The Role of Values and Ethics at Work

The Role of Values and Ethics at Work Chapter 7 © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Values ªValues: 9 Can mask hypocrisy 9 Must enter into daily practices of the organization 9 Must reflect enduring commitments ªLeaders must: 9 Examine their own value systems 9 Put good intentions into concrete actions that others can witness © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -2

When to Clarify or Reinforce Values ª Red flags: 9 Members lack understanding about how they should behave as they attempt to meet goals 9 Different individuals and groups have different value systems 9 Top leaders send mixed messages about what is important 9 Day-to-day life is disorganized 9 Members complain about the organization 9 The organization has values, but does not practice them © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -3

The Importance of Values 1. To survive and achieve success, an 2. 3. 4. organization must have a sound set of values Leaders must adhere to those values To meet challenges, organizations must be prepared to change everything about itself Be open to change, but always remain true to core values © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -4

IBM Core Values ªRespecting the individual ªGiving the best customer service ªPerforming every job with excellence © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -5

Values and the Importance of Courage Values in the American workplace: ªHonesty ªRespect ªService ªExcellence ªIntegrity © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -6

Values and the Importance of Courage ªWhen people define character: 9 What they say is important 9 What they do is more important 9 What they sacrifice for is most important © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -7

Values and the Importance of Courage ªLeadership situations are characterized by: 9 Ambiguity 9 Uncertainty 9 Danger ªLeaders must act in spite of these factors ªLeadership requires courage to act and live by one’s convictions © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -8

Traditional Definitions of Good and right have been defined in terms of: Power The will of God Personal integrity Natural simplicity Pleasure The greatest good for the greatest number Duty and right action © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -9

Power ªNiccolo Machiavelli 9 The best individuals adapt to market forces and become masters of manipulative relations 9 Flattery, deceit, and murder may be necessary to win and retain power 9 Ends justify means and might makes right © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -10

Personal Integrity ªGerman philosopher Friedrich Nietzsche believed: 9 Human resoluteness, born of independent judgment, was the highest good 9 Individuals should be independent in thought and strong in conviction 9 The best humans exhibit moral virtue (wisdom, justice, courage, and other ideals), regardless of loss or gain © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -11

Natural Simplicity ªFrenchman Jean-Jacques Rousseau wrote that: 9 Nature in essence is good, ergo so are human beings 9 To achieve the highest good, one must strive to be purely natural 9 Corruption comes only with civilization © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -12

Will of God ªChristianity 9 No other body of thought has been embraced by so many people 9 The core of Christian character is based on the life and teachings of Jesus of Nazareth 9 The ethic Jesus taught was to love God and to love humanity ªBelief in love is the ethical ideal of millions of people © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -13

Pleasure ªThe idea that pleasure is the highest state of goodness dates back to Aristippus (435 -366 B. C. ) 9 Experiencing pleasure and avoiding pain should be human goals 9 Pleasure of the moment should not be postponed for uncertain future pleasures © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -14

Greatest Good for the Greatest Number ªMoral philosophy of utilitarianism: 9 Reflects the ethics of both American democracy and Marxist communism 9 Proposes weighing the consequences of moral behavior and considering the interests of everyone involved © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -15

Pragmatism ªPragmatism 9 what is true must be based on evidence, and philosophical beliefs should be evaluated in terms of the role they play in solving life’s practical problems 9 “That which is good is that which works” © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -16

Duty and Right Action ªImmanuel Kant 9 People must choose the obligations that become their duty 9 People must be responsible for their own actions 9 A person with character will choose duty to conscience and will not succumb to base desires © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -17

Honesty as a Leadership Value ªEffective leaders hold truth as a central value and the foundation for other values 9 The Bible: “Know the truth and it will set you free” 9 Shakespeare: “To thine own self be true” 9 Herb Kelleher, former CEO of Southwest Airlines: “Be yourself” © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -18

Full-Swing Values ªFull-swing values: 9 Used to assess the strength of one’s values 9 Important for people in leadership positions 9 A full-swing is needed to hit a “home run” • True for questions of right and wrong, good and bad © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -19

Full-Swing Values ªPoint 1: know one’s values ªPoint 2: cherish one’s values ªPoint 3: declare one’s values ªPoint 4: act on one’s values ªPoint 5: act habitually on one’s values © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -20

Full-Swing Values ªIn every field, the highest level of leadership is full-swing 9 Leaders are impelled to act because the act is deemed good 9 Conscience dictates that the act is the right thing to do ªIntegrity 9 The quality of doing the right thing for the right reason is called © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -21

Leadership and Values Culture shapes a leader’s values, which influences actions ªAfrican Society: 9 Ubuntu represents a collection of values, including harmony, compassion, respect, human dignity, and collective unity 9 Each of us is human through the humanity of other humans © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -22

How Leader Behavior Influences Employee Conduct and Organizational Reputation ª Leaders who are immoral and nonprincipled: 9 Are difficult to forgive 9 Lack moral authority 9 Are not trusted or respected © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -23

How Leader Behavior Influences Employee Conduct and Organizational Reputation ªThe leader’s values determine the rightness and wrongness of what they do 9 The leader’s actions set the standard for other’s behavior and performance on the job 9 Leaders who are honest, unselfish, and dedicated help the group succeed © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -24

Six Values of Caring Leaders Honesty Consideration Responsibility Persistence Excellence Commitment © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -25

How Leader Behavior Influences The caring leader focuses on the welfare of: ªCustomers ªEmployees ªShareholders ªCommunity © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -26

Evaluating Personal Values ªAll values on the questionnaire are positive ªCulture influences personal values ªThe questionnaire provides an overall value orientation ªA person’s life allows maximum expression of personal values © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -27

Evaluating Personal Values ªValue systems are firm by the time most people reach adulthood ªDifferent organizations reflect and endorse different value; leaders must promote the value system © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -28

Personal Value Questionnaire ªPoints to Remember: 9 Does not measure other important factors, such as aptitude, personal interests, temperament, or morality 9 Different values can enrich a group or organization © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -29

Core Values Are Points of Common Interest Figure 7 -3 © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -30

Organizational Ethics ªThe best work rules: 9 Reflect the ethical ideas of ownership 9 Are reviewed periodically 9 Are few in number 9 Are clearly stated 9 Are communicated to employees 9 Apply equally to all employees © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -31

Code of Ethics Guidelines ªA comprehensive code of ethics includes guidelines in each of these areas: 9 Government relations 9 Employee relations 9 Business relations 9 Production 9 Consumer relations 9 Community and environmental relations © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -32

Key Characteristics of Ethical Organizations ªTry to satisfy all constituencies ªDedicated to high and broad purposes ªCommitted to learning in order to remain current and responsive to change ªTry to be the best at whatever they do © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -33

Ethics at Work ªRotary International teaches leaders to test their actions against four basic questions: 9 Is it the truth? 9 Is it fair to all concerned? 9 Will it build goodwill and better relationships? 9 Will it be beneficial to all concerned? © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -34

Motives that Link Leaders and Ethics at Work ª Belief that high ethical standards and business success are positively related ª Belief that ethical commitment builds customer trust ª Belief that reputation for integrity attracts and keeps the best employees ª Wants the company to be a role model for society © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -35

Costs of Ethical Misconduct ªSocial and Economic Costs: 9 Loss of customers and sales 9 Increased turnover and loss of good employees 9 Demoralized and cynical employees 9 Loss of ownership equity © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -36

Costs of Ethical Misconduct (cont. ) ªSocial and Economic Costs: 9 High operating costs 9 Additional legal expenses 9 High funding costs 9 Loss of public trust and goodwill 9 Loss of financial viability and failure © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -37

Ethics at Work ªLeaders who believe ethics at work is about principled leadership: 9 Adhere to high standards of moral reasoning 9 Value ideals such as truth, trust, and respect 9 Rarely discuss risk prevention and public opinion © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -38

Ethics at Work ªTheir behavior is about responsibility and doing what is right because it is right 9 As a result, employees take pride in their company and engage in discretionary behavior beyond the defined requirements of the job © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -39

Ethical Climates of Organizations ª Profit-maximizing ª Trusteeship ª Quality-of-life management © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -40

Ethical Climates of Organizations ªDifferent ethical climates influence moral judgments and result in different experiences 9 What type of organization do you respect? 9 What type of organization do you have? 9 What can you do to influence the ethics of your organization? © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -41

Interpretation of Exercise 7 -1 ªProfit maximizing: 9 Reflects pre-conventional morality (Level I) 9 Focuses on self-gain and punishment avoidance ªTrusteeship: 9 Reflects conventional morality (Level II) 9 Conforms to the expectations of others and to satisfy higher authorities © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -42

Interpretation of Exercise 7 -1 ªQuality-of-life management 9 Reflects post-conventional morality (Level III) 9 To do what is right over self-interest and influence of others 9 Ethical conduct based on the highest moral principles © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -43

Ethical Climates of Organizations ªLeaders: 9 Must model and reinforce values 9 Establish the moral tone and ethical climate 9 Attract and reward ethical conduct and business performance © 2015 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 7 -44