Chapter 7

Organizational Relationships and Conflicts in Ethical Decision Making

Key Influences on Ethical Behavior

society

corporate culture

peers & coworkers

strength of the individual’s personal values

opportunity

exposure to others that behave (un)ethically– informal relationships– formal relationships

Responsibility of the Corporation as a Moral Agent

chartered as citizens of a state and nation, therefore, they have all the right s & responsibilities of individuals

responsible to society for its decisions

business ethics & social responsibility are assigned to the organization as an entity

must require compliance with ethical policies representing the interests of all stakeholders

Variation in Employee Conduct

10%-will take advantage of situations to further their own personal interests

40%-will go along with the work group on most matters

40%-will try to follow company policies & rules & have a strong grasp of the corporate culture

10%-maintain formal standards that focus on rights, duties & rules

Socialization...

the process through which a person learns the values & behavior patterns considered appropriate by an organization or group

has a significant influence on ethical behavior

ethical conflict arises when the values & norms of the individual conflict with those taught through socialization

Role-Set...

the total of all role relationships in which an individual is involved because of his or her position in an organization– role sets may help predict ethical behavior– persons in the same department are socialized

similarly and share the same specialization & knowledge base

– members of an organization have more in common with one another than with members of other organizations

Differential Association...refers to the idea that people learn ethical or unethical behavior while interacting with others who are part of their role-sets or other intimate personal groups– if interaction is with those who behave unethically, parallel

behavior may be expected– superiors have strong influence on the ethics of their

subordinates– differential association with peers & opportunity are better

predictors of unethical behavior than is the person’s own ethical belief system

Whistle Blowing...

when unethical or illegal behavior occurs in the organization and individual interpersonal conflict occurs

exposing an employer’s wrongdoing to outsiders such as the media or government regulatory agencies

provides an in-house mechanism for employees or voice concerns– usually anonymous

Organizational Pressure & Ethical Decision Making

success in organizations is determined through the achievement of organizational goals

internal organizational pressure stemming from role-set relationships & differential association is a major predictor of unethical behavior

top management & superiors play crucial roles in developing the environment that influences ethical behavior

Opportunity Creates Ethical Dilemmas

opportunity is a set of conditions that limit unfavorable behavior or reward favorable behavior– rewards may be internal (self-worth, enjoyment)– rewards may be external (raises, promotion)

a person who behaves unethically & is rewarded is likely to continue the behavior; punishment is a more suitable deterrent

Opportunity also comes from Knowledge

a person with information, expertise or competitive knowledge has the opportunity to exploit this knowledge

long term employment with one company leads to gatekeeping-socializing newer employees regarding culture, tradition, rules, unwritten traditions, etc.

trainers & mentors influence new employees behavior

Conflict Resolution...

occurs when it is not clear which goals or values take precedence-those of the organization or a group within the organization– personal-organizational conflict– personal-societal conflict– organizational-societal

Improving Ethical Behavior

ethical behavior depends on:– the embedded organizational value system

(corporate culture)– significant others– personal value preferences