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in Chapter 2: PowerPoint 2.16
part.
Benefitswhatever a party considers desirable
Costswhatever a party considers undesirable
Requires a determination of the interests and values of
those affected by the decision(s)
One partys benefits in a decision may create or be
perceived to create costs for one or more other parties
Conflicting assessments can lead to different
interpretations of ethical responsibilities
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part.
Complex and continually changing
One dimension focuses on who is entitled to benefits
or participation in decisions
Union-management negotiations frequently involve
conflicts and dilemmas over managements rights to
hire, promote, fire, reassign union employees, and
outsource work
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part.
Procedural justice: the perceived fairness of the
rules, guidelines, and processes for making
decisions
Interactional Justice: the quality of interpersonal
treatment individuals receive during the use of
organizational procedures
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part.
Managers should be given specific and clear instructions
on procedures
Managers should be trained in how to administer the
review
Results should be discussed with employees
Employee participation should be allowed in the review
process (e.g., setting goals, providing input on
performance)
The review should be developmental (e.g., indicate how
to improve)
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in Chapter 2: PowerPoint 2.20
part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in Chapter 2: PowerPoint 2.21
part.
People with different perspectives and approaches need
to be valued
Recognize both the learning opportunities and the
challenges of a culturally diverse workforce
Create an expectation of high standards of performance
and ethics from everyone
Stimulate personal development and support openness
to ideas
Make workers feel valued
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part.
Mature: born from 1925 through 1944
Baby boomers: born from 1945 through 1964
Generation X: born from 1965 through 1981
Generation Y: born from 1982 through 2000
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in Chapter 2: PowerPoint 2.23
part.
All generations attach importance to family, integrity,
achievement, love, and competence
Everyone wants respect; they just define it differently
Trust matters
Leaders are wanted who are credible and trustworthy
Organizational politics are seen as a common problem
No one really likes change, unless it benefits them
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or or duplicated, posted to a publicly accessible website, in whole or in Chapter 2: PowerPoint 2.24
part.
Generation Y respondents think that 22 percent of their
Gen Y coworkers as a group are ethical
Generation X respondents think that 28 percent of Gen Y
coworkers as a group are ethical
Baby boomer respondents think that 16 percent of Gen Y
coworkers as a group are ethical
Is this due to small numbers bias: The tendency to view a
few incidents, cases, or experiences with individuals as
representative of a larger population
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part.
Harassment: verbal or physical conduct that denigrates
or shows hostility or aversion toward an individual
because of that persons race, skin color, religion,
gender, national origin, age, or disability
Impacts of Harassment
Creates an intimidating, hostile, or offensive work
environment
Unreasonably interferes with an individuals work
performance
Adversely affects an individuals employment opportunities
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part.
Sexual harassment: unwelcome sexual advances,
requests for sexual favors, and other verbal or
physical conduct of a sexual nature
Quid pro quo harassment: submission to
harassment is used as the basis for employment
decisions
Hostile work environment: occurs when an
employee is subjected to comments of a sexual
nature, offensive sexual materials, or unwelcome
physical contact as a regular part of the work
environment
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part.
Define harassment
Prohibition statement
Complaint procedure
Disciplinary measures
Protection against retaliation
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part.
Verbal harassment
Physical harassment
Visual harassment
Sexual favors
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part.
Understand and perhaps change key aspects of the
organizations culture
Understand and perhaps change key aspects of the
ethical dimensions of the organization culture,
leadership that models ethical behaviors, and formal
policies and mechanisms to ensure ethical decisions
Portfolio of diversity initiatives, diversity policies, and
supportive diversity practices
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in Chapter 2: PowerPoint 2.30
part.
Learning Insights
Top leaders must set tone and expectations for
ethical conduct and diversity
Diversity means embracing it as part of company
culture, viewing it as integral to the business, and
rewarding it
Develop diversity strategy with measurable
components and feedback indicators
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part.
Stakeholder responsibility: leaders and other
employees have obligations to identifiable groups
that are affected by or can affect the achievement of
an organizations goals
Stakeholders: individuals or groups that have
interests, rights, or ownership in an organization and
its activities
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part.
EMPLOYEES
Pay and benefits
Safety and health
Rights at work/global labor standards
Fair/ethical treatment in hiring, reviews, promotion, and
related areas
SHAREHOLDERS
Demands for efficiency/profitability
Viability (sustainability)
Growth of investment
Ethical disclosure of financial information
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part.
CUSTOMERS
Competitive prices
Quality and safe products
Respect for customers privacy
Concern for environment
Truthful/ethical advertising and sales practices
SUPPLIERS
Meet commitments
Repeat business
Fair trade practices/ethical treatment
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part.
Learning Insights
First responsibility is to the doctors, nurses and
patients, to mothers and fathers and all others who
use our products and services
Responsible to employees and communities
Responsible to stockholders
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part.
Pattern of resource use that strives to meet current
human needs without compromising the ability of
future generations to meet their own needs
United Nations Division for Sustainable Development
identifies 96 core indicators of sustainable
development within a framework that contains 14
themes
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part.
Disclosure
Communication and engagement
Proactive management
Creating shareholder value
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in Chapter 2: PowerPoint 2.37
part.
1. Go to www.xerox.com. In the search box, type in
corporate governance guidelines. Open the document
titled Corporate Governance Guidelines at Xerox. Identify
at least two of the specific ethical principles that are
reflected in this document. What is a specific provision that
illustrates each of the principles identified?
2. Review the Learning from Experience feature on Anne
Mulcahy, chairman and former CEO of Xerox, and other
discussions of her leadership in this chapter. How would
you evaluate her in relation to each of the six attributes of
the diversity competency presented in Chapter 1? For
each attribute on which Mulcahy is evaluated, identify the
specific statement(s) about her that serve as a basis of
your assessment.
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part.
3. Think of an organization in which you have been employed
(or are currently employed). What are your assessments
of the stage of moral development and moral intelligence
of the manager for whom you worked? What specific
examples of this managers behaviors and decisions serve
as the basis for your assessments?
4. What are the similarities and differences between the
organization interests principle and the utilitarian principle?
5. What are the similarities and differences between the
professional standards principle and the distributive justice
principle?
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part.
6. From your personal perspective, what is your assessment of
the ethical intensity of the grading system and practices
used by an instructor in a course that you have completed?
Your assessment should include an assessment of each of
the six components of ethical intensity.
7. What specific aspects of procedural justice are suggested in
the Change Competency feature on James McNerney, CEO
of Boeing?
8. How would you assess Generation Y individuals as a group
with respect to their general pattern of ethical behaviors and
decision making within the work environment? Explain. If a
generalization is possible, what is your overall assessment?
Explain.
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part.
9. How did (or does) an organization for which you have worked
(or do work) compare with the policies, practices, and goals of
Verizons workplace diversity as presented in the Diversity
Competency feature? Give specific comparisons of similarities
and/or differences.
10. What specific ethical principles for guiding decisions and actions
are illustrated in the Ethics Competency feature titled Johnson
& Johnsons Stakeholder Ethics and Principles? You should
relate specific statements in the code to specific ethical
concepts.
11. Sustainable development is discussed as an application of
stakeholder responsibility. Think of an organization for which
you have worked (or currently work). In what ways did it
implement or fail to implement sustainable development
initiatives?
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part.
Ethical Incident #1
1. What ethical principle or principles reflect your
decisions?
2. How would you assess the ethical intensity in
this situation?
Ethical Incident #2
1. What ethical principle or principles reflect your
decision?
2. How would you evaluate the ethical intensity in
this situation?
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in Chapter 2: PowerPoint 2.42
part.
Ethical Incident #3
1. What ethical principle or principles reflect your
decision?
2. How would you assess the ethical intensity in this
situation?
Ethical Incident #4
1. What ethical principle or principles reflect your
decision?
2. How would you assess the ethical intensity in this
situation?
Chapter 2: PowerPoint 2.
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part.
1. Critics of CRAs assert that they are too intrusive,
ineffective, and unnecessary and that they can cause as
many problems as they solve. Identify the specific
reasons and examples that might justify these criticisms.
2. How would you assess the ethical intensity of CRAs
from the perspective of the employer? From the
perspective of the employees in a consensual
relationship?
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part.
3. What specific ethical principles might be used to justify
the use of CRAs? Explain.
4. What ethical principles might be used by employees in
consensual relationships to oppose signing such an
agreement? Explain.
5. Do you personally favor or oppose the use of CRAs in
the workplace? Explain.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2: PowerPoint 2.45