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Cognitive moral development Stages though which people progress

in their moral development process Six stage model developed by

psycologist Lawrence Kohlberg1. The stage of punishment and obedience2. The stage of individual instrumental

purpose and exchange3. The stage of mutual interpersonal;

expectations relations and conformity4. The stage of social system and conscience

maintenance5. The stage of prior rights, social contract,

or utility6. The stage of universal ethical principles

The best way to improve employee·sbusiness ethics is to provide trainingfor cognitive moral development

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Organisational factors

The role of Corporate

Culture

Influence of leadership in

ethical decision making

Organisational structures

Impact of groups

Individual actions with

respect to Corporate

Culture

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The role of Corporate Culture

Corporate culture is a set of values, beliefs,

goals norms and ways of solving problems, shared

by the members of an organisation.

It is viewed as the shared beliefs top managers

in a company have about how they should manage

themselves and other employees and how theyshould conduct their business

It can be formal or informal

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Ethical framework for corporate cultureby Setia and Glinow

Caring Integrative

Apathetic Exacting

Concern

for people

Concern

for performance

High

High

Low 

Low 

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Audit for corporate culture

A cultural audit is an assessment of the organisationsvalues, norms, beliefs and customs.

It is usually conducted by external consultants but may

be performed internally as well.

Ethics as a component of corporate culture

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Leadership

It is the ability or authority to

guide and direct others

toward achievement of a goal

It has a significant impact on

ethical decision making

because leaders have the

power to motivate others and

enforce the organisations rulesand policies asd well as their

own viewpoints

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Leadership styles influencingEthical decisions

1. Coercive leader

2. Authoritative leader

3. Affiliative leader

4. Democratic leader

5. Pacesetting leader6. Coaching leader

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Leadership styles

A. Transactional

leadership

B. Transformational

leadership

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Power of leaders influencing Ethical decisions:

1. Coercive power

2.

Reward power3. Legitimate power

4. Expert power

5. Referent power

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Organisational structure and business ethics Centarised organisation

Decentralised organisation

Group dimensions of Organisational structure and

culture1. Formal groups

1. Committees

2. Work groups and teams

2. Informal groups

Group norms Can people control their own actions within an

organisational culture ?

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Motivating ethical behavior

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Module 2

Interpersonal relationships in organization

The role of opportunity and conflict,