Ethics programs 4pg ss

Ethics programs 4pg ss - Some Methods of Controlling...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Some Methods of Controlling Unethical Behavior Using Agents Use agent (e.g., trade assn.) to certify seller. Use agent (expert) to certify the commodity. Use government to certify the commodity or the seller (licensing). Other government regulatory interventions in which government agents control the behavior by directive. Note that the use of agents to certify or to direct, i.e., the delegation to agents, simplifies the decision task for the consumer. But it inserts an additional stage in the choice process, and that can be costly. Using incentives/reward systems Negative rewards for individuals who generate undesirable behaviors/ outcomes (e.g., lower commissions for returns based on misrepresentation). Positive rewards for desirable behavior/outcomes produced by individuals. Tie positive/negative rewards to organizational outcomes (e.g., tax incentives for fewer workplace injuries). Note that the incentives can be set and monitored by agents such as government, but that the nature of incentives means that the choices of response behavior are made by the actors. Those actors can still make inappropriate choices due to insufficient or badly-designed incentives or preferences that diverge from the expected. Although the actors receive positive or negative rewards, the decision task placed on them may
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Ethics programs 4pg ss - Some Methods of Controlling...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online