BUAD 304 Video lecture notes

BUAD 304 Video lecture notes - BUAD 304 Video lecture notes...

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BUAD 304 Video lecture notes LEADER AS ETHICAL DECISION MAKER Where do you stand? What do “ethics” mean to you? o Personal values, company values Does ethical behavior in business add values What is ethics? Ehtikos o A disposition to behave in a certain way o To lead a particular kind of life Business Ethics o Compromises principles and standards that guide behavior in the world of business o Is right or wrong, acceptable or unacceptable behavior within the organization o Is determined by key stakeholders (set the values and ethics of the firm) What stake holders should the company serve? o Customers, employees, suppliers, shareholders, suppliers of capitals, government, community. o Ethical issues come up when you don’t know who to serve, stakeholders determine what is ethical or not A few myths of business ethics o Business is inherently value neutral It’s simply maximizing profit- actually there’s nothing value neutral o To be successful in business, you have to “go along” o Being ethical in business means playing by the rules
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o If I am a “good” person, I will be a “good” professional Common unethical acts Lying to supervisors Falsifying records Alcohol and drug abuse Conflict of interest Stealing Gift/entertainment receipt in violation of company policy Uncommon ethical acts Specific examples Types of acts Ford Pinto Sexual harassment Union Carbide- Bhopal Deceptive advertising Space shuttles breaking confidentiality Enron, Tyco, Aldephia Bribes Worker & public safety Environmental pollution Improper accounting practices Key Causes of Unethical Behavior Overly aggressive financial or business objectives Unrealistic schedule pressures Helping the organization survive Rationalizing that others do it Resisting competitive threats Saving jobs
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Key influences on Ethical Behavior Internal o Personal values o Personality Excessive drive to succeed High Machiavellianism External o Senior management influence o Supervisor influence o Performance pressures o Lack of punishment o Friends/coworker influence Enron Culture Hired and promoted aggressive, achievement-oriented executives Pressured executives to make their numbers Weak control of how numbers created “Yes Man” culture among executives Bonuses and money highly valued Little value for teamwork Strong push to reach optimistic expectations Profits at all costs! Greed is not bad but it can lead to ethical problems
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Facing Ethical issues What is an ethical issue? o Moral confusion o Moral disagreement o Conflicting “goods” How do you know when you are facing an ethical issue? o The “gut” test o Legal guidelines o Normative guidelines Normative guidelines for making ethical choices Utilitarian o Definition: greatest good for the greatest number o Emphasizes: Efficiency Productivity High profits o
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