Management Communication About Ethics The Difficulties of Managing for Ethics.
-
Upload
wilfred-skinner -
Category
Documents
-
view
215 -
download
1
Transcript of Management Communication About Ethics The Difficulties of Managing for Ethics.
![Page 1: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/1.jpg)
Management Communication About
EthicsThe Difficulties of Managing for
Ethics
![Page 2: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/2.jpg)
Vocabulary: “Business Ethics”
•What is “Business” ?
•What is “Ethics” ?
![Page 3: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/3.jpg)
Business is inherently social
• Business has its own culture• Enron, Paypal, your office
• Business Transforms Culture• Kiewit, FNB, community outreach
• Business is about relationships• Workers, subcontractors, suppliers
![Page 4: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/4.jpg)
Business: Its purpose/goal
• Lone Ranger/I am an Island View:
The purpose of business is to make me money, and increase stockholder value
(Milton Friedman)
![Page 5: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/5.jpg)
Alternate Stakeholder View:
• Business should make money, but it has many stakeholders– groups/individuals who have a stake in what the business does. Owners are not the only one’s with a stake (Freeman)
![Page 6: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/6.jpg)
Your business behavior makes the world Better or Worse for people:
• The way you treat your customers
• The way you treat your employees or coworkers or patients
• The way you treat your boss/company
• The way you contribute to the local community
![Page 7: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/7.jpg)
Responsibilities in Business:
• To your employer
• To Customers
• To employees
• To boss/es
• To your community
• To your family
• To your God
![Page 8: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/8.jpg)
“Ethics” isn’t “legal” Difference between the Law and Ethics:
• Some legal issues are neither ethical or unethical.
• Some ethical issues have no laws to support them.
• Law often tries to encourage ethical behavior:
– Better to have self-regulation than more gov’t regulations
![Page 9: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/9.jpg)
Compliance and Ethics Program
Compliance with Laws
Ethical Behavior
SWEET SWEET SPOTSPOT
![Page 10: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/10.jpg)
Ethics and Regulation
• Government regulation often is designed to promote ethical behavior:– SOX– OSHA Regulations– EPA Regulations– Federal Sentencing Guidelines
![Page 11: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/11.jpg)
Federal Sentencing Guidelines
• 1. Having Standards• 2. Assigned Responsibility - Adequate
Resources• 3. Due diligence in Hiring• 4. Communications and Training• 5. Monitoring, Auditing, Reporting• 6. Promotion and Enforcement of Ethical
Conduct• 7. Reasonable Steps to Prevent Misconduct
![Page 12: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/12.jpg)
Company Ethics
• Company Policy often has some basis in the compliance regulations and legal statutes and fine schedules set up by government.
• But Personal ethics requires personal decision-making, rooted in values.
![Page 13: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/13.jpg)
Many think Ethics is just about what to NOT do: “Don’t do __!!”
![Page 14: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/14.jpg)
But ethics is more than just what not to do
• Minimal: What we shouldn’t do • Don’t steal, don’t kill, don’t lie
• Better: What we should do (justice) • Be fair, Be honest, Fulfill duties, work hard
• Best: What we could do to make things excellent for all of us…
• Mutual of Omaha Project, Real Estate
![Page 15: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/15.jpg)
The Point is: Realize the good you do in society!
• Businesses do have an effect on society and culture. Business is not just about making money.
![Page 16: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/16.jpg)
Moral Psychology
WHY DO PEOPLE DO WRONG
THINGS?Milgram Experiment
![Page 17: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/17.jpg)
Question: Why do Soccer mom’s sometimes drive like jerks?
![Page 18: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/18.jpg)
Question: Why do people forge signatures and documents?
![Page 19: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/19.jpg)
Why do people stretch or edit the truth, or exaggerate?
![Page 20: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/20.jpg)
Moral Development: Why do people do unethical things?
• Why did the soccer mom drive like a jerk?
• Why did my student cheat on the exam?
• Why did people at Enron do unethical things?
• Why do subcontractors cut corners?
![Page 21: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/21.jpg)
Some reasons people do wrong:
• Ignorant• In a hurry• Thoughtless• Didn’t plan ahead• Financial difficulties• Pressure from organization• Not clear communication from management• Lazy• Want a quick buck• They are a Bad evil wicked person
![Page 22: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/22.jpg)
More Moral Psychology:
WHY DO PEOPLE DO THE RIGHT
THINGS?
![Page 23: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/23.jpg)
Kohlberg’s theory of moral development
• Stage 1: Obedience and Punishment• Stage 2: For self-benefit• Stage 3: For sake of reputation (good boy)• Stage 4: Maintain Social order• Stage 5: Contractual-Legalistic orientation• Stage 6: Conscience/Principle Orientation
![Page 24: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/24.jpg)
Moral Principles for Living and Working
• Banker Friend: “look in the mirror rule”
• Showgirl from Las Vegas: Grandma rule
• Golden Rule: do unto others…
• Silver Rule: do no harm…
• What rules do you use?....
![Page 25: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/25.jpg)
Business Ethics Issues
• Fraud
• Abusive Behavior/Harassment
• Conflicts of interest
• Defective products
• Bribery
• Theft (patents, copyrights, etc)
![Page 26: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/26.jpg)
Guiding Questions
• Questions to help decide if the situation or decision has ethical dimensions
– Is it legal but unethical?– Is it necessary?– Does it involve a core ethical principle such
as honesty, integrity, truthfulness, etc.?
![Page 27: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/27.jpg)
Guiding Questions: Info
• Information gathering questions– Who are the stakeholders and what are their
rights?– Consider the source, reliability, and accuracy
of all relevant information.– Who should be involved in this decision?– Do I have enough information to make a
sound ethical decision? If not, how do I get it?
![Page 28: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/28.jpg)
Questions to help identify and evaluate alternatives
– Am I rationalizing to justify what I want to do?– Am I using anyone for my own personal gain? (Who
will be injured and how)– Are there conflicting loyalties to stakeholders?– What would result in the long run if everyone did this?
![Page 29: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/29.jpg)
Guiding Questions: Conclusion
• Questions that help in reaching a decision– Could I defend my position before the Board of
Directors, the CEO, or the media?– What would ______________________ do? (Fill in
the name of the best role model you know.)– Will this seem to be the right decision a year from
now? Five years from mow?– Do I have the moral courage to take the more ethical
course of action? (Am I willing to pay the price for my convictions?)
![Page 30: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/30.jpg)
Moral Muteness
• The fact that managers rarely talk about ethics directly. Managers talk instead about:
– a. organizational interests
– b. practicality
– c. economic good sense
![Page 31: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/31.jpg)
In reality, many of their decisions are actually guided by
• a. morally defined standards codified in law
• b. professional conventions
• c. social mores
![Page 32: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/32.jpg)
And they defend moral activities such as:
• a. service to customers
• b. effective cooperation among personnel
• c. use of resources for company’s benefit
![Page 33: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/33.jpg)
Go it Alone:
• Managers struggle with ethical issues, but don’t talk to one another about it much:
• “Morality is a live topic for individual managers but it is close to a non-topic among groups of managers.”
![Page 34: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/34.jpg)
Communication& Follow-Through are Essential
• While normative expectations are explicitly given through legal rulings, regulatory agencies decrees, professional codes, organizational policies and social mores, if these are not communicated well, and acted upon, the message will not get out.
![Page 35: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/35.jpg)
What is communicated?Ethics Materials: Mission
ValuesCode of conduct/ethicsPoliciesDecision methodsYour culture
Ethics program: Who is the Ethics Officer? How to make contact?
Senior Management Commitment to Ethics:
Why organizational ethics matters?
![Page 36: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/36.jpg)
Methods of Communication
Evaluate current ethics communication lines– Formal and informal– downward, upward, and two way
Clear, consistent, credible messages across communication lines
![Page 37: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/37.jpg)
More about Methods of Communication
Hiring Announcements Website Email Brochures Meetings – Formal & Informal Orientation sessions Newsletters Manuals Code Handbooks w/certifications Badges and Wallet Cards Key Fobs
![Page 38: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/38.jpg)
Causes of Moral Muteness:
• 1. Threat to Harmony: moral talk often requires some challenge and confrontation
![Page 39: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/39.jpg)
Causes of Moral Muteness:
• 2. Threat to efficiency: • a. if done with ideological exhortations it
• i. does not facilitate problem solving
• ii. doesn’t usually clarify issues• iii. seems self-serving
![Page 40: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/40.jpg)
Causes of Moral Muteness:
• Threat to Efficiency (cont’d):
• b. moral talk adds an extra burden to business decisions—seen as distraction
• c. Adds additional rules and regulations, may hinder quick decisions
![Page 41: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/41.jpg)
Causes of Moral Muteness:
3. Threat to image of Power and Effectiveness
• a. moral ideals highlight imperfections in current practices
• b. managers don’t want to expose their own moral illiteracy
• c. lower managers are expected to solve their own problems
![Page 42: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/42.jpg)
Consequences of Moral Muteness
• 1. Moral Amnesia: forget that ethics is part of business
• Ex: Milton Friedman acts as though business should be concerned only with profit, not social responsibility, yet he alludes to 8 important ethical issues: no fraud, no deceit, fair competition, respect law, respect contracts, recognize employee and investor rights, maximize consumer satisfaction and freedom
![Page 43: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/43.jpg)
Consequences of Moral Muteness
• 2. Narrowed conception of morality: Discuss business only in terms of strategy and common sense, and avoid discussing the ethical reasons for the decision. Ethics is construed to be only for the severely immoral—rules to punish breakers.
![Page 44: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/44.jpg)
Consequences of Moral Muteness
• 3. Moral Stress: managers who don’t discuss the ethical issues will have more stress that they internalize
![Page 45: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/45.jpg)
Consequences of Moral Muteness
• 4. Neglect of Abuses: Many moral issues are simply not organizationally recognized and addressed. “Many moral abuses are ignored, many moral ideals are not pursued, and many moral dilemmas remain unresolved.”
![Page 46: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/46.jpg)
Consequences of Moral Muteness
• 5. Decreased authority of moral standards: The less we talk about it, the less those standards will seem real.
![Page 47: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/47.jpg)
Not Just Cheerleading
• Charismatic Leadership and forceful commands bring about short term change, but long term changes require shared values which provide a common vocabulary for identifying and resolving problems.
![Page 48: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/48.jpg)
How to make Changes
• Must provide an opportunity for open discussion without any danger of retribution or corporate punishment.
![Page 49: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/49.jpg)
Making Changes
• 2. Important to help all involved realize that they hold similar long-run objectives and value common principles
– Help make shared commitments seem basic/core
– Less likely to become contentious if unity is emphasized
– Legitimate dissent will be more cordial and controlled if ground-rules are set up first.
![Page 50: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/50.jpg)
Making Change Happen
3. Role of Senior Managers:– Must demand that these ethical
conversations take place– Need to build these into fabric of
organizational life– Interventions require patience
![Page 51: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/51.jpg)
Management Creates a Culture
![Page 52: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/52.jpg)
Management is All About Ethics
• “Typically, unethical business practice involves the tacit, if not explicit, cooperation of others and reflects the values, attitudes, beliefs, language, and behavioral patterns that define an organization’s operating culture. Ethics, then, is as much an organizational as a personal issue. Managers who fail to provide proper leadership and to institute systems that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.”
![Page 53: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/53.jpg)
WHAT GREAT LEADERS DO MOST- the most commonly expressed demands
Gallup Organization
VISIONING
MENTORING
CHALLENGING EXPERIENCES
KNOWING SELF
MAKING SENSE OF EXPERIENCES
STABILIZING VALUES
BUILD A CONSTITUENCY
7DEMANDS
![Page 54: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/54.jpg)
“The true test of character is how we behave when we don’t know what to do.”
John Holt
ValuesGallup Organization
![Page 55: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/55.jpg)
Gallup ValuesCommunication
We have an obligation to communicate. Here, we take the time to talk with one another and to listen. We believe that information is meant to move and that information moves people.
Respect
We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment.
Integrity
We work with customers and prospects openly, honestly, and sincerely. When we say we will do something, we will do it. When we cannot or will not do something, then we won’t do it.
Excellence
We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be.
![Page 56: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/56.jpg)
Tone at the Top Gallup Organization
The challenge at the top is to lead in accordance with the true values
of the organization.
If your organization does not have an entrenched value system, don’t claim that you do. Just
writing it down doesn’t make it so.
![Page 57: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/57.jpg)
Enforcement
• Reality: Codes and rules without enforcement and adherence are useless.
• Question: How do we ensure compliance with legal rules and corporate policies?
![Page 58: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/58.jpg)
Types of EnforcementThe best policy is to prevent wrongdoing
1. Getting Compliance (preventative)• Training and Education (‘I didn’t know’)• Review: Audit for compliance and quality • Incentives: compensation and recognition • Model: Leadership talks, and walks the talk
2. Punishment (responsive)• Clear Sanctions in place• Ethics Committee (method in place)• Someone with oversight responsibility
![Page 59: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/59.jpg)
Summary
• Avoid Moral Muteness through Communication
• Good leadership will help create a strong corporate culture of ethics/compliance
• Talking the talk and walking the walk both are essential
![Page 60: Management Communication About Ethics The Difficulties of Managing for Ethics.](https://reader035.fdocuments.in/reader035/viewer/2022062517/56649f065503460f94c1b739/html5/thumbnails/60.jpg)
Final Thoughts
• Often, doing the right thing is clear, even if its not easy
• We tend to cut corners for short-term apparently inconsequential issues, but this can come back to haunt us
• Having Ethical Habits takes practice, and some thoughtfulness.